Slide 1: SPEED OF TRUST THE ONE THING
THAT CHANGES EVERYTHING STEPHEN M. R. COVEY
Rebecca R. Merrill Slide 2: There is one thing that is common to every individual,
relationship, team, family, organization, nation, economy,
and civilization throughout the world – one thing which, if
removed, will destroy the most powerful government, the
most successful business, the most thriving economy, the
most influential leadership, the greatest friendship, the
strongest character, the deepest love.
On the other hand, if developed and leveraged, that one
thing has the potential to create unparalleled success and
prosperity in every dimension of life. Yet, it is the least
understood, most neglected, and most underestimated
possibility of our time.
That one thing is trust. Nothing is as Fast as the Speed of Trust : Nothing is as Fast as the Speed of Trust Speed happens when people . . . truly trust each other.
- EDWARD MARSHALL
If you’re not fast, you’re dead.
- JACK WELCH Getting a Handle on Trust : Getting a Handle on Trust Simply put, trust means confidence. The opposite of
trust – distrust – is suspicion. When you trust people,
you have confidence in them – in their integrity and in
their abilities. When you distrust people, you are
suspicious of them – of their integrity, their agenda,
their capabilities, or their track record. A crisis of Trust : A crisis of Trust You don’t need to look far to realize that, as global society, we have a crisis of trust on our hands. Consider recent newspaper headlines:
- “Employees’ New Motto: Trust No one”
- “Companies Urged to Rebuilt Trust”
- “Both Sides Betray the Other’s Trust”
- “20 NYSE Traders Indicted”
- “Ethics Must Be Strengthened to Rebuild People’s Trust”
- “Relationships Fall Apart as Trust Dwindles”
- “Now Who Do You Trust?” Slide 6: THE ECONOMICS OF TRUST Slide 7: Trust always affects two outcomes – speed and cost. When trust
goes down, speed will also go down and costs will go up. The Trust Tax : The Trust Tax Trust = Speed Cost The serious practical impact of the economics of trust is that in
many relationships, in many interactions, we are paying a hidden
low –trust tax right off the top – and we don’t even know it! The Trust Dividend : The Trust Dividend Trust = Speed Cost Obviously, the dividends are not just in increased speed and improved economics; they are also in greater enjoyment and better quality of life. Hidden Variable : Hidden Variable (Strategy x Execution) = Results
(S x E) = R But there is a hidden variable to this formula: trust – either the
low-trust tax, which discounts the output, or the high-trust
dividend which multiplies it: The One Thing That Changes Everything : The One Thing That Changes Everything The ability to establish, grow, extend, and restore trust with all stakeholders – customers, suppliers, investors, and co-workers – is the key leadership competency of the new global economy. Trust Myths : Trust Myths You Can Do Something About This! : You Can Do Something About This! As you go to work, your top responsibility should be to build trust.
- ROBERT ECKERT, CEO, MATTEL How Trust Works : How Trust Works Trust is one of the most powerful forms of
motivation and inspiration. People want to be trusted. They respond to trust. They thrive on trust. Whatever our situation, we need to get good at establishing, extending, and restoring trust – not as a manipulative technique, but as the most effective way of relating to and working with others, and the most effective way of getting results. Slide 15: How Trust Works Trust is a function of two things:
Character and competence.
Character includes your integri-
ty, your motive, your intent
with people. Competence includes
your capabilities, your skills, your
results, your track record. And
both are vital. Slide 16: How Trust Works With the increasing focus on ethics in our society, the character side
of trust is fast becoming the price of entry in the new global economy. However, the differentiating and often ignored side of trust-competence-is equally essential. You might think a person is
sincere, even honest, but you won’t trust that person fully if he or
she doesn’t get results. And the opposite is true. A person might have
great skills and talents and a good track record, but if he or she is not
honest, you’re not going to trust that person either. Slide 17: THE FIVE WAVES OF TRUST Slide 18: “5 Waves of Trust.” This model derives from the “ripple effect”
metaphor that graphically illustrates the interdependent nature of
trust and how it flows from the inside out. Slide 19: © 2004-2006 CoveyLink The first wave of Self trust : The first wave of Self trust The first wave, Self Trust, deals with the confidence we have in ourselves – in our ability to set and achieve goals, to keep commitments, to walk our talk – and also with our ability to inspire trust in others.
