2. INTRODUCTION
Trust is both and emotional and logical act. Emotionally, it is where
you expose your vulnerabilities to people, but believing they will not
take advantage of your openness. Logically, it is where you have
assessed the probabilities of gain and loss, calculating expected
utility based on hard performance data, and concluded that the
person in question will behave in a predictable manner. In practice,
trust is a bit of both. I trust you because I have experienced your
trustworthiness and because I have faith in human nature.
We feel trust. Emotions associated with trust include
companionship, friendship, love, agreement, relaxation, comfort.
There are a number of different ways we can define trust. Here are
the dimensions of trust and consequent definitions.
3. Predictability
It is a normal part of the human condition to be constantly
forecasting ahead. We build internal models of the world based
both on our experiences and what others tell us, and then use
these to guess what will happen next. This allows us to spot and
prepare for threats and also make plans to achieve our longer-
term goals.
The greatest unpredictability is at 50%; a reliable enemy can be
preferable to an unpredictable friend, as at least we know where
we are with them.
Definition 1: Trust means being able to predict what other people
will do and what situations will occur. If we can surround ourselves
with people we trust, then we can create a safe present and an
even better future.
4. Value exchange
Most of what we do with other people is based around exchange,
which is the basis for all businesses as well as simple relationships.
At its simplest, it is exchange of goods. I will swap you two sheep for
one cow. It is easy to calculate the value in such material bargaining.
Things get more complex when less tangible forces come into play. A
parent exchanges attention for love. A company exchanges not only
pay but good working conditions for the intellectual and manual
efforts of its workforce.
Trust in value exchange occurs when we do not know fully whether
what we are receiving is what we expect. When we buy a car, don’t
want to be sold a ringer which the seller knows is faulty. When I get
advice in business, I want it to be based on facts, not wild opinions.
Definition 2: Trust means making an exchange with someone when
you do not have full knowledge about them, their intent and the
things they are offering to you.
5. Delayed reciprocity
Exchange is not just about an immediate swapping of cows and
sheep or hugs and kisses. What makes companies and societies
really work is that something is given now, but the return is paid
back some time in the future. The advantage of this is that we can
create a more flexible environment, where you can get what you
need when you need it, rather than having to save up for it.
Trust now becomes particularly important, because otherwise we are
giving something for nothing. The delay we have placed in the
reciprocal arrangement adds a high level of uncertainty which we
need to mitigate through trust.
What is often called the ‘golden rule’ is a simple formula for creating
trust. ‘Do unto others as you would have them do unto you.’ It sets
up the dynamic for my giving you something now with the hope of
getting back some unspecified thing in the indeterminate future.
Definition 3: Trust means giving something now with an expectation
that it will be repaid, possibly in some unspecified way at some
unspecified time in the future.
6. Exposed vulnerabilities
When we trust other people, we may not only be giving them
something in hope of getting something else back in the future, we
may also be exposing ourselves in a way that they can take
advantage of our vulnerabilities. If I buy a car from you and I do
not know a good price, you can lie to me so you get a better
bargain. If I tell you in confidence about the problems I am having
with work, you could use this to further your own career at my
expense.
Although the threat of retribution or projected feelings of guilt can
counteract your temptation to abuse my exposed vulnerabilities, if
you succumb I still get hurt and may still end up with the shorter
stick. For our transaction to complete successfully, I must be able
to trust that such agonies will not come to pass.
Definition 4: Trust means enabling other people to take advantage
of your vulnerabilities—but expecting that they will not do this.
8. Most people don’t fail at work because of incompetence. Most
people who struggle in the workplace do so because they don’t
understand the culture of their organization. The culture is the
unspoken rules of the environment. It’s how your company runs
despite what it says in the employee manual or in the press
releases.
While there can be many components to an organization’s culture,
trust seems to be a driving component of how relationships are
maintained and, as a result, how business is done. If you don’t
understand what is driving relationships in your organization, you
risk existing outside the sphere of influence, working hard,
accomplishing tasks, and wondering why your work is not being
acknowledged or rewarded.
9. Deterrence-Based Trust
Most new relationships start at this level of trust.
One violation of expectations or an inconsistency in behavior
can destroy the relationship.
There is not much disclosure at this level because parties are
trying to avoid doing anything to sever the relationship
before it can develop.
10. Knowledge-Based Trust
Most organizational relationships are at this level.
Trust is not necessarily broken by inconsistent behavior at
this level.
This level relies on information rather than deterrence.
11. Identification-Based Trust
This is the highest level of trust. It is achieved when there
is an emotional connection between the parties.
Controls are minimal at this level.
This is the type of trust that managers and leaders seek in
teams.
