Archive

Archive for the ‘Trust Insights’ Category

Feb
04

Charlie, thank you for participating in our 2020 Trust Insights series. What is your trust insight?

“Trust” is what happens when a risk-taking trustor meets a virtuous trustee.” Charles H. Green, Trusted Advisor Associates

(The definition is surprisingly important, because it is rarely followed in practice.)

 

Can you expand a bit on this important insight?

Much talk about ’trust’ is abstract and not practically useful. Change in trust happens only when either someone becomes more willing to trust, or someone else becomes more trustworthy. 

We intuitively use personal trust as the paradigm – the strongest form of trust. We describe people as being trustworthy or not – a set of personal virtues, if you will. For example, using the Trust Equation, it breaks down into Credibility, Reliability, and Intimacy: all divided by Self-orientation. A trustworthy person exemplifies these virtues in all their interactions.

The trustor, by contrast, is the one who initiates the trust interaction. They, by definition are taking a risk, putting themselves willfully in the way of some kind of harm through the potentially untrustworthy behavior of the trustee. 

The business world is much enamored of ‘measuring’ things; but when it comes to trust, it is largely a fool’s errand. Measuring ’trust’ per se is elusive: most measurements are, and should be, actually metrics of the trustor’s propensity to risk, or of the trustees level of virtuousness. 

 

Can you provide a real life example of a trust “challenge” where your insight has been effectively applied.

One headline from Edelman PR’s annual Trust Barometer is “trust in social media is down.” Substitute ‘brands,’ ‘banking,’ ‘politics,’ and a host of others, and you’ll find similar headlines. But what do such sentences actually mean? Take banking, for example:
  • Does such a headline mean that banking has become less trustworthy? 
  • Or does it mean that people have become less trusting of banks in general?
In the case of Wells Fargo, you can make a good case that the problem was specific to the firm – rampant cases of untrustworthy behavior. Wells Fargo showed itself to be unworthy of trust. 
But take the case of violent crime: it is down, verifiably, over two decades in the US. At the same time, just as verifiably, fear of violent crime is up. That is a problem of perception on the part of would-be trusters. 
If you are interested in improving trust, you must define the problem: does it lie in the trustworthiness of specific would-be trustees? Or does it lie in excessive risk-avoidance on the part of would-be trustors?
Focusing on ’trust’ itself masks the practical question: is it a problem of trusting, or of trustworthiness. 

 

Charlie, generally, do you think the global “trust” climate is improving or worsening? What actions are making it better or worse?

There is plenty of data – some flawed, but some very good – that suggest we are in a period of declining trust. It is tempting to ascribe this to political polarization, tribalism, and nationalism. But I think there is a bigger threat. 
The larger problem is that we have come to de-emphasize the inherently personal nature of trust. The strongest form of trust is personal, not institutional. Yet much of the public dialogue is about institutional trust: and much of the discussion about how to improve trust is also about institutional or structural fixes to trust. 
Factors driving down the focus on personal trust include:
  • A deep-seated business preference for metrics and quantification, including on things that are frankly quite non-measurable
  • A fascination with ’scientific’ explanations of trust, including many neuroscientists and Big Data, which have the effect of downgrading traditional, and still valuable, other approaches to the subject 
  • The de-humanization that comes out of most participation in social media
  • The de-humanization that comes out of the very nature of ‘online’ social media participation as a substitute for direct human conduct

 

Many claim we have a crisis of trust. Do you agree?

 

Yes. 

 

Charlie, how has your membership in our Trust Alliance benefitted you professionally?

Invaluable direct contact with other fellow-travelers interested in the exploration of this very rich topic. 

 

Charlie, thank you so much for your time and more importantly for your commitment to elevating organizational trust. What would you like our audience to know about you?

 

Charles H. Green is an author, speaker and world expert on trust-based relationships and sales in complex businesses. Founder and CEO of Trusted Advisor Associates, he is author of Trust-based Selling, and co-author of The Trusted Advisor and the Trusted Advisor Fieldbook.  He has worked with a wide range of industries and functions globally. Charles spent 20 years in management consulting. He majored in philosophy (Columbia), and has an MBA (Harvard).

A widely sought-after speaker, he has published articles in Harvard Business Review, Directorship Magazine, Management Consulting News, CPA Journal, American Lawyer, Investments and Wealth Monitor, and Commercial Lending Review.

