The trouble with Maslow

1. Thinking outside the triangle: Research-based principles for engagementWes DarouCantley, QuebecCanada

3. The trouble with Maslow • There is little research evidence to support the hierarchy of needs • The theory has been taken out of context, misunderstood and misappropriated • It was intended as a tool for the emancipation of human kind

4. Self-Efficacy • An individual’s confidence in their agency • i.e. the belief in their effectiveness in performing specific tasks. • Making causal attributions about risk increases sense of competence and control

5. Self-Efficacy Theory (Albert Bandura) • Beliefs people hold about their capabilities predicts how they behave better than their actual capabilities • Perceived self-efficacy influences: • the level of challenge people set for themselves • the amount of effort they mobilize • their persistence in the face of difficulties • People can consciously change and develop their sense of self-efficacy • Organizations with a strong sense of collective efficacy exercise empowering and vitalizing influences on their staff

6. 1. Risk Identification • Environment scanning • Partner collaboration • Selecting key risk areas Feedback 5. Evaluation • Improving the process • Organizational learning • Performance reporting Understanding Context 2. Risk Assessment • Impact and likelihood • Risk ranking • Risk tolerance • Communications strategy • Gender differences • Stakeholder consultation • Accountabilities 4. Monitoring • Decision-making • Adjusting • Performance reporting 3. Risk Response • Determining options • Mitigation options • Implementing Risk management process

7. 1. Risk identification Opportunity risks: bad news trumps good Black swans: high self-efficacy may reduce subtle perceptions of danger Too much certainty about self  seeking confirmatory information Insecurity is your friend!

9. Self-efficacy and perception Human perception is not rational Bias blind-spot: people are more apt to detect bias in others than in themselves

10. RM is an integral part of processes • Is transparent and inclusive* • Is dynamic, iterative and responsive to change* • Is tailored to the context* • Takes human factors into account* • Creates value* • Explicitly addresses uncertainty* • Is systematic, structured and timely* • Is based on the best information* • Continual improvement, enhance the organization* * self-efficacy things we mentioned ISO Principles and self-efficacy

11. 2. Risk assessment: Self-efficacy and groups Group assessment is essentially a feedback exercise • Decision-making is better when participative • High self-efficacy: seek self-verifying information even if it is negative • Low self-efficacy: seek positive information even if it is not self-verifying • Therefore, question positive information

12. Op1: Human resources • Op2: Performance mgt • Op3: Information systems Operational Risks • Fin1: Funding • Fin2: Fiduciary • Fin3: Instrument Financial Risks • Dev1: Strategic • Dev2: Socio-political • Dev3: Inst capacity • Dev4: Modality • Dev5: Disasters, env, disease Development Risks Reputation / Public Confidence Key Risk Areas

13. Self-efficacy and feedback • Important aspect of determining your self-efficacy • Feedback reduces feelings of uncertainty, particularly valuable to newcomers • As diagnostic value of feedback increases, individuals search out more feedback • Seek more feedback when environment is supportive and considerate • Seek less feedback when threat is high • Can produce strong affective reactions

14. 3. Risk treatment • People have a central motivation to increase resources to achieve goals • When people perceive their environment as controllable, they will exercise efficacy • Therefore, be incremental: gradually increase resources without threatening self-efficacy • Align goals with central values; will work harder to resolve risk issues (very useful at CIDA) • Build organizational self-efficacy • Negative mood is related to creativity

15. Due Diligence

16. Typical program risk map 4  Hum Resources Fiduciary  3  Funding Performance Mgt   Capacity Impact  Policy Socio-Political  Reputation   Modality 2 Disasters Instrument  1 4 2 3 Likelihood Criteria Very low Low High Very high Impact Routine procedures sufficient to deal with consequences Could threaten results; may require monitoring Would threaten results; will require review Would prevent achievement of results; close monitoring Likelihood Very unlikely Unlikely Likely Very likely

17. Impact = significantLikelihood = medium

18. 4. Monitoring: Risk Register

19. Self-efficacy and risk tolerance Precautionary principle: In abscence of certainty, the obligation to minimize harm A perception of self-efficacy in RM gives a sense of more certainty. This allows you to tolerate higher, more realistic levels of risk.

20. Risk tolerance table

21. Upside of self-efficacy • Good self-efficacy should improve quality of risk management • This is an important value-added for senior management • Good risk management should increase self-efficacy (and you keep your job)

22. Downside of self-efficacy • May prevent you from seeing Black Swan risks • Could lead to unrealistic risk tolerance • Can be emotionally charged • Risk owners • Without accountability, observations become less accurate • May attribute negative events to others

23. Conclusions (I) • Do it in groups  better performance • Heterogeneous groups • Include unhappy people • Center on values – principle-based RM

24. Conclusions (II) • Make the process incremental • Welcome negative feedback • Stay unsure / insecure • Keep process intuitive and subjective • But get good data

25. People inherently want to do good risk managementPeople are capable of changing their self-efficacy Tenet: Be helpful

26. Continuous Learning