Trust organisation crisis

Trust – The biggest organisa0onal crisis?
Fact & work pack
David Watkins
ORGANISATIONSDYNAMICS 2016
www.organisa0on-dynamics.com

Trust – the biggest organisa0onal crisis?
The trust-rich trend – does your organisa0on measure up?
“If these trust-rich, more resilient companies are the survivors of each
period of turbulence, then they will come to dominate the market – and the
model of the high-trust corporation will become prevalent.”
World Economic Forum, The Evolution of trust in business
“ A low-trust environment makes everything about doing business more
difficult… loss of trust leads to higher transaction costs, lower brand value, and
greater difficulty attracting, retaining, and managing talent. Ultimately, it can
mean boycotts, negative publicity, and unwanted regulation.”
Beinhocker, Davis & Mendoca, 10 Trends You Have to Watch, HBR.org.

Trust - like a bank account: are these companies overdrawn?

Does it maPer if our leaders can be trusted or not?

Source: Edelman Trust Barometer 2016
Does it maPer if our leaders can be trusted or not?

If trust maPers, what drives it?
Companies, culture or individuals? Or all 3?

© Schindler Management Ltd. | Organisational Learning & Development | Trust | 2015
“China accounted for 70% of all counterfeit goods
2008-2010*” •  UN Oﬃce on Drugs & Crime 2013

If trust maPers, what drives it?
Companies, culture or individuals? Or all 3?

Cheating in exams is fairly common in the Indian state of Bihar, but new images
have emerged which show just how large-scale and blatant the practice is.
Many students smuggled in textbooks and notes into the examination centres
despite tight security - and parents and friends were photographed scaling the walls
of test centres to pass on answers to students during the current secondary school
examinations for the Bihar School Examination Board (BSEB).

We all lie. You can either bury your head and deny it, or
be aware of it and look out for new direc0on
The most common lie told by both sexes is “nothing’s wrong, I’m ﬁne,” according to
a study of 2,000 Britons, conducted by 20th Century Fox.

On average a “porky” is told every 5-10 minutes! That’s 150-200 lies per day!
Gerald Jellison study paper

Have diﬀerent levels of trust become acceptable?


Bandura – Moral disengagement
“persuading oneself that the ques>onable behaviour is
actually morally permissible”.
•  “from: “Dishonest deed, clear conscious”, (Shu, L; Gina, F; Bazzerman, M)

Bandura – Moral disengagement
Moral jusCﬁcaCon: It was done for a greater good .

Advantageous comparison: Others have done worse things.

EuphemisCc label: It sounds bePer if you call it something else.

Minimising or ignoring the consequences: It wasn’t that bad.

DehumanisaCon: It was done to one of “them”.

ALribuCon of blame: It was what they deserved.

Displacement of responsibility: I did what I was told to do.

Diﬀusion of responsibility: Everyone else was doing it.

If you could choose
your leader, what
criteria would you
use?

What’s the
minimum ﬂoor to
aim for?

How do/should we
“measure” our
leaders? ORGANISATIONSDYNAMICS 2016

The Virtuous Style of Leadership
Leadership Behaviours that drive trust

“ready to conform to ethical principles & inherently driven by moral excellence”
Honesty/
Trust
Personality
Fairness
Respeceul
Caring
Courage
Boldness
Enlightened
Reliable
Consistent
Authen0c
Readiness
Accountability
Obliga0on
Responsibility
Transparency
Communica0ve
Openness
Awareness
Acceptance
Humility

Source: Edelman Trust Barometer 2016
Minimum ﬂoor – ﬁx behavior!

Eight Axioms of Honest Leadership
Axiom:
Self-evident truth.
“Something so self-
evident that it is
accepted to be true
without any
controversy.”

Measuring trust – the moral intelligence quo0ent (MQ)

-  Integrity and trust
-  Accountable
-  Surprises and delights
-  Dependable, reliable
-  Natural leader & coach
-  Self-aware
-  Follower-centric, par0cipa0ve
-  Transparent communica0on
-  Occasional white lies
-  Pass the “monkey”
-  Have blind spots
-  Self-achievement orientated
-  Not memorable
-  Mo0vates through posi0on
-  Target vs people orienta0on
-  Reac0ve/non-responsive
-  Tries to lead/leads with power
base
-  Rude
-  Self-centric
-  Non-caring
-  Not sharing
-  Direc0ve
-  Creates detractors
Behaviours when MQ 9-10
Behaviours when MQ is 7 or 8
Behaviours when MQ is 6 or lower
MQ = moral intelligence quoCent

Using a scale of 1-10, would you recommend
your line manager based on trustworthy
behaviour? (10 high, 0 low)
10
9
8
7
6
5
4
3
2
1

Trust – the toughest leadership challenge?
Nine Anchors to drive habitual honesty
Securing
Trust
Look in the
mirror
Increase your
focus
Worry only
when its worth it
Communicate
with inspira0on
Look around -
benchmark the best
Take the
ini0a0ve
Determine and
support the
span of control
Show you
care
Channel your 0me
and energy

Aktudes vary as to what makes an effec0ve honest leader In general terms the
following words represent aktudes about honest leadership. To what extent do
you agree or disagree with each of these?

What makes an effec0ve honest leader?

EffecCve honest leaders…. Strongly agree Agree Undecided Disagree
Strongly
disagree
Are strong on discipline
Understand people
Make all the decisions
Are popular
Take risks
Are transparent and open
Are interes0ng and inspira0onal

EffecCve honest leaders…. Strongly agree Agree Undecided Disagree Strongly disagree
Are sympathe0c
Empower others
Never compromise
Can be trusted
Are confident
Are always ready to listen
Don't suffer fools gladly
Are charisma0c
Have an open door policy
Earn respect
Are feared
Are inquisi0ve / curious
Are reliable
What makes an effec0ve honest leader?


Keen for more reading?

“Where’s my dog?
The search for Honest
Leadership”

David Watkins@organisa0on-dynamics.com

0041 79 465 8097



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