Archive

Posts Tagged ‘crisis’

Feb
13

 

Did you know that the average lifespan of a public company is now less than 20 years, down from 60 years in the 1950s? While some might argue that disruptive technology is to blame, that’s a smoke screen for the real culprit. After all, high trust companies are great innovators.

Today’s pervasive low trust business environment might be the #1 risk to every company. Without trust as a foundation, the chances for long-term survival are slim to none, and crises are a sure bet.

While trust holds the key to long-term success  it remains the single most overlooked, yet one of the simplest business strategies to implement.

How many of these low trust warning signs are present in your organization?

  1. Trust is taken for granted and viewed as a soft skill. It is never discussed.
  2. There is no Chief Trust Officer or keeper of the culture. Instead, the Chief Compliance Officer wields the “big stick” and remains the laughing stock of the employees.
  3. corporate credo or core values are nonexistent, or the one in place is no more than Kumbaya “words” on the corporate website.
  4. Strategies to elevate organizational trust have never been discussed let alone defined, shared or agreed upon.
  5. Leadership is focused on survival and short-term profitability. In fact, compensation is tied to quarterly earnings.
  6. The leadership team lacks leadership skills and never speaks publicly without “legal” sign off. (Great college lacrosse players don’t necessarily make trustworthy leaders.)
  7. There is not a single woman in sight on the executive leadership team.
  8. A well-defined hiring strategy has not been implemented resulting in cultural misalignment, confused and non engaged employees.
  9. Employee turnover is high but no one asks “Why?”
  10. Board members are “Yes men” for the CEO, and “Yes” they are all men.

How many of these trust “fails” do you see on a daily basis? What’s your guess on the longevity of your business?

Want to learn more about building organizational trust? Our website provides an endless number of tools and resources for elevating organizational trust. Many of them are free. Read a book, join our Trust Alliance, find an hour to discuss a Case Study, read the Trust Across America blog.

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World 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. In 2017 she was named a Fellow of the Governance & Accountability Institute, and in 2012 she was recognized as one of “25 Women who are Changing the World” by Good Business International. She holds a BA in International Affairs from Lafayette College and an MBA from Baruch at the City University of NY.

Join our Constant Contact mailing list for updates on our progress.

Copyright 2018 Next Decade, Inc.

 

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Sep
12

Photo courtesy of trepscore.com

Are the following low trust warning signs present in your company?

  • The Board emphasizes short-term financial results over long-term value creation.
  • CEO values are unknown or unclear and never communicated.
  • The C-Suite operates in individual silos.
  • Management ignores trust as a proactive business strategy or a competitive advantage.
  • The largest departments are legal and compliance with hyper focus on risk.
  • HR is lacking a “values driven” hiring framework hindering the construction of a talented and engaged team.
  • Transparency has taken a back seat to secrecy and closed doors, and employees are always the last to “find out.”
  • Layers of bureaucracy and “rules” slow every decision to a crawl.
  • Failure is punished so passion and innovation are low or nonexistent.
  • Stakeholder activism is increasing.

What other low trust warning signs would you add?

Trust Across America has been researching and measuring the trustworthiness of the 1500 largest US public companies for almost eight years via it’s FACTS® Framework. This, by order of magnitude, is the most comprehensive and fact-based ongoing study on this subject. We analyze quarterly and rank order by company, sector and market capitalization. We are particularly interested in tracking individual companies and sector trends over time.

 

While Trust Across America continues to make the business case for trust, it remains quite common for warning signs to be overlooked or completely ignored.  Address the “trust” danger signs before distrust becomes the norm, or the next crisis comes knocking at the CEOs front door.

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World 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. In 2017 she was named a Fellow of the Governance & Accountability Institute, and in 2012 she was recognized as one of “25 Women who are Changing the World” by Good Business International. She holds a BA in International Affairs from Lafayette College and an MBA from Baruch at the City University of NY.