And while you are here, Tap Into Trust and complete our 1 minute/1 question quiz. Find out how the level of trust in your workplace compares to hundreds of others.

Did you miss our previous 2020 insights? Access them at this link.

 

Contact us for more information on elevating trust on your team or in your organization.

Copyright 2020, Next Decade, Inc.

 

, , , , ,

Jan
21

Margaret, thank you for participating in our 2020 Trust Insights series. What is your trust insight?

Trust is always and only about what you DO;

nothing else counts. – Margaret Heffernan 

 

 

 

Can you expand a bit on this important insight?

As soon as the subject of trust comes up, everyone talks about words. But words do not ever build trust. It is what you do that counts. I think there are 4 aspects to trust :
Benevolence: People trust you if they believe you want the best for them. But how do they know that? By the generosity you manifest in the active ways you help, support, advise them and tell them the truth.
Integrity: Everyone watches not what you say but whether you actions are consistent with your words. Saying that you want what is best “for all Americans” as the Business Roundtable did recently, doesn’t mean a thing if you do not act on it. To my mind, the acid test in business is: have you been prepared to forego revenue to stand by your principles? By that test, most companies fail. Wells Fargo sold products to their customers that they didn’t need without telling them – that doesn’t show that they care about stakeholders. J&J heavily and actively over-sold opioids that caused their customers harm; that is not a sign of honoring stakeholders. Integrity has to be active or it is nothing. 
Competence: When you say you will do something, it means nothing if you don’t have the professional ability to do it. This is a nuts-and-bolts, real world aspect of trust people often overlook. You have to be able to deliver.
Consistency: Are your actions and choices visibly consistent with the values you talk about all the time? If your actions express different values from one day to the next, then clearly it is impossible to assume that one action implies a coherent set of values. Consistency can be rather dull but if you are unpredictable, then nobody can trust you to do the right thing each day.

 

Can you provide a real life example of a trust “challenge” where your insight has been effectively applied.

In 2001, after the tech bubble burst, I realized that keeping my company afloat would cost my investors a huge amount of money. Since my investor was a publicly traded company, I did not see how that cost could be justified when there was no confidence that the company could ever become profitable or that the investment could be recouped. I argued with the board – and it was an argument – that the business should be shut down. Eventually I won.

 

Margaret, generally, do you think the global “trust” climate is improving or worsening? What actions are making it better or worse?

I think the trust climate is getting worse for one very obvious reason. We used to believe – I used to imagine – that business was or could be a force for good in the world. But the overall lethargy and passivity in face of the climate change challenge has shown exactly the opposite: the business community has not only not served the world but endangered it and all who live in it. How can they be trusted to do the right thing when they’ve had the chance for 30 years and have done almost nothing? Either they aren’t competent or they don’t care.

 

Many claim we have a crisis of trust. Do you agree?

If we don’t have a crisis of trust, we should – as leaders in every walk of life seem unreliable and unrepentant. We have leaders all over the world whom everyone knows to be liars and cheats – which implies that being trustworthy is now an option not a requirement. Today I think leaders need to recognize that their trustworthiness is being assessed by everyone daily. It’s hard to point to those who do well under scrutiny.

 

Margaret, thank you so much for your time and more importantly for your commitment to elevating organizational trust. What would you like our audience to know about you?

Dr. Margaret Heffernan produced programs for the BBC for 13 years.  She then moved to the US where she spearheaded multimedia productions for Intuit, The Learning Company and Standard & Poors. The author of six books, her most recent, Uncharted: How to map the Future Together comes out in 2020. Her TED talks have been seen by over ten million people. Through Merryck & Co., she advises CEOs and senior executives of major global organizations. She sits on several private boards, is a frequent broadcaster and writes occasionally for the Financial Times.

And while you are here, Tap Into Trust and complete our 1 minute/1 question quiz. Find out how the level of trust in your workplace compares to hundreds of others.

Did you miss our previous 2020 insights? Access them below.

Trust Insights Week #1: Stephen M.R. Covey

Trust Insights Week #2: David Reiling

Contact us for more information on elevating trust on your team or in your organization.

Copyright 2020, Next Decade, Inc.

 

, , , ,

Jan
14

David, thank you for participating in our 2020 Trust Insights series. What is your trust insight?

Developing trust starts in the C-suite. 

