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Archive for February, 2020

Feb
25

Trust Insights Week #8: Barbara Brooks Kimmel

No commentsLeadership, Risk, Trust Insights, Trust ResearchFebruary 25th, 2020

The benefits of high trust are too numerous for leaders to continue to ignore.

Barbara Brooks Kimmel, Founder Trust Across America-Trust Around the World

 

 

Study after study confirms that over the long-term, high trust organizations outperform their low trust competitors. These are a few of the benefits:

  • Elevated employee engagement and retention
  • Reduced workplace stress
  • Enhanced decision-making
  • Innovative culture
  • More accountability, transparency and communication
  • Reduced costs

Why do most leaders choose to ignore trust or take it for granted?

The greatest challenges to elevating trust are the inability to delegate it, and having the right tools to fix it. Trust is a top down imperative that cannot be addressed via regulation and requires its own budget. It is not a Corporate Social Responsibility or “purpose” project, nor a compliance, human resources or marketing function, but rather an intentional business strategy adopted by leadership and practiced and reinforced daily. According to the Business Roundtable, vanishing are the days of low transparency, “short-term” thinking and maximization of shareholder value at the expense of other stakeholders. And as low trust continues to make the headlines across the globe, organizations that choose trust as an intentional strategy will continue to outperform their peers.

Take a look at some of the more recent study results:

  • On average, Trust Across America’s (that’s us) annual “Top 10″ most trustworthy public companies have outperformed the S&P 500 by over 25% since 2012 (June, 2018). This study  has also been referenced by Gartner and in the Harvard Business Review.
  • Salesforce Research (2018) surveyed over 6,700 consumers and business buyers globally to better understand the modern customer mindset. 95% of customers say that if they trust a company, they’re more likely to be loyal patrons.
  • PwC’s Global Consumer Insights Survey (2018) asked consumers which factors, other than price, influence their decision to shop at a particular retailer. More than one in three (35%) ranked ‘trust in brand’ as among their top three reasons. 

  • Another study looking at workplace trust and the impact on employee wellbeing reveals that more than half (53%) of employees considered it to be a major factor in whether they stayed or left a company. More research on the link between trust and wellness in this recent SmartBrief article.
  • According to Gallup, when employees don’t trust organizational leadership, their chances of being engaged are one in 12. But when that trust is established, the chances of engagement skyrocket to better than one in two. That’s more than a six-fold increase.

These references are bolstered by dozens of others. Short-sighted business leaders may continue to challenge the “return on trust” but the evidence is mounting. There is not only a business case but also a financial case for trust.

How can leaders elevate trust proactively instead of addressing it after a crisis and playing catch up?

It requires moving beyond talk to acknowledgement followed by ownership and action. Late last year Trust Across America-Trust Around the World introduced a quick and simple survey tool called AIM Towards Trust and Workshop opportunities for teams and organizations of all sizes and in any industry to begin a trust discussion and address the challenges that are holding back trust. The survey has been successfully administered in dozens of teams, organizations and in advance of conferences and workshops. Readers interested in reviewing its various applications can learn more at this link.

Making the decision to elevate trust is not easy.  It requires both introspection on the part of leadership and a certain amount of vulnerability. Virtues like trust, the ones that really matter, must be treated as business imperatives for those who are seeking long-term success. Waiting for the inevitable crisis (most are the result of low trust) to make the old and tired PR speech, declaring that trust must be rebuilt may be the most popular choice, but as we have seen, it’s also the most expensive and least effective. Just ask Wells Fargo.

Barbara Brooks Kimmel is the Founder of Trust Across America-Trust Around the World. Now in its eleventh year, the mission is to help organizations build trust. That’s all we do. 

Copyright 2020, Next Decade, Inc.

 

 

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Feb
18

Trust Insights Week #7: Bob Vanourek

No commentsLeadership, Trust InsightsFebruary 18th, 2020

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

“Three trust questions are the best way to deal with the ethical dilemmas we face.”

Bob Vanourek, Triple Crown Leadership and former CEO

 

 

Can you expand a bit on this important insight?