We try to become a person who is worthy of trust. The second wave: Relationship Trust : The second wave: Relationship Trust The second wave, Relationship Trust, is about how to establish and increase trust vis-a-vis others.
The key principle underlying this wave is consistent behavior. The third wave: Organizational Trust : The third wave: Organizational Trust The third wave, Organizational Trust, deals with how leaders can generate trust in different organizations. The fourth wave: Market Trust : The fourth wave: Market Trust The fourth wave, Market Trust, reflects the trust customers, investors, and others in the marketplace have in the company.
The underlying principle behind this wave is reputation. The fifth wave: Societal Trust : The fifth wave: Societal Trust The fifth wave, Societal Trust, is about creating value for others and for society at large.
The principle underlying this wave is contribution.
By contributing or “giving back,” we counteract the suspicion, cynicism, and low-trust that exist within our society.
We also inspire others to create value and contribute. Restoring Trust : Restoring Trust It is possible not only to build trust, but also to restore it. Obviously, there are some circumstances in which trust has truly been damaged beyond repair or where others may not give us a chance to restore it. See/Speak/Behave : See/Speak/Behave The purpose of this book is to enable you to see, speak, and behave in ways that establish trust, and all three dimensions are vital. Slide 27: These three dimensions are interdependent, and whenever you affect a change in one dimension, you affect a Making It Happen : Making It Happen Leadership is getting results in a way that inspires trust. It’s maximizing both your current contribution and your ability to contribute in the future by establishing the trust that makes it possible.
The means are as important as the ends. How you go about achieving results is as important as the results themselves, because when you establish trust, you increase your ability to get results the next time. And there’s always a next time. To get things done in ways that destroy trust is not only shortsighted and counterproductive; it is ultimately unsustainable. Slide 29: THE FIRST WAVE-
The Principle of Credibility Slide 30: It begins with each of us personally, continues into our
relationships, expands into our organizations, extends into our marketplace relationships, and encompasses our global society at large. Slide 31: THE 4 CORES
OF CREDIBILITY Slide 32: Leadership may have to come in a different package.
It’s got to be credible . . . . Overall, it’s about credibility,
walking the talk.
-ANNE MULCAHY, CHAIRMAN AND CEO, XEROX Slide 33: BEING CREDIBLE – TO YOURSELF AND TO OTHERS The First Wave of Trust – Self Trust – is all about credibility. It’s about
developing the integrity, intent, capabilities, and results that make
you believable, both to yourself and to others. And it all boils down to
two simple questions:
1) Do I trust myself?
2) Am I someone others can trust? Core 1 – Integrity : Core 1 – Integrity Integrity means honesty, telling the truth, and in the process, leaving the right impression. Core 2 – Intent : Core 2 – Intent Intent grows out of character. People often distrust us because of the conclusions they draw about what we do. It is important for us to actively influence the conclusions others draw by “declaring our intent.” Core 3 – Capabilities : Core 3 – Capabilities Our capabilities inspire the trust of others, particularly when they are specifically those needed for the task at hand. Our capabilities also give us the self-confidence that we can do what needs to be done. Capabilities include talent, attitude, skills, knowledge and style. Core 4 - Results : Core 4 - Results In considering results, we always need to ask two critical questions.
What results are we getting and how are we getting those results?
To increase trust, we must effectively communicate results so that people become aware of them. Slide 38: Competence The 4 Cores of Credibility Character 1.__________ 2. ________ 4. ________ 3. ___________ © 2004-2006 CoveyLink Results Capabilities Intent Integrity Defining Integrity : Defining Integrity Honesty includes not only telling the truth, but also leaving the right impression. Core 1 - IntegrityARE YOU CONGRUENT? : Core 1 - IntegrityARE YOU CONGRUENT? Congruence. A person has integrity when there is no gap between intent and behavior… when he or she is the same – inside and out.
Humility. A humble person is more concerned about what is right than about being right, about acting on good ideas than having the ideas, about embracing new truth than defending outdated positions, about recognizing contribution than being recognized for making it.
Courage. We must have the courage to do the right thing even when it is difficult. Integrity Accelerators : Integrity Accelerators Make and keep Commitments to yourself
2. Stand for something
Be Open Slide 42: These three “accelerators” – make and keep commitments to yourself, stand for something, and be open – will help you increase your integrity. They will also increase the speed and decrease the cost with which you do the important things in your life – every time! What is “INTENT” : What is “INTENT” In the dictionary, intent is defined as “plan” or “purpose.” I am convinced that no discussion of intent would be complete without talking about three things: motive, agenda, and behavior. Core 2 – IntentWhat’s Your Agenda? : Core 2 – IntentWhat’s Your Agenda? Intent has three dimensions - motive, agenda, and behavior.
