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Posts Tagged ‘Trust Inc. A Guide for Boards & C-Suites’

Mar
15

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As the co-founder and Director of Trust Across America – Trust Around the World, I’ve been studying organizational trust (and trustworthiness) for the best part of seven years, have spoken to hundreds of global experts, and read thousands of articles, blog posts and books. I’ve also edited and contributed to three books in our TRUST Inc. series, publish a magazine called TRUST!, and regularly attend and speak at conferences. Some might call me an expert, but nothing could be farther from the truth. In fact, the more I learn about trust and trustworthiness, the less I understand it.

If you are like me, it’s almost impossible to go a full week without the news covering another major trust violation. Last week it was Hillary’s turn, before that Bill O’Reilly following on the heels of Brian Williams, and so on. These stories come and go and the American public has come to accept them as the norm. In fact, with each violation, the shock factor seems to diminish.

The following are ten observations I have made about trust & trustworthiness in American society:

  • Because there is no universally accepted definition of trust, your definition of trust and your standards of trustworthiness are different than mine. In fact, even prisoners think they are more trustworthy than the general population. Some of the self-proclaimed trust and leadership experts I have met are the least trustworthy upon close and careful inspection of their character, competence and consistency, yet they believe they are in a position to advise others.
  • As family “time” has eroded over the past generation, the moral compass that, in the past guided future generations (parenting) has all but disappeared. Compound this with the “win at all costs” mentality promoted by coaches on athletic fields across America and future generations may not be empowered with the right tools or behavior.
  • America’s entire public educational system is based on “grades” not learning, and cheating and grade inflation have become an accepted norm in schools and universities. Parents “game” the system by having their children classified as “math anxious or test frightened” so they are allotted extra time on tests to boost that all important GPA, and Athletes have it the best. In other words, parents are not helping their children to grow up to be trustworthy adults.
  • Government officials, beginning with our local community leaders place their political agendas before the betterment of the constituents who elected them, and this obliterates the opportunity to build community trust. Our elected officials believe that if they don’t violate any laws, they are trustworthy. Americans are very forgiving of trust violations and even outright lies. In fact they overlook them.
  • Same goes for corporate America. Our “win at all cost” athletes and students are considered to be the “best in class” and are recruited by major companies. There’s no “moral compass litmus test” administered before the job offer. Similar to our government leaders, corporate leaders also believe that as long as they stay “just to the right” of compliance, and grow their quarterly earnings, there is no need to give a second thought to cultivating a trustworthy organization or hiring for the “right” reasons. Stock buybacks, executive compensation and short-termism are all trust busters.
  • Boards of directors don’t understand the role of organizational trust any better than the leaders they select. One need look no further than the composition of most Boards to appreciate and understand this.

Rules are often put in place to curtail the abuses of the past. A “leader” that is only guided by compliance begs the question: What would their behavior be in the absence of rules? Does one want to follow someone that needs rules to know what is right? Or are true leaders to inspire trust by staying clear of conflicts of interest and abuses of power.

  • The word “trust” is so overused and misused that it is no longer sacred. The media throws around the word “trust” as if it were  a headline hot potato. Frequently, journalists and writers confuse trust with regulation, loyalty and ethics. But the word “trust” is a better sound byte, so why not misuse it?
  • And speaking of the media, they continue to perpetuate low trust by focusing only on the bad actors, giving no “space” to those who are doing the right thing.
  • I frequently talk about trust with leaders of organizations of different shapes and sizes.  Not only do they not “get it” they have little interest in learning. They believe trust is all about falling into someone’s arms and hoping they catch you.  Instead of embracing trust as a business strategy, leaders hold their collective breaths hoping they are not the subject of the next news headline.

Is there a silver lining to this bleak picture?  Yes, because some families still gather around the dinner table every night and not every child is a cheater. There will always be the Bobby Knights vs. the Mike Krzyzewskis, and the first day of work for a new hire at Zappos may be very different than the first day at JP Morgan. In other words, industry is not destiny. Like most things in life, trustworthy people and organizations line up along a bell curve. Half are below average, but half are above average, and a select few find themselves all the way to the right. They are the heroes and stars that should be making the headlines.

