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Archive for the ‘Governance’ Category

Oct
15

Last week a business owner inquired if I could help his company build a roadmap to a high trust culture. First I asked what he thought the roadmap might include, and his answer was not surprising. “My business coach instructed my office manager to hire a motivational speaker, enter us in a “great workplace” competition, donate money to charity, and have an annual picnic. Then we can call ourselves trustworthy.” ( I didn’t dare ask for the name of the coach, as it was immediately apparent that trust subject matter expertise was not their forte.) My next question was a bit more difficult. I asked him what role he would play in designing the trust roadmap. His response, “That’s why I hired a coach, so I would know how and what to delegate to my staff.” Suffice it to say, it’s a good thing the conversation was occurring by phone so I could end the call quickly.

With unemployment at record lows and employee engagement and retention looking very bleak, one might think that leaders would pay closer attention to building a culture of trust, which some have gone as far as calling the “new currency,” but apparently not so. In fact, over the past ten+ years, I’ve lost count of the number of times I’ve heard similar (and sometimes worse) answers to the questions posed above. 

So once again I turned to the members of our Trust Council  and asked them for what they considered to be the first three steps in building a culture of trust.

Bob Vanourek a former Fortune 500 CEO was the first to respond, sharing the following, and from the perspective of a consultant engaged by a large organization:
1. Contact the top leader of the organization for a personal appointment to tell him/her what they are undertaking and why it is so important, promising to keep them and all intermediate levels of authority informed about this effort.
2. Call a special meeting (with no other agenda items) of his/her direct reports and other influential staff members to:
  • Inform them of this effort.
  • Ask for their help in supporting it.
  • Ask for their help in finding resources (written, video, or in-person) to support it.
  • Ask their help in creating periodic measures for all of them for how to observe progress.

3. Commit to keep trust-building as a top professional priority in the future.

Bob Whipple of Leadergrow approached the question from the perspective of what a small business owner might do:

Have a staff meeting and tell your team there are some new rules for the enterprise:

  1. We will admit our mistakes, and model that behavior by admitting a mistake you have made during the last week that you have not shared yet.
  2. Ask that every time a person receives help or some special effort from someone else on the team – that person writes a thank you email to the person and copies you on it.  You then read a selected few of those notes at the start of every meeting. Build a culture of reinforcement at all levels of the organization.
  3. Insist that when you say or do something that someone in the organization believes is not right or consistent with our values, that person is obligated to tell you what the concern is and promise that you will make that person glad he or she brought it up.  Then do exactly that without fail – ever.  Practice reinforcing candor!

My approach to constructing a high trust culture, encompasses some of the suggestions made by “the Bobs” above, and will work in any organization of any size.

  1. Establish an organizational trust-building committee comprised of a Board member if applicable, a member of the executive team, one senior employee from the compliance, finance, communications and HR functions. Set a one-year goal to build a culture of trust from the inside out, at the team level, including the Board and executive team.
  2. Since trust is an outcome of many universal principles, step two is for each team to determine which principles are weak, and which are strong. As our past surveys have shown, the results won’t necessarily be the same from team to team within the organization. (If the organization is relatively small, it may not be necessary to survey each team individually.)
  3. Spend the first six months addressing the weakest principles on each team and celebrating the strengths. Repeat survey in 6 months and continue working on the principles that remain weak. By the end of one year, the hardest part of the trust “construction project” will have been completed. Now go have that ice cream social!

Building a culture of trust will only be effective when: 

  1. Leaders acknowledge that culture change starts with them, and is always built from the inside out
  2. The right tools are used to identify trust weaknesses and strengths
  3. Team members are free to discuss survey or other diagnostic outcomes through open dialogue
  4. Trust weaknesses are mended and strengths are celebrated

We call this process AIM Towards Trust... Acknowledge, Identify, Mend and it’s been used successfully in teams and organizations of all sizes, shapes and colors; but only when leaders intentionally choose to build trust into their corporate culture AND own it. That must always occur BEFORE a crisis, not after the fact.

