Archive

Posts Tagged ‘trust in business’

Dec
21

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Trust is at the heart of all successful relationships, both personal and professional. While business leaders often view it as a “soft skill” in reality, trust is the key driver of profitability and long-term success. Drawing on the insights of twelve high integrity leaders and thinkers, and in our never-ending quest to elevate trust in business, Trust Across America offers these insights to the most important question for 2017:

 

What do you believe is the most important action a business leader can take to build trust with his/her stakeholders?

 

Stephen M.R. Covey, one of America’s most well known thought leaders on trust urges leaders to…

Lead out in extending trust. @StephenMRCovey In building trust with ALL stakeholders, lead out in extending trust. Click To Tweet

Why?  Because extending trust generates a reciprocity of trust.  When we give it, people receive it—and then they return it.  When we withhold it, they withhold it.  

 

Marshall Goldsmith a top American leadership coach seconds Stephen’s advice…

Lead by example. @CoachGoldsmith In building trust with ALL stakeholders, lead by example. Click To Tweet

What we do speaks far more loudly than what we say.

 

Bob Vanourek of Triple Crown Leadership and a former CEO of five companies, urges leaders to…

Put trust on the agenda. @BobVanourek In building trust with ALL stakeholders, put trust on the agenda. Click To Tweet

By constantly putting trust questions on the agenda, like “Are we building trust with what we are doing here?” everyone will begin to understand and take action on building trust.

 

David Reiling, Sunrise Bank’s CEO suggest that leaders…

Walk the talk. @ReilingDavid In building trust with ALL stakeholders, walk the talk. Click To Tweet

Day-in and day-out, night-in and night-out, weekends and holidays. Being authentic and living with integrity builds trust in business and everywhere else. 

 

 Linda Fisher Thornton who runs Leading in Context and is on a mission to unleash the positive power of ethical leadership urges leaders to…

Show genuine interest. @leadingincontxt In building trust with ALL stakeholders, show genuine interest. Click To Tweet

Initiate conversations and find ways to add value. Think about the impact of every decision on every stakeholder, and act in their best interests as well as your own. 

 

Tim Erblich, CEO of Ethisphere believes the most important action a leader can take to build trust is to…

Measure the culture @TimErblich In building trust with ALL stakeholders, measure the culture. Click To Tweet

of his/her business, and openly share the findings with employees, stakeholders and more.  

 

Dave Ulrich, a professor at the Ross School of Business (University of Michigan) and co-founder of the RBL Group, found it hard to pick one thing so we picked it for him!

Be transparent. @Dave_Ulrich  In building trust with ALL stakeholders, be transparent. Click To Tweet

Avoid leadership hypocrisy…do what you say. Share personal feelings.

 

Evan Harvey who directs Corporate Responsibility at NASDAQ seconded the theme of transparency with his answer…

Act transparently. @EvanHarvey99 In building trust will ALL stakeholders, act transparently. Click To Tweet

Tell your stakeholders what you are trying to accomplish and why; then demonstrate progress towards a goal. That involves others in the process, widens the circle of influence and interaction, and builds lasting trust.

 

Jim Lukaszewski, an author, speaker and crisis management consultant urges leaders to…

Be candid. @JimLukaszewski In building trust with ALL stakeholders, be candid. Click To Tweet

Find the truth, tell that truth, act on it promptly in an environment where values matter at least as much as profits and gain. Candor: truth with an attitude told right now is the basic building block of Trust.

 

Doug Conant, former CEO Campbell Soup who heads Conant Leadership, believes the most important action a business leader can take to build trust is…

Do what you say you are going to do. @DougConant In building trust with ALL stakeholders, do what you say you are going to do. Click To Tweet

And do it well. How can people trust a leader who says one thing but does another? They can’t and won’t.”

 

Jason Lunday Principal Consultant Integrity Factor quotes another one of my favorite trust thought leaders, Frank Navran “Trust is the result of promises fulfilled.”

