ILM World of Learning: The truth about trust - Leading with trust and integrity
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World of Learning 2014 : The truth about trust - Leading with trust and integrity by Christine Abbott, Institute of Leadership & Management (ILM)
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ILM World of Learning: The truth about trust - Leading with trust and integrity
- 1. World of Learning 2014 The truth about trust Leading with trust and integrity Christine Abbott ILM
- 2. Who are ILM?
- 3. Our vision Social and economic prosperity achieved through excellence in leadership and management We unleash leadership and management talent.
- 4. What is trust? The firm belief in the reliability, truth or ability of someone… The Oxford English Dictionary
- 5. The value of trust
- 6. Our latest research The Truth about Trust And integrity at work
- 7. The truth about trust » Our research is the latest of four ILM studies into organisational trust. » We carried out research with over 1,600 managers across UK working population. » The aims of the research: » Compare trust levels by industry, sector and organisational size » Highlight areas for focus and concern » Identify the ‘must have’ drivers of trust » Explore how to best develop individual and organisational trust
- 8. Methodology in a nutshell » This research measures how trusted managers and leaders have both internally and externally. » Key questions were: » What do leaders and managers identify as the drivers of trust and which do they recognise as the most important? » How do levels of trust vary by sex, generation, seniority, sector and industry? » What are the levels of trust in high profile institutions and have they increased or decreased?
- 9. The six dimensions of trust The research was based on the six dimensions of trust: » Ability » Understanding » Fairness » Openness » Integrity » Consistency
- 10. Internal vs external trust levels Internal External
- 11. Who do we trust? » Relationships count - we trust people with whom we have a relationship. The closer they are to us, the more they are trusted. » Seniority drives trust - as managers progress through the ranks, they typically become both more trusting and more trusted. » Big isn’t always best – The larger the organisations the lower levels of trust are reported. » Sector struggle – managers in the public sector expressed significantly lower levels of trust than their counterparts in the private and third sectors.
- 12. Middle managers hold the key to building trust with the first line managers that they manage 12 CEO Senior managers Middle managers First line managers Important to develop first line managers they receive the least training but have the greatest need of support Target development at all levels not just at the top Develop leaders at all levels Develop your leaders and managers at all levels
- 13. How do you drive trust? Our research highlights five fundamental skills and behaviours that leaders need in order to be trusted by their staff. These were: » Openness – which 70% of employees ranked as one of their top three drivers. » Effective communication 53% » Decision-making 49% » Integrity 48% » Competence in their role 42%. 70% 53% 49% 48% 42%
- 14. Recommendations » Focus on building and communicating the five fundamentals » Target first-line and middle managers » Develop management skills and relationships » Focus on increasing internal trust levels . . . The rest will follow » Measure trust levels now and seek to increase them - KPIs 14
- 15. Thank you For more information visit our website www.i-l-m.com @ILM_UK www.linkedin.com/company/ institute-of-leadership-and-management-ilm 15
Editor's Notes
- Duration – 20 minutes. Introduce yourself – with a bit of background about your achievements and experience in the field. Board of directors at ILM etc . . . Today I will be talking about some of the findings from the newest ILM research ‘The truth about trust’ which considers how organisations can lead with Trust and Integrity.
- Very quickly - an overview of ILM and who we are and why we exist We are a company, a charity and an awarding body in our own right, but we are within a group of organisations and companies - called the City and Guilds Group. The oldest and most prestigious vocational education and qualifications organisation in the UK – over 135 years old and still the market leader in the UK and a major force internationally. ILM is the part of the group dedicated to leadership and management development. We are the leading Awarding Body in the UK for management with over 95,000 certificates and qualifications issued last year We represent a membership community of over 25,000 practicing leaders and managers We boast a network of over 2,500 centres operating across 48 countries internationally We are the UK’s largest coaching qualifications provider – with 4,410 registrations onto our coaching qualifications last year – which makes the largest in Europe for coaching (a vital management skill) The run a successful programme of thought leadership research and media campaigning as the leading authority on leadership and management practice and development. Research is core to what we do We are a charity – not for profit – and everything we do is in pursuit of our purpose and is not to pay shareholders (as we have none)
- Why it matters? Great managers make people happy, successful, enjoy work, feel safe and part of a team which values them and create results. Bad managers damage people, suppress capability, damage companies, kill innovation and harm those around them. Great leaders inspire, provide hope, belief, confidence, vision and the desire to succeed. Bad leaders destroy people, organisations, hope, belief and value and harm the people and the organisations they control. Leadership and management matters – making managers and leaders good matters and making them great matters even more. It matters for people and for society.