Finally don’t get caught up in “work arounds” to building a high trust culture because there ARE no quick fixes. These are a few of the more “trendy” ones that you might have encountered:

  • Misdefined trust: This includes brand trust, data trust, blockchain trust, and check-the-box trust. Trust is always internal and interpersonal.
  • External trust polls: If the question “trust to do what?” is not answered, the survey is either invalid or misleading.
  • Trust as a popular place holder title:  Many will use trust interchangeably with other terms like transparency, ethics or integrity, when it is actually a combination of many universal principles.
  • Trust as one-size-fits-all: Because of its complexity, all organizational trust challenges can be attributed to a variety of factors that must be identified and addressed separately and differently.
  • Trust that is not “principles” based: Trust is not a function of the PR department or a “purpose” campaign, but rather a function of highly principled trustworthy leadership.

I hope these suggestions will help you in constructing your own trust roadmap. Special thanks to Bob V. and Bob W. Your contributions to elevating trust are always appreciated.

Barbara Brooks Kimmel is the Founder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. For more information on how to build authentic trust, contact her at barbara@trustacrossamerica.com 

Copyright 2019, Next Decade, Inc.

 

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Oct
02

Once again, the scandal plagued banking industry has a new CEO vowing to rebuild trust. This time the headline is out of Copenhagen… 

 

Trust in Danske Bank has collapsed, says its new chief executive

How many times have we heard these words before? “As reported by Reuters, Trust in Danske Bank has collapsed amid its involvement in a damaging money laundering scandal said the bank’s Chief Executive Chris Vogelzang, as he vowed to strengthen the bank’s defense.”

Fresh out of ABN Amro, another scandal plagued bank, the newly elected Danske CEO cites the primary cause for the loss of trust: “The high level of trust in Denmark, which enjoys a reputation as being one of the least corrupt nations, mean(ing) that there had been fewer incentives to control risks.” And his solution… As a result, he said, nine out of 10 people in the top compliance team are now from outside Denmark.

And also… “There was also some “bad” product in the mix. Trust in the bank has been further dented after a scandal, in which it failed to inform customers that it expected a poor performance from an investment product called Flexinvest Fri and continued to sell the product after raising fees associated with it.”

Once again I asked the members of our Trust Council to read the article and share some advice for Chris Vogelzang.

Donna Boehme, our “Lion” of compliance weighed in first, offering the following observations: 

To rebuild trust and establish a culture of ethical leadership is a huge undertaking that takes years, not days, and requires the advice and coaching of experts, not just PR Wizards of Smart.  One area the experts would focus this company on would be the entire system of “incentives” which has an outsized effect on culture and business decisions, as demonstrated so vividly by Wells Fargo and its fake accounts scandal. Danske might want to look at the leading edge examples being set by a number of companies In this arena.

It is also encouraging that the CEO has brought a compliance team together that has AML and other compliance SME. But if he wants that team to be successful, he must ensure that it has independence, empowerment, line  of sight, seat at the table and resources adequate to do the job well. Gone are the days when reputation and brand can be entrusted to an in-house legal team with no legitimate compliance SME (earned in the trenches) and lacking the positioning and authority to do the job. 

 

Stephen M.R. Covey  shared the following thoughts:

First, “you can’t talk your way out of a problem you behaved your way into.”  In other words, the only way to restore trust here will be through actions—behaviors—not merely words (although words can be helpful to signal what you’re going to do).  Key behaviors to restore trust here include:  Confront Reality (acknowledge it), Practice Accountability (own it), Right Wrongs (make it right as best you can), Clarify Expectations (tell people what you’re going to do to re-earn their trust), and Keep Commitments (do what you say you’re going to do).

Second, trust in the marketplace is an extension of trust in the workplace.  It’s inside out.  So in order to restore trust with customers, it will be vital to also restore trust with your own people.  Too often organizations who have lost trust in the marketplace focus primarily (sometimes almost exclusively) on the customer/market trust and don’t recognize that they also need to be rebuilding internal workplace trust.  Without the workplace trust, it’s hard to sustain market trust.  Indeed, it’s incongruent.

Third, while building/rebuilding trust is definitely an inside-out process, starting with each leader and with the leadership team, it’s also vital that the process move out to the organizational level where they can better and more appropriately align systems and structures to ensure they build trust the right way.  Some of these systems/structures may have been misaligned in the past and may have contributed to the challenge.