Keep your promises. @Jason_Lunday In building trust with ALL stakeholders, keep your promises. Click To Tweet

Establish full-cycle mechanisms to ensure that the organizations’ promises will be met, including communicating success.

 

And as the 12th recommendation Barbara Kimmel (that’s me) offers leaders the following:

The leader sets the tone for the organization. @BarbaraKimmel In building trust with ALL stakeholders, the leader sets the tone for the organization. Click To Tweet

Building stakeholder trust first begins with leadership recognition that trust is critical to long-term organizational success. This means making trust a leading business focus in both the Board & C-Suite, reinforcing the trust imperative, and always leading by example.

 

Thank you to all our contributors.  May 2017 bring increasing stakeholder trust to your organization!

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. Now in its seventh year, the program’s proprietary FACTS® Framework ranks and measures the trustworthiness of over 2,000 U.S. public companies on five quantitative indicators of trust. Barbara is also the editor of the award-winning TRUST INC. book series and a Managing Member at FACTS® Asset Management, a New Jersey registered investment advisor.

Copyright (c)  2016, Next Decade, Inc.

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Dec
04

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Measuring the integrity or trustworthiness of public companies is an ongoing research project at  Trust Across America-Trust Around the World. In fact, we now have over 7 years of increasingly “rich” data.

Take a look at this chart:

 

 

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While we are in the business of identifying “best in breed” and not in predicting the next corporate crisis, our FACTS(R) proprietary data is quite capable of doing so. Citigroup, JP Morgan, Bank of America, Wells Fargo… Did the lack of integrity at Wells Fargo contribute to its recent crisis? Could it have been avoided under different leadership? What do you think?

Would you like more insights like this?

Request our White Paper:  The State of Trust in Corporate America 2016

Trust Data: Public companies can review the level of trust within their organization and compare their performance to their peers.

Order our Trust Inc. book series.

2017 Trust Poster: Weekly Do’s and Don’ts to Foster Organizational Trust

Join our Trust Alliance where share our research with high integrity business leaders.

If you lead an organization, serve on a Board or in any management capacity or work with others, and you continue to ignore trust as a hard asset, you are losing out to your competitors and failing to protect your organization against a Wells Fargo crisis.

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. Now in its seventh year, the program’s proprietary FACTS® Framework ranks and measures the trustworthiness of over 2,000 U.S. public companies on five quantitative indicators of trust. Barbara is also the editor of the award-winning TRUST INC. book series and a Managing Member at FACTS® Asset Management, a New Jersey registered investment advisor.

 

Copyright (c)  2016, Next Decade, Inc.

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Oct
27

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What do low integrity and trust cost an organization and the economy? The research studies cited below should give our readers some insight:

  • Gallup reports that employee engagement was more or less stagnant in 2015, (over 17% actively disengaged.) In 2014 less than one-third of US workers were engaged in their jobs, with millenials the least engaged, and this is costing the US economy $450-550 billion a year, which is over 15% of payroll costs. (Gallup, 2015)
  • The Association of Certified Fraud Examiner’s survey participants estimated that the typical organization loses 5% of its revenues to fraud each year. Applied to the 2011 Gross World Product, this figure translates to a potential projected annual fraud loss of more than $3.5 trillion. 2012 Global Fraud Study
  • According to The Economist Intelligence Unit (2010), 84% of senior leaders say disengaged employees are considered one of the biggest threats facing their business. However, only 12% of them reported doing anything about this problem.
  • The cost of Federal Regulations is approaching $2 trillion annually according to a study by the Competitive Enterprise Institute.
  • According to a recent report by PwC the U.S. held its position as the top location for innovation, with in-country R&D spending of $145 billion in 2015. However, other countries (i.e., China) increased their R&D spending by greater proportions than the U.S. which caused it to lose some of its relative advantage.
  • Volkswagen lost 20% of its stock value after the emissions scandal and Target’s profits fell 34.3% after it’s data breach.
  • A study by Murphy, Shrieves and Tibbs called “Determinants of the Stock Price Reaction to Allegations of Corporate Misconduct” finds that allegations of misconduct are accompanied by statistically significant control-firm adjusted declines in reported earnings, increases in stock return variability, and a decline in concordance among analysts’ earnings estimates.”
  • In a 2008 study by Karpoff, Lee and Martin called “The Cost to Firm’s of Cooking the Books,” the authors find The penalties imposed on firms through the legal system average only $23.5 million per firm. The penalties imposed by the market, in contrast, are huge.
  • The PR firm Edelman finds in their 2016 “Trust Barometer” that nearly one in three employees don’t trust their employer. And more than two thirds feel that CEOs are too focused on short-term performance. As a result, employees are far less likely to say positive things about the company they work for.