For more information visit our website at www.trustacrossamerica.com or contact Barbara Brooks Kimmel, CEO and Cofounder

Barbara@trustacrossamerica.com

You may also join our Constant Contact mailing list for updates on our progress.

Purchase our books at this link

Copyright 2017, Next Decade, Inc.

 

 

 

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Oct
11

TAA_R2_EDIT-CS3

The best treatment of any disease is its prevention.

The best response to any crisis is its aversion.

David L. Katz, MD, MPH

 

This morning an article written by David L. Katz, MD, MPH, and the Director of Yale University Prevention Research Center, caught my attention on LinkedIn Pulse.  The title of the article is Ebola and Unscrambling Eggs. Wondering how this relates to organizational trust? Read what Dr. Katz has to say:

That’s what we do, bodies and the body politic alike: wait for catastrophe, then scramble….

The best treatment of any disease is its prevention. The best response to any crisis is its aversion.

Alas, we- anybody and the body politic, alike- seem to harbor an aversion to just that approach. We are forewarned again and again, but never quite manage to be forearmed. We wait for the inevitable fall, then dash in madly to unscramble our eggs.

By all means, let’s do what we always do: call in the King’s horses and the King’s men, at the customary high cost in dollars and human potential. And why not, while we’re at it, go ahead and cross our fingers.

The global trust crisis continues simply because leaders do not practice prevention. They wait for the fall and then call in the crisis team to “rebuild” something called “trust” that never existed in the first place. Rather than being part of the organizational DNA and reinforced daily, trust is almost always taken for granted. And often, when the organizational crisis strikes, the empty trust bank account makes it impossible for the King’s horses and King’s men to put Humpty together again.

Barbara Brooks Kimmel is the Executive Director of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She is also the editor of the award winning TRUST INC. book series. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International.

Nominations are now being accepted for Trust Across America-Trust Around the World’s 5th annual Global Top Thought Leaders in Trustworthy Business.

PrintND Trust CEO cvr 140602-ft914Trust front Cover

                                                                                               Coming Soon!

Should you wish to communicate directly with Barbara, drop her a note at Barbara@trustacrossamerica.com

Copyright © 2014, Next Decade, Inc.

 

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Sep
27

TAA_R2_EDIT-CS3

 

There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. Sam Walton

 

The email I had been waiting for arrived earlier this week, not from Home Depot, but from my credit card company. Without referencing the specific data breach, it simply stated that a new card was being sent to me. I’m still waiting for a similar note or letter from Home Depot.

Does the company care about maintaining trust with it’s customers?  Apparently not so much.

This was the “stock” statement released by the CEO:

“We apologize to our customers for the inconvenience and anxiety this has caused, and want to reassure them that they will not be liable for fraudulent charges,” said Frank Blake, Home Depot’s chairman and CEO.

I wrote about the home improvement industry in a blog post in July called Sorry Our Policy Doesn’t Permit It. At the time, it was unclear why the customer seemed to come last on their stakeholder value chain. But a few days ago, this article appeared on CNN Money and the answer became a bit clearer.

Why Home Depot is Not the Next Target

Apparently, if the stock price doesn’t suffer too much, all is well.

And in case you missed this article, there is even a suspicion that the breach may have been an “inside job.”

As in most similar crises, the company has now announced that they will enhance their security. And so the beat goes on….

I will get my new card and work through the maze and hassle of changing the information with companies on “autopay.”  That will only take me a few hours. But then I’m only a customer, not a stockholder, so my time has little value and the heck with trust.

The important takeaway should be obvious. Even in quasi monopolistic industries, customers always have a choice to spend their money somewhere else. What choice will you make?

Barbara Brooks Kimmel is the Executive Director of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She is also the editor of the award winning TRUST INC. book series. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International.

PrintND Trust CEO cvr 140602-ft914Trust front Cover

                                                                                                  Coming Soon!

Should you wish to communicate directly with Barbara, drop her a note at Barbara@trustacrossamerica.com

Copyright © 2014, Next Decade, Inc.

