How Innovation Champions How Innovation Champions Lead: The Case of Winning Lead: The Case of Winning

New JobsNew Jobs

Richard H. PriceRichard H. Price

University of MichiganUniversity of Michigan

An initial example of an An initial example of an innovation champion: innovation champion:

Muhammed Yunus and the Muhammed Yunus and the Grameen BankGrameen Bank

In the mid seventies Muhammed Yunus, In the mid seventies Muhammed Yunus, a Bangladeshi economist, took his a Bangladeshi economist, took his students on a field trip to a poor villagestudents on a field trip to a poor village

They interviewed a woman making They interviewed a woman making bamboo stools who had to borrow 15 bamboo stools who had to borrow 15 cents to make each stool and pay 10 % cents to make each stool and pay 10 % interest per week on her loan. She was interest per week on her loan. She was obviously trapped in a cycle of poverty.obviously trapped in a cycle of poverty.

How did Yunus do it?How did Yunus do it? Yunus saw something was terribly wrong, Yunus saw something was terribly wrong,

leant a few dollars to each crafts person in leant a few dollars to each crafts person in the village, and saw it spark initiative and the village, and saw it spark initiative and enterpriseenterprise

Against advice of banks and governments Against advice of banks and governments he established Grameen Bank, to make he established Grameen Bank, to make microloans, asking no collateral, now microloans, asking no collateral, now serving 2 million enterprises, 98% women, serving 2 million enterprises, 98% women, 95% loans paid back95% loans paid back

Nobel Prize awarded 2007 Nobel Prize awarded 2007 A visionary perhaps, but how did he do it? A visionary perhaps, but how did he do it?

Who is Muhammed Yunus Who is Muhammed Yunus and how did he create the and how did he create the

Grameen Bank?Grameen Bank? Muhammed Yunus is a social innovator Muhammed Yunus is a social innovator

who exercised his leadership to create who exercised his leadership to create a new social institutiona new social institution

Who are these people? How do they do Who are these people? How do they do what they do? Are they distinctive in what they do? Are they distinctive in some way? some way?

Can we learn from them about both Can we learn from them about both organizational innovation and organizational innovation and leadership?leadership?

Sensing opportunities: Sensing opportunities: Muhammed Yunus’ insightMuhammed Yunus’ insight

How can we get enterprise capital to How can we get enterprise capital to the poor?the poor?

Can we create a bank loan without Can we create a bank loan without conventional collateral?conventional collateral?

Can we create a system based on Can we create a system based on mutual trust, accountability and mutual trust, accountability and participation? participation?

Can mutual reliance for repayment Can mutual reliance for repayment create millions of small enterprises? create millions of small enterprises?

Reframing the idea of a Reframing the idea of a Bank: Grameen Bank: Grameen (Village )Bank(Village )Bank

Select the truly needy and most reliable Select the truly needy and most reliable borrowers [enterprising poor village women]borrowers [enterprising poor village women]

Use borrower’s skill and motivation as an Use borrower’s skill and motivation as an asset: Self chosen projects [repair, livestock, asset: Self chosen projects [repair, livestock, crafts]crafts]

Organize borrowers into small supervised Organize borrowers into small supervised groupsgroups

Make small loans without collateral, Make small loans without collateral, repayable weekly over a year. New loans repayable weekly over a year. New loans depend on successful payback of the first depend on successful payback of the first loanloan

Organizing: Creating group Organizing: Creating group interdependence as a key to interdependence as a key to success in Grameen Bank success in Grameen Bank

Groups of five borrowers, but only two Groups of five borrowers, but only two eligible for loans initiallyeligible for loans initially

Group observes the first two borrowers for Group observes the first two borrowers for a month, others become eligible only after a month, others become eligible only after successful payback begins by the first two successful payback begins by the first two

Peer pressure for success, collective Peer pressure for success, collective responsibility becomes an asset and responsibility becomes an asset and “collateral”“collateral”

Interest rate 16% per year, repayment rate Interest rate 16% per year, repayment rate 95%95%

Three leadership moves of Three leadership moves of innovation championsinnovation champions

