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)

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

CFA Model Fit - Excellent

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

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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

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

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