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How Innovation Champions Lead:
The Case of Winning New Jobs
Richard H. Price
University of Michigan
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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 villageThey interviewed a woman making bamboo
stools who had to borrow 15 cents to make each
stool and pay 10 % interest per week on herloan. She was obviously trapped in a cycle of
poverty.
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How did Yunus do it?
Yunus saw something was terribly wrong, leanta few dollars to each crafts person in the village,and saw it spark initiative and enterprise
Against advice of banks and governments heestablished Grameen Bank, to make microloans,asking no collateral, now serving 2 millionenterprises, 98% women, 95% loans paid back
Nobel Prize awarded 2007
A visionary perhaps, but how did he do it?
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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?
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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 createmillions of small enterprises?
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Reframing the idea of a Bank:
Grameen (Village )Bank
Select the truly needy and most reliableborrowers [enterprising poor village women]
Use borrowers skill and motivation as an asset:
Self chosen projects [repair, livestock, crafts] Organize borrowers into small supervised
groups
Make small loans without collateral, repayableweekly over a year. New loans depend onsuccessful payback of the first loan
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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 amonth, others become eligible only after
successful payback begins by the first two
Peer pressure for success, collectiveresponsibility becomes an asset and collateral
Interest rate 16% per year, repayment rate 95%
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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
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What is a social innovation?
Generating and implementing new ideas
on how people should organize their socialinteractions
Aimed at one or more common goals or needs
May be narrow, e.g., a new technique for doingcollaborative work
Or broad in scope, e.g., the environmentalmovement
Innovation is not simply invention, it is inventionput to use (Evans, 2004)
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Streams of literature exploring social
innovation
Organization theory: Characteristics oforganizations, institutions and industries(Damanpour 1991; Rogers, 1995)
Life history studies of Gandhi, Roosevelt (Gardner,1993)
Leadership research: Characteristics and tactics ofleaders who solve problems in organizations
(Mumford, 2002) Social movement theory (McAdam, McCarthy &
Zald, 1996)
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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
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Another Social Innovation: Winning New JOBS [ WNJ ]:
Teaching People Successful Job Search Strategies
Principal Developers and CollaboratorsRobert D. Caplan
Richard H. PriceMichelle van Ryn
Amiram D. Vinokur
Recent Master TrainersSteve Barnaby
Joan CurranPaula Wishart
fn:Jobs-PP-mr26.ppt
Michigan Prevention Research CenterInstitute for Social Research
University of MichiganAnn Arbor, Michigan 48106-1248
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BEHAVIOR
Job-SearchBehavior
Effectivesearch
Persistentsearch
CONTENT
Major Topics Identifying marketable skills Networking for job leads Thinking like the employer Contacting employers Presenting oneself on
application, resume andinterview
Anticipating barriers andsetbacks
PROCESS
Intervention
Active Teachingand Learning
Elicit participation
Problem solving Social modeling Role playing Graded exposure Reinforce
appropriatebehavior
Create Supportive Environment
Unconditional positive regard Open to diverse views and choices Moderate self-disclosure Sharing experiences Social support/encouragement
OUTCOMES
Reemployment
Reducedeconomic
hardship
Improvedmentalhealth
PERSON
Mediating Processes
Job-searchskills
Job-search
self efficacy
Inoculationagainstsetbacks
Personalcontrol
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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); standardizedmanual (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 Offices
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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 = 520
Sampling
Invited to theJOBS Field Experiment
N = 2464
Randomization
CasesN = 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
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-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)
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$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)
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Depression as a Function of Pattern of Employment at T2 (2-month) 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. GroupExp. Group
DEPRESSION at T3
EMPLOYMENT STATUS AT TIME 2 AND TIME 3
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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 SecondWorld Conference on the Promotion of Mental Health and Prevention of Mental andBehavioural Disorders. London: World Federation for Mental Health.
Price, R.H., Choi, J.N., & Lim, S. (2006). Beyond the Iron Rice Bowl: Life stage andfamily 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: Effectsof 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 ResourceManagement. 13(3), 416-430.
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Winning New JOBS today
Program: Group based training in job search using behavioral scienceprinciples (Robert Caplan, Richard Price, Amiram Vinokur)
Research: Two US large scale randomized trials, one international randomizedtrial [Finland], four quasi-experimental effectiveness trials [China, Ireland,California, Maryland]
Outcomes: More rapid reemployment, higher quality jobs, positive cost benefitresults, prevents episodes of depression in high risk populations and inoculatesagainst 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
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New Challenge for WNJ: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
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Its 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
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Strategies for Scaling Up
Dissemination: Providing information andtechnical assistance [least resource intensive, littlecontrol over implementation]
Affiliation network: Formal relationship betweentwo or more parties in network [both cooperation
costs and benefits]
Central authority: control of local sites by single
organization [high control but high commitmentrequired]
(Dees et al, 2004)
Three leadership moves of
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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 normsare used to create organizational cooperation
among stakeholders
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Three Cases of Organizing Tactics for the JOBS Program by
our Innovation Champion Partners
Finland China California
Champion:
Jukka Vuori: Scientist & advocate
in the Finnish Institute for
Occupational Health
Champion:
Fang Liluo: Politician & influential
in Institute of Psychology, National
Academy of Sciences
Champion:
Tom Maloney: Social entrepreneur
and consultant to the funding
foundation
Sensing opportunity:
Unemployment as a national
political problem for Finland afterend of Soviet Union
Sensing opportunity:
Downsizing creates the threat of
dangerous political instability inPeoples Republic of China
Sensing opportunity:
Foundation wants to be put on the
map in CaliforniaProtecting the health of Californians
is foundation goal
Reframing:
JOBS will be accepted if it is
becomes Finnish and is proven to
work in Finland
Reframing:
JOBS will reduce family problems
and new jobs will reduce social
unrest
Reframing :
JOBS meets foundation goals
because unemployment has
negative effect on health
Organizing:Government alliance to create a
national program only after a
randomized trial
Logic of the welfare state,
government bureaucracy, rational
action is appropriate
Organizing:Fang Liluo gets Red Letter from
Minister and opens the doors to
agencies in seven Chinese cities
Hierarchy [go to the top], network,
guanxi, authority for
implementation
Organizing:Philanthropy finds a cause.
Funding for all partners to
implement. No state plan.
Disconnect between private
foundation goals and state plans for
dissemination
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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 Liluos insight: Unemployment can
threaten social unrest and a Red Letter will
unlock resources for widespread dissemination
of WNJ in seven Chinese cities
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Jukka Vuori as Innovation
Champion
Unemployment in Finland as a national crisisafter the end of the Soviet Union
Welfare state view that best solution [WNJ]
was needed to unemploymentJukkas insight: Creating intergovernmental
consensus on adoption of an evidence based
program, though slow, was the path tocommitment of resources, wide acceptance anddissemination
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12
7639
12
27
8
16
4
1612
20
33
75
131
48 178
221 30
52
2865
229
649 206
1017
10981
21262
55
1416263
1429802
829
1058
1235
2288
65
9595096
Tyhn groupactivities in
Finland until year 2004
Trained trainers 305(until year 2000)
Method packages 3395
Workbooks 35578
Trainer networks
7845
453
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Current Status of JOBS in each
Country Today California: Individual adoption only. WNJ stopped when
foundation funding ended, trainers continue usingintervention technology in their practice
China: Limited continuation. WNJ continues in severalcities, but no new money committed for the hundred cities
program as promised.
Finland: Sustained and expanded. WNJ sustained andadapted to new populations. Continues as a nationalprogram throughout Finland, new Jobs-like programsdeveloped and tested for youth, elderly.