David Reiling, CEO Sunrise Banks

 

 

 

Can you expand a bit on this important insight?

A culture of trust needs to be established by organizational leaders and promoted from the top down. The executive team should set the tone for the rest of the organization, and exhibit trustworthiness and integrity as role models for the organization.

Without trust at the top, it will be impossible to spread throughout the rest of the organization.

Can you provide a real life example of a trust “challenge” where your insight has been effectively applied.

Years ago I saw some management behavior that was not acceptable as defined by the organization’s values. When something like this happens, trust slowly erodes and the organization started to break. With time, I saw the management team rebuild itself embracing the organization’s values, leading to a trusted leadership team.  This resulted in a ripple effect of trust and transparency throughout the organization.

David, generally, do you think the global “trust” climate is improving or worsening? What actions are making it better or worse?

I think it depends on who you ask. Our political climate is extremely polarized of late and this has caused trust issues for certain people. We’re also experiencing a boom technology and artificial intelligence; data breaches and mishandling of personal information has created a lack of trust in data collection and big tech.

It’s too speculative to say the climate is improving or worsening. However, I do think there would be strong opinions on both sides of the issue.

Many claim we have a crisis of trust. Do you agree?

I wouldn’t call it a crisis of trust, but rather a healthy dose of skepticism in regards to certain developments. In particular, technology and personal data collection have been a point of contention for some. We’ve yet to reconcile our desire for the convenience of technology and the risks that can come with it.

We’re comfortable quickly signing privacy policies – likely without reading them – but we become frustrated when we learn our actions have been used for marketing purposes or our information compromised. As new technology continues to emerge, tech companies need to be as transparent as possible and consumers need to become more self-aware of their actions and the potential consequences connected with providing personal information.

David, how has your membership in our Trust Alliance benefitted you professionally?

The Trust Alliance has set the bar for years now.  As a member, the value I have received, as well as the value my organization has received, has been more than significant.  The concepts that the Trust Alliance presents have been great fire-starter conversations within the organization at all levels.

David, thank you so much for your time and more importantly for your commitment to elevating organizational trust. What would you like our audience to know about you?

David Reiling is a social entrepreneur, who is an innovator in community development finance and financial inclusion. He is the Chief Executive Officer of Sunrise Banks and has been in the community development banking industry for more than 25 years. Under David’s leadership, Sunrise Banks became a certified Community Development Financial Institution (CDFI), a certified B-Corp, a legal Benefit Corporation, and a member of the Global Alliance for Banking on Values.

And while you are here, Tap Into Trust and complete our 1 minute/1 question quiz. Find out how the level of trust in your workplace compares to hundreds of others.

Did you miss our previous 2020 insights? Access them below.

Trust Insights Week #1: Stephen M.R. Covey

Contact us for more information on elevating trust on your team or in your organization.

Copyright 2020, Next Decade, Inc.

 

, , , , , ,

Jan
07

Stephen, thank you for kicking off our 2020 Trust Insights series. What is your trust insight?

Trust is both earned and given—therefore to build trust, it’s not enough to be trustworthy; you also have to be trusting.  Stephen M.R. Covey

 

 

 

 

Can you expand a bit on this important insight?

We earn trust through our character and competence—our credibility—along with our behavior.  This makes a leader trustworthy.  But consider this:  you could have two trustworthy people working together, and no trust between them . . . if neither person is willing to extend trust to the other. 

While I believe most leaders today recognize the need to be trustworthy, I’m not sure if most recognize the equally vital need to be trusting.  And that’s where I think we’re got to put special focus in our leadership work by learning to lead out in extending trust (smartly) to others.

And it’s the leader’s job to go first.  Someone needs to go first; that’s what leaders do—leaders go first.  Yes, there’s risk in trusting people.  But there’s also risk in not trusting people.  And in today’s collaborative world, filled with multiple generations and characterized by disruption, not trusting people is quite often the greater risk.

Extending trust to others not only improves performance, it also generates a reciprocity of trust: when we give trust, people receive it and return it.  When we withhold it, they withhold it. 

Indeed, the act of extending trust to others is the defining act of leadership.  It’s a game-changer, both for the leader extending the trust and for the person being trusted.  Indeed, to be trusted is the most inspiring form of human motivation. 

That’s why the first job of a leader is to inspire trust, and the second job is to extend it.