The trust gap not only negatively impacts a company’s revenue, market share, brand reputation, employee engagement and turnover, stock price, and bottom line profitability, but every facet of society.

What happens when integrity & trust increase?

Find out in our new white paper: The State of Trust in Corporate America 2016. Request it here.

Copyright (c) 2016 Next Decade, Inc.

 

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May
16

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It’s Week #20 of 2016. This latest article is part of a series drawn from our 3rd annual 2016 Trust Poster….now hanging in hundreds of offices around the world. Get yours today!

52 Ideas That You Can Implement to Build Trust

Bob Whipple is a Trust Alliance member and a Trust Across America Lifetime Achievement Award Winner. He offers this week’s idea:

The absence of fear is the incubator of trust. The leadership behavior that reduces fear the most is reinforcing candor.

Fear at work is often a very rational emotion based on experience and the observed behaviors of the managers. That kind of toxic environment eliminates the possibility of growing real trust. Faced with enduring hypocrisy many will flee to greener pastures. But those employees who continually seek a better environment may find themselves moving to a different job only to find the conditions there are even worse than what they left.

I believe trust can kindle spontaneously in an environment where fear is low.

If your organization runs on a steady diet of fear because people are afraid of the consequences of speaking their truth, you are likely to have a toxic, low trust culture. That is a signal that there is an amazing level of productivity increase available if the leaders can change their behaviors to reduce the fear. Using candor may just be the fastest means to that end. I recall # 8 of Deming’s famous 14 points was “drive out fear.” I believe the famous quality guru was right. 

Thank you Bob. We hope our readers heed this week’s advice.

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. Now in its seventh year, the program’s proprietary FACTS® Framework ranks and measures the trustworthiness of over 2000 US public companies on five quantitative indicators of trustworthy business behavior. Barbara is also the editor of the award winning TRUST INC. book series and the Executive Editor of TRUST! Magazine.

Copyright 2016, Next Decade, Inc.

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Dec
19

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Yesterday, at a small holiday gathering someone asked simply, “Does anyone care about Trust Across America-Trust Around the World’s programs?” This year-end post is being written in response to that question.

Trust Across America? Who cares?

Our friends care: We have built a holistic multifunctional circle of friends who have individually (and at times collectively) helped steer us in our mission to build organizational trust.

Our Alliance cares: Now entering it’s 4th year our Trust Alliance has worked collaboratively to publish three award-winning books in our Trust Inc. series, five issues of TRUST! Magazine (the most recent issue being downloaded almost 30,000 times) three annual “Trust Ideas” posters and a host of organizational trust tools, of which virtually none existed before the alliance formed.

Our Top Thought Leaders care: Now in its 6th year Trust Across America’s annual honor is bestowed on the Trust Across America Top Thought Leaders whose daily work helps elevate organizational trust and ethics and who hold this award in high regard on both their websites and in their biographies.

Our Most Trustworthy Public Companies care: Now in its 5th year, this annual honor is given to the “Top 10” Most Trustworthy Public Companies in the US. Many of these companies use this award to recruit new talent and in their marketing and communications messages. Unlike other “Top” awards, companies do not know they are being judged, nor do they participate in the review process.

Researchers care: We maintain the largest living bibliography of trust research (free) thanks to the generosity of one of our friends and colleagues. It’s accessed constantly and updated as researchers contribute new material.

The Media cares: Our press coverage continues to expand.