Just the other day, someone told me that Trust Across America – Trust Around the World is making a difference. I suppose the growth of our Alliance proves that we are moving in the right direction. But a gnawing fear remains. Trust is not only misunderstood, overlooked or taken for granted by most people, leaders and organizations, it’s also voluntary. And, after all, why give a second thought to that which is not regulated, at least not in America?

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 learning more, and 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 2015 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.

PrintND Trust CEO cvr 140602-ft914Trust front Cover

Copyright 2015, Next Decade, Inc.

 

 

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Mar
08

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Some encouraging headlines for consumers, employees and the public….

McDonalds is limiting the use of antibiotics in its chicken according to NPR

Nestle says “Goodbye” to artificial colors as reported by CNN

Be it for the right or wrong reasons, Walmart is raising its minimum wage as is TJX

Capital One empowers Americans to close the digital skills gap by committing $150 million in community grants

When companies do more than just talk about the importance of “good business” and begin walking it with commitments like the above, it’s a good sign. From my perspective these announcements sound like more than just corporate window dressing.

It’s worth mentioning that McDonald’s has a brand new CEO and Walmart a relatively new one. Nestle is a Swiss company, and TJX is run by a woman. The CEO of Capital One, Richard Fairbank is also its founder.

Building organizational trust is a “top down” business strategy. Sometimes it takes a new leader to bring a fresh perspective regarding the imperative to build trust with all stakeholders. Other times tenure is more important, and recently it’s been reported by Fortune that women not only make better CEOs, but perform 3X better than the S&P 500.

Whatever the reasons, I’m glad to read these headlines and hope more companies follow suit. Let’s keep the momentum going on that tidal shift in organizational trust.

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 learning more, and 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 2015 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.

PrintND Trust CEO cvr 140602-ft914Trust front Cover

Copyright 2015, Next Decade, Inc.

 

 

 

 

 

 

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Jan
20

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According to newly released data from the 2015 Edelman Trust Barometer the world has witnessed “an alarming evaporation of trust across all institutions, reaching the lows of the Great Recession in 2009. Trust in government, business, media and NGOs in the general population is below 50 percent in two-thirds of countries, including the U.S., U.K., Germany and Japan. Informed public respondents are nearly as distrustful, registering trust levels below 50 percent in half of the countries surveyed.”

“There has been a startling decrease in trust across all institutions driven by the unpredictable and unimaginable events of 2014,” said Richard Edelman, president and CEO, Edelman

Many global experts claim that “trust” is the issue of the decade and they may be right. Our society continues to be plagued by breaches of trust in business, government, academia, medicine, sports and the media, to name just a few.  But behind every trust violation is an individual or a team that has allowed it to occur. There is no doubt that low trust comes with hard costs to society and its citizens.

 

 

Is There a Silver Lining? Yes indeed. Many thought leaders are placing trust on their daily docket and teaching others through their actions and words.  On January 26 via TRUST! Magazine winter issue, Trust Across America – Trust Around the World will be releasing its 5th annual Top Thought Leaders in Trust, recognizing approximately 100 global trust researchers, consultants, writers and/or business leaders. Today we announce 15 honorees that have been continuously recognized by our program for their thought leadership over the past five years, and are receiving our Lifetime Achievement Award.

 

Please join us in congratulating the following outstanding individuals:

Patricia Aburdene

Hank Boerner

Stephen M.R. Covey

Jed Emerson

Leslie Gaines Ross

Robert Galford

Mary Gentile

Bill George

Charles H. Green

Jim Kouzes

Linda Locke

Edward Marshall

Jeffrey Seglin

Frank Sonnenberg

Robert Whipple

Well done ladies and gentlemen!

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 and the Executive Editor of TRUST! Magazine. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International.

Our 2015 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.

Copyright 2015, Next Decade, Inc.

 

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Dec
02

 

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If trust is, as many claim, the “issue of the decade,” why don’t organizations give the topic more attention? After all, the business case for trust has been proven time and again. Perhaps it boils down to the simple question of who takes ownership?

