Archive

Posts Tagged ‘organizational trust’

Dec
16

As the year draws to a close, I am pleased to provide the following visual summary of the progress we made at Trust Across America-Trust Around the World in 2023. For more information please visit our website at www.trustacrossamerica.com or reach out directly to me at barbara@trustacrossamerica.com

#1 Trust Across America’s Trust 200 Index Continues to Outperform the S&P 500 over time (12 years)

trustacrossamerica.com/documents/index/Return-Methodology.pdf

#2 Over 180,000 Have Tapped Into Trust

trustacrossamerica.com/tap-into-trust.shtml

#3 Over 700 Have Taken Our 1 Question “Quiz” Identifying the Behaviors Weakening Workplace Trust

www.surveymonkey.com/r/Trust-One-Principle

Feel free to reach out with questions or comments. Best wishes for more trust in 2024.

Barbara Brooks Kimmel, Founder

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Aug
27

Contrary to what many executives are lead to believe, trust is not a “soft” skill. In fact in today’s challenging business environment it may mean the difference between survival and failure. Trust impacts an organization in multiple ways, from profitability to workplace stress and wellness, stakeholder relationships, regulatory costs and beyond. The following represents some of the more current and less biased research/surveys supporting the business case for trust:

Profitability:

According to the proprietary FACTS® Framework research conducted by Trust Across
America-Trust Around the World, over a 10-year period the most trustworthy public
companies outperformed the S&P 500
. 2022

Companies that actively and consistently build trust amongst consumers across their
entire spectrum of brands gain greater marketing efficiency. They face fewer
headwinds in marketing and selling their products and services, have more effective
advertising due to higher believability, and can charge a premium for their products.
Ipsos Mori Trust the Truth, September, 2019

Accenture Strategy Global Consumer Pulse Report surveyed 24,877 consumers
worldwide about their evolving expectations towards companies. Lack of trust costs
global brands $2.5 trillion per year. This compares to $756 billion lost by U.S.
companies and 41 percent loss of clients. 2017

Research shows that 30% of a company’s value is at risk where trust is broken with the
public and external stakeholders. Those CEOs who have a proactive approach to crisis
planning view simulation training and drills as an investment. They also see it as a way
to test and build the trust and confidence of their teams. It hones and develops
leadership and communication skills, builds coherence and cross-functional support. McKinsey & Company research in Connect: How companies succeed by engaging radically with society 2015 – John Browne, Robin Nuttall, Tommy Stadlen

Employee Engagement:

According to Gallup, when employees don’t trust organizational leadership, their
chances of being engaged are one in twelve. But when that trust is established, the
chances of engagement skyrocket to better than one in two. A highly engaged
workforce means the difference between a company that outperforms its competitors
and one that fails to grow. Currently 31% of the working population are engaged.
Taking into consideration three Gallup measures of employee engagement this year,
the overall percentage of engaged workers during 2020 is 36%. July, 2020

Workplace Stress & Wellness:

Research on the link between trust and wellness in SmartBrief article. 2020

The level of trust in the work environment is also associated with increased
adjusted odds of having cardiovascular disease. International Journal of
Environmental Research, 2019

Research from 2018 suggests that “trust and perceived support are both significant
predictors of mental and physical health, job satisfaction and turnover intentions.
However, the support at the team level is a more important predictor, while trust is
a stronger predictor at the organizational level. Italian Society of Occupational
Medicine, 2018

According to PwC, when we look at employees, 22% have left a company because of
trust issues and 19% have chosen to work at one because they trusted it highly. In
other words, one out of five of your employees who leave don’t do so primarily for a
better salary or position. They leave because they don’t trust your company. PwC Trust
in US Business Survey, August 2021

Improved Stakeholder Relationships:

Only 7 percent of Americans believe that major company CEOs have high ethical
standards, and only 9 percent have a very favorable opinion of major companies.
Only 42 percent Americans trust major companies to behave ethically, down from
47 percent last year. Public Affairs Council, 2018

Regulatory Costs:

The Competitive Enterprise Institute reports that The cost of Federal Regulations is
approaching $2 trillion annually. To put that number in perspective, if U.S.
regulations were an economy, it would be larger than Canada’s entire GDP and the
eighth largest in the world. The regulatory state costs more than the U.S.
government collects from income taxes. It’s almost equal to all corporate pretax
profits earned in 2016. Investor’s Business Daily April 19, 2021

Barbara Brooks Kimmel is an author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in Harvard Business Review, Investor’s Business Daily, Thomson Reuters, BBC Radio, The Conference Board, Global Finance Magazine, Bank Director and Forbes, among others.