There’s a lot more they need to do but those are just a couple of thoughts.

 

I’ll add a few more observations to the sage advice provided by Donna and Stephen. 

The concept of rebuilding something implies that it was built before.There is one question that the new CEO must answer before a trust-building strategy can be developed. What exactly did we trust our bank to do in the past that we are currently failing to do? 

While compliance plays a role in elevating trust, it must first come as a directive from the top. If the Board of Directors doesn’t understand or support the importance of creating a long-term strategy to elevate trust, the leadership team will be ineffective. The Danske Board currently consists of five committees: audit, compliance, nomination, remuneration and risk. I would suggest adding a sixth called “trust” and immediately calling in some trust subject matter experts to assist in outlining this critical trust-building strategy.

And speaking of strategy, whether post crisis or proactive, trust can never be delegated, yet this is what we see time and time again. It is not a legal or PR “tactic,” but rather an outcome of an intentional trust “plan” that leadership executes, practices and reinforces daily. In other words, trust “talk” must be followed up with action.

I hope someone at Danske reads this and passes the article up the chain. Perhaps Danske will someday become the industry role model in building trust. After all Denmark, with its high level of trust, should demand nothing less.

Barbara Brooks Kimmel is the CEO of Trust Across America-Trust Around the World whose mission is to help organizations build trust. For more information on how to build authentic trust, contact her at barbara@trustacrossamerica.com 

Copyright 2019, Next Decade, Inc.

This is the link to the original Reuters article.

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May
29

Trust weaknesses perhaps represent the greatest risk in today’s competitive business environment. Recent news confirms this.

A costly trust “fix” can wreak havoc on a company for years to come. Consider the long-term impact on all stakeholders as a result of Wells Fargo’s trust breach. The fact is, almost every trust “event” can be avoided or “softened” when Boards acknowledge that trust is tangible, and choose to proactively build their trust bank account.  Placing trust in the center of the business strategy, and practicing and reinforcing it daily is no longer a nicety, it’s an imperative.

Trust is internal and ALWAYS built from the top down and the inside out.

Trust cannot be delegated to PR, communications or any “silo” per se. Purpose, reputation, sustainability and data privacy are also not substitutes for trust. They are simply placeholders or misguided “perception” of trust. A Board that chooses to ignore trust as a stand alone tangible asset, does so at its own risk, and cannot  manage it by taking it for granted. Higher organizational trust produces the following outcomes:

  • Higher employee engagement and retention and lower fear
  • Expeditious decision making
  • Innovative mindsets
  • Elevated accountability, transparency and communication
  • More profitable

Speaking in 2016 at an annual conference of the Arthur W. Page Society, Paul Polman, CEO at Unilever noted that without trust in companies, there can be no genuine prosperity. Seventy-five percent of U.S. graduates, he said, do not want to work for big companies anymore. 

Given that trust is always a top down imperative, could the Board of Directors gain valuable insights into the importance of elevating trust if they surveyed their own members based upon universal principles of trust? What would the results reveal? Would the Board find respect to be high or low? How about integrity or understanding?

And what if upon completion of the survey and creation of a plan to address the weaknesses, the Board expanded their trust-building efforts by administering the same anonymous survey to Legal, Ethics & Compliance, HR, Finance and Marketing? Would this provide the Board with any actionable insights? Could reputation risk be reduced? And what would each team’s results look like? How quickly could trust, and the resulting long-term benefits, be elevated by correcting the deficiencies?

In fact, what if a Board member assumed the role of Chief Trust Officer for the entire organization? Sounds like a fairytale? It’s not. This exact exercise is already being implemented in several progressive Boardrooms in both domestic and international organizations.

What are Boards finding?

After completing the survey, one Board determined that the Principles of accountability, transparency and tracking were sorely lacking among their members. These weaknesses are now being addressed, while successes such as “truth” and “respect” are being celebrated. This Board plans to roll the diagnostic out firm wide.