Motive is the reason for doing something. When the motive is laudable, trust increases. The motive that inspires the greatest trust is genuine caring .
Agenda grows out of motive. The agenda that generally inspires the greatest trust is genuinely wanting what is best for everyone involved.
Behavior is the manifestation of motive and agenda. The behavior that best creates credibility and inspires trust is acting in the best interest of others. How to improve Intent : How to improve Intent Examine and Refine Your Motives
2. Declare Your Intent
Choose Abundance Core 3 – CapabilitiesAre You Relevant? : Core 3 – CapabilitiesAre You Relevant? One way to think about the various dimensions of capabilities is to use the acronym “TASKS.”
S tyle Core 3 – CapabilitiesAre You Relevant? : Core 3 – CapabilitiesAre You Relevant? Talents: Talents are our natural gifts and strengths.
Attitudes: Attitudes represent our paradigms – our ways of seeing, as well as our ways of being towards work, life, learning, our abilities and opportunities to contribute.
Skills: Skills are our proficiencies, the things we can do well.
Knowledge: Knowledge represents our learning, insight, understanding, and awareness.
Style: Style represents our unique approach and personality. Capabilities Accelerators : Capabilities Accelerators Run with your STrengths (and with your purpose)
Keep yourself Relevant
Know where you're Going Results-Past, Present, and Future : Results-Past, Present, and Future Key indicators by which people evaluate results. One is
past performance – your track record, your reputation, the things you’ve done, and the results you’ve already achieved. Another is current performance – how you are performing today. And the third is anticipated performance – how people think you will perform in the future. Defining “Results” : Defining “Results” On Wall Street, I learned that “results” are bottom line and the connection between results and credibility is often brutal. A company can get consistently good results, but if they miss one quarter – even by a small amount – it can be as if the prior results weren’t even there. In some ways it’s worse because the organization is now seen as unpredictable. Core 4 – ResultsWhat’s Your Track Record? : Core 4 – ResultsWhat’s Your Track Record? How to Improve Your Results
Take responsibility for results
Expect to win
Finishing strong Slide 52: THE SECOND WAVE – RELATIONSHIP TRUST
The Principle of Behavior The 13 Behaviors : The 13 Behaviors Behavior Matters : Behavior Matters The truth is that in every relationship – personal and professional – what you do has far greater impact than anything you say. You can say you love someone – but unless you demonstrate that love through your actions, your words become meaningless. You can say you want to engage in win-win negotiation – but unless your behavior shows that you really mean it, you will come across as insincere. You can say your company puts the customer first. You can say that you recognize people as your most important asset. Relationship Trust : Relationship Trust In every relationship, what we do has far greater impact than anything we can say.
Good words signal behavior, declare intent and can create enormous hope.
And when those words are followed by appropriate behavior, they increase trust, sometimes dramatically.
Covey lists 13 behaviours that can go a long way in building an environment of trust.
The first five flow initially from character, the second five from competence and the last three flow from both. The 13 behaviors : The 13 behaviors Behavior # 1 : Talk Straight
Behavior # 2 : Demonstrate Respect
Behavior #3 : Create Transparency
Behavior # 4 : Right Wrongs
Behavior # 5 : Show Loyalty
Behavior # 6 : Deliver Results
Behavior #7 : Get Better Slide 57: Behavior # 8 : Confront Reality
Behavior # 9 : Clarify Expectations
Behavior # 10 : Practice Accountability
Behavior # 11 : Listen First
Behavior # 12 : Keep Commitments
Behavior # 13 : Extend Trust The 13 behaviors Behavior # 1: Talk Straight : Behavior # 1: Talk Straight “Talk Straight” is honesty in action. It’s based on the principles of integrity, honesty, and straightforwardness. To tell the truth and to leave the right impression. And both are vital to building trust. It’s possible to tell the truth and to leave the wrong impression. Leaving the right impression means communicating so clearly that you cannot be misunderstood. Summary: Behavior # 1: Talk Straight : Summary: Behavior # 1: Talk Straight Be honest. Tell the truth. Let people know where you stand. Use simple language. Call things what they are. Demonstrate integrity. Don’t manipulate people or distort facts. Don’t spin the truth. Don’t leave false impressions. Behavior # 2: Demonstrate Respect : Behavior # 2: Demonstrate Respect We must show respect, fairness, kindness, love, and civility to individuals.