Every one of us has will face ethical dilemmas. They can’t be avoided. They are the terrible moral quandaries thrust on us by bosses, people in authority, peers, or the unrelenting circumstances of life. The great philosophers have given us ethical frameworks to solve these grim choices. They range from Utilitarianism to Virtue Ethics, Kant’s Categorical Imperative, and more. Not surprisingly, most of us are clueless about how to use these principles.

Answering three trust questions can give us more practical solutions. When you face a difficult ethical choice, where all the alternatives seem terrible, ask these questions:

  1. Which course of action will build the most trust with those impacted?
  2. How can I best implement this course of action to build trust with those impacted?
  3. If some trust is broken because of this choice, how can I minimize that impact to help rebuild trust?

 

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

I came in as CEO to rescue a very troubled public company. The prior CEO and EVP had been indicted for bribery. Shareholder class action suits had been filed; SEC and IRS investigations were underway; the best employees and customers were panicked; and cash to meet payroll was running critically short. Unfortunately, massive layoffs were necessary. 

Realizing the crisis in the company was not due to the employees who would now face the repercussions, we decided to handle the cutbacks differently. People being laid off were not going to be immediately escorted to the door by security guards with boxes of their belongings in their hands because they could not be trusted. They would be treated respectfully with fair severance and references. With their agreement, they would stay in place for weeks to train others who would assume their duties. We would hold farewell gatherings for each to acknowledge their past work and to wish them well.

Right before the announcements to all employees, I met with a very capable, long-term, and popular senior executive, John, to inform him that his job was being eliminated. He understood, and I invited him, if he wished attend, to join the all-hands meeting starting then.

Naturally, there was shock among the employees as I announced the dire circumstances we were in and what we were forced to do to survive. I assured them that fair treatment for those being separated was involved. But I sensed the anger and skepticism in the audience.

Then, I saw John standing near the stage. As I looked him in the eyes, I intuitively felt I could trust him to do what was right. I told the employees that John was one of those being laid-off. I thanked him for his years of service. Then I invited him onto the stage to say a few words if he wished to do so. I heard an audible gasp from my officer corps. They must have been thinking, “What will John say after being told he was being laid-off?”

John stepped to the mic with tears in his eyes and his throat catching with emotion. He thanked his colleagues for their work together over the years, said he would be “just fine,” and encouraged the audience to “hold the course.” The company would survive these tough times, and he was proud to have worked there.

We survived, and with much hard work, we successfully rebuilt. I chose a course of action that, while risky, was one I felt would build trust, or at least help rebuild any trust that was broken.

 

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

The global trust climate is both worsening and improving.

In this age of instant communication with 24/7 cable news, social media posts, tweets, and cell phone videos, virtually no information remains confidential. Many of the old guard, who have been exploiting others and the world for decades, are being “outed.” Outrage is high. It often seems we are enmeshed in an age of lies, cover-ups, cronyism, and scandals with a trust crisis. For many, therefore, trust levels are low.

But at the same time,  there is a growing body of leaders who have had enough of the old ways. They are ethical, values-based, transparent, humble, and intent on  building organizations with great cultures where trust is paramount. These organizations will not make the “can-you-top-this-outrage-headlines,” but they are the vanguard of the new movement that is growing steadily. These organizations are the winners, who will be talent magnets for the best people. Their influence and exemplary examples will shine through as the role models for all to see. For them, thankfully, trust levels are high.

 

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

To paraphrase Dickens in “A Tale of Two Cities,” it is the best of times and the worst of times. Ultimately, trust will win over fear. Paradoxically, the trust crisis will create a trust transformation, elevating trust to be an organizational imperative.

 

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

TAA-TAW: Trust Across America—Trust Around the World has led me to connect with some wise and extraordinary colleagues. We have spoken, worked, created, and written together. It is a professional cadre of which I am proud to be a member.

 

Bob, 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?

 

Bob Vanourek is the former CEO of five companies, a Lifetime Achievement Winner at TAA-TAW, and the author of “Triple Crown Leadership; Building Excellent, Ethical, and Enduring Organizations” and “Leadership Wisdom: Lessons from Poetry, Prose, and Curious Verse,” both international award winners.