Our Website Visitors care: Organizations very much care about the subject of organizational trust. Occasionally we audit visitors to the site according to our web stats. Here’s who stops by: repeated visits from Fortune 500 and other multinational companies; federal and state government agencies, both domestic and foreign; universities and colleges around the world; and we’ve even seen some visits from the White House!

Since January 2013, 742,000 visitors have accessed 2,276,000 pages of material. We think that’s quite a bit of caring!!

Cheers to you Bob for challenging me to write this year-end post. And thank you to ALL our friends, Alliance members, Top Thought Leaders, Trustworthy Public Companies, Researchers, Media, website Visitors and Blog Post Readers who care. Without you, there would be a whole lot less trust in the world.

Here’s to more caring in 2016!

Barbara Brooks Kimmel, CEO and Cofounder Trust Across America-Trust Around the World

PS- Drop me a note at barbara@trustacrossamerica.com and let me know you care!

 

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Sep
12

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Our September Trust Quest asked the following question:

What is the bigger issue in your organization? 

Leadership doesn’t trust its employees?

Employees don’t trust their leaders?

And here are the results of our poll…

 

Trust Quest Final September 2015 Summary Report copy

71% of our respondents said that employees don’t trust their leaders.  What does this say about leadership? How long will leaders continue to ignore the impact on their organization of low employee trust including:

  • Disengagement
  • High turnover
  • Low innovation
  • Poor morale

 

Trust starts at the top. It can’t be delegated to HR or any other department. The tools to build trust are readily available to enlightened leaders who choose to make trust a business priority.

Barbara Brooks Kimmel is the Executive Director of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She facilitates the world’s largest membership program for those interested in the subject. Barbara is also the editor of the award winning TRUST INC. book series and the Executive Editor of TRUST! Magazine. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International.

Our annual poster, 52 Weeks of Activities to Increase Organizational Trust is available to those who would like to support our work by making a small donation.

Did you know we have published 3 books in our award-winning TRUST Inc. series. They are yours when you join our Alliance.

Copyright 2015, Next Decade, Inc.

 

 

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Jul
22

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Do trustworthy CEOs share similar profiles?

What about their untrustworthy counterparts?

Since 2010, Trust Across America™ (TAA) has been conducting an annual review to identify The Most Trustworthy Public Companies in America. Over 2000 companies are independently screened through our custom FIDES™ software using our proprietary Framework called FACTS®, ranking the trustworthiness of companies on five primary indicators of trustworthiness: Financial stability, Accounting conservativeness, Corporate governance, Transparency and Sustainability. No internal assessments or surveys are completed and companies do not know they are being analyzed.

This past April we released our fifth year of findings and named our Top Ten Most Trustworthy Public Companies (over 5 years.)

What do the CEOs of these “Top 10” companies have in common and how do their profiles compare to the “least trustworthy” in our model?

Most Trustworthy Profile:

  • All are men
  • All were born between 1950 and 1960
  • All were promoted from within to CEO
  • Seven of the ten have been the CEO for at least five years (well above the national average CEO tenure)
  • Undergraduate education is diverse and less than half have MBAs

We then took one additional step, reviewing the profiles of the CEOs from the ten LEAST trustworthy companies (with market capitalization over $10 billion) and here’s what we found:

Least Trustworthy Profiles:

  • All are men
  • Born between 1934 and 1967
  • Five of the ten were promoted from within (three of the five became CEO through mergers)
  • Six of the ten have been CEO for over five years
  • Undergraduate education is diverse and one has no college degree

What conclusions, if any, should be drawn from this small study?

Barbara Brooks Kimmel has been the Executive Director of Trust Across America-Trust Around the World  since its founding in 2008. The program’s mission is simply to provide tools and assistance to organizations interested in building trust. Barbara runs the world’s largest organizational trust membership program. She is also the editor of the award winning TRUST INC. book series and the Executive Editor of TRUST! Magazine. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International.

