Transformation Quotient: Competence need living in VUCA (Volitile, Uncertain, Complex, Ambiguous)...
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Transcript of Transformation Quotient: Competence need living in VUCA (Volitile, Uncertain, Complex, Ambiguous)...
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Transformation Quotient: Navigational Competence of Mobile Executives in Changing Times
An empirical study
Victoria Woo PhDWeatherhead School of Management
Sept 19, 2014
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AgendaIntroductionDefinitionsResearch QuestionHypothesesEmpirical FindingsDiscussionsLimitations
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Thriving in Transition – Relevant & Timely?Due to many exogenous factors, among them.. • Globalization• Technological advancement• Shifting consumer preferences and attitudesResults in:• Relocation, downsizing, shifting priorities,
inevitably leading to transitions for the employees• Individuals are experiencing more and more
transitions, professionally and personally.(Reiche & Harzing, 2011)
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Reconsidering research focus on ‘expat’ versus general populations
The number of companies who send at least 1% of their employees on long term postings (<12 months) is sharply up from 27% in 2008 to 46% in 2011(E&Y April 2012 report) EY Tmagazine 07 2012 http://tmagazine.ey.com/insights/the-expat-evolution/
33 %Percentage of companies that have at least 1% of their workforce on an assignment away from home
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Change is: hard
inevitable
People are reluctant to
change
Transitions often come as a surprise
(Lewin, 1947; Oreg, 2003)
People generally don’t like to changeVarious concerns as people experience change
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Transitions are scary, filled with uncertainty, teeming with ambiguity; they are difficult, lonely and isolating.
Scary UncertaintyAmbiguityDifficult
Disorienting
How do we transform our perception of transitions from one of detriment to one of benefit?
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How do we transform our perception of transitions from one of detriment to one of benefit?
Transitions are building blocks of well-being (eudaimonia), and they can be BENEFICIAL
Thrive in the Age of Flux
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Research MotivationHappiness(thriving) is highly valued across the world1.
We seek to understand how to thrive in the modern world in flux:• How and why do individuals experience transitions differently and
under what context?• What are the cognitive, emotional and behavioral factors
contributing to thriving as told in their transition narratives? • How are resources leveraged and generated in their transition
narratives?• Is there a new type of agility and receptivity to change that help
explain thriving in transition?
1 (Diener, Sapyta, & Suh, 1998)
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Scope and Definitions• Phenomenological implication of transitions• Transition is recognized as a fundamental aspect of human
development. When current realities are disrupted, individuals may experience a “inner re-orientation and self-redefinition” in order to successfully incorporate change into their lives. – Assimilating and accepting unexpected or anticipated
transitions involves a temporal narrative of creating a distinct sense of the “before” and “after” which necessarily relies on recall and (re)interpreting a chronology of events and emotions.
• Examples: expatriate relocation, promotion, retirement
(Bridges, 1999, 2004)
(Kralik, Visentin, & Van Loon, 2006)
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What is Thriving? • A temporary desirable state (Chaplin)• A gauge, self-regulating mechanism where we attempt to gain a sense of
improvement (Porath, Bateman, Hall, Fukami, Kolb)– Self adaptation(Tsui, Ashford)– Guiding activities directed by goal (Kanfer)
• Hedonic & Eudaimonic psychological functioning (Ryan & Deci, Waterman)• Learning, in particular in social settings (Brown, Dugiuld, Gheradi, Wenger); which
leads to applied knowledge (Dweck, Elliott); in turn leading to positive health (Alfredson, Grzywacz)
• When embedded in social systems, social contagion is observed (Miller, Stiver)• A situational mechanism(Hedstorm, Swedberg) with progressive momentum,
where positive resources are renewable:– Positive knowledge (Feldman)– Positive meaning (Wrzsniewki, Dutton)– Positive affect (Frederikson)– Positive resources (Dutton, Roberts)
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Potential antecedents to ‘eudaimonia’ aka Thriving
• Happiness Hypothesis (Hadit, 06)– A divided mind; dynamic interplay between opposites yields opportunity for happiness– Adversarial growth catalyzing self concept re-orientation yielding expression of
personality traits, character adaptation and alignment as well as writing of an emergent life story
– Emotions guide the journey, elevation of positive emptions– Morality and emerging wisdom (Shweder, Sternberg)
• Determinants may include:– Age - older, adaptation levels higher (Brickman, Campbell, Michalos, Parducci)– Personality expression of temporal variation in coping efficiencies (Miller Mangam,
Mullen Suis, Fletcher)– Activity levels (Csikszentmihali)– Economic factors (Juster Stupford)– Dispositional factors (Costa, McCrae), dispositional optimism (Sheier, Carver)– Life events (Headey, Wearing)– Goals and goal orientation(Emmons, Omadi, Wearing)– Successful coping (Folkman, Lazarus) ->success leading to growth (Riegel, Learner,
Gigriac). ;learned resourcefulness (Rosenbaum)– Social support (Cohen, Syme, Turner), Family coping model (McCubbin Patterson)
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Defining thriving in various contexts• Thriving at work is conceptualized as a desirable subjective experience—a
temporary internal property of being in which individuals experience a sense of learning in a positive direction and experience a sense of vitality (Spreitzer et al., 2005).