In most companies, trust is taken for granted until there is an “issue” and then trust is passed around like a hot potato.

  • If there is a crisis, the communications and legal team are there to talk about restoring trust.
  • If it’s a matter of “ethics,” just ask the Chief Compliance Officer.
  • Market share declining? Get the marketing department to put the “trust” message in its campaign.
  • Got an employee retention problem? Head to HR. After all, they must not have hired “right.”
  • Giving a speech about building trust in the community? The corporate responsibility and sustainability silo are right on it!

Get the picture? Should I go on?

Unfortunately, in most organizations, no single person takes ownership and that’s why trust IS the issue of the decade. It’s that simple. Imagine running an organization without a Chief Financial Officer. How would the job get done?

So who should own trust?

Very simply, the CEO. Trust starts at the top with leadership acknowledgement of its critical importance. Once that occurs, the CEO can delegate the job to a Chief Trust Officer, whose office must be within shouting distance of the CEO. Imagine the first organization bold enough to hire a Chief Trust Officer? Did I just say “bold?” I meant smart and proactive.

What would the job entail?

  • Review the credo, vision and values and adjust accordingly, with buy-in from every C-Suite member (and the Board.)
  • Communicate vision and values to all stakeholders and make sure everyone abides by them.
  • Work closely with HR to ensure that hiring (and firing) is done according to the standards set forth above.
  • Get trust on the daily docket.  This is an example of how one company does that, and a bit more about driving culture.
  • Enforce a “zero” tolerance policy for trust breaches.

What would the job requirements be?

Very simply character, courage, competence and consistency or put another way, values, integrity and promises kept. Not so different than the qualities of a great CEO! If the applicant happened to be a former cheerleader, that wouldn’t hurt either.

Who will be the first to step outside the “old school” box and hire a Chief Trust Officer? Who will be the first to dip their proverbial feet in the trust water?

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 and the Executive Editor of TRUST! Magazine. In 2012 Barbara was named “One of 25 Women Changing the World” by Good Business International. Leave a comment or send her a note at barbara@trustacrossamerica.com

Copyright 2014 Next Decade, Inc.

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Nov
29

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There’s nothing more destructive to trust than deceit, and nothing more constructive than candor.

Jim Kouzes & Barry Posner, The Leadership Challenge

 (from Trust Across America’s Weekly Reflections on Trust 2014)

Organizational Trust this Week is a new feature beginning with the “Good”, moving through the “Debatable” and occasionally ending with the “Ugly.” Each story contains a trust component and at least one lesson for organizations seeking to make trust a business imperative.

 

THE GOOD

7 Essentials for Leaders to Develop Trust (starting with confidence)

Idaho comes down hard on trust violations. Maybe they should change their motto from the “Gem State” to the “Trust State.”

What does the Torah say about trust? A Rabbi’s message

 

THE DEBATABLE

Just hire the Ex-Con with the shortest rap sheet! Apparently Wells Fargo is the best of the worst!

Sorry, but integrity cannot be regulated!

 

THE UGLY

CEO Apologies? Really? More Uber weirdness.

 

OUR MOST POPULAR POST THIS WEEK

And finally, Trust Across America-Trust Around the World’s most popular post on LinkedIn Pulse this week. Sometimes saying “No” is better than saying “Yes.” Send us your stories for consideration in future editions of Organizational Trust this Week: barbara@trustacrossamerica.com

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 and the Executive Editor of TRUST! Magazine. 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.

Our brand new magazine TRUST! makes the case that in Financial Services, Industry is NOT Destiny

Fall 14 Trust Magazine-Cover

We will be publishing our third book at the end of November.

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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Nov
24

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Under the theory that trust is built over time and in incremental steps, Ronald Reagan’s famous quote “Trust but verify” is a great one. It implies that as trust is being built, it’s important to keep your eye on the ball to ensure it is real and growing.

I also like the “Love all, trust a few” quote by William Shakespeare that may be more true now then when it was originally written.

Another good trust quote by “Unknown” is “Big or small, lies are lies.” No explanation needed for this one. There is simply no such thing as a little lie.