A Simple Solution

In 2017, Trust Across America-Trust Around the World’s global Trust Alliance set out to create universal trust-building Principles that could be applied in any team or organization of any size. The plan was to develop a non-threatening mechanism to start the “trust discussion.” The Alliance itself (now in its 6th year) is comprised of cross functional professionals including Board and C-Suite members, compliance & ethics, risk, HR, marketing, finance, accounting, CSR professionals, etc.

Beginning with almost ninety ideas, and over the course of a full year, members weighed in through a powerful decision-making software tool, and honed the ideas to twelve Principles that form the acronym, “TAP INTO TRUST.”

TAP (Trust Alliance Principles) was first published in April 2018 and is currently available as a free PDF download in 16 languages. In just one year, over 50,000 global professionals have “tapped in” and the trust “movement” shows no sign of slowing.

In March 2019, Phase II was introduced. AIM Towards Trust is an anonymous one question, one minute survey that allows teams and organizations to obtain their trust baseline metrics and address weaknesses. AIM is an acronym for Acknowledge, Identify, Mend.

Building trust-based principles into the DNA of an organization lowers fear and elevates security among all stakeholder groups. For example:

  • Employees stop looking over their shoulders and instead start engaging, innovating, collaborating and working for the “greater good.”
  • Customers no longer question whether the “brand” can be trusted.
  • Shareholders trust that their investment is less risky.

The most enlightened Boards (we have written extensively about this subject in TRUST! Magazine) have an enormous business advantage when they choose to become the catalyst that turns around low trust in their respective companies, and in the broader business landscape. The tools are available for those who want to do more than “talk” and to actually make “Trust the New Currency” instead of just the latest buzz.  And remember, trust always starts at the top.

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World , now in its 11th year, and whose mission is to help organizations build trust. She also runs the world’s largest global Trust Alliance and is the editor of the award winning TRUST INC. book series. She holds a BA in International Affairs and an MBA. 

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Feb
18

When trust is low, fear is high, and fear is very costly.

Numerous studies have shown that:

  • High-trust organizations consistently outperform their rivals
  • Trust is the foundation of high performing teams
  • Trust reduces employee turnover and increases engagement
  • Trust increases productivity and innovation
  • High trust leads to long-term business success, beyond just short-term “home runs.”

What is your organization doing to cut the losses of low trust?

The “fix” is relatively easy and inexpensive. And it begins by acknowledging that low trust is costing you money. Like a disease, if low trust is ignored, it continues to spread.

Our newest Trust Tool is based on our Trust Alliance Principles (TAP), the result of the collaborative efforts of dozens of the world’s leading trust scholars and practitioners. Since April, these principles have been accessed over 40,000 times in 16 languages. This tool will provide any team (including the Board of Directors,) or organization of any size in any industry, with a simple roadmap to track and elevate trust.

Want to learn more? Contact barbara@trustacrossamerica.com

 

Barbara Brooks Kimmel is an award-winning communications executive and the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. A former consultant to McKinsey and many Fortune 500 CEOs and their firms, Barbara also runs the world’s largest global Trust Alliance, and is the editor of the award-winning TRUST INC. book series and TRUST! Magazine.  Barbara holds a BA in International Affairs and an MBA. Don’t forget to TAP into Trust!

 

Copyright(c) 2019, Next Decade, Inc.

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Jan
31

This past week the World Economic Forum held its annual meeting at Davos and the global elite were buzzing like bees around the word “trust.” 

Overlapping was another meeting being held in a remote corner of NJ (of all places), perhaps because the “polar vortex” was about to ground the attendees’ private jets. This gathering was called “Sovad so Good” or “Sovad” for short.)