The opposite behaviour is showing disrespect, or not showing people we care.
The counterfeit of Demonstrate Respect is to fake respect or concern, or to show respect and concern for some (those who can do something for you), but not for all (those who can’t). Summary: Behavior # 2: Demonstrate Respect : Summary: Behavior # 2: Demonstrate Respect Genuinely care for others. Show you care. Respect the dignity of every person and every role. Treat everyone with respect, especially those who can’t do anything for you. Show kindness in the little things. Don’t fake caring. Don’t attempt to be “efficient” with people. Behavior #3: Create Transparency : Behavior #3: Create Transparency This is about being open, real and genuine and telling the truth in a way people can verify.
It’s based on the principles of honesty, openness, integrity, and authenticity.
The opposite of this behaviour is to hide, cover or obscure. It includes hidden agendas, hidden meanings, hidden objectives.
The counterfeit of behaviour is illusion. It’s pretending, “seeming” rather than “being,” making things appear different than they really are. Summary: Behavior #3: Create Transparency : Summary: Behavior #3: Create Transparency Tell the truth in a way people can verify. Get real and genuine. Be open and authentic. Err on the side of disclosure. Operate on the premise of “What you see is what you get.” Don’t have hidden agendas. Don’t hide information. Behavior # 4: Right Wrongs : Behavior # 4: Right Wrongs This is more than simply apologizing. It’s making up and doing what we can to correct the mistake.
This behavior is based on the principles of humility, integrity, and restitution. Its opposite is to deny or justify wrongs, to rationalize wrongful behavior, or to fail to admit mistakes until we are forced to do so.
It involves ego and pride. It’s being humbled by circumstances instead of by conscience.
The counterfeit behavior is to cover up, trying to hide a mistake, as opposed to repairing it. Summary: Behavior # 4: Right Wrongs : Summary: Behavior # 4: Right Wrongs Make things right when you’re wrong. Apologize quickly. Make restitution where possible. Practice “service recoveries.” Demonstrate personal humility. Don’t cover things up. Don’t let pride get in the way of doing the right thing. Behavior # 5: Show Loyalty : Behavior # 5: Show Loyalty This is based on the principles of integrity, loyalty, gratitude and recognition. We must give credit to others, acknowledge them for their part in bringing about results.
The opposite of giving credit is taking credit.
The counterfeit of giving credit is appearing to give credit to someone when they’re with us, but downplaying their contribution and taking all the credit when they’re not there.
The second dimension of Show Loyalty is to speak about others as if they are present.
The counterfeit of this behavior, is indulging in sweet-talk in front of people and bad-mouthing them behind their backs Summary: Behavior # 5: Show Loyalty : Summary: Behavior # 5: Show Loyalty Give credit freely. Acknowledge the contributions of others. Speak about people as if they were present. Represent others who aren’t there to speak for themselves. Don’t bad-mouth others behind their backs. Don’t disclose others’ private information. Behavior # 6: Deliver Results : Behavior # 6: Deliver Results This behavior grows out of the principles of responsibility, accountability, and performance.
The opposite behaviour is performing poorly or failing to deliver.
The counterfeit is engaging in activities instead of delivering results.
Results are always judged in relation to expectations. It is important in each situation to define the results that will build trust, and then deliver those results – consistently, on time, and within budget. Summary: Behavior # 6: Deliver Results : Summary: Behavior # 6: Deliver Results Establish a track record of results. Get the right things done. Make things happen. Accomplish what you’re hired to do. Be on time and within budget. Don’t overpromise and underdeliver. Don’t make excuses for not delivering. Behavior # 6: Deliver Results : Behavior # 6: Deliver Results We must make sure we thoroughly understand the expectation. If we really want to build trust, we have to know what “results” mean to the person to whom we are delivering.
To over-promise and under deliver will lead to depletion of trust.
With customers or with coworkers, we must try to anticipate needs in advance and deliver before the requests even come. Behavior #7: Get Better : Behavior #7: Get Better This behaviour is based on the principles of continuous improvement, learning, and change. When people see us as a learning, growing, renewing person, they develop confidence in our ability to succeed in a rapidly changing environment, enabling us to build high-trust relationships and move really fast.