 

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.

 

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Feb
11

Trust Insights Week #6: Walt Rakowich

No commentsBehavior, Leadership, Trust InsightsFebruary 11th, 2020

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

Real leadership starts by building trust; without trust, you have no platform from which to build positive influence with others. Walt Rakowich

 

 

Can you expand a bit on this important insight?

The best leaders influence others to do great things. Trust isn’t the only factor involved in building that type of influence, but it is an essential factor – perhaps the most essential. You can achieve short-term successes and positive results without trust. But you can’t do great things for yourself or for others over the long haul unless you trust yourself, trust others, and earn the trust of those you lead. If trust is lacking, success will be fleeting. When you have genuine trust, on the other hand, people willingly follow you and collaborate with you on a shared purpose. Things like commitment, risk-taking, accountability, productivity, and excellence fall more naturally into place.

You earn that trust over time by opening a window into your soul and showing yourself to be someone worth following. I learned in the heat of battle while turning around a Fortune 500 company that three virtues are essential to earning trust – humility, honesty, and heart. Humility comes when we look inward at who we really are. Heart comes when we look outward and value people for who they are, not just what they can do. And honesty requires that our actions align with what we say and with our values. When people see those virtues in the actions of a leader, they know their trust is well-placed. Combine that with a purpose and a passion for serving others, and great things aren’t just likely, they are inevitable.

 

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

I was named CEO of Prologis in the middle of the Great Recession and when the company was on the brink of bankruptcy. As we began to rebuild, we knew there were problems involving trust. One of the first things we did as a leadership team was commit to owning our mistakes and to learning from them. We were open with our employees and our investors about those mistakes and the challenges we faced moving forward. But here’s what we didn’t do. We didn’t ask our employees or our investors to trust us. In fact, during a meeting in New York with more than a thousand investors and stakeholders, we outlined our mistakes and committed to some specific ways we planned to restore the company to health. Then we told them this: “Don’t trust us. Watch us.” Trust has to be earned, not assumed. We embraced that idea. If we couldn’t earn it, we didn’t deserve it. We made that very clear to each other, our employees, and our investors. I believe because we set that as a standard, we settled for nothing less and achieved it over time.

Walt, generally, do you think the global “trust” climate is improving or worsening? What actions are making it better or worse?
I don’t know if it’s getting better or worse, but one thing is for sure: It’s more important than ever. We live in a world of glass houses. Everything we do is seen by everybody. Because of that, it’s easier than ever for people to see things they don’t like and don’t trust in leaders. You can’t hide. And because people see more about us, they raise their level of expectations. With expectations rising and transparency now the norm, it’s even more essential for leaders to consistently demonstrate trustworthiness in all they do.

 

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

There are plenty of reasons to be discouraged about the condition of the world, but also plenty of reasons to have hope for the future. You can look at the environment of politics, sports, business, entertainment—whatever—and find examples of leaders who have abused trust and created cultures devoid of trust. Where was trust in the Volkswagen emissions scandal? Or pick any other scandal going back to the beginning of time. On the other hand, many emerging leaders have shown a great desire to work together and to make their work about something that’s bigger than themselves. The bad stuff draws the headlines and the Internet memes, but you don’t have to look far to find leaders who are transparent and honest and humble and who truly want to do the right things for people and society. I choose to trust that these are the leaders who will win the day.

 

Walt, 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?

Walt Rakowich is an author, speaker and the former CEO of Prologis, one of the top global real estate companies in the S&P 500. He was named CEO in 2008 during the economic downturn when the company was near bankruptcy. He implemented a change in culture through transparency, orchestrating a dramatic turnaround and restoring its position in the industry. Walt has a BS in accounting from Penn State and an MBA from Harvard Business School. In addition to speaking to audiences on a range of leadership topics, he serves on a number of corporate and philanthropic boards. He and his wife Sue have two children and reside in Colorado.

And before you leave, 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.

 

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Feb
04

Trust Insights Week #5: Charles H. Green

No commentsBehavior, Trust InsightsFebruary 4th, 2020

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.

 

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