Can you provide a real life example of a trust “challenge” where your insight has been effectively applied.

I recently presented at the University of Missouri with David Novak, former CEO of Yum! Brands for over 16 years.  David validated the impact of applying this approach of leading out in extending trust to others as he shared with me his experience of when he first took the job as President of KFC and inherited a situation where there was massive distrust, and even hostility, between the corporation and the franchisees.

In his own words, he said:  “My first official act as president was to get together with my executive team and let them know things had to change…. I said, ‘I want you to know something.  I love working with franchisees.  And from now on we’re going to trust our franchisees.”

From this decision to extend trust, new ideas, collaboration and innovation began to emerge from the franchisees and new products resulted from it.  The business experienced a dramatic turnaround in both results and culture. 

Novak continues: “If you ask the finance people what ignited the business, they will tell you it was the new products, but my answer would be that it was the triumph of the human spirit.  It all started with one simple decision: to trust franchisees.  That opened the way for them to trust me and the corporation in return, and together we unleashed the power of our people to succeed.”

Stephen, generally, do you think the global “trust” climate is improving or worsening? What actions are making it better or worse?

On balance, given the current state of our society and politics, I believe it’s worsening.  And the internet, social media, and 24/7 connectivity immediately highlights untrustworthy behavior and often exacerbates the challenges we face.  The danger of a low-trust world is that it tends to perpetuate itself.  When we see scandals, corruption, self-serving and untrustworthy behavior, we tend to become more careful, guarded and suspicious because none of us want to get burned.  Distrust and suspicion tend to create more distrust and suspicion, and we can find ourselves perpetuating a vicious downward cycle.  Distrust is contagious.

But thankfully, trust is also contagious.  And there are increasing actions by leaders and organizations and movements that are seeking to counteract this decline in trust.  Both because it’s the right thing to do, and also because it’s the economic thing to do.  In other words, there’s a compelling business case for trust. 

And the internet, social media and 24/7 connectivity can also immediately highlight the numerous positive actions being taken by leaders and organizations everywhere to model trust, trustworthiness, transparency, integrity, service and contribution—ranging from ethics initiatives to good governance frameworks to effective leadership development in establishing high-trust cultures within organizations, among countless efforts.

Many claim we have a crisis of trust. Do you agree?

Yes, I do believe with all the changes and challenges going on in our world and in society that there is, in many ways, a crisis of trust.  There’s a lot of data that would back that up. 

But I also believe that simultaneously, and paradoxically, there is also a “renaissance of trust” taking place.  A renaissance of trust in the sense of having people, leaders, organizations, and movements that are saying, in effect, “there is a better way to lead, a better way to operate.”  And they’re modeling the way, and pointing out to others a better way.  I believe Trust Across America-Trust Around the World is one of many such organizations.

So the paradox is that in the midst of the crisis of trust, there’s simultaneously a renaissance of trust taking place.

I hope to be a co-catalyst, with countless others, in helping to bring about this renaissance of trust.

Stephen, how has your membership in our Trust Alliance benefitted you professionally?

I like to think that Trust Across America-Trust Around the World is part of the renaissance of trust.  It brings together like minded leaders, practitioners, thought leaders, and organizations to focus their best thinking and energies on how to bring attention to this critical currency of trust—and how to increase trust in our lives, our relationships, our organizations, and our society.

I like being part of and aligned with such an effort that’s so vital to my personal and professional mission to help increase trust in the world.

Stephen, thank you so much for your time and more importantly for your commitment to elevating organizational trust. What would you like our audience to know about you?

Stephen M. R. Covey is The New York Times and #1 Wall Street Journal bestselling author of The Speed of Trust, which has been translated into 22 languages and has sold over 2 million copies worldwide.  He is co-author of the #1 Amazon bestseller Smart Trust.

Stephen is the former President & CEO of Covey Leadership Center, which became, at the time, the largest leadership development company in the world.  A Harvard MBA, Stephen co-founded and currently leads FranklinCovey’s Trust Practice. 

Stephen has taught trust in 55 countries to leaders and organizations, spanning business, government, education, healthcare, and NGO sectors.

And while you are here, Tap Into Trust and complete our 1 minute/1 question quiz. Find out how the level of trust in your workplace compares to hundreds of others.

Contact us for more information on elevating trust on your team or in your organization.

Copyright 2020, Next Decade, Inc.

 

, ,