 

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Sep
25

TAA_R2_EDIT-CS3

 

“The rotten apple spoils his companion.” Benjamin Franklin

Yesterday John Baldoni published a thought provoking article in Forbes  Trust Matters Even to the NFL, and he was kind enough to include some of my thoughts.

At Trust Across America-Trust Around the World we believe that often the most well-deserving, shiniest apples are not those that get the most press coverage. The Manning family, and Eli in particular, have been vocal about the issue of domestic violence and its negative impact on the NFL’s image. Eli is not alone. There are many players in the NFL with high integrity and character. We should not forget this.

Regardless of the organization, when a crisis occurs, it become the problem of every stakeholder, whether they are innocent or guilty. It is important to remember that trust is built in incremental steps. In the course of doing so, the organization, and its leadership, bank trust. When a crisis strikes, they are better prepared and the blow is softened.

Let’s not blame the Eli Manning’s or the NFL “team” for the bad apples, or the resulting fallout from the latest scandal.

This story is really no different than General Motors. Rotten cultures produce rotten apples.

The NFL did not take the proactive steps required to bank trust in their organization, nor to build a trustworthy culture.

Quite simply, that’s a leadership issue. If trust is embraced as a business imperative, the next crisis just might be avoided.

Barbara Brooks Kimmel is the Executive Director of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She is also the editor of the award winning TRUST INC. book series. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International.

PrintND Trust CEO cvr 140602-ft914Trust front Cover

                                                                                                  Coming Soon!

Should you wish to communicate directly with Barbara, drop her a note at Barbara@trustacrossamerica.com

Copyright © 2014, Next Decade, Inc.

 

 

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Sep
15

TAA_R2_EDIT-CS3

 

 

“One can’t assume that trust accrues automatically through the mere passage of time. It grows through incremental steps and deliberate actions.” Charles H. Green, Trusted Advisor Associates

This quote will appear on the cover of the third book in our award-winning TRUST INC. series. The book, TRUST INC., 52 Weeks of Activities and Inspirations for Building Workplace Trust will be published in November 2014 as an inspirational holiday gift.

 

Stephen M.R. Covey speaks frequently about the 5 Waves (Incremental Steps) of Trust:

WAVE 1: Self Trust (personal credibility)

WAVE 2: Relationship Trust (behavior with others)

WAVE 3: Stakeholder Trust (alignment with internal stakeholders)

WAVE 4: Market Trust (external reputation)

WAVE 5: Societal Trust ( global citizenship- social consciousness, corporate citizenship, and corporate social responsibility.)

Organizations cannot effectively build Wave 5 until the first 4 are constructed. Imagine waking up in the morning and putting your shoes on first. Yet that’s exactly what many organizations have done.

Said another way, building organizational trust cannot be accomplished via an a-la- carte menu. Choosing to start building trust at Wave 4 or 5, with the intent of using it as a short-term promotional or communications tool, rather than a long-term, ground up, incremental trust strategy is a bad choice. Planning and executing a corporate citizenship or corporate social responsibility program without first mastering self trust, relationship trust, stakeholder trust and market trust eventually backfires. And when the crisis strikes, the weak trust foundation crumbles. We see evidence of this almost daily. Some of the biggest names in CSR also happen to be some of the greatest trust & ethics violators. Just pick up the newspaper on any given day. In this age of increasing transparency, these organizations are fooling no one but themselves.

So my advice today to all organizations, but particularly corporate America, get dressed before you put on your shoes.

Barbara Brooks Kimmel is the Executive Director of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She is also the editor of the award winning TRUST INC. book series. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International.

PrintND Trust CEO cvr 140602-ft914Trust front Cover

                                                                                                  Coming Soon!

Should you wish to communicate directly with Barbara, drop her a note at Barbara@trustacrossamerica.com

Copyright © 2014, Next Decade, Inc.

