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MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

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Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
NewslettersCFO Daily

Trustworthiness trumps competency on a team

Sheryl Estrada
By
Sheryl Estrada
Sheryl Estrada
Senior Writer and author of CFO Daily
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Sheryl Estrada
By
Sheryl Estrada
Sheryl Estrada
Senior Writer and author of CFO Daily
Down Arrow Button Icon
November 3, 2021, 6:36 AM ET
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Good morning,

You can be highly proficient in performing a task, but a colleague won’t want you on their team if you’re not trustworthy, and it comes down to how you communicate, according to new research.

A recent study, Voices as a Signal of Human and Social Capital in Team Assembly Decisions, published in the Journal of Management, analyzes voice behaviors or communication styles in team environments. To learn more about it, I chatted with Cynthia Maupin, assistant professor of organizational behavior and leadership in Binghamton University’s School of Management and a co-author of the study.

“We noticed a trend where in many organizations employees are encouraged to form teams and task forces on their own to solve important problems,” Maupin explains. “However, what was unclear was how people might go about forming those teams, and in particular, whether there were observable behaviors that could enable certain potential team members to stand out above the rest as desirable.” 

The researchers had the idea to investigate if different types of voice styles “signaled a desirable characteristic that others might want in a potential teammate,” she told me. At the beginning of a semester, researchers randomly assigned MBA students to teams to complete assignments. As the semester progressed, they were asked to form their own teams and provide the reasons why they chose each member. The study assessed whether human capital, defined as being highly skilled in tasks or social capital, defined as the demonstrated degree of friendliness and trustworthiness, were the determinants for choosing a teammate. The researchers wanted to examine whether a student having a challenging or supportive voice made an impact on the decision. 

“An employee would be exhibiting a challenging voice if they speak up with new ideas to encourage their fellow team members to think more critically about a plan of action, instead of simply following the status quo—more like a ‘devil’s advocate,'” Maupin explained. Meanwhile, an employee shows a supportive voice “if they are speaking up to reduce conflict and align everyone on their team toward common perspectives and interests—a ‘team player,'” she says.

The results? “We found that when comparing supportive to constructive voice behaviors, supportive voice and the trustworthiness it signals is preferred over simply demonstrating your competence through constructive voice,” Maupin says. “However, of course, those who are able to balance using both constructive and supportive forms of voice will still be highly sought after as future teammates because they are demonstrating that they are both competent and trustworthy.” 

Within remote or hybrid workforces, how can employees show they’re trustworthy and of value to the team? “Our research suggests that the initial step is that employees need to speak up in the first place,” she says. “Those who remain silent on virtual or hybrid meetings won’t have a chance to showcase their capabilities to their fellow co-workers, so they might miss out on important opportunities to team up with others. The next step after gaining confidence in speaking up is to do so in a way that is supportive by focusing on building social relationships and trust with others.”

I asked Maupin if the implications of the study can also apply to leaders in the workplace. “Leaders are tasked with even greater levels of responsibility than the MBA students in our study,” she explained. “I would expect them to be just as likely, if not more likely, to prioritize selecting people to work with based on who they trust and get along with well, as opposed to only selecting people who signal their skill competence,” she says. “Even the most skilled people can fail as team members if they are unable to successfully collaborate with others. I think many leaders recognize that challenge.”


See you tomorrow.

Sheryl Estrada
sheryl.estrada@fortune.com

Big deal

Climate Leadership in the Eleventh Hour, a new study by United Nations Global Compact and Accenture, found private sector leaders are struggling to accelerate their climate ambitions. Yet 73% of CEOs surveyed said they feel increasing pressure to act. Meanwhile, almost half (49%) of respondents pointed to supply chain interruptions due to extreme weather as a top risk. "It is clear from the CEOs we surveyed that the business community feels unprepared to deal with our climate emergency," Sanda Ojiambo, CEO and executive director of the UN Global Compact, said in a statement. More than 1,100 CEOs across 113 countries and 21 industries participated in the survey.

Courtesy of United Nations Global Compact and Accenture

Going deeper

How Management Practices Impact M&A Outcomes, a research report published November 2 in Harvard Business Review, found that firms with more structured management were more likely to engage in acquisitions. However, firms with less structured management were more likely to be acquired. The researchers leverage U.S. Census data to examine how more than 35,000 manufacturing plants employed structured management practices.

Leaderboard

Shou Zi Chew, CEO at TikTok, will step down as CFO at ByteDance to focus on running the video-focused social networking service full time, Reuters reported. Chew, who earned a spot on Fortune's 40 under 40 list, joined ByteDance, the parent company of TikTok, as CFO in March and was appointed as chief executive of TikTok in May. The company has not announced replacement plans for the CFO role. 

Maree E. Robertson was named SVP and CFO at Freeport-McMoRan Inc. (NYSE: FCX), an international mining company, effective March 1, 2022. Robertson has served as CFO, energy and minerals of Rio Tinto Group, a multinational metals and mining company, since 2019. Prior to joining Rio Tinto, she had a 17-year career at BHP Group, a multinational natural resources company, serving in a broad range of international finance functions. Robertson joined BHP in 2002 after four years in the PricewaterhouseCoopers natural resource audit practice.

Overheard

“We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated.”

—Zillow CEO Rich Barton on the company scrapping its struggling iBuyer home-flipping service, and cutting 2,000 workers, as reported by Fortune.

This is the web version of CFO Daily, a newsletter on the trends and individuals shaping corporate finance. Sign up to get it delivered free to your inbox. 

About the Author
Sheryl Estrada
By Sheryl EstradaSenior Writer and author of CFO Daily
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Sheryl Estrada is a senior writer at Fortune, where she covers the corporate finance industry, Wall Street, and corporate leadership. She also authors CFO Daily.

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