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Aug
18

Recently, I presented at a conference for leaders running businesses with participants from over one hundred and fifty countries.  Having spoken on trust in more than fifty-eight countries on-site—and in even more virtually—I’ve noticed that although every culture is beautifully unique and different, there is one common thread that runs through them all: trust.  Regardless of the setting or the circumstances, each culture and country is shaped by trust – or the lack thereof. Every society, organization, team, group, and family functions well only to the degree there is trust.  Indeed, it can be said that trust “makes our world go ‘round.” 

If it feels like your world isn’t going ‘round right now, or it’s going slower than you’d like, I recommend looking at trust first.  The reality is, that low trust is almost always the root of the problem – or the most impeding barrier to the solution.  Indeed, most organizational performance issues are really trust issues in disguise.

Never before has the impact of low trust been more prevalent or apparent. More and more we see examples of this play out on the news, as well as in our own organizations, communities, and neighborhoods. On top of that, we have more research and data on how trust drives performance available at our fingertips than at any other time in history.  We know this is important. And yet, deliberately moving the needle on trust, which is vital for everyone and everywhere, continues to present an enormous challenge.  Why is that? 

Trust the Noun

For me, it begins with understanding what Trust means. Trust as a noun is both complex and eye-opening. 

Take for example, this exercise that I invite teams and audiences to participate in when I speak on this topic. Consider the statement below: 

It is possible to have two trustworthy people working together and to have no trust between them.

Take a few moments to ponder the significance of that statement, because in all my years of teaching trust, this is perhaps one of the most profound insights I’ve learned. 

Read it again.  What stands out to you? 

The idea that you can have two trustworthy people working together and also have no trust between them continues to be one of the biggest challenges I run into when working with people— regardless of the situation. Whether it be on a team, between teams, in an organization, in the relationship between partners and customers, or even just on a personal level, this problem comes up again and again. 

It exhibits itself as misalignment between departments, a lack of collaboration, weak retention, lethargic execution, an inability to innovate, and formation of silos.  It becomes greatly magnified in the context of nearly every form of organizational change. It becomes a silent stumbling block on the road to innovation and progress.  Have you experienced this or seen it in your own organization? The majority of people can relate to the frustration that comes hand in hand with low trust. 

However, the statement I shared is only part of the insight.  Take a moment to consider the completed message:

It is possible to have two trustworthy people working together and to have no trust between them . . . if neither person is willing to extend trust to the other. 

When most people think about trust, they simply think about trustworthiness – the level at which someone can be relied upon or trusted. Although insufficient by itself, trustworthiness is still a good place to start because it’s difficult to have real, meaningful trust between people when one or both parties isn’t worthy of it. 

But here’s the kicker: in my experience, our most significant challenge is not a lack of trustworthy people. Everywhere you go, you can find good, honest, trustworthy people to work with. So, that is less often the issue. Rather, the bigger challenge is trustworthy people who do not extend trust to other trustworthy people. Those same good, honest, trustworthy people are often the ones who find it hardest to give trust to others. 

I can’t tell you how many leaders I’ve worked with who are credible and authentic, who care deeply about both their work and their people, who are excited and eager to make a difference for their organization – and yet who just can’t seem to extend trust, or enough trust for it to really matter.  They are trustworthy but are not trusting.  Both dimensions are vital. And because trusting is reciprocal, it goes both ways: employees and team members who are distrusted by their leaders learn to withhold trust from those same leaders. And the cycle and impacts of low trust continue onward. To achieve Trust in its ultimate noun form, we must have both components present and operating – trustworthiness and trusting. 