 

 

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Aug
31

TAA_R2_EDIT-CS3

 

Late last year Trust Across America-Trust Around the World  published the first in a planned series of award-winning books.  TRUST INC., Strategies for Building Your Company’s Most Valuable Asset brings together the wisdom of 32 experts. Six months later we released our second book, Trust Inc. A Guide for Boards & C-SuitesIn this book, sixty experts have joined forces to offer 100 strategies.

Throughout the month of August, we will be featuring 31 essays from our second book. Each stands alone as an excellent resource in guiding Boards and C-Suites on driving a trust agenda at the highest level in the organization, and provides tools for those who choose to implement trust-building programs in their organization.

This final essay wraps up our series with a short piece that I wrote for this book.  For those interested in a brief bio, I am the  Co-founder and Executive Director of Trust Across America –Trust Around the World and editor of  the Trust Inc. series of books.  In 2012 I was named one of “25 Women who are Changing the World” by Good Business International. In a previous life, I worked as a consultant to McKinsey & Company, and for the past 20 years, I have owned an award-winning communications firm in the NY Metro area called Next Decade, Inc. I majored in International Affairs at Lafayette College and have an MBA from Baruch at the City University of New York. My proudest accomplishment is having raised two children with extraordinary character and values, who like many of their friends and classmates, represent hope for the next generation of business leaders.

Trust in Crisis: The Leader’s Formula

Crisis management has become a complex field, and for good reason. There is no shortage of them in communities, businesses and the government.   But those who choose to proactively lead with trust will find any reputation blow to be softer and speedier, and the recovery much easier.

First, let’s look at the central attributes of a crisis:

  • It has the potential to do significant reputational damage
  • It has the potential to hurt at least one group of stakeholders- consumers, shareholders, employees, community, etc.
  • It is unique and often unpredictable (although not always)
  • It is of interest to the media

Now let’s look at the 5 essential SHORT-TERM measures leaders must take as the crisis unfolds:

  1. In the first 24 hours communicate widely and communicate consistently
  2. Tell the truth
  3. Tell it accurately
  4. Tell it fully
  5. Tell it yourself

And the 5 essential LONG-TERM measures for those choosing to lead with trust:

  1. Accept responsibility
  2. Take long-term corrective action, not a short term band aid
  3. Address any systemic problems
  4. Rebuild broken bridges
  5. Continue to communicate openly

It’s not rocket science, but the missing ingredient is ALWAYS trust, and that’s what keeps the crisis consultants and specialists in business.

The “business case for trusthas been made. While cultural shifts take time, those who lead with trust will be rewarded with a long-term competitive edge, and an easier recovery when the next crisis happens.

This essay concludes our August series. I hope you have enjoyed this sneak peak into our second book. There are many more suggestions and advice in our TRUST INC. book series. If this brief look behind the door has been helpful, follow this link to order both of our books online.

And for those who want to catch up on earlier essays in the series, here’s what’s been covered this month:

August 1: There’s a Reason Why We Call Them Trustees explains why being an “absentee landlord” doesn’t work.

August 2: Kill the Evening Before Dinner and take a small group of front line employees to dinner instead.

August 3: In Head of Business- Hope for the World we introduce the Winston “V” Model.

August 4: Reputation vs. Trust and why leaders should care more about the latter.

August 5: C-Suite Must Speak With a V.O.I.C.E. of Trust, a new communications model.

August 6: It Ain’t What You Do (It’s the Way You Do It) discusses an organization’s core values and traits.

August 7: Superficial CEOs and Their Boards talks about the fiduciary responsibility of board members.

August 8: Headline: Be the Leaders Others Will Follow we learn about consistency between actions and words.

August 9: Towards a Mindset for Corporate Responsibility requiring a shift in mindset on the part of boards.

August 10: Warning: Don’t Drown in the Slogan Swamp explores the (mis)use of slogans in corporate America.

August 11: Trust in the Boardroom in creating competitive advantage.

August 12: Three Ways to Build Trust  and organization that are blind to the dialogue.

