Bangladesh Grameen Bank

7/30/2019 Bangladesh Grameen Bank

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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)



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
http://www.isr.umich.edu/src/seh/mprc/http://www.isr.umich.edu/src/seh/mprc/


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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)



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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


Downsizing creates the threat of

dangerous political instability inPeoples Republic of China


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

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27

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16

4

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20

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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.

Documents

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