The Good News

Although your organization might not currently be operating at the level of trust you want, I believe this insight provides hope that it can. If our teams and organizations really are full of trustworthy people, it means there is enormous potential waiting for us on just the other side of a meaningful extension of trust. There are enormous benefits we have yet to reap if we shift our focus from not only being trustworthy but also to being trusting.

Gail McGovern, twice named one of the “50 Most Powerful Women in Corporate America” by Fortune Magazine, is a model of being trusting.  When she became CEO of The American Red Cross, she inherited a $209 million operating deficit, along with a Board mandate to eliminate said deficit within two years. On top of that, she was the 10th CEO of the prior decade. Walking into the struggling non-profit and assuming trustworthiness at scale may not have been the most natural position to take.

Knowing the difficult circumstances the organization faced, and how temporary the CEO role had been, Gail arranged a series of town hall meetings around the country—what she called a “listening tour”—with the intent to listen to and connect with employees as a foundation of developing a turnaround plan.  During one such meeting, an employee bravely asked the question on everyone’s mind, point blank: “Gail, you’re new and we’ve gone through a lot of leaders.  How do we know if we can trust you?”

Gail responded thoughtfully, “You’ll have to decide that for yourself but I certainly believe you’ll find in me someone you can trust.”  Then she leaned in and emphatically declared to everyone in the room, “But let me tell you that I trust each and every one of you.

This was an easy thing to say yet hard to do.  But Gail meant it.  She was trustworthy when she arrived, bringing with her an excellent track record, but that wasn’t what inspired her employees to trust her. It was her early decision to practice trusting others that people responded to powerfully.  This strong start inspired her people and helped them to buy into her plan and vision for the organization. This unified front served them well as they were able to eliminate the deficit and kick off a turnaround that continues to this day to perform and serve society in profound ways.

Trusting Globally

Another great example of trusting is Daniel Grieder, the CEO of global fashion retailer, HUGO BOSS, out of Germany.  When Daniel was brought in from outside the company to serve as the new CEO, he immediately met with his top leadership team, and outlined, in essence, two possible paths forward. In that meeting, he laid out his vision and invitation for the future:

“Team, you don’t know me, and I don’t know you.  So, we have two choices: we can spend the next year deciding whether or not we can trust each other . . . but then we’ll have wasted a year.  Or we can decide to trust each other from day one.  I choose the second option.  So please know this:  I trust youPlease trust me too.  Trust is how we we’ll create a new way of working together, and a new culture.”

Can you imagine the impact this immediate extension of trust had on those in the meeting?  In fact, I recently had the opportunity to meet with Daniel and his team, just about two years into his tenure and the results were obvious.  In those early days, the company had created a five-year strategic plan and, even though only two years had passed they were already on year four of the plan!  Indeed, they were operating at the speed of trust.  The decision to trust each other internally had long since been made, and their external performance—as well as internal culture—was the proof.  Through trust, Daniel and his team were able to build a strong culture of trust that allowed them to collaborate more frequently, innovate more fully, and achieve their goals more quickly. They were winning in the marketplace as a result of winning in the workplace first.  Daniel was trustworthy but he also trusted his people who in turn trusted him and together they were able to achieve remarkable results. 

Imagine how differently things might have gone in both scenarios had Daniel or Gail chosen not to extend trust. 

 What About You?

Stories like this are inspiring but may also feel overwhelming due to their scale. But in my experience, the results of extending trust are just as impactful and magnificent on a personal level as they are on an organizational or global level. Perhaps this can be seen most clearly, as you consider these three favorite questions of mine. 

The first is simply, “Who trusted you?”  I often ask people to identify someone in their life who trusted them. Someone who saw potential in them that maybe they didn’t even see in themselves, someone who believed in them, someone who took a chance on them.  Almost without exception, everyone can quickly, if not immediately, think of someone (and sometimes more than one). Whether it was a parent, a boss, a teacher, a coach, a friend – we all remember those people who trusted us and believed in us. 