Sensing opportunitiesSensing opportunities: (Baron, 2006; : (Baron, 2006; Hisrich et al, 2007) Entrepreneurship, Hisrich et al, 2007) Entrepreneurship, seeing opportunity where others see only seeing opportunity where others see only problemsproblems

ReframingReframing: (Goffman, 1974; Lakoff, : (Goffman, 1974; Lakoff, 1980) Framing the innovation to match 1980) Framing the innovation to match local demandslocal demands

OrganizingOrganizing: (Weick ,1979; Heath and : (Weick ,1979; Heath and Sitkin, 2001) Goal alignment among Sitkin, 2001) Goal alignment among stakeholders to motivate cooperationstakeholders to motivate cooperation

What is a social What is a social innovation?innovation?

Generating and implementing new Generating and implementing new ideasideason how people should organize their on how people should organize their social interactionssocial interactions

Aimed at one or more common goals or Aimed at one or more common goals or needsneeds

May be narrow, e.g., a new technique May be narrow, e.g., a new technique for doing collaborative work for doing collaborative work

Or broad in scope, e.g., the Or broad in scope, e.g., the environmental movement environmental movement

““Innovation is not simply invention, it Innovation is not simply invention, it is is invention put to useinvention put to use” (Evans, 2004)” (Evans, 2004)

Streams of literature Streams of literature exploring social innovationexploring social innovation

Organization theory: Characteristics of Organization theory: Characteristics of organizations, institutions and industries organizations, institutions and industries (Damanpour 1991; Rogers, 1995)(Damanpour 1991; Rogers, 1995)

Life history studies of Gandhi, Roosevelt Life history studies of Gandhi, Roosevelt (Gardner, 1993)(Gardner, 1993)

Leadership research: Characteristics and Leadership research: Characteristics and tactics of leaders who solve problems in tactics of leaders who solve problems in organizations (Mumford, 2002)organizations (Mumford, 2002)

Social movement theory (McAdam, Social movement theory (McAdam, McCarthy & Zald, 1996)McCarthy & Zald, 1996)

Types of Social Types of Social InnovationsInnovations

PrinciplePrinciple: General guideline or value. : General guideline or value. “Have a backup plan to avoid “Have a backup plan to avoid discouragement”discouragement”

ProgramProgram: Integrated set of actions : Integrated set of actions serving a specific purpose: “The JOBS serving a specific purpose: “The JOBS program”program”

Organizational modelOrganizational model: Overarching : Overarching structure for mobilizing people and structure for mobilizing people and resources for a specific purpose: “Tyhon: resources for a specific purpose: “Tyhon: National Job Search Program in Finland” National Job Search Program in Finland”

Another Social Innovation: Winning New JOBS [ WNJ ]:Teaching People Successful Job Search Strategies

Principal Developers and CollaboratorsRobert D. CaplanRichard H. PriceMichelle van Ryn

Amiram D. Vinokur

Recent Master TrainersSteve BarnabyJoan Curran

Paula Wishart

fn:Jobs-PP-mr26.ppt

Michigan Prevention Research CenterInstitute for Social Research

University of MichiganAnn Arbor, Michigan 48106-1248

BEHAVIOR

Job-Search Behavior

• Effective search

• Persistent search

CONTENT

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

PROCESS

Intervention

Active Teachingand Learning

• Elicit participation• Problem solving• Social modeling• Role playing• Graded exposure• Reinforce

appropriate behavior

Create Supportive Environment

• Unconditional positive regard• Open to diverse views and choices• Moderate self-disclosure• Sharing experiences• Social support/encouragement

OUTCOMES

Reemployment

Reduced economic hardship

Improved mental health

PERSON

Mediating Processes

• Job-search skills

• Job-search self efficacy

• Inoculation against setbacks

• Personal control

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)

Contacted at 4 MESC OfficesN = 31,560

T1 pretest(N = 1801)

Job SeminarIntervention(54% Participation Rate)

T2 2-month posttest(80% Response Rate of T1)

T3 6-month posttest(87% Response Rate of T1)

T2 24-month posttest(79% Response Rate of T1)

Figure 10. Research Design of JOBS II Field StudyAdapted from Vinokur, Price & Schul (1995)