This behaviour has two common counterfeits.
The first is being the “eternal student,” the person who is always learning but never producing.
The second is trying to force-fit everything into whatever we are good at doing. Behavior #7: Get Better : Behavior #7: Get Better In seeking to get better, there are two strategies that are particularly helpful : seek feedback, and learn from mistakes.
The next time we make a mistake, rather than agonizing over it, we must identify the learning from it and ways we can improve our approach to get different results next time.
We must also encourage others to take appropriate risks and to learn from failure. Summary: Behavior #7: Get Better : Summary: Behavior #7: Get Better Continuously improve. Increase your Capabilities. Be a constant learner. Develop feedback systems- both formal and informal. Act on the feedback you receive. Thank people for feedback. Don’t consider yourself above feedback. Don’t assume today’s knowledge and skills will be sufficient for tomorrow’s challenges. Behavior # 8: Confront Reality : Behavior # 8: Confront Reality This behaviour is about taking the tough issues head-on- sharing the bad news as well as the good.
Confronting reality implies demonstrating courage, responsibility, awareness, and respect.
The opposite of this behaviour is to ignore it, to act as though it doesn’t exist.
The counterfeit is to act as though we are confronting reality when we are actually evading it, i.e., skirting the real issues. Behavior # 8: Confront Reality : Behavior # 8: Confront Reality When we openly confront reality, we facilitate open interaction and fast achievement. Instead of having to wrestle with all the hard issues on our own while trying to paint a rosy picture for everyone else, we actually engage the creativity, capability and synergy of others in solving those issues.
Ideas flow freely. Innovation and collaboration take place. Solutions come much faster and better, and are implemented with the understanding, buy-in, and often the excitement of others involved in the problem-solving process. Summary: Behavior # 8: Confront Reality : Summary: Behavior # 8: Confront Reality Address the tough stuff directly. Acknowledge the unsaid. Lead out courageously in conversation. Remove the “sword from their hands.” Don’t skirt the real issues. Don’t bury your head in the sand. Behavior # 9: Clarify Expectations : Behavior # 9: Clarify Expectations Clarify Expectations is based on the principles of clarity, responsibility, and accountability.
The opposite of this behaviour is to leave expectations undefined – to assume they’re already known or to fail to disclose them so there is no shared vision of the desired outcomes. When results are delivered but not valued, everyone is disappointed and trust declines. Behavior # 9: Clarify Expectations : Behavior # 9: Clarify Expectations The counterfeit behaviour is to pretend to be clarifying expectations, but not doing enough to pin down the specifics that facilitate meaningful accountability. Or it’s going with situational expectations that shift based on people’s memories or interpretations, or what is convenient at the time.
In every interaction there are expectations. And the degree to which these expectations are met or violated, affects trust. In fact, unclarified expectations are often the cause of broken trust. Summary: Behavior # 9: Clarify Expectations : Summary: Behavior # 9: Clarify Expectations Disclose and reveal expectation. Discuss them. Validate them. Renegotiate them if needed and possible. Don’t violate expectations. Don’t assume that expectations are clear or shared. Behavior # 10: Practice Accountability : Behavior # 10: Practice Accountability There are two key dimensions to this. The first is to hold ourselves accountable; the second is to hold others accountable.
Trust results when people know that everyone will be held to certain standards. When leaders don't hold people accountable, it creates a sense of disappointment, inequity, and insecurity.
When things go wrong and we find ourselves blaming or accusing others, we must draw back and ask, how we can stop this. Behavior # 10: Practice Accountability : Behavior # 10: Practice Accountability At work, we must practice accountability by holding our direct reports accountable for their actions. We must clarify our expectations first so that everyone knows what they’re accountable for and by when.
We must look for ways to create an environment of accountability in our home. Summary: Behavior # 10: Practice Accountability : Summary: Behavior # 10: Practice Accountability Hold yourself accountable. Hold others accountable. Take responsibility for results. Be clear on how you’ll communicate how you’re doing – and how others are doing. Don’t avoid or shirk responsibility. Don’t blame others or point fingers when things go wrong. Behavior # 11: Listen First : Behavior # 11: Listen First It’s vital to listen, to understand first. Otherwise we may be acting on assumptions that are totally incorrect – acting in ways that turn out to be embarrassing and counterproductive.