The second question I like to ask is, “how did that extension of trust impact the way you saw yourself?”  We know these people had a great impact on us but there is something special about articulating how exactly they did and how it changed and inspired us. Regardless of the situation, deep down we all want to be trusted – and when we are, it does something for us.  Being trusted is the most inspiring form of human motivation.  Being trustworthy is vital—but sometimes the very thing that makes a person worthy of trust is when they find themselves on the receiving end of it. People more often than not rise to the occasion when they are given the chance to prove themselves. 

Having thought about the person who trusted you and how it impacted your life for the better, my third question is, “For whom can you be that person?” The cycle of extending trust shouldn’t end with you. There are people out there waiting for someone to offer them the chance to shine. You can be that person for them. 

I invite you to consider all three of these questions. No matter your circumstances – whether as CEO of a company, a manager of a small team, an hourly employee, a stay-at-home parent or simply as a human being, you have the opportunity to change lives through trust. Your organization, your team, the trustworthy people in your life can reap the benefits as you extend trust to them. And you will find in turn that they will extend trust to you. And this uplifting cycle, no matter where on the globe you might be, will indeed make your world go ‘round. 

by Stephen M. R. Covey (bestselling author of The Speed of Trust and Trust & Inspire)

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Aug
09

What do we mean by ESG? 

Investopedia offers this summary: Environmental criteria consider how a company safeguards the environment, including corporate policies addressing climate change, for example. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. The conversations around the role of “S” (how companies treat their stakeholders) and “G” (how they are governed) have recently come into focus and for good reason.

What do we mean by a “trust deficit.”

At Trust Across America-Trust Around the World (TAA-TAW) we consider trust as the “outcome of principled behavior.” If the principled behaviors are absent, a trust deficit is created.

What is Causing the ESG Trust Deficit? 

Reading the current headlines one might concluded that the ESG trust deficit is “all political.” That one side wants ESG and the other does not, and so one group is “right” and the other is “wrong.” But while politicizing ESG may be convenient for some, blaming politics ignores the root causes of the trust deficit (the behavioral ones), and they are plentiful.

The Employee Perspective

According to the Public Affairs Council members of the public don’t trust corporate CEOs as much as they trust the companies these CEOs lead: 47% place a lot of trust or some trust in major companies to behave ethically but give CEOs poor marks in this area. Only 7% believe CEOs to have high standards for honesty and ethics, and almost half (47%) believe their standards are low. October 2020

And Gallup recently reported that low employee engagement costs the global economy $8.8 trillion or 9% of global GDP.

The Sustainability Perspective

Elaine Cohen, a leading global voice in sustainability and reporting offers the following:

For me, the ESG Trust Deficit shows up as publicly stating a commitment to ESG but not following through with actions:

  • inconsistencies between what the company talks about in its (financial) annual report and its sustainability report
  • lack of integration of ESG as part of the business strategy
  • lack of clear ESG targets and transparent report of progress against targets while declaring a strategic approach to ESG or sustainability
  • lack of understanding of the financial implications of ESG impacts
  • public commitment but poor performance against commitments
  • lack of Board understanding or and visibility on sustainability matters
  • lack of accountability for Board members for ESG matters

The Governance Perspective

Lawrence A. Cunningham an authority on corporate governance, corporate culture, and corporate law has this to say: The traditional “G” in ESG refers to allocation of corporate power among and between directors, officers and shareholders. The “E & S” (and now the “P” for political) is a nouveau addition addressing allocations of corporate power to other constituencies as well, especially fellow citizens, employees, and customers. Among the pairs between traditional governance and nouveau ESP some are (1) mutually compatible in theory (so both can possibly be implemented without necessarily compromising), (2) mutually exclusive and (3) mutually compatible in theory but often not in practice (the nouveau ES focus crowds out traditional G priorities).  The related classifications in the following infographic are subjective judgment rather than scientific truth but they illuminate the changing landscape and stakes.  

What does this chart reveal about the role and value of trust? Walking through the exercise and sensing the variability and uncertainty of the practices and priorities will likely raise questions for many readers about the compatibility of the nouveau ESP practices with fundamental notions of trust.

