How Innovation Champions Lead: The Case of Winning New Jobs

1. How Innovation Champions Lead: The Case of Winning New Jobs Richard H. Price University of Michigan

3. An initial example of an innovation champion: Muhammed Yunus and the Grameen Bank • In the mid seventies Muhammed Yunus, a Bangladeshi economist, took his students on a field trip to a poor village • They interviewed a woman making bamboo stools who had to borrow 15 cents to make each stool and pay 10 % interest per week on her loan. She was obviously trapped in a cycle of poverty.

5. How did Yunus do it? • Yunus saw something was terribly wrong, leant a few dollars to each crafts person in the village, and saw it spark initiative and enterprise • Against advice of banks and governments he established Grameen Bank, to make microloans, asking no collateral, now serving 2 million enterprises, 98% women, 95% loans paid back • Nobel Prize awarded 2007 • A visionary perhaps, but how did he do it?

7. Who is Muhammed Yunus and how did he create the Grameen Bank? • Muhammed Yunus is a social innovator who exercised his leadership to create a new social institution • Who are these people? How do they do what they do? Are they distinctive in some way? • Can we learn from them about both organizational innovation and leadership?

8. Sensing opportunities: Muhammed Yunus’ insight • How can we get enterprise capital to the poor? • Can we create a bank loan without conventional collateral? • Can we create a system based on mutual trust, accountability and participation? • Can mutual reliance for repayment create millions of small enterprises?

9. Reframing the idea of a Bank: Grameen (Village )Bank • Select the truly needy and most reliable borrowers [enterprising poor village women] • Use borrower’s skill and motivation as an asset: Self chosen projects [repair, livestock, crafts] • Organize borrowers into small supervised groups • Make small loans without collateral, repayable weekly over a year. New loans depend on successful payback of the first loan

10. Organizing: Creating group interdependence as a key to success in Grameen Bank • Groups of five borrowers, but only two eligible for loans initially • Group observes the first two borrowers for a month, others become eligible only after successful payback begins by the first two • Peer pressure for success, collective responsibility becomes an asset and “collateral” • Interest rate 16% per year, repayment rate 95%

11. Three leadership moves of innovation champions • Sensing opportunities: (Baron, 2006; Hisrich et al, 2007) Entrepreneurship, seeing opportunity where others see only problems • Reframing: (Goffman, 1974; Lakoff, 1980) Framing the innovation to match local demands • Organizing: (Weick ,1979; Heath and Sitkin, 2001) Goal alignment among stakeholders to motivate cooperation

12. What is a social innovation? • Generating and implementing new ideas on how people should organize their social interactions • Aimed at one or more common goals or needs • May be narrow, e.g., a new technique for doing collaborative work • Or broad in scope, e.g., the environmental movement • “Innovation is not simply invention, it is invention put to use” (Evans, 2004)

13. Streams of literature exploring social innovation • Organization theory: Characteristics of organizations, institutions and industries (Damanpour 1991; Rogers, 1995) • Life history studies of Gandhi, Roosevelt (Gardner, 1993) • Leadership research: Characteristics and tactics of leaders who solve problems in organizations (Mumford, 2002) • Social movement theory (McAdam, McCarthy & Zald, 1996)

14. Types of Social Innovations • Principle: General guideline or value. “Have a backup plan to avoid discouragement” • Program: Integrated set of actions serving a specific purpose: “The JOBS program” • Organizational model: Overarching structure for mobilizing people and resources for a specific purpose: “Tyhon: National Job Search Program in Finland”

15. Another Social Innovation: Winning New JOBS [ WNJ ]: Teaching People Successful Job Search Strategies Principal Developers and Collaborators Robert D. Caplan Richard H. Price Michelle van Ryn Amiram D. Vinokur Recent Master Trainers Steve Barnaby Joan Curran Paula Wishart Michigan Prevention Research Center Institute for Social Research University of Michigan Ann Arbor, Michigan 48106-1248 fn:Jobs-PP-mr26.ppt