Met initial criteria and screenedN = 7,656

Met all screening criteriaN = 3402

Sampling

Depression-IndicatedScore (“Cases”)

N = 520Sampling

Invited to theJOBS Field Experiment

N = 2464Randomization

“Cases”N = 300

Surveyed atT1, T2, T3 & T4N = 204 at T1Control

ConditionN = 552

(Low Risk = 323)(High Risk = 229)

JOBS ExperimentalConditionN = 1249

(Low Risk = 763)(High Risk = 486)

JOBS InterventionParticipants

N = 671

Manipulation CheckN = 670

N = 460 N = 983

N = 487 N = 1082

N = 442 N = 988

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Screening 2-Month 6-Month

Low Risk, Experimental

Low Risk, Control

High Risk, Experimental

High Risk, Control

Depression (z-score)

$1,302

$870

$509

$1,063

$643

$331

$200

$400

$600

$800

$1,000

$1,200

$1,400

1 Month 4 Months 32 Months

Full Experimental Group

Full Control Group

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)

Depression as a Function of Pattern of Employment at T2 (2-Depression as a Function of Pattern of Employment at T2 (2-month) and at T3 (6-month) follow-upsmonth) and at T3 (6-month) follow-ups

2.24

1.69

1.89

1.72

1.64

1.8

1.62 1.64

1.5

2

U-U E-U E-E U-E

Cont. Group

Exp. Group

DEPRESSION at T3

EMPLOYMENT STATUS AT TIME 2 AND TIME 3

Recent publications based Recent publications based on the WNJ project on the WNJ project

Price, R.H. (2006). Cultural collaboration: Implementing the JOBS Price, R.H. (2006). Cultural collaboration: Implementing the JOBS program in China, California, and Finland. In C.M. Hosman (Ed.), program in China, California, and Finland. In C.M. Hosman (Ed.), Proceedings of the London Second World Conference on the Promotion of Proceedings of the London Second World Conference on the Promotion of Mental Health and Prevention of Mental and Behavioural DisordersMental Health and Prevention of Mental and Behavioural Disorders. . London: World Federation for Mental Health.London: World Federation for Mental Health.

Price, R.H., Choi, J.N., & Lim, S. (2006). Beyond the Iron Rice Bowl: Life 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 stage and family dynamics in unemployed Chinese workers. In Malcolm Warner & Grace Lee, (Eds.) Warner & Grace Lee, (Eds.) Unemployment in ChinaUnemployment in China. Routledge Curzon.. Routledge Curzon.

Choi, J.N., Price, R.H., & Vinokur, A.D. (2003). Self-efficacy changes in Choi, J.N., Price, R.H., & Vinokur, A.D. (2003). Self-efficacy changes in

groups: Effects of diversity, leadership and group climate. groups: Effects of diversity, leadership and group climate. Journal of Journal of Organizational BehaviorOrganizational Behavior, , 2424(4), 357-372.(4), 357-372.

Price, R.H., Choi, J., & Vinokur, A.D. (2002). Links in the chain of adversityPrice, R.H., Choi, J., & Vinokur, A.D. (2002). Links in the chain of adversityfollowing job loss: How financial strain and loss of personal control lead to following job loss: How financial strain and loss of personal control lead to depression, impaired functioning and poor health. depression, impaired functioning and poor health. Journal of Occupational Journal of Occupational Health PsychologyHealth Psychology, , 77(4), 302-312. (4), 302-312.

Price, R.H. & Liluo Fang (2002). Unemployed Chinese workers: Survivors, Price, R.H. & Liluo Fang (2002). Unemployed Chinese workers: Survivors, thetheworried young and the discouraged old. worried young and the discouraged old. International Journal of Human International Journal of Human Resource ManagementResource Management. 13(3), 416-430. . 13(3), 416-430.