August 13: Lead from the Front explains why it’s important to remove the filters between leaders and employees.

August 14: Building Trust For Boards & C-Suites and why published scientific evidence is important.

August 15: (Trust) Communication & the Hiring Process discusses engaging employees in the decision.

August 16: CEO Tip: Trust Your Board as Your Ally emphasizes the importance of trusting partnerships.

August 17: The Culture is the Secret Sauce that must bubble down from the Boardroom to the Mailroom.

August 18: Trust & Strategy Thinking reminds us that it is hard to trust when you cannot relate.

August 19: Be Proactive About Trust & Integrity: just handling problems as they arise is not enough.

August 20: Trust Traps reminds us to ask the tough questions.

August 21: Trust Danger Signs and the need for synergy between the Board and Senior Managers.

August 22: Trust & Public Rewards reminds us to publicly acknowledge and reward staff.

August 23: The Cost of Mistrust and 8 ways to develop it.

August 24: Forward-Thinking Boards Build Trust and will commit to lighthouse leadership and employee engagement.

August 25: When Trust Breaks Down: 5 Steps You Can Take to rebuild it.

August 26: The Key To Trust in the C-Suite is safety, but how do we create it?

August 27: Lead With Integrity & Character reminds us to start with integrity.

August 28: Trust is Built Upon Shadows and you can cast your shadow and light over your team.

August 29: Boards in Crisis- Where Trust is Forged & Broken provides advice for managing crises proactively.

August 30: Leading for Trust: Let’s Get Real tells us to forget incentives, metrics and recognition programs.

PrintND Trust CEO cvr 140602-ft

Should you wish to communicate directly with Barbara, drop her a note at Barbara@trustacrossamerica.com

Copyright © 2014, Next Decade, Inc.

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Aug
29

TAA_R2_EDIT-CS3

 

Late last year Trust Across America-Trust Around the World  published the first in a planned series of award-winning books.  TRUST INC., Strategies for Building Your Company’s Most Valuable Asset brings together the wisdom of 32 experts. Six months later we released our second book, Trust Inc. A Guide for Boards & C-SuitesIn this book, sixty experts have joined forces to offer 100 strategies.

Throughout the month of August, we will be featuring 31 essays from our second book. Each stands alone as an excellent resource in guiding Boards and C-Suites on driving a trust agenda at the highest level in the organization, and provides tools for those who choose to implement trust-building programs in their organization.

This twenty-ninth essay brings advice from my friend Davia Temin. She is CEO of the boutique management consultancy Temin and Company, is a crisis and reputation advisor, product marketing and media strategist, and leadership, communications, and media coach operating at the Board and leadership levels. Temin and Company creates, enhances and saves reputations for global corporations, professional services firms, colleges and universities, and individual CEOs and Board Directors. www.teminandco.com.   Davia  is also a 2014 Top Thought Leader in Trustworthy Business and a member of the Alliance of Trustworthy Business Experts.

Boards in Crisis — Where Trust is Forged and Broken

There is no time more fraught for Boards than a time of crisis.

Should the Board intervene publicly or let management handle the situation? How should the Chair, the Executive Committee, and the entire Board govern the crisis: fingers out, thumbs in; scrutinizing every move; taking over; or at arms length?

The Board’s actions will, of course, dictate how the crisis will resolve: whether the company’s reputation for trustworthiness will grow or diminish in the aftermath.

All depends upon the crisis. If the crisis revolves around CEO succession, leadership breaches or malfeasance, tragedies, or major corporate events such as mergers or acquisitions, the board must be strongly present and occasionally visible. But, at those times, when passions are running high, there may be dissension on the Board.

Best advice: boards must develop their own robust crisis plans prior to any crisis. They must enumerate what kinds of actions will be taken for different issues: their crisis strategies and philosophies, the speed at which they will work, and who on the board will be designated to play first string, even if — especially if — the Chair or CEO is implicated in some way.