16. Intervention Mediating Processes PROCESS CONTENT PERSON BEHAVIOR OUTCOMES Active Teaching and Learning • Elicit participation • Problem solving • Social modeling • Role playing • Graded exposure • Reinforce appropriate behavior • Job-search skills • Job-search self efficacy • Inoculation against setbacks • Personal • control Reemployment Job-Search Behavior Reduced economic hardship Improved mental health • Effective search • Persistent search Major Topics • Identifying marketable skills • Networking for job leads • Thinking like the employer • Contacting employers • Presenting oneself on application, resume and interview • Anticipating barriers and setbacks Create Supportive Environment • Unconditional positive regard • Open to diverse views and choices • Moderate self-disclosure • Sharing experiences • Social support/encouragement

17. JOBS Delivery Protocol • Recruitment in Michigan Unemployment Offices • Five four-hour sessions, during a one-week period • Group learning, 15-20 participants per group • Male-female trainer pairs receive 160 hours of training • Standardized training protocol (8-12 pages per session); standardized manual (367 pages) • Observer quality control and constructive feedback • Local community sites (community centers, schools, hotels, union halls) Based on: Caplan, Vinokur, Price & van Ryn (1989); Vinokur, Price, & Schul (1995)

18. Contacted at 4 MESC Offices N = 31,560 Met initial criteria and screened N = 7,656 Depression-Indicated Score (“Cases”) N = 520 Met all screening criteria N = 3402 Sampling Sampling Invited to the JOBS Field Experiment N = 2464 “Cases” N = 300 Randomization Surveyed at T1, T2, T3 & T4 N = 204 at T1 Control Condition N = 552 (Low Risk = 323) (High Risk = 229) JOBS Experimental Condition N = 1249 (Low Risk = 763) (High Risk = 486) T1 pretest (N = 1801) JOBS Intervention Participants N = 671 Job Seminar Intervention (54% Participation Rate) Manipulation Check N = 670 T2 2-month posttest (80% Response Rate of T1) N = 983 N = 460 T3 6-month posttest (87% Response Rate of T1) N = 487 N = 1082 T2 24-month posttest (79% Response Rate of T1) N = 442 N = 988 Figure 10. Research Design of JOBS II Field Study Adapted from Vinokur, Price & Schul (1995)

19. Depression (z-score)

20. TOBIT predicted means of earnings per month adjusted for age, sex, education and income. Predicted Earnings Per Month From Vinokur, van Ryn, Gramlich & Price (1991)

21. 2.24 1.89 1.8 1.72 1.69 1.64 1.64 1.62 Depression as a Function of Pattern of Employment at T2 (2-month) and at T3 (6-month) follow-ups DEPRESSION at T3 Cont. Group Exp. Group 2 1.5 U-U E-U E-E U-E EMPLOYMENT STATUS AT TIME 2 AND TIME 3

22. Recent publications based on the WNJ project • Price, R.H. (2006). Cultural collaboration: Implementing the JOBS program in China, California, and Finland. In C.M. Hosman (Ed.), Proceedings of the London Second World Conference on the Promotion of Mental Health and Prevention of Mental and Behavioural Disorders. London: World Federation for Mental Health. • Price, R.H., Choi, J.N., & Lim, S. (2006). Beyond the Iron Rice Bowl: Life stage and family dynamics in unemployed Chinese workers. In Malcolm Warner & Grace Lee, (Eds.) Unemployment in China. Routledge Curzon. • Choi, J.N., Price, R.H., & Vinokur, A.D. (2003). Self-efficacy changes in groups: Effects of diversity, leadership and group climate. Journal of Organizational Behavior, 24(4), 357-372. • Price, R.H., Choi, J., & Vinokur, A.D. (2002). Links in the chain of adversity following job loss: How financial strain and loss of personal control lead to depression, impaired functioning and poor health. Journal of Occupational Health Psychology, 7(4), 302-312. • Price, R.H. & Liluo Fang (2002). Unemployed Chinese workers: Survivors, the worried young and the discouraged old. International Journal of Human Resource Management. 13(3), 416-430.