The Leadership Perspective

Finally, Barton (Bart) Alexander who has worked to effect positive change from senior executive positions within government, Fortune 500 corporations and NGOs weighs in on a third cause of the ESG trust deficit.

The longstanding cycles of labeling and then criticism of the labeling are just in another phase. We used to have corporate citizenship, then corporate responsibility, then shared value, then ESG, then purpose.  Each creation of the “new framework” says the old one is misdirected and incomplete.  Even governance for a long time was just about the basics of transparency and accountability.  In one of the current cycles, we have ESG being criticized as PR oriented, then Woke, and now we have green hushing as much as green washing.  

Companies are challenged to meet investor expectations amidst pressure to adhere to environmental and social imperatives. Taking a stand exposes them to accusations from both sides — being too slow and prioritizing “woke” issues over profits. 

In conclusion, thriving companies adhere to sound business strategies, without succumbing to polarized debates. Their sustained success depends not only on short-term profits, but on building value for all of their stakeholders, starting with their employees.  They need not exaggerate nor hide what they are doing — their results speak for themselves. Senior executives who make principled behavior a priority tend not to “take stands” or make bold claims via corporate communications about their purpose or the organization’s positive environmental and social programs. Instead they simply choose to do the right thing without much fanfare.

For Trust AcrossAmerica-Trust Around the World (TAA-TAW) this is not a new revelation. When we built our FACTS® Framework over ten years ago to evaluate the trustworthiness of public companies, we recognized the need to create a holistic model of principled organizational behavior that gave equal weight to the E, S and G. This was long before ESG became a “household name.” The FACTS® Framework is an acronym that includes five drivers or indicators of trustworthy business behavior. Read more at the link.

One solution to the ESG Trust Deficit: Our Trust 200 Index

TAA-TAW maintains an index of our FACTS® Top 200 most trustworthy public companies. The Index is updated daily. The twelve year performance against two benchmarks (iShares Russell 1000 Value ETF (IWD) and SPDR S&P 500 (SPY) ETF) is shown below (as of August 3, 2023) and the results speak for themselves. Over time the most trustworthy companies outperform.

Why? The best leaders create long term value through principled behavior which builds trust instead of breaking it. They know it begins with integrity which enables trustworthy leaders to attract and retain top talent who then willingly owns and model the values flowing from the top. These values then organically tend to extend to all stakeholders. Said another way, trust is built over time and in incremental steps by the actions of trustworthy leaders, not through weak or politicized ESG “programming” or “talk.” The public has watched these misdirected messages backfire time and again, resulting in an accelerating erosion of trust. And this is why the ESG trust deficit exists.

The trustworthiness of an organization is determined equally by its environmental, social and governance structure and practices, incorporating not only shareholder interests but those of other stakeholders as well, beginning with employees. ESG programs don’t create or fix trust, but principled behavior will do both.

More information on TAA-TAW can be found at www.trustacrossamerica.com

Barbara Brooks Kimmel is an author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in Harvard Business Review, Investor’s Business Daily, Thomson Reuters, BBC Radio, The Conference Board, Global Finance Magazine, Bank Director and Forbes, among others.

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Jul
29

FROM THE SUMMER ISSUE OF TRUST! MAGAZINE trustacrossamerica.com/magazine.shtml

Last week we published the summer issue of TRUST! Magazine. It includes 14 essays on our current ” state of trust.” These are some thoughts from the authors.

Trust in Turbulent Times: Interestingly, the etymology of “trust” is rooted in old Norse and English words meaning “strength” or “to make safe and strong.” In times like these, we crave leaders who will keep us safe and make us strong. Bart Alexander

The Formula for Building Trust: If it feels like your world isn’t going ‘round right now, or it’s going slower than you’d like, I recommend looking at trust first. The reality is, that low trust is almost always the root of the problem — or the most impeding barrier to the solution. Stephen M.R. Covey

Trust & Commerce: Trustworthiness is a vital component of every corporate interaction. It is the lubrication of commerce. Without trust in the organization, the company will ultimately cease functioning effectively or efficiently. Dr. James Gregory