But this is the trust quote that I read most frequently, and also the one that does trust the biggest disservice.

“Trust takes years to build, seconds to break, and forever to repair” (also by Unknown)

This is simply not true.

1. Trust does NOT take years to build. While it is built in incremental steps, trust can occur very quickly if both parties consistently display good character and competence.

2. Trust CANNOT be broken in seconds if the relationship has a strong foundation of trust. It can only be broken quickly if the foundation is weak.

3. Trust DOESN’T ALWAYS take forever to repair. If trust is “banked” prior to a breach, the time it takes to repair it will be much shorter. This applies to both interpersonal and organizational trust.

Please don’t trivialize trust by using quotes that “just sound good.” Trust is the foundation upon which all great relationships are built. Let’s treat it with the care it deserves.

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 and the Executive Editor of TRUST! Magazine. 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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Nov
22

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Trust is the core issue impacting organizational, team and leadership effectiveness. Noreen Kelly, Noreen Kelly Communication (from Trust Across America’s Weekly Reflections on Trust 2014)

 

Organizational Trust this Week is a new feature beginning with the “Good”, moving through the “Debatable” and occasionally ending with the “Ugly.” Each story contains a trust component and at least one lesson for organizations seeking to make trust a business imperative.

 

THE GOOD

Do you lead with trust? This is your opportunity to be heard and seen!

Our #TRUSTGiving2014 campaign is coming to a close and our Alliance members covered the importance of trust from A-Z with guest blog posts this week.

Got good customer service? Only if trust is a component.

THE DEBATABLE

What is the role of trust in cyber security? This article makes the case.

THE UGLY

When the trust certifiers can’t be trusted, we have a real issue!

Are you an Uber user? Their CEO thumbs his nose at trust.

Trust gets messy when employees don’t feel respected. Can you blame them?

OUR MOST POPULAR POST THIS WEEK

And finally, Trust Across America-Trust Around the World’s most popular post on LinkedIn Pulse this week. Sometimes it’s the simple stuff that matters. In this one, we get back to basics and a simpler time. Send us your stories for consideration in future editions of Organizational Trust this Week: barbara@trustacrossamerica.com

HAPPY THANKSGIVING TO ALL! The holidays are a great time to have a conversation about trust.

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 and the Executive Editor of TRUST! Magazine. 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.

Our brand new magazine TRUST! makes the case that in Financial Services, Industry is NOT Destiny

Fall 14 Trust Magazine-Cover

We will be publishing our third book at the end of November.

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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Nov
11

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Why should companies build trust into their DNA as well as their daily business agenda?

THIS IS WHY!

 

FACTS1114

 

 

Trust Across America-Trust Around the World, via its FACTS® Framework has developed and refined a unique model that has been tracking the performance of the most trustworthy public companies since 2010. Every six months we update our results and share them publicly. The model continues to support the “bottom line” business case for trust.  We began producing the chart above in August 2012. Since then, the most trustworthy companies have registered an 81.6% return vs. the S&P’s 46.3%.

And still the daily headlines explode with countless  stories about bad corporate behavior and the ongoing distrust of business. The word “trust” is rarely uttered by senior managers until they attempt to minimize the fallout from the latest corporate crisis. And what is usually the root cause of the crisis? Low trust, and the failure of senior leadership to place trust on its agenda. If it sounds like a vicious cycle it is, and certainly no way to reverse decades of declining trust in business.

Combine the chart above with the following data and The Case for Trust  becomes increasingly difficult to ignore.

The Hard Costs of Low Trust

  • Gallup’s research (2011) places 71% percent of U.S. workers as either not engaged or actively disengaged.
  • The disengaged workforce (Gallup, August, 2013) is costing the US economy $450-550 billion a year, which is over 15% of payroll costs.