(See paper at this link) www.teminandcompany.com/thought-leadership/884-reputation-agenda-for-directors-a-20-point-plan-for-boards-to-address-reputational-risk#.U_-AgICwIp8

Reputation is becoming one of the top priorities of corporate boards. The best way to protect reputation, and trustworthiness, is to plan before any crisis hits, adjust strategies in real time to fit the specifics of a crisis, and then for the board to execute its plan fearlessly.

 

I hope you have enjoyed this next sneak peak into our second book. If this brief look behind the door has been helpful, follow this link to order both of our books online.

And for those who want to catch up on the series, a quick reference on what’s been covered so far this month:

August 1: There’s a Reason Why We Call Them Trustees explains why being an “absentee landlord” doesn’t work.

August 2: Kill the Evening Before Dinner and take a small group of front line employees to dinner instead.

August 3: In Head of Business- Hope for the World we introduce the Winston “V” Model.

August 4: Reputation vs. Trust and why leaders should care more about the latter.

August 5: C-Suite Must Speak With a V.O.I.C.E. of Trust, a new communications model.

August 6: It Ain’t What You Do (It’s the Way You Do It) discusses an organization’s core values and traits.

August 7: Superficial CEOs and Their Boards talks about the fiduciary responsibility of board members.

August 8: Headline: Be the Leaders Others Will Follow we learn about consistency between actions and words.

August 9: Towards a Mindset for Corporate Responsibility requiring a shift in mindset on the part of boards.

August 10: Warning: Don’t Drown in the Slogan Swamp explores the (mis)use of slogans in corporate America.

August 11: Trust in the Boardroom in creating competitive advantage.

August 12: Three Ways to Build Trust  and organization that are blind to the dialogue.

August 13: Lead from the Front explains why it’s important to remove the filters between leaders and employees.

August 14: Building Trust For Boards & C-Suites and why published scientific evidence is important.

August 15: (Trust) Communication & the Hiring Process discusses engaging employees in the decision.

August 16: CEO Tip: Trust Your Board as Your Ally emphasizes the importance of trusting partnerships.

August 17: The Culture is the Secret Sauce that must bubble down from the Boardroom to the Mailroom.

August 18: Trust & Strategy Thinking reminds us that it is hard to trust when you cannot relate.

August 19: Be Proactive About Trust & Integrity: just handling problems as they arise is not enough.

August 20: Trust Traps reminds us to ask the tough questions.

August 21: Trust Danger Signs and the need for synergy between the Board and Senior Managers.

August 22: Trust & Public Rewards reminds us to publicly acknowledge and reward staff.

August 23: The Cost of Mistrust and 8 ways to develop it.

August 24: Forward-Thinking Boards Build Trust and will commit to lighthouse leadership and employee engagement.

August 25: When Trust Breaks Down: 5 Steps You Can Take to rebuild it.

August 26: The Key To Trust in the C-Suite is safety, but how do we create it?

August 27: Lead With Integrity & Character reminds us to start with integrity.

August 28: Trust is Built Upon Shadows and you can cast your shadow and light over your team.

Barbara Brooks Kimmel is the Executive Director of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She is also the editor of the award winning TRUST INC. book series. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International.

PrintND Trust CEO cvr 140602-ft

Should you wish to communicate directly with Barbara, drop her a note at Barbara@trustacrossamerica.com

Copyright © 2014, Next Decade, Inc.

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Aug
04

TAA_R2_EDIT-CS3

 

 

Late last year Trust Across America-Trust Around the World  published the first in a planned series of award-winning books.  TRUST INC., Strategies for Building Your Company’s Most Valuable Asset brings together the wisdom of 32 experts. Six months later we released our second book, Trust Inc. A Guide for Boards & C-SuitesIn this book, sixty experts have joined forces to offer 100 strategies.

Throughout the month of August, we will be featuring 31 essays from our second book. Each stands alone as an excellent resource in guiding Boards and C-Suites on driving a trust agenda at the highest level in the organization, and provides tools for those who choose to implement trust-building programs in their organization.

