trust, innovation and weak ties
TRANSCRIPT
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TRUST, WEAKTIESANDINNOVATION
Andrew Maxwell Ph.D.
May 19th, 2014
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Increasingly sourced from, andshared with, weak ties1
Managed through informal relation-
ships and incomplete contracts2
Requires new approach to managingrelationship risk
3
Innovation
We discuss how to enable organizations to catalyze innovation by
changing how they manage relationships from reducing risk
through controls to managing risk through trust
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10:15 Introductions
10:25 Linking trust, weak ties and innovation
10:45 Individual reflection
11:00 Review of online exercise
11:05 Examples
11:10 Group report back
11:30 Feedback and discussion 11:55 Wrap up and next steps
12:00 Lunch
Agenda
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Close working relationships Frequent communication
Co-ordinated management
Aligned objectives
Overlapping knowledge / experience
Strong ties are the traditional source ofinnovative ideas and idea validation
Strong Ties are characterized by:
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Informal relationships Infrequent communication
Limited co-ordination of objectives
Complementary knowledge and experience
Increasingly recognized as the source of new
knowledge
As a consequence, weak ties are becoming an
increasingly important source of innovation
Weak Ties are characterized by:
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Is a willingness to be vulnerable to the actions ofanother party, without any direct means of
controlling their behaviors
It contrasts with contracts (controls) that specify:
outcome expectations and what each party will do
how performance measured, and consequences
Facilitates managing incomplete contracts
Reduces transaction costs
Encourages multiple simultaneous relationships
Accelerates knowledge exchange and actions
Trust
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Reduces concerns about misappropriation ormisuse arising from knowledge exchange
Improves knowledge sharing, enabling rapid
identification of relevant opportunities Reducing the verification costsassociated with
knowledge exchange
Facilitating higher rates of knowledge absorption,increasing likelihood of use / resource deployment
Limits concerns about unanticipatedoutcomes
Building trust based relationships withthose with whom you have weak ties:
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Challenging for organizations to reduce their
reliance on contracts to manage relationship risk
However, controls may inhibit relationship forming
Perceived to be risky to rely on trust
Relies on individuals ability to assess trustworthiness
Need to discuss risks of not forming relationships
Transforming organization to rely ontrust, rather controls, is challenging
TrustControl
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Trust develops over time
Initial trust level based on trust proxy (i.e. background)
Subsequently trust levels based on behaviors in
development of a dyadic (two way) relationship
Individuals audit manifestations of trust behaviors
that build, damage or violate trust
Organizational design and interaction context
influence individual trust behaviors
Specific trust behaviors stimulate trust responses by
other party that can build or damage trust
Becoming a relationship trust auditor
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Lewicki and Bunker (1995)
Level of trust changes over time
Knowledge
based trust
Competence
based trust
Identification
based trust
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Behavioral manifestations that build trust
Dimensions
Trustworth
y
Consistency Displays of behavior that confirm previous promisesBenevolence Exhibits concern about well-being of others
Alignment Actions confirms shared values and/or objectives
Dimensions
Trustworth
y
Consistency Displays of behavior that confirm previous promisesBenevolence Exhibits concern about well-being of others
Alignment Actions confirms shared values and/or objectives
Capability Competence Displays relevant technical and/or business ability
Experience Demonstrates relevant work/training experience
Judgment Confirms ability to make accurate and objective decisions
Dimensions
Trustworth
y
Consistency Displays of behavior that confirm previous promisesBenevolence Exhibits concern about well-being of others
Alignment Actions confirms shared values and/or objectives
Capab
ility Competence Displays relevant technical and/or business ability
Experience Demonstrates relevant work/training experience
Judgment Confirms ability to make accurate and objective decisions
Tr
usting
Disclosure Shows vulnerability by sharing confidential information
Reliance Willingness to be vulnerable through task delegation
Receptiveness Demonstrates coachability and willingness to change
Dimensions
Trustworth
y