• The sense of thriving may serve as an internal gauge, consistent with self-regulation models, providing a cognitive and affective mechanism to evaluate oneself against external or internal standards that motivate behavioral choices (C. Porath, Spreitzer, Gibson, & Garnett, 2011).
• Theory of Thriving in aging, thriving is a process between person, human environment and nonhuman environments. These three interacting factors are fluid, and continually create dynamic influences on one’s ability to thrive. (Bengtson, Burgess, & Parrott, 1997; Haight, Barba, Tesh, & Courts, 2002).
• In psychology, flourishing is a state where individuals experience development, growth, and progression with an upward trajectory, seeking optimal functioning—not merely surviving or maintaining status quo (Hall et al., 2009).
Experience
Gauge
ProcessTemporary State
Evaluate
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Theoretical Origins• Searched for an appropriate construct that captures:– Future orientation– The relationship between balanced time relating to well-
being– Achievement orientation– Goal orientation– Readiness for change and achievement ambition
(Cunningham et al., 2002; Holt, Armenakis, Feild, & Harris, 2007; Raynor, 1969; Spenner & Featherman, 1978; Steinberg et al., 2009; VandeWalle, 1997; Zhang, Howell, & Stolarski, 2013).
• BUT nothing was quite right…
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Agile Software Development Manifesto
• Agile software development: – “Continual readiness of people who engages in
multiple transitions to rapidly, or inherently, proactively and reactively, embrace change, through cognitive, psychological and strategic tools related to behaviors, attitudes, motivation, mindset, to reinvent or transform oneself in a dynamic environment.”
(Conboy & Fitzgerald, 2004; Yusuf, Sarhadi, & Gunasekaran, 1999)
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Development of a new constructTransformation Quotient(TQ) the ability and willingness to:
– Embrace change as an ongoing and continuous activity; – Be anticipatory; with proactive and reactive readiness to act; – Have a positive view of the opportunity to flourish in new
environments; and – Fully engage in transformative power of the experience of
transitions that yield personal growth that contribute to flourishing.
• Demonstrated by one’s agility and ability to fully engage in unexpected, non-normative changes and positively react to and interact with transitions in a dynamic manner.