23. Winning New JOBS today • Program: Group based training in job search using behavioral science principles (Robert Caplan, Richard Price, Amiram Vinokur) • Research: Two US large scale randomized trials, one international randomized trial [Finland], four quasi-experimental effectiveness trials [China, Ireland, California, Maryland] • Outcomes: More rapid reemployment, higher quality jobs, positive cost benefit results, prevents episodes of depression in high risk populations and inoculates against depression in subsequent job losses. • Publications: Web site: http://www.isr.umich.edu/src/seh/mprc/ • Awards: Lela Roland NMHA Award, SAMHSA Exemplary Program Award, U.S. Department of Health and Human Services

24. New Challenge for WNJ:Global Economic Change Global Economic Restructuring Economic RestructuringPolitical ReformTechnological Development -Loss of Manufacturing -Rise of Market Economics -Technological Displacement of Jobs -Rise of Service Industries -Institutional Change -Communication Industry Growth Work Transitions • Organized SupportSystems • Economic support • Training • Job transition • programs • Individual Differences • Gender • Ethnicity • Education • Resilience • Social Support • School to work • Job loss & reemployment • Multiple career changes • Women enter work force • Welfare to work • Full to part time changes • Multiple jobs, overload • Early retirement Individual/ Family Responses Individual Family Community -Task Redistribution -Role Change -Relationship Change -Migration & Economic Development -Stress and Coping -Job Search

25. It’s about “organizing”, Weick, (1979); Heath and Sitkin (2001) • Confronting the dynamic problem of aligning goals and coordinating actions • Engaging norms to allow tacit coordination among actors • Creation of trust, cooperation, legitimacy • Use of social networks and communication channels

26. Strategies for Scaling Up • Dissemination: Providing information and technical assistance [least resource intensive, little control over implementation] • Affiliation network: Formal relationship between two or more parties in network [both cooperation costs and benefits] • Central authority: control of local sites by single organization [high control but high commitment required] (Dees et al, 2004)

27. Three leadership moves of innovation champions scaling up in California, China and Finland • Sensing opportunities: Innovation champions and partners see unemployment crisis as an opportunity • Reframing: JOBS is reframed by champion to meet specific local cultural and political needs • Organizing: Political needs and cultural norms are used to create organizational cooperation among stakeholders

28. Three Cases of Organizing Tactics for the JOBS Program by our Innovation Champion Partners

29. Fang Liluo as Innovation Champion • Chinese government downsizing state own enterprises, millions of displaced workers • WNJ could be adopted only through key connections to the top of the government • Fang Liluo’s insight: Unemployment can threaten social unrest and a “Red Letter” will unlock resources for widespread dissemination of WNJ in seven Chinese cities

30. Jukka Vuori as Innovation Champion • Unemployment in Finland as a national crisis after the end of the Soviet Union • Welfare state view that “best” solution [WNJ] was needed to unemployment • Jukka’s insight: Creating intergovernmental consensus on adoption of an evidence based program, though slow, was the path to commitment of resources, wide acceptance and dissemination

31. Työhön group activities in Finland until year 2004 12 33 1017 Trained trainers 305 (until year 2000) Method packages 3395 Workbooks 35578 76 39 453 75 10981 7845 131 8 2288 221 30 Trainer networks 12 27 1262 48 2 178 1235 1058 20 52 16 55 206 649 1429 12 16 802 65 28 263 4 1416 229 65 829 959 5096

32. Current Status of JOBS in each Country Today • California: Individual adoption only. WNJ stopped when foundation funding ended, trainers continue using intervention technology in their practice • China: Limited continuation. WNJ continues in several cities, but no new money committed for “the hundred cities program” as promised. • Finland: Sustained and expanded. WNJ sustained and adapted to new populations. Continues as a national program throughout Finland, new “Jobs-like programs” developed and tested for youth, elderly.