For those unfamiliar with the annual Davos event, it’s by “invitation only,” and even those who secure an invite might not be able to afford the cost of admission. Most badges require a membership to the World Economic Forum, which costs somewhere between $60,000 and $600,000, plus an additional fee of more than $27,000 per person to get into the conference. (CNBC, January 25, 2019)

Worth noting: Of the 3000 attendees almost 800 were Americans and 22% were women, up from 21% last year! Less than 5% of S&P 500 CEOs are women—that’s just 24 companies. We can’t know how many of those 24 were invited to the event in Davos, but the official attendance list includes four of their names: Heather Bresch, CEO of Mylan N.V.; Adena Friedman, CEO of  Nasdaq Inc.;  Vicki Hollub, CEO of Occidental Petroleum Corp.; and Ginni Rometty, CEO of IBM. Quartz, January 21, 2019

Sovad (the other Davos) didn’t include the high price tag (or any admission fee for that matter), nor the “A” list of celebrities like Matt Damon or Will.i.am, and side deals were not being done off stage, probably because there was no stage. (Over 50% of the SOVAD group is women.) No large “trust signs” were erected at the entrance to our gathering like the one leading up to Davos. It was just too darn cold for anyone to want to climb a ladder, especially those in skirts.

CNN reported, ‘Trust is the new buzzword at Davos,” and as Dana Carvey “The Church Lady” liked to say on SNL, “Well isn’t that special.” (Dana and I lived together at one time but that’s a topic for another post.) So what was all the Davos “buzz” on trust about? These were the trust “themes:”

  1. Rebuilding trust (think Facebook.) Sheryl Sandberg was the trust “expert” on this subject.
  2. Trust and technology (digital security, AI, blockchain, etc.)
  3. Trust and innovation
  4. Trust and sustainability
  5. Trust and CEOs “taking stands.”

To the attendees at Davos these are certainly important revenue generating discussions to be having. But do they actually get to the heart of trust, or even move the needle slightly to elevate societal trust? That’s a solid “No.”  Here’s why.

It seems only one trust conversation was missing at Davos, and probably the most important one: How do we move our societal institutions from trust buzz to trust action? And that was the ONLY conversation at Sovad.

So while the fine food and drink flowed, and the planes stayed warm on the tarmac in Switzerland, the Sovad attendees arrived by auto and took the following action over a burger and a beer:

With no revenue generating agenda, we created 12 universal principles for elevating trust and began asking those who didn’t travel to Europe, how that “trust thing” is working in their organization. After all, isn’t that where trust starts (and ends)? Apparently, we struck a chord as over 35,000 unassuming folks from around the world have joined the conversation.

Will you take our brand new (one question/one minute) survey? Find out how your organization compares to others.

Note: Some believe that this year’s gathering was a disappointment on many fronts. Perhaps the word “trust” was simply a placeholder until a “real” topic can be identified for 2020. Kenneth Rogoff, the Harvard economist, summed it up: “This is the flattest Davos I can remember. Normally, there is a star country or a star industry that everybody is talking about. But this year, there is nothing.”

Could it be that the “nothing” has “something” to do with trust?

Barbara Brooks Kimmel is an award-winning communications executive and the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. A former consultant to McKinsey and many Fortune 500 CEOs and their firms, Barbara also runs the world’s largest global Trust Alliance, and is the editor of the award-winning TRUST INC. book series and TRUST! Magazine. In 2012 she was named one of “25 Women who are Changing the World” by Good Business International, and in 2017 she became a Fellow of the Governance & Accountability Institute. Barbara holds a BA in International Affairs and an MBA. Don’t forget to TAP into Trust!

For more information contact barbara@trustacrossamerica.com

Copyright(c) 2019, Next Decade, Inc.

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Jan
13

2019 began with a trust “bang” when Salesforce CEO Marc Benioff announced a new position in his company. Essentially, after some deep soul searching, this CEO recognizes that most large organizations, including the tech sector, have a trust problem and he is committed to solving that. Marc is one of a small yet growing cadre of enlightened leaders, and with the appointment of Paula Goldman from Omidyar Network, Salesforce now has a Chief Ethics and Humane Use Officer.

I recently asked a few of Trust Across America’s Trust Council members  to weigh in on how Paula can be most effective in her new role.

Donna Boehme who heads Compliance Strategists and has been a leading voice for Compliance 2.0 had this to say:

As the CEO says, it’s been “dark days” for the tech industry, which is by no means an overstatement. With so much change leading to an aggregation of power in the big tech companies, the industry is long overdue for a reckoning. By appointing a senior executive to begin to manage such issues at his company, the CEO is demonstrating intuitive foresight and risk assessment. I also imagine he has seen the disasters that befall companies that fail to value ethical leadership and culture as a key company asset.