The Trust Landscape: Couple decreasing trust with what we know about what we do when we distrust others and we have the makings of a slow-moving disaster. Unless we start turning this ship around we will see diminishing cooperation with increasing polarization, more balkanization in politics and society, less willingness to talk things out as people pull back from those they distrust. Charles Feltman

The Business Case for Trust: Contrary to what many executives are lead to believe, trust is not a “soft” skill. In fact in today’s challenging business environment it may mean the difference between survival and failure. Barbara Brooks Kimmel

The Margin of Trust: America’s corporate governance systems also make it difficult for boards to set the tone of a trust-based corporate culture. In the name of “accountability,” the system has veered from principles and tailored approaches towards mandatory rules and standardized practices for all. Lawrence A. Cunningham

Risk & Trust: Things go wrong when institutional trust is based on rules intended to rein in personal freedom and autonomy, implying that forced compliance creates more institutional trust than the personal trust it displaces. This way of thinking usually doesn’t end well. Charles H. Green

Trust & Governance: The smooth functioning of an organization therefore relies on an assumption of regularity. That, in turn, relies on two “trust” factors. First, that the people involved can trust each other and, second, that the corporate governance system itself is trustworthy. Jon Lukomnik & Rick Funston 

Ethical Leadership & Trust: Most core values are a set of ideas thought up on a management golf outing, brought in on the back of a clubhouse napkin, then printed and posted without another word being spoken. The values and ideals of a business are what employees and others bring to work every day. James Lukaszewski

Sustainability Reporting & Trust: If trust is the purpose, then what you intend to do is as relevant as what you have done. Publicly committing to multi-year targets is a must for credible sustainability reporting. Elaine Cohen

Trust in Healthcare: Lack of trust creates a situation that creates the propensity to misinformation. At the same time, misinformation can create a negative trust reset. Jan Berger

Technology & Trust: As of November 2022, we have over 8 billion people sharing our precious planet earth. It makes sense to continue debating and researching trust between humans both individually and organizationally. At the same time, we urgently need to focus on the trustworthiness of technology. Our very survival as a species may depend on it. Helen Gould

Trust in Media: Ultimately what’s needed is changing the culture of how news is produced and what journalists are expected to do on a regular basis. We are talking about updating a system that, when you look at the format and expectations, hasn’t evolved since it started. Lynn Walsh

Trusting Artificial Intelligence: While Chat GPT may have the potential to revolutionize industries, the response to my original question reads like a primer on trust research with little to no information on trust in practice. Barbara Brooks Kimmel

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May
20

I remember speaking with Greg Link when he and Stephen M.R. Covey were writing their book Smart Trust.

That was 10 years ago

What has changed? In essence accountable leaders who have assumed responsibility for trust continue to reap the rewards. But sadly, over the past decade not many have chosen this route. Instead, the majority of businesses are simply checking boxes and little more. Why? These activities are relatively fast, easy and can be delegated. Put the “trust” label on the program and check the box. Now the communications team has some great talking points. Brand trust, purpose trust, AI trust, digital trust, ESG trust, etc. The list is endless. Who benefits from this approach? Consultants, speakers, academics, media and NGOs who have all joined forces in monetizing “perception of trust.” Who loses? Boards, business leaders, employees, customers and most other stakeholders.

In Smart Trust Covey and Link discuss 5 actions

  • Choose to believe in trust. …
  • Start with self. …
  • Declare your intent and assume positive intent in others. …
  • Do what you say you’re going to do. …
  • Lead out in extending trust to others.

These actions are a great starting point for business leaders, and there are many time tested strategies that will result in smart trust. Paradoxically, while trust is more important than ever, the majority of those who have the power to elevate it are choosing all the wrong approaches. I call that a dangerous win/lose proposition.

In the words of Covey and Link  There is a direct connection between trust and prosperity because trust always affects two key inputs to prosperity: speed and cost. In low-trust situations, speed goes down and costs go up because of the many extra steps that suspicions generate in a relationship, whereas two parties that trust each other accomplish things much quicker and, consequently, cheaper. The authors call high trust a “performance multiplier.” High trust creates a dividend, while low trust creates a wasted tax.