The principles behind this behaviour include understanding, respect and mutual benefit.
The opposite is to speak first and listen last – or not to listen at all. It’s going ahead with our agenda without considering whether others may have perspectives that could influence what we have to say. Behavior # 11: Listen First : Behavior # 11: Listen First The counterfeit is pretend to be listening, while thinking about our reply and just waiting for our turn to speak. Or it’s listening without understanding.
Listening is not just hearing what is said. Research shows that face-to-face communication regarding attitudes and feelings is 7 percent what people say, 38 percent how they say it, and 55 percent body language. So Listen First means to listen not only with ears, but also with the eyes and the heart.
Listen First also means to listen to ourselves, to our gut feelings, our own inner voice, before we decide and act. Summary: Behavior # 11: Listen First : Summary: Behavior # 11: Listen First Listen before you speak. Understand. Diagnose. Listen with your ears – and your eyes and heart. Find out what the most important behaviors are to the people you’re working with. Don’t assume you know what matters most to others. Don’t presume you have all the answer – or all the questions. Behavior # 12: Keep Commitments : Behavior # 12: Keep Commitments This is the quickest way to build trust in any relationship.
To break commitments or violate promises is the quickest way to destroy trust.
The counterfeit of this behavior is to make commitments that are so vague or elusive that nobody can pin us down. Alternatively, we are so afraid of breaking commitments that we don’t even make any in the first place. Behavior # 12: Keep Commitments : Behavior # 12: Keep Commitments Keeping commitments is based on the principles of integrity, performance, courage, and humility.
It’s the perfect balance of character and competence.
Particularly, it involves integrity (character) and the ability to do what we say we are going to do (competence). Summary: Behavior # 12: Keep Commitments : Summary: Behavior # 12: Keep Commitments Say what you’re going to do, then do what you say you’re going to do. Make commitments carefully and keep them. Make keeping commitments the symbol of your honor. Don’t break confidences. Don’t attempt to “PR” your way out of a commitment you’ve broken. Behavior # 13: Extend Trust : Behavior # 13: Extend Trust This behaviour is based on the principles of empowerment, reciprocity, and a fundamental belief that most people are capable of being trusted, want to be trusted, and will do well when trust is extended to them. The opposite of this behaviour is to withhold trust.
The counterfeit of Extend Trust takes two forms. Behavior # 13: Extend Trust : Behavior # 13: Extend Trust The first is extending “false trust,” i.e., giving people the responsibility, but not the authority or resources, to get a task done.
The second is extending “fake trust” – acting like we trust someone when we really don’t. Summary: Behavior # 13: Extend Trust : Summary: Behavior # 13: Extend Trust Demonstrate a propensity to trust. Extend trust abundantly to those who have earned your trust.
Extend conditionally to those who are earning your trust. Learn how to appropriately extend trust to others based on the situation, risk, and credibility (character and competence) of the people involved. But have a propensity to trust. Don’t withhold trust because there is risk involved. Slide 92: THE THIRD, FOURTH, AND FIFTH WAVES-
STAKEHOLDER TRUST Slide 93: THE THIRD WAVE – ORGANIZATIONAL TRUST
The Principle of Alignment Organizational Trust : Organizational Trust In Low trust organizations
People manipulate or distort facts.
People withhold and hoard information.
Getting the credit is very important.
People spin the truth to their advantage.
New ideas are resisted and stifled.
Mistakes are covered up or covered over.
There are numerous “meetings after the meetings”.
There are many “undiscussables”.
People tend to over-promise and under-deliver.
There is low energy level. : In High trust organizations
People are candid and authentic.
Information is shared openly.
People are willing to share credit.
Transparency is a practiced value.
New ideas are welcome.
Mistakes are tolerated and encouraged as a way of learning.
There are few “meetings after the meetings”.
People talk straight and confront real issues.
There is a high degree of accountability.
There is high energy level. Organizational Trust (Contd) : The 7 Low-trust organizational taxes Redundancy
Fraud : The 7 High-trust organizational dividends Increased value
Heightened loyalty : High-trust companies elicit far greater loyalty from their primary stakeholders – coworkers, customers, suppliers, distributors, and investors than low-trust companies.
Employees stay longer with high-trust companies.
Customers remain customers of high-trust companies.
Suppliers and distributors stay partnered longer with high-trust companies.