That’s quite a high minded and open-ended title to the extent it opens the door to confusion and misinterpretation. Ms. Goldman should do what I often coach new chief compliance and ethics officers (CECOs) to do: refine her title and ensure she has a clear written mandate for the role that is understood and agreed by all of senior management.

In that vein, Bob Whipple at Leadergrow had similar advice for Paula:

Make sure to have clarity of your role.  Many a “Chief Ethical Officer” has found out that he or she is ultimately like an appendix. I have always believed that ethical culture is a line rather than a staff function. Also, try to figure out what “humane use” really means.

Back to Donna Boehme

A clear written mandate is the key to empowerment for those in these roles…including a clarification of the respective roles of others (HR, Legal, Audit, etc.) supporting the program to avoid redundancy and gaps. The future… hinges on robust collaboration and coordination by all who support related activities, which is why the written mandate and collaboration tools are important. I go by the well-established compliance maxim  of “If everyone is responsible for feeding the dog, the dog starves.”

Another early area of concentration for anyone new to this role is to establish key peer and mentor networks to support them as they navigate the often rocky waters in which any new function/executive must exist and succeed. 

The challenges for BigTech feel analogous to those faced by the defense industry in the 80’s, and it seems natural that a shared endeavor to address the risks of compliance and culture could prove as productive and proactively beneficial as the early Defense Industry Initiative did for BigDefense in the 80’s.

I also turned to Bob Vanourek, at Triple Crown Leadership, a former CEO of several major companies who offered this advice:

As the first steps in her new role as Salesforce’s first Chief Ethical and Humane Use Officer, Paula Goldman should:

  1. Seek input from multitudes of sources inside and outside the company as to the ethical and humane issues that are frothing to the surface in the coming years.
  2. Enlist a large cross-section of volunteers from inside and outside the firm who agree to think deeply about these issues and offer their counsel on how to deal with them. These volunteers should be wildly diverse in age, gender, disciplines, experience, political views, and other areas of difference.
  3. Assemble a small group of volunteer colleagues inside the firm to crystalize and summarize the input and views from above to discuss with her superiors at Salesforce with recommendations on the top few issues on which Salesforce wishes to take an initial public stand.

And finally, Stephen M.R. Covey who needs no introduction, offered these valuable insights:

This will not be easy for Paula because people often view differently what they perceive as right and wrong when it comes to policy decisions, and it can especially become contested when it comes to matters that are (or might become) politicized. In other words, there could be more than one right answer. If that’s the case, then focusing on establishing agreed upon criteria and process would seem to be among the highest leveraged initial steps she should take, including: 

  1. Focus on establishing criteria for her committee’s framework that includes making the creation, preservation, and enhancement of trust—externally and internally—an explicit objective, i.e., “How will this decision affect our trust in society? In the marketplace?  In the workplace?, etc.”
  2. Focus on establishing criteria that recognizes the fundamental needs (economic, social, intellectual, purpose) of ALL stakeholders, and seek to establish a dynamic process of attempting to assess and ultimately balance these needs and stakeholders.
  3. Create a process for internal feedback and discussion so as to be open and transparent inside the organization so that even if some people might disagree with the decision, they might still have felt heard and understood (even if not agreed).
  4. “Declare your intent” as to what you’re doing, and especially why you’re doing it, so as to be clear and transparent about agenda and motive.

As the CEO of Trust Across America-Trust Around the World, I offer Paula the following:

1. Our TAP program, guiding principles developed over the course of the past year by our global Trust Alliance, and currently accessed over 30,000 times. These Principles, available in 16 languages, can elevate trust in any organization of any size. We have recently completed Phase #2 providing a series of discussion questions for implementing each Principle.

2. Our research on the intersection of trust and profitability, should anyone should ask the question “Why trust?”

A few closing questions:

  • Should Paula Goldman be reporting to the Chief Equality Officer or someone else?
  • Will Paula’s role simply be to ensure that new technology initiatives remain ethically “compliant” or will the position go beyond this somewhat limited scope?

