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Leadership, Innovation & Trust

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Yasmin Schaefer

on 1 September 2012

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Transcript of Leadership, Innovation & Trust

Management excellence
Openess to experience
Networking & communication
Knowledge transfer
Emotional intelligence
Empowerment as a culture Business Consulting Workshop content: Ice breaker

Why does trust matter in organisations?

Making the link - high trust & innovation.

Real world examples – Ideo & Semco

Utopian ideal or sound business practices?

How do I apply this in my organisation?

Summary and questions Leadership and Innovation:

High trust as a leadership strategy for creating an environment where innovation is delivered through an engaged workforce that ensures high performance . Definitions
“Innovation is a process involving the generation and implementation of new ideas, practices or artifacts within an organisation.” (Clegg et al 2002, p.410)

“Trust is a social capital resource – a resource that is embedded in relationships between people.” (Dovey, 2009). Why does it
matter? Disengagement “A Watson Wyatt Survey of nearly 13,000 workers in all job levels and industries reveal that fewer than two out of five employees today have trust or confidence in their senior leaders” (Caudron cited in Denton, 2009 p.11)

“Some researchers estimating that disengagement figures may be over 80 per cent in some organizations” (Pech, 2009, p.27)

“An Endaba study found that almost half of 5000 UK employees in their sample do not trust their CEO or senior management” (Balwin-Evans & Kay 2009, p.113) Making the link - Leaders who demonstrate high trust leadership through their actions and behaviours are more likely to:

Improve organisational effectiveness
Instil and encourage a sense of confidence and competence in individuals’ abilities
Encourage high performance and a more flexible, dynamic and engaged workforce.
(Cork, 2008)

Bidault and Castello (2010) discovered that a degree of trust is necessary for successful collaboration with a degree of tension that keeps innovation alive. The relationship between trust and tensions seem to follow a bell curve relationship. Enlightened trial and error succeeds over the lone genius Ideo - A mantra of “ focussed chaos” – or is it?

Philosophies of open mind, teamwork, constructive debate, defer judgement, encourage wild ideas, builds on ideas

No formal hierarchy and they have fun

Consultation with all stakeholders – internal and external

Experts in people management and process rather than technical expertise

Eclectic backgrounds not based upon seniority

Some degree of autocracy – only for determining who works on what

Tangible and achievable outcomes Collaboration, self supervision, self reflection, flexible work hours

Peer pressure and review to counter “bad behaviour and social loafing”

Business units responsible for recruitment, selection and retention

Built on principles and competencies of freedom, trust and respect

Transparency - Semco provides access to all financial data for employees to make decisions on salary levels and expense management Semco - “laissez faire approach” or is it? Utopian ideal or Appears to be lacking control, structure, process and management
Liedkta’s (1999) theory of communities of practice - supported by ethics of care & convergence of meta-capabilities
Practical outcomes for customers and learning for members simultaneously
Social interaction rather than individual production - Collaboration
Emphasis on individual learning, organisational purpose and system outcomes, quality and participative leadership - Autonomy
Stalk, Evans & Shulman (2000) note “the essence of strategy is not the structure of a company’s products and markets but the dynamics of its behaviour”. How do I apply this in my organisation? Dovey (2009) and Handy (1995) agree that trust must be governed by a set of leadership principles: has limits
requires learning.
is a human quality.
is tough
needs “touch”.
needs multiple leaders Summary Trust is vital as a foundation for effective communication, engagement and workplace relationships

Trust encourages staff to share new ideas, it increases confidence and creates a platform for implementation of these ideas

Ideo & Semco demonstrate that an innovative and high trust culture fosters success

There are set principles that can be easily applied in your business setting to engender trust and leadership Discussion sound business
practices ? Ice breaker Dan Pink - On the Science of Motivation TED 2009 Leadership and Innovation:

High trust as a leadership strategy for creating an environment where innovation is delivered through an engaged workforce that ensures high performance . Innovation & Trust
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