Barbara is also an award-winning communications executive and former consultant to McKinsey who has run her own firm, Next Decade, Inc., that has been unraveling and simplifying complex subjects for over twenty years. She holds a BA in International Affairs from Lafayette College and an MBA in Marketing from Baruch (City University of NY).

 

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Jul
08

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What happens when a group of openminded trust, ethics and compliance experts meet for lunch to discuss the intersection of the three disciplines?

One of the tasks at hand was to create a visual representation of the functional interaction between compliance, ethics and trust in an organization.

 

CET3

Copyright (c) 2015, Next Decade, Inc.

 

What does this mean?

Compliance: While organizations require compliance as a minimum “rule setting/obeying standard,” compliance does not necessarily have an ethics OR a trust mandate. Compliance is merely the starting point, not the end. In fact, it can be trust’s worst enemy when it is assumed that compliance encompasses trust and ethics. Compliance is regulated while ethics and trust are voluntary. In most companies, this distinction is not made and the C&E Officer is usually an attorney who simply enforces the “laws.” He or she may have no understanding of ethics, let alone trust.

Ethics: The “character” component of trust is ethics, and unlike compliance, it is a personal choice. It’s the individual and organizational value system that must be debated, decided and set in place by the Board of Directors, not the CEO.  A Chief Ethics Officer, not a C&E Officer, is the distiller of these values. He or she need not be an attorney. So what role does trust play? Unfortunately, both individuals and organizations can be “ethical” without being trustworthy because there are two more attributes that must be present for trust to flourish.

Trust: In order for an individual or organization to be trustworthy it must, at a minimum exhibit not only character (ethics) but competence and consistency in all internal and external relationships. “High trust” companies understand the distinction between compliance, ethics and trust. Going beyond compliance and ethics by adding the trust component results in:

  • Less need/emphasis on compliance and it’s oppressive laws and regulations
  • Greater employee satisfaction and lower turnover
  • Faster decision-making and innovation
  • Less risk and fewer crises
  • Better relationships not only with customers but all stakeholders
  • A happier workplace
  • Higher profitability

Companies that understand the distinctions described above and embrace trust as a business imperative are beginning to hire Chief Trust Officers (CTrO), and for good reason(s). They are the “keepers of the golden ticket,” and perhaps the organization’s most valuable employee.

Barbara Brooks Kimmel is the Executive Director of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She runs the world’s largest membership program for those interested in the subject. Barbara is also the editor of the award winning TRUST INC. book series and the Executive Editor of TRUST! Magazine. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International.

Our annual poster, 52 Weeks of Activities to Increase Organizational Trust is available to those who would like to support our work by making a small donation.

Did you know we have published 3 books in our award-winning TRUST Inc. series. They are yours when you join our Alliance.

Copyright 2015, Next Decade, Inc.

 

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Jul
01

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Welcome!

Our monthly roundup is another collaborative undertaking of our Trust Alliance, selected blog posts on a variety of organizational trust topics. The subjects are as diverse as the expertise of our members!

By reviewing these posts, our readers will have a better appreciation for the importance of embracing trust as an organizational imperative.

Let’s get started!

What is the outcome when terms like “brutally honest” are used? Holly Latty-Mann discusses this in Trust and Honest Feedback: Up Close and Personal

Do you trust your employees to tweet about the company? Nan Russell shares some excellent advice in Psychology Today.

Taina Savolainen an academic partner from Finland discusses the role of story-telling in building organizational trust.

Linda Fisher Thornton wonders what our workplaces would be like if every leader cared about others.

My most popular post this month introduces Trust Across America’s VIP Model. Take a look!

And finally, what does your “place” smell like? This is an excellent 8 minute speech by Professor Sumantra Ghoshal at the World Economic Forum. It’s about corporate environments and the faults of management in creating a positive work place. The goal is “trust” and Professor Ghoshal explains why in “The Smell of the Place.” The speech has been accessed almost 85,000 times.

Barbara Brooks Kimmel is the Executive Director of Trust Across America-Trust Around the World whose mission is to help organizations build trust, and runs the world’s largest membership program for those interested in the subject. She is also the editor of the award winning TRUST INC. book series and the Executive Editor of TRUST! Magazine. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International.

