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© 2013 Activate Networks 1 The Multiplier Effect: How Energy, Fear and Trust Drive or Drain Innovation and Performance

CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

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Page 1: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 1

The Multiplier Effect:

How Energy, Fear and Trust Drive or Drain Innovation and Performance

Page 2: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 2

A highly energized network…

= Level 1

= Level 3= Level 2

Hierarchy

= Level 4

Question: “When you interact with this person, how does it affect your energy level?”

Page 3: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 3

= NA

= ASIA

Region

Solutions

– Managing global connectivity: Rotation and targeted attention to connecting key people across regions (e.g., strategically important growth hub in Asia).

– Developing select cross-expertise integration plans: Identified 42 cross-expertise points likely to yield breakthrough innovation and took steps to promote connectivity at those points.

– Replicating networks of high performing NPD teams: Profiled networks of successful teams and embedded project management and process practices to encourage relevant reaching out.

Realizing innovation potential across select collaborative silos

Page 4: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 4

Name # Incoming Ties Department Location % Energizing Ties % Problem Solving

/ Bus Opp Ties % Cross-Dept Ties

George A 52 Investment Banking Australia

Sharron M 48 Operations Other Asia

Stephano C 46 Financing North America

Jessica S 46 Research North America

Michael G 46 Equities North America

Pat B 43 Currncy & Commdts Australia

Deborah K 42 Financing North America

Roman N 41 Equities South America

Josh W 40 Asset Mgmt North America

Gene P 39 Investment Banking Europe

Birger S 39 Asset Mgmt Europe

Seth I 39 Equities South America

Dmitry K 38 Fixed Income China

Deborah K 38 Investment Banking North America

Johan W 37 Currncy & Commdts Australia

Ivana L 36 Other North America

Ricardo I 36 Investment Banking North America

Sylvia E 35 Fixed Income China

Richard M 34 Investment Banking Europe

Vladimir T 34 Financial Adv Svcs China

Andrey K 34 Financing North America 31%

57%

48%

50%

30%

64%

32%

45%

49%

38%

40%

45%

76%

31%

33%

30%

39%

26%

25%

45%

42%

54%

52%

58%

63%

47%

53%

64%

59%

61%

48%

33%

60%

43%

47%

49%

46%

41%

49%

40%

29%

62%

76%

53%

15%

40%

31%

94%

84%

39%

66%

49%

62%

44%

73%

54%

83%

91%

67%

87%

83%

96%

56%

Successful Leaders Know and Work Through Key Opinion Leaders…

Page 5: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 5

Name # Effective Incoming Info Ties

# Advice Incoming

Ties

XXXTenure Role

Primary Therapeutic

AreaLocation

Person 1 41 22 1 to < 3 yrs VP Metabolics NJ

Person 2 39 22 1 to < 3 yrs VPCardio- vascular

Person 3 36 26 < 1 year VPMultiple Areas NJ

Person 4 34 21 1 to < 3 yrsExec Drctr Immunology NJ

Person 5 27 16 1 to < 3 yrs VP OncologyPerson 6 23 15 1 to < 3 yrs Drctr Metabolics

Person 7 22 18 1 to < 3 yrs VPMultiple Areas NJ

Person 8 20 13 1 to < 3 yrsExec Drctr

Multiple Areas

Person 9 19 13 1 to < 3 yrsExec Drctr Metabolics NJ

Person 10 18 11 1 to < 3 yrsGp

Drctr Oncology

On-Boarding and Talent Utilization is Significantly Impacted By Energy...

Ties by Tenure

Cross-Function Ties by Tenure

Characteristics of Fast Movers (i.e., Least Tenured Connectors) Compared to Others in Same Tenure Band:

• Provide expertise across the enterprise: almost three times as many cross-function ties.

• Create enthusiasm: four times as many energizing incoming ties.

• Help others: more than two and a half times as likely to provide advice to help formulate strategies and key decisions.

Avg. number of incoming ties

Avg. number of ties from people outside function.

Least Tenured Top Connectors

Page 6: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 6

Sought by Others

Seek Out Others

Within Same Work Location

86% more frequently

33% more frequently

Outside Same Work Location

2.3X more frequently

18% more frequently

Sought by Others

Seek Out Others

Within Level 78% more frequently

23% more frequently

Outside Level

2.3X more frequently

30% more frequently

Sought by Others

Seek Out Others

Within Capability

2.0X more frequently

17% more frequently

Outside Capability

2.1X more frequently

44% more frequently

Sought by Others

Seek Out Others

Expertise, Info & Resources

2.0X more frequently

27% more frequently

High Performers Are Almost Always Considered Energizers In Their Organizations

More than three times the number of people find high performers energizing compared to others. Energized co-workers give greater effort and attract effective networkers.

Higher performers have a much greater focus on those outside of their capability (ratios are fairly similar for unit & CoE also):

High performers are more sought and seek out others more frequently than others. The comparative ratio is:

High performers are 2.8 times as likely to play a brokering role in the network by positioning themselves at key inflection points.

Notes:1) High Performers are defined as those people who received a bonus rank of 1. This represents 22% of the population.2) Ratios represent the increment of ties of high performers over those of all others on average.

High performers have significantly more ties with people outside their location:

High performers are much more likely to seek out others up and down the hierarchy. They are also more sought out by people in other grade levels.

Page 7: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 7

Energy (and Energizers) matters more than you might think…

• Energizers get more from those around them.‒ People are more engaged in a given conversation

and are more likely to devote discretionary time to these issues.