Consistency Displays of behavior that confirm previous promisesBenevolence Exhibits concern about well-being of others
Alignment Actions confirms shared values and/or objectives
Capab
ility Competence Displays relevant technical and/or business ability
Experience Demonstrates relevant work/training experience
Judgment Confirms ability to make accurate and objective decisions
Trusting
Disclosure Shows vulnerability by sharing confidential information
Reliance Willingness to be vulnerable through task delegation
Receptiveness Demonstrates coachability and willingness to change
Co
mmunication
Accuracy Provides truthful and timely information
Explanation Explains details & consequence of information provided
OpennessOpen to new ideas or new ways of doing things
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Trust Mistrust
Suspicion DistrustIntent
alignswithbenevolence
Action dont meet expectations
Trust damaging
Trustviolatin
g
Trust, building, damaging & violating
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10:15 Introductions
10:25 Linking trust, weak ties and innovation
10:45 Individual reflection
11:00 Review of online exercise
11:05 Examples
11:10 Group discussion
11:30 Feedback to workshop and discussion 11:55 Wrap up and next steps
12:00 Lunch
Agenda
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Identify trust behaviors manifest by weaktiesthat have built or damaged trust
1
Rank these behaviorsfrom building trustto damaging trust2
In groups, discuss key behaviors anddiscuss the impact of organizational design3
Present insights to the workshop, to helpidentify organizational implications4
Workshop activities
Exercise 1/2 as individuals, exercise 3/4 as groups
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Manifestations
Build Trust Damage Trust Violate Trust
Trustworth
yConsistency
Displays of behavior that
confirm previous promises
Shows inconsistencies between
words and actions
Fails to keep promises and
agreements
BenevolenceExhibit concern about well-being of others
Shows self-interest ahead ofothers well being
Takes advantage of others whenthey are vulnerable
AlignmentActions confirms shared valuesand/or objectives
Exhibits behaviors sometimesinconsistent with declared values
Demonstrates lack of shared valuesand willingness to compromise
Capability
Competence Displays relevant technicaland/or business ability
Shows lack of context specificability
Misrepresents ability by claiming tohave non-existent competence
ExperienceEvidence of relevant workand/or training experience
Relies on inappropriateexperience to make decision
Misrepresents experience
JudgmentConfirms ability to makeaccurate and informeddecisions
Relies inappropriately on thirdparties or erroneous information
Judges others without giving themthe opportunity to explain
Trus
ting
DisclosureShows vulnerability by sharingconfidential information
Shares confidential informationwithout thinking ofconsequences
Shares confidential informationlikely to cause damage
Reliance
Shows willingness to be
vulnerable through delegation
Reluctant to delegate, or
introduces controls onsubordinates performances
Is unwilling to rely on
representation by others, ordismisses participation
ReceptivenessDemonstrates coachabilityand willingness to change
Postpones implementation ofnew ideas or deflecting
Refutes feedback or blames others
omm
unication
AccuracyProvides truthful and timelyinformation
Unintentionallymisrepresents ordelays information transmission
Deliberately misrepresents orconceals critical information
ExplanationExplains details andconsequence of informationprovided
Ignores request for explanations Dismisses request for explanations
OpennessOpen to new ideas or newwa s of doin thin s
Does not listen or ignores newideas
Shuts down or undermines newideas
Behavioral Trust Dimensions
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How do trust behaviors build, or damage trust
Online exercise http://padlet.com/american_rob/2dvi1f2uo3
Reflect on your own experiences (past 6 months),
specifically with weak ties linked to new initiatives
Were they trust building or damaging?
Mark scale and provide an example of each behavior
Think about: why these behaviors built or damaged trust
What you, or your organization, might change
Bring your insights back to the group
Individual exercise (trust behaviors)
O i ti l T t Di ti
http://padlet.com/american_rob/2dvi1f2uo3http://padlet.com/american_rob/2dvi1f2uo3http://padlet.com/american_rob/2dvi1f2uo3http://padlet.com/american_rob/2dvi1f2uo3http://padlet.com/american_rob/2dvi1f2uo3http://padlet.com/american_rob/2dvi1f2uo3http://padlet.com/american_rob/2dvi1f2uo3 -
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Organizational Trust Diagnostic
Trust Dimension: TRUSTWORTHY
Think about the behaviors of those in your organization with whom you have weak ties. Place an X on
the line to represent where you think their behavior falls on each trust dimension. Provide an example.