- On an individual, professional and organisational level, we know implicitly that it is important to be trusted. But why is it so important to be trusted, and how can we go about measuring and improving trust levels in individual leaders and their organisations? Against a backdrop of falling public trust in key industries and institutions, ILM set out to understand how UK organisations can build trust with their most important stakeholders – their individual employees. Our research explores the current state of trust in business, identifies the most powerful drivers of employee trust and highlights how leaders and managers can increase trust and deliver the associated organisational benefits.
- Trust brings a range of organisational benefits . . . some of which can be seen above. At ILM we truly believe that trust is fundamental to sustainable success for leaders and their wider organisations. Trust in the workplace is not a new issue. There is a solid body of academic research stretching back decades which linking trust with improved organisational effectiveness. This includes: Western, S. 2008 Eco-Leadership from ‘Leadership: a Critical Text’ Dirks, K.T., D.L. Ferrin. 2001. The Role of Trust in Organizational Settings. Organizational Science. Vol 12, No. 4, July-August. pp. 450-467 Mayer, R.C, J.H Davis, F.D Schoorman. 1995. An integrative model of organizational trust. Academic Management Review. Volume 20. pp 709-734. Likert, R. 1967. The Human Organization. McGraw-Hill, New York. McGregor, D. 1967. The Professional Manager. McGraw-Hill, New York. Argyris, C. 1962. Interpersonal Competence and Organizational Effectiveness. Dorsey, Homewood, IL. Kramer, R. M., A. Isen. 1994. Trust and distrust: Its psychological and social dimensions. Motivation Emotion Volume 18. pp. 105-107. We know that high-trust organisations benefit from increased productivity, improved processes and lower stress. This is because trust underpins effective working relationships. The more we trust a colleague, manager or team member, the more we will share information, take risks and work together. By increasing trust levels, organisations can also drive significant improvements in performance by motivating staff to commit additional discretionary effort. Trust helps businesses to both take and manage risks safely and also allows leaders to try new things, essential if an organisation wants to grow and develop.
- Our latest research piece which you will be able to get hold of a copy of during the seminar or on our stand today.
- Why did ILM carry out this research into trust? Against a backdrop of falling public trust in key industries and institutions, ILM set out to understand how UK organisations can improve the level of trust they receive from their most important stakeholders – their individual employees. This research explores the current state of trust in business, identifies the most powerful drivers of employee trust and highlights how leaders and managers can increase trust and deliver the associated organisational benefits. This latest ILM study builds on our previous Index of Leadership Trust research which ran annually from 2009-2011. This project didn’t use the full version of ILM’s Index of Leadership Trust that we used in the three previous pieces and so although some comparisons can be made it is not possible to make full and direct comparisons on every measure. Primary data was collected via an online survey and includes the responses from 1647 people. They are a mixture of ILM members and non-members (managers, provided by a market research agency panel).
- These dimensions have been identified from the academic literature and are: Ability – the leader’s ability to do their job Understanding – displaying knowledge and understanding of their employee’s or reports’ roles and responsibilities Fairness – behaving fairly and showing concern for the welfare of their employees or reports Openness – being accessible and receptive to ideas and opinions Integrity – striving to be honest and fair in decision making Consistency – behaving in a reliable and predictable manner For the purpose of this research the dimensions can be seen as the drivers of trust, where each is a necessary, though not sufficient condition. These six dimensions can broadly be summarised as Competence (Ability and Understanding), Benevolence (Openness and Fairness) and Integrity (Integrity and Consistency). For the purpose of this research the dimensions can be seen as the drivers of trust, where each is a necessary, though not sufficient condition.