While our ten years researching the trustworthiness of public companies points to the conclusion that “no company is perfect,” how exciting to start 2019 with this news from a visionary leader in the tech sector. Well done. Now the “hard” work starts.

You can read Marc Benioff’s announcement at this CNBC link.

Barbara Brooks Kimmel is an award-winning communications executive and the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. A former consultant to McKinsey and many Fortune 500 CEOs and their firms, Barbara also runs the world’s largest global Trust Alliance, and is the editor of the award-winning TRUST INC. book series and TRUST! Magazine. In 2012 she was named one of “25 Women who are Changing the World” by Good Business International, and in 2017 she became a Fellow of the Governance & Accountability Institute. Barbara holds a BA in International Affairs and an MBA. Don’t forget to TAP into Trust!

For more information contact barbara@trustacrossamerica.com

Copyright(c) 2019, Next Decade, Inc.

 

 

Jan
06

How can organizations ensure that

red lights turn green in 2019?

 

Please share your ideas.

 

 


Is this a useful resource to you and your organization? Please consider making a donation to help us build more tools.

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Dec
22

In celebration of the 10th anniversary of Trust Across America-Trust Around the World, our global Trust Alliance “elves” have spent the year hammering away at new (and free) tools to elevate organizational trust in any organization regardless of size, location or industry.

We are happy to provide our readers with “12 days of organizational trust resources.”

  1. Our special TRUST! Magazine spring issue focused on the intersection of trust and good governance. It’s a gem and should be read by every Board member everywhere!
  2. Several members contributed to our growing case study library called Trustlets.
  3. Dozens of hours of collaboration lead to the publication of TAP (Trust Alliance Principles) 
  4. Our “Million Taps” campaign launched with an inaugural group of fifty signatories. As of this moment 29,544 global professionals have accessed TAP, with thousands joining our movement ever month.
  5. Through our global network, TAP is now available in 16 languages. Our readers can download the translations at no cost.  EnglishArabicChineseDutchFinnishFrenchGermanHebrewHindiItalianJapanese , Portuguese (Brazilian)RomanianRussianSpanish, and Swedish
  6. The July issue of TRUST! Magazine focused on TAP with many Alliance members weighing in. 
  7. Our first annual Country Trust Index was published with the help of our global members. The index was the most popular download on our website in November. Switzerland wins!
  8. The 4th annual Showcase of Service Providers was published in October, featuring the work of some of our members.
  9. This “2 pager”  can be accessed under the Research tab on our website. It is a sample of the material contained in our 10th anniversary report “Trust & Integrity in Corporate America” made possible by the Alliance warriors working collaboratively to elevate trust during the past 10 years.
  10. Our members contributed to the publication of many articles on various organizational trust topics.
  11. With the help and support of our members, our 9th annual Top Thought Leaders in Trust nominations  have been a huge success. Honorees will be announced in the winter issue of TRUST! Magazine at the end of January 2019.
  12. Our 2019 calendar “Building High Trust Teams” is now available simply by registering for our Constant Contact mailing list. It is the beginning of Phase #2 of TAP with monthly discussion questions provided to elevate trust in your team during 2019.
Our website welcomes over 20,000 visitors every month. If you use our resources and would like us to continue to provide more at no cost in the future, please consider making a donation so that our elves can maintain their tools in tip top shape in 2019.
Our plans for 2019? Our Trust Alliance members will be building and benefiting from a new tool every month throughout the year!
May 2019 be the “Year of Trust.”
Barbara Brooks Kimmel, CEO & Cofounder
Copyright 2018, Next Decade, Inc.

 

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Dec
07

Ten years ago, in the wake of the financial crisis, I undertook a study of organizational trust. Ten years later, and with the assistance of hundreds of global experts, I offer the following observations gleaned over the past decade.

Organizational trust is built over time and in incremental steps. There are simply no shortcuts.

Trust facts:

Organizational trust is an “inside out” strategy built through…

  1. A shared purpose and tactical vision acknowledging all stakeholders, not just shareholders
  2. A high integrity/high accountability board and CEO
  3. Long-term and corporate-wide intentional trust building strategies
  4. Daily reinforcement
  5. Hiring (and firing) in accordance with corporate values
  6. Rejection of hidden agendas
  7. Vulnerability and a willingness to admit mistakes
  8. Transparency, truth telling and promises kept
  9. Rewarding moral character
  10. Trust measurement and tracking

Recently my colleagues and I have witnessed some “sloppy” use of the word “trust” via short-term thinking attempts to provide quick and easy illusory measurements and solutions.