DISPLAYS OF BEHAVIORS
THAT BUILD TRUST
DISPLAYS OF BEHAVIORS
THAT DAMAGE TRUST
Confirming previous
promises
Exhibiting concern about
the well-being of others
Demonstrating shared
values and/or objectives
Name:__________________________ Organization:_________________________________ Email:________________________________
CONSISTENCY
BENEVOLENCE
ALIGNMENT
Showing inconsistencies
between words and actions
Demonstrating self-interest
ahead of others well-being
Exhibiting behaviours that are
inconsistent with declared values
Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell
Example:
Example:
Example:
O i ti l T t Di ti
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Organizational Trust Diagnostic
Trust Dimension: CAPABILITY
Think about the behaviors of those in your organization with whom you have weak ties. Place an X on
the line to represent where you think their behavior falls on each trust dimension. Provide an example.
DISPLAYS OF BEHAVIORS
THAT BUILD TRUST
DISPLAYS OF BEHAVIORS
THAT DAMAGE TRUST
Displaying relevant ability
Providing evidence of
relevant experience
Demonstrating accurate &
well considered decisions
Name:__________________________ Organization:_________________________________ Email:________________________________
COMPETENCE
EXPERIENCE
JUDGMENT
Showing a lack of context-
specific ability
Relying on inappropriate
experience to make decisions
Relying inappropriately on third
parties or erroneous information
Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell
Example:
Example:
Example:
O i ti l T t Di ti
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Organizational Trust Diagnostic
Trust Dimension: TRUSTING
Think about the behaviors of those in your organization with whom you have weak ties. Place an X on
the line to represent where you think their behavior falls on each trust dimension. Provide an example.
DISPLAYS OF BEHAVIORS
THAT BUILD TRUST
DISPLAYS OF BEHAVIORS
THAT DAMAGE TRUST
Showing vulnerability by sharing
confidential information
Showing willingness to be
vulnerable through delegating
Demonstrating coachability
and willingness to change
Name:__________________________ Organization:_________________________________ Email:________________________________
DISCLOSURE
RELIANCE
RECEPTIVENESS
Sharing confidential information
without thinking of consequences
Being reluctant to delegate, or
introducing controls on
subordinates' performance
Postponing implementation of new
ideas or deflecting
Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell
Example:
Example:
Example:
Organi ational Tr st Diagnostic
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Organizational Trust Diagnostic
Trust Dimension: COMMUNICATION
Think about the behaviors of those in your organization with whom you have weak ties. Place an X on
the line to represent where you think their behavior falls on each trust dimension. Provide an example.
DISPLAYS OF BEHAVIORS
THAT BUILD TRUST
DISPLAYS OF BEHAVIORS
THAT DAMAGE TRUST
Providing truthful and
timely information
Explaining details and
consequence of information
provided
Being open to new ideas or
new ways of doing things
Name:__________________________ Organization:_________________________________ Email:________________________________
ACCURACY
EXPLANATION
OPENNESS
Unintentionally misrepresenting
or delaying information
transmission
Ignoring requests for
explanations
Not listening or ignoring new
ideas
Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell
Example:
Example:
Example:
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Trust behaviors are influenced by:
Individual personality, experience and context Corporate culture and organizational design
Organizational design fosters or constrains
manifestations of trust behaviors
Are there aspects of your organization design that
cause the positive or negative behaviors observed: Rewards systems, recruitment, recognition
Workload prioritization and promotion Organization structures, policies and procedures
Leadership, culture and consequences
Bring the group reflection back to the workshop
Group exercise
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Increasing reliance on weak ties requires trust
displaying and trust auditing behaviors
Trust behaviors similar across different relationships
Trust behaviors a function of individual and context
Controls can damage or enable trust
Good organizational design promotes trust behaviors
Remove controls that constrain trust behaviors
Understanding role of trust, how it is manifest, and
organizational implications important steps in
leveraging weak ties to catalyze innovation
Wrap up slide
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Andrew Maxwell
Fox School of Business
Temple University
416 433 9805
http://www.slideshare.net/AndrewMaxwellPhD/iri-conferencev2
Thank you
mailto:[email protected]:[email protected]