Whether you choose to be part of the trust problem or part of the solution, here are a few indisputable facts:

Trust is the outcome of principled behavior.

Trust is always interpersonal.

Trust takes time and it is built in incremental steps.

Trust building is an inside out, not an outside in activity.

Trust ALWAYS starts with leadership.

As Bill George said in his testimonial for Smart TrustNothing is more important than building trust in relationships and in organizations. Trust is the glue that binds us together. Everywhere I go I see a remarkable loss of trust in leaders, and once lost, trust is very hard to regain. I feel this loss is tearing at the fabric of society, as so many people love to blame others for their misfortunes but fail to look in the mirror at themselves.

For more information and resources on elevating trust, please visit www.trustacrossamerica.com

Or contact us directly.

Barbara Brooks Kimmel is an author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in Harvard Business Review, Investor’s Business Daily, Thomson Reuters, BBC Radio, The Conference Board, Global Finance Magazine, Bank Director and Forbes, among others.

Copyright 2023, Next Decade, Inc.

 

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May
17

What is the average lifespan of a public company?

“A recent study by McKinsey found that those companies listed in Standard & Poor’s 500 was 61 years in 1958. Today, it is less than 18 years. McKinsey believes that in 2027, 75% of the companies currently quoted on the S&P 500 will have disappeared.” While some might question this conclusion or argue that disruptive technology is primarily to blame, maybe lack of trustworthiness is the real culprit.

Every year Trust Across America-Trust Around the World creates a “Top 10” Most Trustworthy Public Company list. The 2022 list can be found here. Four of the companies were founded in the 1800s and all but one has been in business for more than 18 years. The average life span of the ten companies is 77 years. Could it be that the most trustworthy companies are not only great innovators, but also tend to stay in business because they are well governed?

Some of warning signs of poor governance and low trustworthiness may surprise you.

  1. Trust is taken for granted and viewed as a soft skill. Either leadership never discusses it, or worse yet attempts to delegate it.
  2. There is a new chief in town who holds the title of Chief Trust Officer but it is not the CEO (see #1 above) as it should be, and the job description is similar if not identical to the Chief Risk Officer. Trust building and risk mitigation skillsets are not one and the same and trust always starts at the top.
  3. The skillset of the “leadership” team needs a serious reset. For example, layoffs are a first line of defense.
  4. Employee turnover is high but no one is asking why.
  5. The company website contains lots of Kumbaya “words” that do not translate into action. Just ask the employees.
  6. Strategies for elevating organizational trust and trustworthiness have never been discussed let alone described, shared or agreed upon.
  7. Leadership focuses on survival and short-term profitability. In fact in many cases, compensation is directly tied to quarterly earnings.
  8. Board diversity in gender and race are present but sorely lacking is diversity of thought or opinions.
  9. A well defined/aligned hiring strategy has not been implemented resulting in cultural confusion and non engaged employees.
  10. Expensive Short-term “perception of trust” programs/workarounds are abundant. (Hint: Think about whether the program can easily tick a box.)

Take a look at this infographic for some additional insights.

Elevating trust and trustworthiness does not require complex formulas. Most of these warning signs can be easily addressed given the right tools and resources, and a willingness to fix what is broken. Want to learn more about building organizational trust and trustworthiness? Our website provides an endless number of tools and resources.

Barbara Brooks Kimmel is an author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in Harvard Business Review, Investor’s Business Daily, Thomson Reuters, BBC Radio, The Conference Board, Global Finance Magazine, Bank Director and Forbes, among others.

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May
05

Many models of (un)ethical decision making assume that people decide rationally and are, in principle, able to evaluate their decisions from a moral point of view. However, people might behave unethically without being aware of it. They are ethically blind.

As organizations are comprised of individuals, Ethical Blindness naturally extends into the workplace. Some business sectors appear to be more ethically blind than others, and this creates enormous enterprise risk.

More on our Framework here.