Trust Fiction:

Trust is not built through…

  1. Delegation of trust building to middle management or online ethics training modules
  2. Expensive and slick PR or “branding” campaigns
  3. CEO activism unrelated to the business
  4. CSR “one off” projects and ESG “check the box” practices
  5. Self-fulfilling surveys, reports and “best of” awards
  6. Philanthropy
  7. Empty apologies, lots of talk and little action
  8. Social media “strategies” and buzz words
  9. More rules and larger legal departments
  10. Short-term share price action

There are no short-term solutions to building a trustworthy business. Attempting to cut corners not only wastes time and resources but damages reputation.  For those Boards and CEOs who want to learn more, check back next week when we offer 12 free tools to elevate trust in every organization, regardless of size, industry or location.

Barbara Brooks Kimmel is an award-winning communications executive and the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. A former consultant to McKinsey and many Fortune 500 CEOs and their firms, Barbara also runs the world’s largest global Trust Alliance, and is the editor of the award-winning TRUST INC. book series and TRUST! Magazine. In 2012 she was named one of “25 Women who are Changing the World” by Good Business International, and in 2017 she became a Fellow of the Governance & Accountability Institute. Barbara holds a BA in International Affairs and an MBA. Don’t forget to TAP into Trust!

For more information contact barbara@trustacrossamerica.com

Copyright(c) 2018, Next Decade, Inc.

 

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Nov
23

Trust Across America’s FACTS® Framework: Fast Facts

(a summary of our 10th anniversary 46-page report “Trust & Integrity in Corporate America 2018” )

Introduction: Developed by a cross-silo multidisciplinary team, and in the wake of the financial crisis in 2008, the Framework evolved with the goal of creating a long-term model to reduce corporate risk and maximize profitability by measuring trust. With the assistance of professionals from leadership, compliance and ethics, governance, accounting, finance, HR, consulting, corporate social responsibility, ESG, sustainability, and other disciplines, FACTS® was finalized in 2010.

Methodology: Now in its 9th year, Trust Across America performs an independent annual analysis using its rigorous and unique FACTS® Framework. Companies do not participate, nor do they know they are being analyzed.

How we define trust: A byproduct of strong core values that are practiced and reinforced daily.

The FACTS® Framework:

The Framework incorporates proprietary metrics and measures the trust “worthiness” of public companies based on five equally weighted indicators that form the FACTS® acronym: Financial stability, Accounting Conservativeness, Corporate Integrity, Transparency & Sustainability. Additional screens may include but are not limited to fines and violations, percentage of women on the board, CEO pay ratios and tenure, employee reviews and news. Our analysis has never identified a “perfect” company. In fact, on our 1-100 scale, it is unusual for a company to score above an 80%. In 2018, 103 companies in the Russell 1000 scored a 70% or above. The full list is provided in our research report.

Measuring Outcomes and Impacts: On average, and over the long-term, the “Top 10″ most trustworthy public companies have outperformed the S&P 500 by over 25% since inception. In each of the six full years, the selected group has had a higher return than the S&P 500. (June, 2018)

Sector analysis: FACTS® data is sorted by sector and the following chart represents the sector rankings for the Russell 1000 for 2018. FACTS® uses Zacks Investment Research that divides date into 16 sectors. Others like S&P and Morningstar sometimes place companies in different sectors. For example, Zacks financial sector includes banks, insurance companies, REITS and brokerage firms, to name just a few.

Comparability: FACTS is a unique proprietary model measuring the trustworthiness of America’s largest (2000+) public companies. Other measurements of trust tend to be silo specific and qualitative, while FACTS® is quantitative and objective.

For more information: Barbara Brooks Kimmel, CEO & Cofounder

Barbara@trustacrossamerica.com

 

 

 

 

 

 

 

Copyright © 2018, Next Decade, Inc.

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