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Cronbach Alpha: Transformation Quotient
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Data collection and sample data• Criteria:1) participant must report more than one
transition; 2) participant must be over 18 of age• Two groups determined by birth place, youth and
current residence: 1) First order, incremental transition experiences – U.S. only we call local 2) Second order, radical transition experiences such as living and working in multiple countries – we call Global
• 390 samples: 204 U.S. only (52%), 186 global (48%)
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Moderated Mediation Model• 2 Groups: local and Global• IV:
① Improvisation Behavior ② Positive Cognitive Appraisal③ Perceived Social Support
• Mediator: Transformation Quotient• DV: Thrive in Transition• Control: Age & Education
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CFA Model Fit - Excellent
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Validity & ReliabilityValidity and Reliability Table
CR AVE MSV ASVFlourish/Thrive 0.762 0.517 0.226 0.147b_PerSocial 0.914 0.726 0.163 0.078b_TQ 0.787 0.483 0.128 0.058b_ImprovB 0.814 0.593 0.226 0.124b_Appraise 0.915 0.782 0.145 0.081
Factor Correlation MatrixFlourish/Thrive b_PerSocial b_TQ b_ImprovB b_Appraise
0.719 0.404 0.852 0.230 0.165 0.695 0.475 0.233 0.358 0.770 0.381 0.262 0.151 0.297 0.884
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Hypothesis Supported? Evidence
1
The recalled experience of Flourishing during a transition will be different for people who have lived and worked in cultures and geographic locations when compared to those who have remained in country (in this case the United States). Yes
MANOVA t-Test, all constructs significant
2aImprovisation has a stronger positive effect on Flourishing for the global group than the local group. Yes
Global:0.427***
Local 0.375***
2bPerceived Social Support has a stronger positive effect on Flourishing for the global group than the local group. No
0.192***0.378***
2cPositive cognitive appraisals of previous transitions on Flourishing have stronger effects for the global group than for the local group. Yes
0.293***0.166***
3Transformation Quotient has stronger positive effect on Flourishing for global group than for the local group. No
NS
0.135***
4aImprovisation has a stronger positive effect on to Transformation Quotient for the global group than the local group. Yes
0.341***0.311***
4bPerceived Social Support has a stronger positive effect on Transformation Quotient for the global group than the local group. No
NS NS
4cPositive Cognitive Appraisal has a stronger positive effect on Transformation Quotient for the global group than the local group. No NS NS
5aTransformation Quotient partially mediates the positive relationship between improvisation and Flourishing for both groups. No/Yes
NSNo Med
0.135**Partial
5bTransformation Quotient partially mediates the positive relationship between Perceived Social Support and Flourishing for both groups. No NS NS
5cTransformation Quotient partially mediates the positive relationship between Positive Cognitive Appraisal and Flourishing for both groups No NS NS
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Perceived Social Support
Pos CogAppraisal
TQ Controls:Gender
Edu
ImprovBehavior
Local
.378***.376***
.135**
.311***
.166***
.375***
.173**
.024(p=.729)
.332***-.046(p=.514)
***p≤.001; **p≤.01; *p≤.05
R2=.437
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TQ=Transformation Quotient
Thriving in
Transition
Perceived Social Support
Pos CogAppraisal
TQ Controls:Gender
Edu
ImprovBehavior
Thriving in
Transition
.200***
-.09(p=.127)
.293***
.427***
.292***
.089(p=.198)
.466***
R2=.506
.341***
.013 (p=.853)
.192***
Global
Mediated by TQ
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Explanatory power of model R2 Comparison between groupsR2 Overall Local Global Global > Local
TQ 0.095 0.223 137%Flourish 0.437 0.506 16%
R2 Mediation Compare Local GlobalDirect 0.396 0.433Full Mediation 0.437 0.506 Overall increase 10% 17%
Established Transformation Quotient as a nascent construct relating to thriving in transition
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Findings - SurprisesWe empirically found:
– Improvisation behavior, Perceived social support and Cognitive appraisal have a significant and positive effect on Thriving in Transition
Differences reported of individuals experiencing radical (episodic – global) compared to incremental(continual-U.S.) changes
– Improvisation behavior effect is stronger for global group (G:.0.427, L.:0.375), after mediation through TQ, global group increased, local group decreased(G:.0.466, L.:0.332)
– Perceived social support is significantly stronger for local group (almost doubles G:.0.192, L.:0.378)
– Cognitive appraisal is significantly stronger for global group (75% higher, G:0.293, L.:0.166)
Surprising & Confounding Results:– What can we learn from allowing the granularity of the complexity of
transitions through an embedded mixed methods study?
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Practical Implications• Identify candidates with certain profiles who are
more likely to thrive in relocation assignments • Learning programs to promote and develop
Transformation Quotient as a competence • Deploy tools to address the discomfort of change• Improve performance for individuals in transition• Improve the process of transition for organizations