The Five Levels of Trust that Drive Success or Failure


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The Five Levels of Trust that Drive Success or Failure

  1. 1. The Five Levels of Trust That Drive Success Or Failure How Trust Affects Your Business, Your Close Relationships, and Your Personal Success Phillip C. Thomas Founder Boston Business Group/CXO Leadership Institute
  2. 2. That Simple Word That Affects EveryRelationship, Every Deal, and Every Company.
  3. 3. A Little About My Background… BYU undergrad; executive development courses at Stanford and Harvard Business Schools Naval Officer - eight years 6 different CEO level opportunities to lead/25 years Also serve as a CEO Group Chair w/Vistage Int’l Continually seeking to improve my ability to gain, retain, and extend Trust with others
  4. 4. Leading At The Speed of TrustBased on the Best-SellingBook by Stephen M. R. Covey Author Speaker Leader A person I know, admire and trust
  5. 5. Key Areas of Discussion• What Is Trust?• What Key Attributes Form The Basis of Legitimate Trust?• How Do We Obtain Trust?• How Do We Retain Trust?• How Do We Regain Trust?• 13 Key Behaviors That Reflect Trust - And Their Counterfeits• 5 Areas Where Trust Has A Major Influence In Our Lives – And How They Interconnect• Trusted Leadership – What It Means In Terms of Growing Your Company
  6. 6. Trust In Today’s WorldEdelman Trust Index - The 2012 Edelman Trust Barometer sees an unprecedented nine- point global decline in trust in government. There is still a yawning trust gap for business. While traditional media sources are still the most trusted, the diversification of trusted media sources continues. In fact, social media, which consists of social networking sites, content-sharing sites, blogs, and micro-blogging sites, saw the biggest percentage increase in trust among media sources.
  7. 7. The 5 Waves of Trust“As Trust Is Manifest In Each Successive Wave, The Effect Of Trust Becomes Cumulative And Exponential.” - Stephen M. R. Covey The Case for Trust
  8. 8. What Is Trust?“The Degree Of Confidence Born Of The Character And Competence Of A Person Or An Organization.” The Opposite Of Trust Is Suspicion…. “I Could Give A Dictionary Definition, But You Know It When You Feel It. Trust Happens When Leaders Are Transparent, Candid, And Keep Their Word. It’s That Simple.” - Jack Welch Introduction
  9. 9. Trust Myths and RealityMyth RealityTrust is soft. Trust is hard, real, and measurable. Nothing is as fast as the speed ofTrust is slow. trust. Trust is a function of both characterTrust is built solely on integrity. (which includes integrity) and competence.Trusting people is too risky. Not trusting people is a greater risk.Trust is established one person Establishing trust with the oneat a time. establishes trust with the many. The Case for Trust
  10. 10. The Economics of Trust Low Trust Adds Cost And Slows Everything Down The Trust Tax The Case for Trust
  11. 11. The Economics of Trust High Trust Lowers Costs And Speeds Up Your Business The Trust Dividend The Case for Trust
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  13. 13. The Four Core Elements Of Trust Personal Trust 13
  14. 14. The Four Core Elements Of TrustIntegrity Consistency, Humility, Courage, RespectIntent Your Motives, Agendas, BehaviorsCapabilities TASKS: Your talents, attitudes, skills, knowledge, & styleResults Your Personal Track Record  What have you actually accomplished?  What impact did it have on the business or relationship? Personal Trust 14
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  16. 16. Relationship TrustThink of a high-trust relationship you have What is it like to be around this person? How long does it take to get things done? What is communication like? What kind of results are you able to achieve?Think of a low-trust relationship you have How does it compare with high trust relationships you enjoy? How does it change the way you operate day to day? At the end of the day, are you drained or uplifted? Does this person build you up or wear you down? Relationship Trust 16
  17. 17. 13 Behaviors of Trusted Leaders1. Talk Straight 8. Confront Reality2. Demonstrate Respect 9. Clarify Expectations3. Create Transparency 10. Practice Accountability4. Right Wrongs 11. Listen First5. Show Loyalty 12. Keep Commitments6. Deliver Results 13. Extend Trust7. Get Better Relationship Trust 17
  18. 18. 13 Counterfeit Behaviors1. Lie or deceive 8. In denial; ignore2. Demonstrate lack of respect 9. Intentional vagueness or concern 10. Avoiding or not “owning3. Hide, cover up, obscure up” to a situation4. Deny or rationalize wrong 11. Speaking first, not listening behavior 12. Violating promises5. Self credit taking, betraying 13. Withholding Trust others6. Fail to achieve7. Become irrelevant Relationship Trust 18
  19. 19. Extending Smart Trust Propensity to Trust Thoughtful AnalysisPrimarily a matter of the Primarily a matter of theheart mind Your willingness or tendency to trust Wisely assessing: others. The job to be done Instinctual or intuitive The risks involved “Trust your gut” The credibility of the organization Experiential based judgment or person involved “It takes 20 years to obtain 20 Their character and years of experience…” competence Adhering to basic principles or Past results time tested truths Third party endorsements Relationship Trust 19
  20. 20. Extending Smart Trust Relationship Trust 20