A quick reference on what’s been covered so far this month:

August 1: There’s a Reason Why We Call Them Trustees explains why being an “absentee landlord” doesn’t work.

August 2: Kill the Evening Before Dinner and take a small group of front line employees to dinner instead.

August 3: In Head of Business- Hope for the World we are introduced to the Winston “V” Model.

The fourth essay in our series is from James E. Lukaszewski (loo-ka-SHEV-skee), widely known as America’s Crisis Guru. He is a speaker, author (12 books and hundreds of articles and monographs), lecturer and ethicist (co-chair of the PRSA Board of Ethics and Professional Standards). His latest book is Lukaszewski on Crisis Communication, What Your CEO Needs to Know About Reputation and Crisis Management.  Jim has been named a 2014 Top Thought Leader in Trustworthy Business by Trust Across America-Trust Around the World. His website is www.e911.com 

Reputation vs. Trust

I’ve always thought that the whole notion of reputation was more a Public Relations construct than a management concern. Leaders care about trust.

During my nearly 40 years in reputation, leadership and organizational recovery I can’t recall a serious discussion of reputation in a management circumstance by those running the business until just before they were about to lose or see their reputation seriously damaged. Public Relations advisors rather than business operators raised the issues.

Trust is a powerful management term. I define trust as the absence of fear. I interpret fear to mean the absence of trust. Trust is a management word; trust is a powerful cultural word. Trust is a word that has its counterparts in virtually every culture on the planet; and trust is understood clearly and immediately by just about everybody. Generally it’s mom who taught us about trust, so we remember.

Chief Executives of troubled organizations don’t lose their jobs because there’s a reputation problem. They lose their jobs because there is a trust problem, a failure to provide the assurance that prevents the fear of serious adverse circumstances. If we’re talking seriously about our relationship with constituents, stakeholders, employees, the public, anyone who has a stake in our organization for whatever reason, we’re talking about trust.

Reputation? We’ll need to call the PR department for the latest definition.

I hope you have enjoyed this next sneak peak into our second book. If this brief look behind the door has been helpful, follow this link to order both of our books online.

Barbara Brooks Kimmel is the Executive Director of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She is also the editor of the award winning TRUST INC. book series. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International.

PrintND Trust CEO cvr 140602-ft

Should you wish to communicate directly with Barbara, drop her a note at Barbara@trustacrossamerica.com

Copyright © 2014, Next Decade, Inc.

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Jan
08

 crisis_managementSOS


Crisis management has become a complex field with highly paid specialists who counsel CEOs.

A CEO who leads with trust will find a reputation blow to be softer, and the recovery much easier.

 

First, let’s look at the central attributes of a crisis

  • It has the potential to do significant reputational damage
  • It will hurt at least one group of stakeholders- consumers, shareholders, employees, etc.
  • It is unique and often unpredictable (although not always)
  • It is of interest to the media

 

Now let’s look at the 5 essential short-term measures the CEO who leads with trust must take:

  1. In the first 24 hours communicate widely and communicate consistently
  2. Tell the truth
  3. Tell it accurately
  4. Tell it fully
  5. Tell it yourself

 

And the 5 essential long-term leading with trust measures:

  1. Accept responsibility
  2. Take long-term corrective action, not a short term band aid
  3. Address any systemic problems
  4. Rebuild broken bridges
  5. Continue to communicate openly

 

It’s not rocket science, but usually the missing ingredient is trust, and that’s what keeps the crisis consultants and specialists in business.

We devote an entire section to Leading with Trust in Crisis in our new book:

Trust Inc, Strategies for Building Your Company’s Most Valuable Asset 

Trust Inc.

Trust Inc.

 

Barbara Brooks Kimmel is the Executive Director of Trust Across America – Trust Around the World.

She welcomes your comments and suggestions.

Email her at barbara@trustacrossamerica.com

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