Ethical blindness can be corrected, but only if leaders choose to be “tuned in” to the warning signs described below:

Is Ethical Blindness at the organizational level fixable? Absolutely. But the first order of business requires leadership acknowledgement and commitment to elevating organizational trust and ethics.

These 12 Principles called TAP, were developed over the course of a year by a group of ethics and trust experts who comprise our Trust Alliance. They should serve as a great starting point for not only a discussion but a clear roadmap to eradicating Ethical Blindness. As a recent TAP commenter said:

“An environment /culture that operates within this ethos sounds like an awesome place to me, I would work there tomorrow if I knew where to look for it.”

Barbara Brooks Kimmel is an author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in Harvard Business Review, Investor’s Business Daily, Thomson Reuters, BBC Radio, The Conference Board, Global Finance Magazine, Bank Director and Forbes, among others. For more information contact barbara@trustacrossamerica.com

Copyright © 2023, Next Decade, Inc.

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Mar
15

Business leaders are constrained by the number of hours in the day, competing demands, and how they choose to prioritize their time. Sadly many spend a large percentage of their day reacting to crises and extinguishing fires. This is lost time that could be better allocated to proactively building their brand.

From our research over 15+ years we know that trustworthy organizations make for good business and are less risky, yet the majority of leaders do not embrace the long-term benefits of trust. If they did, some of their time would be freed up for more worthwhile pursuits.  If you are a leader and this sounds remotely interesting to you, start by asking yourself these ten questions.

Ten Questions For Leaders Seeking to Build Trustworthy Organizations

  1. Have I acknowledged or ignored the business case for trust?
  2. Am I personally trustworthy? Does trust matter to me as an individual or in my professional life?
  3. Is trust mentioned in our mission/vision statement or corporate credo? If not, why not?
  4. Do all stakeholders view me as trustworthy? Have I asked?
  5. Do I speak about the importance of trust on a regular basis?
  6. Do I engage my employees in discussions about trust?
  7. Do I own and model trust building behaviors? Am I transparent, accountable, respectful?
  8. Do I celebrate achievements? Do I allow mistakes?
  9. Do I have a trust tracking mechanism in place?
  10. Have I budgeted for trust building programs?

What other questions should leaders be asking themselves in pursuit of building trustworthy organizations?  Leave a comment.

Barbara Brooks Kimmel is an author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in Harvard Business Review, Investor’s Business Daily, Thomson Reuters, BBC Radio, The Conference Board, Global Finance Magazine, Bank Director and Forbes, among others.

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Mar
05

So what’s your trust excuse?

Fifteen years is a long time to be “talking trust” with leaders and managers, and yet something keeps me doing it. I have spoken with hundreds if not thousands of business leaders during this time from small startups to Fortune 500 and, given the opportunity, ask this question.

What role if any does trust play in your work?

And these are the most common responses in no particular order.

  1. None, trust is a soft skill
  2. None, there is no business case
  3. None, we have no budget 
  4. None, we do not consider it a measurable risk
  5. I never thought about it
  6. My employees trust me
  7. Huge, every year we bring in a “big name” motivational speaker
  8. None, I have too many daily fires to extinguish
  9. None, it’s not my job
  10. None, are you kidding?

What’s the message here? Whether you are a leader, manager or work as a member of a team, if you do not intentionally choose  trust building as part of your daily activities, do not expect it to flourish. It does not happen on its own.

If you are interested in learning more, take a look below.

Barbara Brooks Kimmel is an author, speaker, product developer and global subject matter expert on trust and trustworthiness. Founder of Trust Across America-Trust Around the World she is author of the award-winning Trust Inc., Strategies for Building Your Company’s Most Valuable Asset, Trust Inc., 52 Weeks of Activities and Inspirations for Building Workplace Trust and Trust Inc., a Guide for Boards & C-Suites. She majored in International Affairs (Lafayette College), and has an MBA (Baruch- City University of NY). Her expertise on trust has been cited in Harvard Business Review, Investor’s Business Daily, Thomson Reuters, BBC Radio, The Conference Board, Global Finance Magazine, Bank Director and Forbes, among others.

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