  21. 21. Restoring TrustThree Conditions 1. The nature of the loss 2. The importance of the relationship 3. The willingness of both parties to restore trustWhen others have lost your trust… Don’t be too quick to judge Be quick to forgive Be “smart” about it…but don’t overthink itWhen you have lost the trust of others… Strengthen the 4 Cores of Credibility Behave in ways that inspire trust Be humble and willing to serve without a hidden agenda Relationship Trust 21
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  23. 23. The Organizational Trust DividendTotal return to shareholders for organizations with high trust is almost 3x higher than that of organizations with low trust. - Human Capital Index Watson Wyatt Worldwide Organizational Trust 23
  24. 24. Organizational Trust: Dividends and Taxes Organizational Trust 24
  25. 25. Symbols of Low Trust Organizational Trust
  26. 26. Symbols of Trust Organizational Trust 26
  27. 27. Your Symbols of TrustCan you name some symbols of trust in yourorganization?If you were CTO – Chief Trust Officer, what changes insymbols of trust would you make?Why and with what intent? Organizational Trust 27
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  29. 29. What Brands Do You Trust – And Why? ? Market Trust
  30. 30. Market Trust in the 21st Century20th Century 21st CenturyPassive consumers. Active participants.Traditional print-radio-TV “Social media” - Internetadvertising. communities, blogs, video share.The organization owns and Consumers influence and sharecontrols the brand “top down.” ownership of the brand. Market Trust 30
  31. 31. Dramatic Decline In Market Trust “In the 1960s, if you introduced a newproduct, 90 percent of the people who viewed it for the first time believed the corporate promise. 40 years later, if you performed the same exercise, less than 10 percent of the public believed it was true.” - Howard Schultz, Founder, Starbucks Market Trust
  32. 32. Everyone’s Talking…What is your organization doing in this new world ofinterconnected communications?Which behaviors are becoming increasingly important inthis new world? “He Posted What?!” (recent attorney presentation) “Monitoring Off-Duty Conduct” “When You Foul Up Now, It’s Google-able. In The Old Days, You Just Had To Wait Three Days And No One Would Remember.” Christopher Buckley, editor, Forbes FYI Market Trust 32
  33. 33. Segmenting Market TrustThree Attitudes Example I recommend them to my friends, I go out of myPromoter way to buy from them, I would nearly have an emotional breakdown if they went away. I do business with them because they arePassive convenient, but I wouldn’t much care if they went away. I would not do business with them myself, and IDetractor would warn others to stay away. Market Trust 33
  34. 34. Consistency Counts! Market Trust 34
  35. 35. Your BrandDoes your brand have integrity? How would you know?Does your brand demonstrate good intent? How is that accomplished?Is your brand associated with results? Are they legitimately expressed?What does your brand say about YOU personally? Is your brand an accurate reflection of who you are? Market Trust 35
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  37. 37. Societal Trust in the 21st Century 20th Century 21st Century Business is responsible toBusiness is responsible only to shareholders and the community at shareholders. large. Unconscious consumers. Socially conscious consumers. Profit and contribution are theProfit is the measure of success. measures of success. Societal Trust 37
  38. 38. Socially Responsible Companies Prosper Comparison of Shareholder Return Over A Six-Year Period Percentage of Shareholder ReturnSource: “The 100 Best Companies to Work For,” Fortune. Societal Trust 38
  39. 39. Compassion And Cash Flow “The idea that business is responsible only to its shareholders mortifies me with its narrowness… Business has to be a force for social change. I can imagine a day will come when compassion counts as much as cash flow.” - Anita Roddick, founder, The Body Shop Societal Trust
  40. 40. One ExampleOver ten years, New Leaf Paper customers saved thefollowing resources by using post-consumer recycled fiberinstead of virgin tree fiber: 1,400,649 fully grown trees 331,001,041 gallons of water 660,267 million BTU’s of energy 66,519,808 pounds of solid waste 115,297,918 pounds of greenhouse gases Societal Trust 40
  41. 41. Trust Taxes Paid by Non-CSR Companies CSR = Corporate Social Responsibility North Latin Global Respondents… EU Asia America America Refused to buy their products or 83% 85% 79% 74% use their services. Refused to work for them. 46% 51% 37% 59% Refused to invest in them. 72% 80% 61% 65% Actively demonstrated or 24% 14% 42% 23% protested against them.Source: Edelman Trust Barometer, survey of 2800 college-educated people in 18 countries. Societal Trust 41
  42. 42. Integrating With The 4 CoresIntegrity: What are your values in relation to society?Intent: What do you intend to do to make a beneficialsocietal contribution?Capabilities: What are you uniquely capable of doing tomake a societal contribution?Results: What have you already done to make ameaningful societal contribution? Societal Trust 42
  43. 43. The Fundamental Elements of Trusted Leadership
  44. 44. The Five Levels of Trust That Drive Success Or Failure How Trust Affects Your Business, Your Close Relationships, and Your Personal Success Phillip C. Thomas Founder Boston Business Group/CXO Leadership Institute