Winning New JOBS todayWinning New JOBS today Program: Group based training in job search using Program: Group based training in job search using

behavioral science principles (Robert Caplan, Richard Price, behavioral science principles (Robert Caplan, Richard Price, Amiram Vinokur)Amiram Vinokur)

Research: Two US large scale randomized trials, one Research: Two US large scale randomized trials, one international randomized trial [Finland], four quasi-international randomized trial [Finland], four quasi-experimental effectiveness trials [China, Ireland, California, experimental effectiveness trials [China, Ireland, California, Maryland]Maryland]

Outcomes: More rapid reemployment, higher quality jobs, Outcomes: More rapid reemployment, higher quality jobs, positive cost benefit results, prevents episodes of depression positive cost benefit results, prevents episodes of depression in high risk populations and inoculates against depression in high risk populations and inoculates against depression in subsequent job losses.in subsequent job losses.

Publications: Web site: Publications: Web site: http://www.isr.umich.edu/src/seh/mprc/http://www.isr.umich.edu/src/seh/mprc/

Awards: Lela Roland NMHA Award, SAMHSA Exemplary Awards: Lela Roland NMHA Award, SAMHSA Exemplary Program AwardProgram Award, U.S. Department of Health and Human , U.S. Department of Health and Human Services Services

New Challenge for WNJ:New Challenge for WNJ: Global Economic Change Global Economic Change

Global Economic Restructuring

Economic Restructuring Political Reform Technological Development-Loss of Manufacturing -Rise of Market Economics -Technological Displacement of Jobs-Rise of Service Industries -Institutional Change -Communication Industry Growth

•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

Organized Support

Systems

•Economic support•Training•Job transition programs

Individual Differences

•Gender•Ethnicity•Education•Resilience•Social Support

Work Transitions

Individual/ Family Responses

-Task Redistribution-Role Change

Family

-Relationship Change-Migration & Economic Development

Community

-Stress and Coping-Job Search

Individual

It’s about “organizing”, Weick, It’s about “organizing”, Weick, (1979); Heath and Sitkin (1979); Heath and Sitkin

(2001)(2001)

Confronting the dynamic problem of Confronting the dynamic problem of aligning goals and coordinating actionsaligning goals and coordinating actions

Engaging norms to allow tacit Engaging norms to allow tacit coordination among actorscoordination among actors

Creation of trust, cooperation, Creation of trust, cooperation, legitimacy legitimacy

Use of social networks and Use of social networks and communication channelscommunication channels

Strategies for Scaling Up Strategies for Scaling Up DisseminationDissemination: Providing information : Providing information

and technical assistance [least resource and technical assistance [least resource intensive, little control over intensive, little control over implementation]implementation]

Affiliation networkAffiliation network: Formal relationship : Formal relationship between two or more parties in network between two or more parties in network [both cooperation costs and benefits][both cooperation costs and benefits]

Central authorityCentral authority: control of local sites : control of local sites by single organization [high control but by single organization [high control but high commitment required]high commitment required]

(Dees et al, 2004)(Dees et al, 2004)

Three leadership moves of Three leadership moves of innovation champions innovation champions

scaling up in California, scaling up in California, China and FinlandChina and Finland

Sensing opportunitiesSensing opportunities: Innovation : Innovation champions and partners see champions and partners see unemployment crisis as an opportunityunemployment crisis as an opportunity

ReframingReframing: JOBS is reframed by : JOBS is reframed by champion to meet specific local cultural champion to meet specific local cultural and political needsand political needs

OrganizingOrganizing: Political needs and cultural : Political needs and cultural norms are used to create organizational norms are used to create organizational cooperation among stakeholderscooperation among stakeholders

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

FinlandFinland ChinaChina CaliforniaCalifornia

Champion:Champion:Jukka Vuori: Scientist & Jukka Vuori: Scientist & advocate in the Finnish advocate in the Finnish Institute for Occupational Institute for Occupational HealthHealth

Champion:Champion:Fang Liluo: Politician & Fang Liluo: Politician & influential in Institute of influential in Institute of Psychology, National Psychology, National Academy of SciencesAcademy of Sciences

Champion:Champion:Tom Maloney: Social Tom Maloney: Social entrepreneur and consultant entrepreneur and consultant to the funding foundationto the funding foundation

Sensing opportunity:Sensing opportunity:Unemployment as a national Unemployment as a national political problem for Finland political problem for Finland after end of Soviet Unionafter end of Soviet Union

Sensing opportunity:Sensing opportunity:Downsizing creates the Downsizing creates the threat of dangerous political threat of dangerous political instability in People’s instability in People’s Republic of ChinaRepublic of China

