Iri (conference)v2

TRUST, WEAK TIES AND INNOVATION

Andrew Maxwell Ph.D.May 19th, 2014

• Increasingly sourced from, and shared with, weak ties 1

• Managed through informal relationships and incomplete contracts2

• Requires new approach to managing relationship risk3

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

10:15Introductions 10:25 Linking trust, weak ties and innovation 10:45Individual reflection 11:00 Review of online exercise 11:05Examples 11:10Group report back 11:30Feedback and discussion 11:55Wrap up and next steps 12:00Lunch

Agenda

Close working relationships Frequent communication Co-ordinated management Aligned objectives Overlapping knowledge / experience

Strong ties are the traditional source of innovative ideas and idea validation

Strong Ties are characterized by:

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:

Is a willingness to be vulnerable to the actions of another 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

Reduces concerns about misappropriation or misuse arising from knowledge exchange

Improves knowledge sharing, enabling rapid identification of relevant opportunities

Reducing the verification costs associated with knowledge exchange

Facilitating higher rates of knowledge absorption, increasing likelihood of use / resource deployment

Limits concerns about unanticipated outcomes

Building trust based relationships with those with whom you have weak ties:

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 individual’s ability to assess trustworthiness Need to discuss risks of not forming relationships

Transforming organization to rely on trust, rather controls, is challenging

TrustControl

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

Lewicki and Bunker (1995)

Level of trust changes over time

Knowledge based trust

Competence based trust

Identification based trust

Behavioral manifestations that build trustDimensions

Trustworthy

Consistency Displays of behavior that confirm previous promises

Benevolence Exhibits concern about well-being of others

Alignment Actions confirms shared values and/or objectives

DimensionsTrus

tworthy




Capability

Competence Displays relevant technical and/or business ability

Experience Demonstrates relevant work/training experience

Judgment Confirms ability to make accurate and objective decisions

DimensionsTrus

tworthy




Capability




Trusting

Disclosure Shows vulnerability by sharing confidential information

Reliance Willingness to be vulnerable through task delegation Receptiveness Demonstrates ‘coachability’ and willingness to change

DimensionsTrus

tworthy




Capability




Trusting


Reliance Willingness to be vulnerable through task delegation Receptiveness Demonstrates ‘coachability’ and willingness to change

Communication

Accuracy Provides truthful and timely informationExplanation Explains details & consequence of information providedOpenness

Open to new ideas or new ways of doing things

Trust Mistrust

Suspicion Distrust

Inte

nt a

ligns

with

ben

evol

ence

Action don’t meet expectations

Trust damaging

Trus

t vio

latin

g

Trust, building, damaging & violating

10:15Introductions 10:25 Linking trust, weak ties and innovation 10:45Individual reflection 11:00 Review of online exercise 11:05Examples 11:10Group discussion 11:30Feedback to workshop and discussion 11:55Wrap up and next steps 12:00Lunch

Agenda

• Identify trust behaviors manifest by weak ties – that have built or damaged trust1

• Rank these behaviors – from building trust to damaging trust2

• In groups, discuss key behaviors and discuss the impact of organizational design3

• Present insights to the workshop, to help identify organizational implications4

Workshop activities Exercise 1/2 as individuals, exercise 3/4 as groups

Manifestations

Build Trust Damage Trust Violate Trust

Trustworthy


Shows inconsistencies between words and actions

Fails to keep promises and agreements

Benevolence Exhibit concern about well-being of others

Shows self-interest ahead of others’ well being

Takes advantage of others when they are vulnerable


Exhibits behaviors sometimes inconsistent with declared values

Demonstrates lack of shared values and willingness to compromise

Capability


Shows lack of context specific ability

Misrepresents ability by claiming to have non-existent competence

Experience Evidence of relevant work and/or training experience

Relies on inappropriate experience to make decision Misrepresents experience

JudgmentConfirms ability to make accurate and informed decisions

Relies inappropriately on third parties or erroneous information

Judges others without giving them the opportunity to explain

Trusting


Shares confidential information without thinking of consequences

Shares confidential information likely to cause damage

Reliance Shows willingness to be vulnerable through delegation

Reluctant to delegate, or introduces controls on subordinates’ performances

Is unwilling to rely on representation by others, or dismisses participation

Receptiveness Demonstrates ‘coachability’ and willingness to change

Postpones implementation of new ideas or deflecting Refutes feedback or blames others

Communication

Accuracy Provides truthful and timely information

Unintentionally misrepresents or delays information transmission

Deliberately misrepresents or conceals critical information

ExplanationExplains details and consequence of information provided

Ignores request for explanations Dismisses request for explanations

Openness Open to new ideas or new ways of doing things

Does not listen or ignores new ideas

Shuts down or undermines new ideas

Behavioral Trust Dimensions

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)

http://padlet.com/american_rob/2dvi1f2uo3






Organizational Trust Diagnostic

Trust Dimension: TRUSTWORTHYThink 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:

©


Trust Dimension: CAPABILITYThink 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.



Displaying relevant ability

Providing evidence of relevant experience

Demonstrating accurate & well considered decisions


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


Example:

Example:

Example:

©


Trust Dimension: TRUSTINGThink 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.



Showing vulnerability by sharing confidential information

Showing willingness to be vulnerable through delegating

Demonstrating ‘coachability’ and willingness to change


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


Example:

Example:

Example:

©


Trust Dimension: COMMUNICATIONThink 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.



Providing truthful and timely information

Explaining details and consequence of information

provided

Being open to new ideas or new ways of doing things


ACCURACY

EXPLANATION

OPENNESS

Unintentionally misrepresenting or delaying information

transmission

Ignoring requests for explanations

Not listening or ignoring new ideas


Example:

Example:

Example:

©

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

10:15Introductions 10:25 Linking trust, weak ties and innovation 10:45Individual reflection 11:00 Review of online exercise 11:05Examples 11:10Group discussion 11:30Feedback to workshop and discussion 11:55Wrap up and next steps 12:00Lunch

Agenda

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

Andrew Maxwell Fox School of Business Temple University

[email protected] 416 433 9805

Thank you

mailto:[email protected]

Iri (conference)v2

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