- By analysing the respective levels of internal and external trust in different industries, we were able to identify which industry sectors were the most and least trusted by staff and consumers. Whilst we weren’t able to draw a direct comparison across all industries some clear patterns emerged. Two of the three least trusted organisations score lowest for both internal and external trust. Local and central government has the lowest level of trust from staff at just 10% net high trust level a shocking figure when compared to the average net high trust level of 40% Consumers are even less trusting scoring these industries –17% net high trust. Financial services, banking and insurance suffer from below average trust from staff working within their industries but an even greater cynicism was felt by consumers who scored them with -30% net high trust, meaning a third more people are distrustful of those industries than have trust in them. The link between staff and customer trust levels suggests that leaders seeking to build or rebuild their organisation’s trust would be well advised to begin by measuring and seeking to improve the levels of trust amongst their own staff.
- Relationships count – managers typically trust their direct reports most highly – those with whom they have a vertical and structured relationship. They trust their colleagues less and their own manager least. Seniority drives trust – our survey showed that senior managers have the highest trust in their organisation (49% net high trust) compared to middle managers (38%) and senior leaders also express higher levels of trust in their own manager, teams and colleagues across a range of factors when compared to their middle management colleagues. Large organisations suffer most - the research reveals that employees in larger organisations typically report lower levels of trust, with 41% net high trust in their organisation. Those working in small organisations, where managers and senior staff are more likely to be in direct contact, displayed the highest level of trust across the group – 58% net high trust in their organisation. Sector struggle – our survey revealed that the public sector is suffering from a trust shortfall with just 29% net high trust compared to the private sector (45%) and the third sector (46%). In fact over one in 10 public sector managers say that they trust absolutely no one or very few people in their organisation.
- Our research found that senior managers have the highest levels of trust in their organisation (49% net high trust) compared to middle managers (38%) and first line managers (36%), and also express higher levels of trust in their own manager, teams and colleagues across a range of factors when compared to less senior colleagues. Organisations can increase levels of trust by investing in managers from the lowest levels so they feel competent, trusted and valued and understand their own role in helping the business to succeed. Organisational leaders and managers at all levels have a crucial role to play in explaining and aligning organisational values with the goals and objectives of their individual team members. Leaders should be recruited and developed to embed and embody the values of their organisation. Target development at all levels not just at the top. Middle managers are fundamental to an organisations performance and reputation and manage front-line staff.
- Five fundamentals – organisations wishing to establish or improve trust can do so using the five fundamentals – openness, communication, decision-making, integrity and competence. Building these in your managers will drive a more effective and productive organisation. A focus on the five fundamentals is particularly important amongst first line managers and the middle managers who manage them. Front line managers lead the team ands that embody the organisation for customers. Improving trust at this level, where it’s currently at it’s lowest, will have a major bearing on organisational performance.
- Five fundamentals - Together, these five drivers represent a core skills and behaviour set that leadership and organisations should focus on developing in order to increase trust levels and deliver the associated performance benefits. First-line managers –This group of managers are crucial to organisational performance and reputation, yet have the lowest level of trust in their organisations. In response, organisations can provide targeted support and development for both first line managers and middle managers around the five fundamental areas of openness, communication, decision making, integrity and role competence. Develop management skills and relationships - Managers can increase their impact and team performance by improving the five fundamental skills and qualities outlined here through a continuous process of development, and by taking advantage of learning opportunities wherever they arise. Training and qualifications offer one clear route to enhanced skills and awareness, particularly those which incorporate a large component of work based learning. Targeting time and resources to the development of direct reports through work based learning is an effective way of helping to build trust. Measurement - ILM will be launching a brand new product called Trustrack in January 2015 to enable organisations to rank the levels of trust in their organisation now and pinpoint areas for improvement. If you wanted to trial this product visit our stand today and rate your line manager/CEO against the 6 dimensions of Trust with our Trustrack diagnostic taster. Internal and external trust are linked - We’ve seen a strong link between how trusted organisations are by consumers and the level of internal trust from staff. Where trust has been damaged externally, levels are also likely to be low internally – leading to inefficient organisations. Where employers are seeking to rebuild damaged reputations with consumers, they should first rebuild internal trust. This can be achieved through a focus on the five fundamentals of trust outlined above, developing these skills and qualities from senior leadership right down to first line managers.