Sensing opportunity:Sensing opportunity:Foundation wants to be “put Foundation wants to be “put on the map” in Californiaon the map” in CaliforniaProtecting the health of Protecting the health of Californians is foundation Californians is foundation goalgoal

Reframing:Reframing:JOBS will be accepted if it is JOBS will be accepted if it is becomes Finnish and is becomes Finnish and is proven to work in Finlandproven to work in Finland

Reframing:Reframing:JOBS will reduce family problems JOBS will reduce family problems and new jobs will reduce social and new jobs will reduce social unrestunrest

Reframing :Reframing :JOBS meets foundation goals JOBS meets foundation goals because unemployment has because unemployment has negative effect on healthnegative effect on health

Organizing:Organizing:Government alliance to Government alliance to create a national program create a national program only after a randomized trialonly after a randomized trial

Logic of the welfare state, Logic of the welfare state, government bureaucracy, government bureaucracy, rational action is appropriaterational action is appropriate

Organizing:Organizing:Fang Liluo gets Red Letter Fang Liluo gets Red Letter from Minister and opens the from Minister and opens the doors to agencies in seven doors to agencies in seven Chinese citiesChinese cities

Hierarchy [go to the top], Hierarchy [go to the top], network, network, guanxiguanxi, authority , authority for implementationfor implementation

Organizing:Organizing:Philanthropy finds a Philanthropy finds a “cause”.“cause”. Funding for all Funding for all partners to implement. No partners to implement. No state plan.state plan.

Disconnect between private Disconnect between private foundation goals and state plans for foundation goals and state plans for disseminationdissemination

Fang Liluo as Innovation Fang Liluo as Innovation ChampionChampion

Chinese government downsizing state Chinese government downsizing state own enterprises, millions of displaced own enterprises, millions of displaced workersworkers

WNJ could be adopted only through key WNJ could be adopted only through key connections to the top of the governmentconnections to the top of the government

Fang Liluo’s insight: Unemployment can Fang Liluo’s insight: Unemployment can threaten social unrest and a “Red Letter” threaten social unrest and a “Red Letter” will unlock resources for widespread will unlock resources for widespread dissemination of WNJ in seven Chinese dissemination of WNJ in seven Chinese citiescities

Jukka Vuori as Innovation Jukka Vuori as Innovation ChampionChampion

Unemployment in Finland as a national Unemployment in Finland as a national crisis after the end of the Soviet Unioncrisis after the end of the Soviet Union

Welfare state view that “best” solution Welfare state view that “best” solution [WNJ] was needed to unemployment[WNJ] was needed to unemployment

Jukka’s insight: Creating Jukka’s insight: Creating intergovernmental consensus on intergovernmental consensus on adoption of an evidence based adoption of an evidence based program, though slow, was the path to program, though slow, was the path to commitment of resources, wide commitment of resources, wide acceptance and disseminationacceptance and dissemination

12

76 39

12 27

8

16

4

1612

20

33

75

131

48178

221 30

52

2865

229

649 206

1017

10981

21262

55

1416263

1429802

829

10581235

2288

659595096

Työhön groupactivities in Finland until year 2004

Trained trainers 305 (until year 2000)

Method packages 3395

Workbooks 35578

Trainer networks

7845

453

Current Status of JOBS in Current Status of JOBS in each Country Todayeach Country Today

California: Individual adoption only. WNJ California: Individual adoption only. WNJ stopped when foundation funding ended, stopped when foundation funding ended, trainers continue using intervention technology trainers continue using intervention technology in their practicein their practice

China: Limited continuation. WNJ continues in China: Limited continuation. WNJ continues in several cities, but no new money committed for several cities, but no new money committed for “the hundred cities program” as promised.“the hundred cities program” as promised.

Finland: Sustained and expanded. WNJ Finland: Sustained and expanded. WNJ sustained and adapted to new populations. sustained and adapted to new populations. Continues as a national program throughout Continues as a national program throughout Finland, new “Jobs-like programs” developed Finland, new “Jobs-like programs” developed and tested for youth, elderly.and tested for youth, elderly.