  • The Washington Post reported that “the federal government imposed an estimated $216 billion in regulatory costs on the economy (in 2012), nearly double its previous record.”
  • The cost of the tort litigation system alone in the United States is over $250 billion. – or 2% of GDP (Forbes, January 2012)
  • The six biggest U.S. banks, led by JP Morgan Chase & Co. and Bank of America Corp. have piled up $103 billion in legal costs since the financial crisis (Bloomberg, August 2013)
  • 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.
  • According to Edelman globally, 50% of consumers trust businesses, but just 18% trust business leadership.
  • The United States, the statistics are similar, but the story is a bit worse for leadership. While 50% of U.S. consumers trust businesses, just 15% trust business leadership.
  • And finally this:  according to a recent report published in the New York Times, the daily cost to house, feed and guard a single prison inmate in New York City is $459.54. In the sharpest of contrasts to the cement-block walls of a cold jail cell, the Ritz Carlton Hotel is the paragon of luxury. World-class service, beautiful design, 600 thread-count sheets. And yet, the average cost for a night at the Ritz — $323, according to its public filings — is 30% less than the cost of a night in city jail. (Josh Linkner, Detroit Free Press, November 9, 2014)

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

The Low Cost of Hard Trust

Building a trustworthy business will improve a company’s long-term profitability and organizational sustainability.

A growing body of evidence shows increasing correlation between trustworthiness and superior financial performance. Over the past decade, a series of qualitative and quantitative studies have built a strong case for senior business leaders to place building trust among stakeholders high on their priority list. While none of these studies are perfect, over the next decade their results will be increasingly difficult to ignore.

This is brand-new research from Interaction Associates 

The study demonstrates that companies which enjoy high levels of trust among their employees are two and a half times more likely than those that don’t to enjoy superior revenue growth. High-trust businesses significantly outperform all other organizations in achieving a wide variety of business goals, including customer loyalty and retention; competitive market position; values-driven behavior and actions; predictable business and financial results; and profit growth.

and more from the Chartered Management Institute  follow this link.

As we look more closely at the morality of managers through the lens of MoralDNA, we see that being good and doing things right is mostly about our empathy, our reason and our values. It is much less about the achievement of narrow financial targets; or our robotic compliance with rules and regulations. And yet governments, businesses, public services and charities still persist in a focus on quantitative targets and bureaucratic red-tape that drive dysfunctional and unethical workplace cultures. This has to change.

In a Harvard Business School working paper from July 2013 called The Impact of Corporate Sustainability on Organizational Processes and Performance, Robert G. Eccles, Ioannis Ioannou, and George Serafeim provide evidence that High Sustainability companies (those integrating both environmental and social issues) significantly outperform their counterparts over the long-term, both in terms of stock market as well as accounting performance.

According to Fortune’s  “100 Best Companies to Work For”, based on Great Place to Work Employee Surveys, best companies experience as much as 50% less turnover and Great Workplaces perform more than 2X better than the general market (Source: Russell Investment Group)

Forbes and GMI Ratings have produced the “Most Trustworthy Companies” list for the past six years. They examine over 8,000 firms traded on U.S. stock exchanges using forensic accounting measures, a more limited definition of trustworthy companies than Trust Across America’s FACTS Framework but still somewhat revealing. The conclusions they draw are:

  • “… the cost of capital of the most trustworthy companies is lower …”
  • “… outperform their peers over the long run …”
  • “… their risk of negative events is minimized …”

 In addition to the chart above, numerous indirect indicators of trust also show a direct correlation to superior financial performance.

From Deutsche Bank:

  • 100% concurrence on Lower Cost of Capital (“… academic studies agree that companies with high ratings for CSR (corporate social responsibility) and ESG (environment, social responsibility, governance) factors have a lower cost of capital in terms of debt (loans and bonds) and equity.”)
  • 89% concurrence on Superior Market Performance (“,,,studies indicate companies with high ratings for ESG factors outperform market-based indices”)
  • 85% concurrence on Greater Performance on Accounting –Based Standards (“… studies reveal these types of company’s consistently outperform their rivals on accounting-based criteria.”)