Investors hold their investment longer with high-trust companies. Slide 99: THE FOURTH WAVE – MARKET TRUST
The Principle of Reputation Market trust : Market trust Market trust is all about brand or reputation.
It is trust that makes us want to buy a company’s products or services.
Corporate brands are important not only to companies but also to other organizational entities, including governments, charities, hospitals and cities.
Brands are judged, based on people’s perceptions.
When brands are perceived to be trustworthy, they generate a strong competitive advantage for the company. Walking Tax or Walking Dividend? : Walking Tax or Walking Dividend? As I’ve said, it’s at this Fourth Wave – Marketplace Trust – that most people already see the connection between trust and reputation to bottom-line economics. That’s because most understand the value of a brand.
What most don’t see as clearly, however, is that the same principle that produces dividends to a trusted company at the level of Market Trust also operates at the Self Trust, Relationship Trust, and Organizational Trust levels. Slide 102: Keep in mind: Whatever trust we are able to create in our organizations and in the marketplace is a result of the credibility we first create in ourselves. Slide 103: THE FIFTH WAVE – SOCIETAL TRUST
The Principle of Contribution Societal trust : Societal trust Trust is an integral part of the fabric of our society.
It’s hard to imagine a world without trust.
Heavy costs are incurred by a closed, low-trust society.
On the other hand, several benefits are reaped by a high-trust society.
These include shared knowledge, medical breakthroughs, technological advances, economic partnerships, and cultural exchanges.
In a high-trust society, there’s more for everyone.
There are more options and opportunities. People interact with less friction, resulting in greater speed and lower cost. Slide 105: If we have on our glasses to see, we realize that it is at this societal level that the words of psychologist Carl Rogers become clear: “That which is most personal is most general.” We see that trust at the Fifth Wave is a direct result of trustworthiness that begins in the First Wave and flows outward in our relationships, in our organizations, and in the marketplace to fill society as a whole. Slide 106: Truly, global citizenship is an individual choice and a whole-life choice. And as we make that choice in our lives, we influence those with whom we work and live to make a similar positive choice in theirs. Together, we build organizations and families that contribute to the well-being of the world. Slide 107: INSPIRING TRUST Slide 108: Inspiring Trust
- Nothing is as fast as the speed of trust.
- Nothing is as profitable as the economics of trust.
- Nothing is as relevant as the pervasive impact of trust.
- And the dividends of trust can significantly enhance the quality of every relationship on every level of your
life. Slide 109: Extending Smart Trust
- Analyzing opportunity, risk and credibility (character and competence) of those involved
-Restoring trust when it has been lost on all levels Slide 110: “Smart Trust” Matrix
“Civility has two parts: generosity when it is costly, and
trust, even when there is risk.”
The objective, then, is not to avoid risk. In the first place, you can’t; and in the second place, you wouldn’t
want to because risk-taking is an essential part of life. Slide 112: Zone 1 (High Propensity to Trust; Low Analysis) is the
“Blind Trust” zone of gullibility. It’s the Pollyanna approach
where people blissfully trust everyone. This is where we
find those “suckers who are born every minute” – those
people who are a sure bet to fall for Internet, marketing,
investment, and other scams. Slide 113: Zone 2 (High Propensity to Trust; High Analysis) is the
“Smart Trust” zone of judgment. This is where you combine
the propensity to trust with the analysis to manage risk
wisely. This is where you get both good business judgment
and good people judgment – including enhanced instinct
and intuition. Slide 114: Zone 3 (Low Propensity to Trust; Low Analysis) is the
“No Trust” zone of indecision. People here tend to not
trust anyone. Because their own analysis is low, they tend
to not even trust themselves. This zone is characterized
by indecision, insecurity, protectiveness, apprehension,
tentativeness, and immobilization. Slide 115: Zone 4 (Low Propensity to Trust; High Analysis) is the
“Distrust” zone of suspicion. This is where you find people
who extend trust very cautiously or not at all. In fact, some
are so suspicious that they do not trust anyone but
themselves. People in this zone tend to rely almost
exclusively on analysis (usually their own) for all evaluation,
decision making, and execution. Slide 116: Restoring Trust When It Has Been Lost
- Though it may be difficult, in most cases, lost trust can be restored-and often even enhanced
- The path to restoration is to increase your personal credibility and behave in ways that inspire trust
- Generally speaking, a loss of trust created by a violation of character (integrity or intent) is far more difficult to restore than a loss of trust created by a violation of competence (capabilities or results)