• People tend to be more innovate and creative with energizers.

• Energizers tend to win out in the internal labor market and with customers.

‒ Ability to motivate others is as, or more, important than knowing the answer.

• Energizers promote work satisfaction and learning among those around them.

• Energy spills over into follow-on interactions.‒ De-energizers can be deadly on this front.

Page 8: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 8

What Creates/Drains Energy?

My Right – Groups of Two or Three: Describe energizers — those people that you interact with and then walk away feeling better about what you are doing. Discuss:―What energizers do in interactions that creates energy.―Beyond specific behaviors, describe what energizers are

like as people.

My Left – Groups of Two or Three: Describe de-energizers — those people that can suck the life out of the room in a heartbeat. Discuss:―What de-energizers do in interactions that drain energy.―Beyond specific behaviors, describe what de-energizers are

like as people.

Page 9: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 99

Reflect For a Moment. How Would You Characterize an “Energizer”?

Connect With Others as People

Stand For Something Larger Than Themselves

Inspire Competence and Benevolence Based Trust

Use Humor (Often At Their Own Expense) Well

Are Fully Present in Conversations

See Opportunities That Connect With What Others Care About

Page 10: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 10

Of Course, Energy Has Another Side…

We all know people who can drain the life out of a group.

Page 11: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 11

Reflect For a Moment. How Would You Characterize a “De-Energizer”?

ALWAYS See Roadblocks orHave Criticisms

Don’t Create Opportunities for Others’ to be Valued

Are OftenInflexible in Their

Thinking

Don’t ShowConcern for Those

Around Them

Often Don’t Come Through on Commitments

Get Louder When People Don’t Listen

Page 12: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 12

Energy Building Behaviors

1. I strike an effective balance between tapping people in my network to get work done and connecting with these people on a personal level unrelated to our work.

2. I maintain a good balance between what I ask for and what I contribute to those in my network.

3. I consistently do what I say I am going to do and follow through on commitments I maketo people in my network.

4. I am committed (and show this commitment) to principles and goals that are larger than my own self-interest.

5. In meetings and one-on-one conversations, I engage others in realistic possibilities that capture their imaginations and hearts.

6. I am typically fully attentive in meetings and one-on-one conversations and show my interest in others and their ideas.

7. I create room for others to be a meaningful part of conversations and make sure they see how their efforts will contribute to an evolving plan.

8. When I disagree with someone’s plan or a course of action, I do so in a way that focuses attention on the issue at hand and not the individual.

9. I maintain an effective balance between pushing toward a goal and welcoming new ideas that improve the project or the process for reaching a goal.

Page 13: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 13

Example: ONA

Page 14: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 14

Example: Behavioral Feedback

Page 15: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 15

Voice in a new product development team

Network Diagram Based on Response: In either one-on-one conversations or meetings, my interactions with each person below can typically be characterized as: extremely guarded -- I am unlikely to take risks with ill-formed thoughts or ideas.

On average, people identified 4.5 others with whom they are “extremely guarded” in terms of

sharing thoughts and ideas. The minimum and maximum times that a person was cited

by others was 1-13.

Page 16: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 16

= Above Average = High

Cultural ValuesLow Flexible Culture (less than 2.12)

Below Average(2.12-2.85)

Above Average(2.85-3.57)

High Flexible Culture(greater than 3.57)

Cultural Mean: 2.85

Central employees have both very high on lowperceptions of the culture

Driving Cultural Engagement

Page 17: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 17

Strategies for reducing influence of destructive/toxic ties• Removing or minimizing stressful or

negative interactions.

• Reframing your reactions to these interactions or people.

• Converting de-energizing interactions or relationships.

• Shifting time away from (or altering activities with) unhealthy ties.

Reducing Impact of Toxic Interactions:5% Of The Interactions Often Cause 90% Of The Misery!

Page 18: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 18

Two forms of trust – competence and benevolence

Two forms of trust – competence and benevolence – are critical to effective knowledge transfer/exchange

Strong Ties(frequent and

close interaction)

Weak Ties(infrequent interaction)

Benevolence-based trust“I trust you will not harm me when given the opportunity”

Competence-based trust“I trust you know what you

are talking about”

Receipt of Useful

Knowledge

What really matters in the receipt of useful knowledge is having a high level of trust that the knowledge source is benevolent and competent

Page 19: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 19

We asked people how they made the judgment that other people are trustworthy.

They looked for six key behaviors

1. Demonstrate what you know (and what you don’t)

2. Deliver information clearly and consistently

3. Display consistency between actions and words

4. Respect others’ vulnerability and confidential

information

5. Broaden the conversation beyond work

6. Recognize and share what is valuable

6 Key Behaviors of Trustworthy People

Individual signals

Management style

Organization design

Page 20: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 20

In addition to the individual behaviors, managers have two ways they can signal trust convincingly.

7. Allow appropriate latitude in completing tasks

8. Permit mistakes and allow for uncertainty

2 strategies to create trust

Individual signals

Management style

Organization design

Page 21: CISummit 2013: Rob Cross, How Trust, Energy, and Fear Either Amplify or Paralyze Your Company's Network

© 2013 Activate Networks 21

…that demonstrates trust convincingly will assure employees of the company’s commitment to trust and knowledge sharing

9. Time and space

10. Accountability

11. Fairness

12. Transparency

An organizational context…

Individual signals

Management style

Organization design