From Global Alliance for Banking on Values, (see more on the GABV in our new magazine TRUST!,) which compared values-based and sustainable banks to their big-bank rivals and found:

  • 7% higher Return on Equity for values-based banks (7.1% ROE compared to 6.6% for big banks).
  •  51% higher Return On Assets for sustainable banks (.50% average ROA for sustainable banks compared to big bank earning 0.33%)

These studies are bolstered by analyses from other respected sources including the American Association of Individual Investors, the Dutch University of Maastricht, Erasmus University, and Harvard Business Review.

Business leaders may choose to continue to challenge the business case for trust but the evidence is mounting. There is not only a business case but also a financial case for trust.  Trust works not only in business, but in all organizations regardless of their industry, size or location. Is it working for yours?

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 and the Executive Editor of TRUST! Magazine. 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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Nov
06

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Trust each other again and again. When the trust level gets high enough, people transcend apparent limits, discovering new and awesome abilities for which they were previously unaware.” –David Armistead

I am excited to share the results of a brand new research study called “Building Workplace Trust” from our  trust alliance members at Interaction Associates.

Leaders: did you know there’s a 60 percent chance your employees don’t trust you much? It’s true, according to brand-new research from Interaction Associates. And this is the case despite the fact that eight in ten workers say they need to trust their bosses in order to be effective on the job.

Just four out of ten workers report they have a high level of trust in their leaders and their organizations. Perhaps even more worrying: one-quarter of employees surveyed say they trust their boss less this year than they did in 2013.

So why is this important? The study demonstrates that companies which enjoy high levels of trust among their employees are two and a half times more likely than those that don’t to enjoy superior revenue growth. High-trust businesses significantly outperform all other organizations in achieving a wide variety of business goals, including customer loyalty and retention; competitive market position; values-driven behavior and actions; predictable business and financial results; and profit growth.

So how do these high-trust, highly successful companies earn the trust of their employees? Those surveyed chose these as the top five actions leaders can take in order to build trust.

  1. Ask for input into decisions that affect employees.
  2. Give employees background information so they can understand why decisions are being made.
  3. Set workers up for success by providing them with learning opportunities and the resources they need.
  4. Admit your mistakes.
  5. Don’t punish employees for raising issues or concerns: in other words, don’t shoot the messenger.

To complete the research study, Interaction Associates surveyed 500 employees at companies worldwide in a range of job functions and industries.

Thank you for the opportunity to share this with our audience.

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 and the Executive Editor of TRUST! Magazine. 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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Nov
04

TAA_R2_EDIT-CS3

 

Virtue is more to be feared than vice, because its excesses are not subject to the regulation of conscience.—

Adam Smith

 

Yesterday I was speaking with a friend who recently changed jobs and is now employed by a public company.  We were discussing how the new firm requires more dotting of i’s and crossing of t’s in justifying business expenses.  I immediately pictured Oz behind the curtain saying something to the effect of “Prove to me that all your expenses are justified,” and then I envisioned all the layers of bureaucracy (and payroll expenses) that feed this “control” process monster screaming, “We can’t trust you to do the right thing because our regulations don’t allow us to.”

And then today, another acquaintance wrote a piece on LinkedIn Pulse called Smart Compliance Doesn’t Require Mega-$ or Armies of People. I was excited when I first read the article’s title, but that quickly faded. Imagine having 10% of your employees dedicated to compliance? The author makes the argument that financial firms in particular need  “Smart, integrated compliance, risk and reputation management that creates organizational resilience and sustainable success.”

Taking this argument one step further, even in financial institutions, integrated compliance, risk and reputation management costs will be even lower when organizational trust is high. It may not be regulated, but that doesn’t make trust soft. In fact, quite the opposite. As we have recently shown in our new magazine TRUST!, industry is not destiny, even in financial services. What if we surveyed the financial institutions mentioned in this magazine issue to determine what percentage of their employees are dedicated to compliance, and how much their employees feel bogged down by bureaucracy? The business case for trust has already been made and I’ll bet the survey would further support it.

Good luck to those firms who are bogged down by bureaucracy and compliance. They are spending their money in all the wrong places. What do you think? If you work in compliance, risk or reputation management, please weigh in.

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 and the Executive Editor of TRUST! Magazine. 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.

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

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