Our annual poster, 52 Weeks of Activities to Increase Organizational Trust is available to those who would like to support our work by making a small donation.

Did you know we have published 3 books in our award-winning TRUST Inc. series. They are yours when you join our Alliance.

Copyright 2015, Next Decade, Inc.

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Jun
27

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What can we learn about trust from the great leaders, teachers, writers and philosophers?

JUST ABOUT EVERYTHING

This week we turn our attention to the words of Peter Drucker, an author, educator and management consultant who was hailed by Business Week as the “man who invented management.”  This article pulls together twenty of his most inspiring quotes. Regardless of your role in life- a parent, teacher, business, religious or military leader, the following contain many messages about character, competence and consistency, the key ingredients for building trust.

  1. “To do the most good requires saying no to pressures to stray, and the discipline to stop doing what does not fit.”
  2. “Effective leadership is not about making speeches or being liked; leadership is defined by results not attributes.”
  3. “Whenever you see a successful business, someone once made a courageous decision.”
  4. “Every enterprise requires commitment to common goals and shared values. Without such commitment there is no enterprise; there is only a mob. The enterprise must have simple, clear, and unifying objectives. The mission of the organization has to be clear enough and big enough to provide common vision. The goals that embody it have to be clear, public, and constantly reaffirmed. Management’s first job is to think through, set, and exemplify those objectives, values, and goals.
  5. “Success in the knowledge economy comes to those who know themselves – their strengths, their values, and how they best perform.”
  6. “Rank does not confer privilege or give power. It imposes responsibility.”
  7. “People who don’t take risks generally make about two big mistakes a year. People who do take risks generally make about two big mistakes a year.”
  8. “Leadership is not magnetic personality, that can just as well be a glib tongue. It is not “making friends and influencing people”, that is flattery. Leadership is lifting a person’s vision to higher sights, the raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations.”
  9. “A person can perform only from strength. One cannot build performance on weakness, let alone on something one cannot do at all.”
  10. “1. What is our mission? 2. Who is our customer? 3. What does the customer value? 4. What are our results? 5. What is our plan?”
  11. “The focus on contribution by itself supplies the four basic requirements of effective human relations: communications; teamwork; self-development; and development of others.”
  12. “Many brilliant people believe that ideas move mountains. But bulldozers move mountains; ideas show where the bulldozers should go to work.”
  13. “Meetings are by definition a concession to deficient organization For one either meets or one works. One cannot do both at the same time.”
  14. “Gentlemen, I take it we are all in complete agreement on the decision here.” Everyone around the table nodded assent. “Then,” continued Mr. Sloan, “I propose we postpone further discussion of this matter until our next meeting to give ourselves time to develop disagreement and perhaps gain some understanding of what the decision is all about.”
  15. “plan, organize, integrate, motivate, and measure.”
  16. “Management is doing things right; leadership is doing the right things.”
  17. “If you want something new, you have to stop doing something old”
  18. “The most important thing in communication is to hear what isn’t being said.”
  19. “Efficiency is doing the thing right. Effectiveness is doing the right thing.”
  20. “The three most charismatic leaders in this century inflicted more suffering on the human race than almost any trio in history: Hitler, Stalin, and Mao. What matters is not the leader’s charisma. What matters is the leader’s mission.”

My favorites are #4, #6, #16 and #20. How about yours? 

Want to read more from this series?

We recently highlighted some of the best quotes on building trust from:

Barbara Brooks Kimmel is the Executive Director of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She facilitates the world’s largest membership program for those interested in the subject. Barbara is also the editor of the award winning TRUST INC. book series and the Executive Editor of TRUST! Magazine. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International.

Our annual poster, 52 Weeks of Activities to Increase Organizational Trust is available to those who would like to support our work by making a small donation.

Did you know we have published 3 books in our award-winning TRUST Inc. series. They are yours when you join our Alliance.

Copyright 2015, Next Decade, Inc.

 

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