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Speed Of Trust
The document discusses Stephen M.R. Covey's book "The Speed of Trust" and provides an overview of Covey's background and insights from the book. It describes how Covey argues that trust is a key driver of organizational performance and outlines the five waves of trust development, from self trust to societal trust. The document also summarizes some of the behaviors that Covey says can help build trust in relationships.
Speed Of Trust
- 1. Some Impressionistic takesfrom the book Stephen M.R. Covey’s “ The Speed of Trust” Trust” by Ramki ramakrishnan@gmrgroup.in
- 2. About the Author StephenM. R. Covey is co-founder and CEO of CoveyLink Worldwide. A sought-after and compelling keynote speaker and advisor on trust trust, leadership, ethics, and high performance, he speaks to audiences around the world. He is the author of The SPEED of Trust, a groundbreaking and paradigm-shifting book that challenges our age-old assumption that trust is merely a soft social virtue and instead soft, demonstrates that trust is a hard-edged, economic driver—a learnable and measurable skill that makes organizations more profitable, people more promotable, and relationships more energizing. He advocates that nothing is as fast as the speed of trust and that the ability to establish establish, grow, extend, and restore trust with all stakeholders is the critical leadership competency of the new global economy. Covey passionately delivers that message and is dedicated to enabling individuals and organizations to reap the dividends of high trust Audiences and trust. organizations alike resonate with his informed, practical approach to real- time issues that affect their immediate and long-term performance.
- 3. Prelude Trust is sointegral to our life both in personal & professional platform . We often take relationships for granted. In an era marked by business scandals and a desire for ownership & accountability this book by leadership expert Mr. Covey is a welcome guide to nurturing trust in our lives. Drawing on anecdotes and business cases from his years as CEO of the Covey Leadership Center the th L d hi C t , th author effectively reminds us th t th ' plenty of room f ff ti l i d that there's l t f for improvement on this virtue. Following a touching foreword by father Stephen R. Covey (author of The 7 Habits of Highly Effective People and related books), the j junior Covey outlines 13 behaviors of trust-inspiring leaders, such as demonstrating y p g , g respect, creating transparency, righting wrongs, delivering results and practicing accountability. Mr.Covey's down-to-earth approach and disarming personal stories go a long way to establish rapport with his reader, though the book's length Happy Reading
- 4. 1 Trust & itsEconomics
- 5. Context- Trust Trustmeans confidence When we trust people, we have confidence in them – in their integrity and in their abilities. When we distrust people, we are suspicious of them. The difference between high and low-trust relationships is g p palpable! In a high-trust relationship, we can say the wrong thing, and high trust people will still understand us. In a low-trust relationship despite precise communication relationship, communication, people will still misinterpret us.
- 6. Trust & Relationship Relationships of all kinds are built on and sustained by trust. They can also be broken and destroyed b l k of t t d t d by lack f trust. Trust in others depends on how much we trust ourselves. If we can’t trust ourselves, we’ll have a hard time trusting others. others This personal incongruence is often the source of our suspicions about others.
- 7. Trust Wejudge ourselves by our intentions and others by their behavior. th i b h i This is why, one of the fastest ways to restore trust is to make and keep commitments to ourselves and to p others. Trust affects two outcomes – speed and cost. When trust goes down speed will also go down and down, costs will go up. When trust goes up, speed will also go up and costs will go d ill down.
- 8. The Two dimensionsof trust Trust always affects two outcomes – speed and cost. cost When trust goes down, speed will also go down and costs will go up.
- 9. The Trust /EmotionalTax Trust Speed Cost = The serious practical impact of the economics of trust is that in many relationships, in many interactions, we are paying a hidden low –trust tax right off the top – and we don’t even know it! trust don t
- 10. The Trust/Emotional Dividend Trust Speed Cost = Obviously, the dividends are not just in increased speed and improved economics; they are also in greater enjoyment and better b tt quality of life. lit f lif
- 11. Hidden Variable (Strategy ( S) ) x Execution ( E)) = Results ( R) But there is a hidden variable to this formula: Trust – either the low-trust tax, which discounts the output, or low trust the high-trust dividend which multiplies it:
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- 13. How Trust works Trustis a function of two things: Character – Constant Includes your integrity , your motive & your intent with people Competence- Situational Competence includes your capabilities , your skills, results & track record Both are vital
- 14. Trust Ch T tCharacteristics t i ti No Trust N T t Low Trust L T t Moderate T t M d t Trust High T t Hi h Trust Extraordinary E t di Trust Intense CYA Behaviors Employee Focus on work & High Collaboration Micromanagement Satisfaction is results & Partnering (Cover you’re a..) mixed Redundant Beauracratic Some Systems & Helpful systems & Fully Aligned Hierarchy Systems & Structures structures systems & Processes misaligned structures Punishing Systems Hidden Agendas •Focus on Focus Strong creativity & Positive, Positive & structures Maintaining Status innovation transparent Quo relationships Angry Guarded Slow Approvals Healthy workplace Inspiring work Confrontations Communications done together with purpose Abusive, Dissatisfied Interactions are Mutual tolerance and Positive energy & Unprofessional Employees polite but cautious acceptance people Behaviors Militant Real Issues Not Unnecessary Focus on leveraging Loyalty, innovation Stakeholders Openly Discussed hierarchy strengths & confidence
- 15. 2 Five waves ofTrust
- 16. The 5 wavesof Trust The first wave- Self Trust Deals with the confidence we have in ourselves . Set & achieve goals To keep commitments- walk the talk – and also with our ability to inspire trust in others. We try to become a person who is worthy of trust. The second wave- Relationship Trust Is about how to establish and increase trust vis-a-vis others. The key principle underlying this wave is consistent behavior. The third wave- Organizational Trust Deals with how leaders can generate trust in different organizations organizations. The fourth wave- Market Trust Reflects the trust customers, investors, & others in the marketplace have in the company. The underlying principle behind this wave is reputation The fifth wave, Societal Trust, is about creating value for others and for society at large. The principle underlying this wave is contribution. By contributing or “giving back ” we counteract the suspicion cynicism and giving back, suspicion, cynicism, low-trust that exist within our society. We also inspire others to create value and contribute
- 17. 3 First Wave-Self Trust Principle of Credibility
- 18. It begins witheach of us personally, continues into our relationships, expands into our organizations, extends into our marketplace relationships, and encompasses our global society at large.
- 19. Self-Trust- Building Blocksto Credibility Core 1 Core-1 - Integrity Core-2- Intent C 2 Core -3- Capabilities Core 4 Core-4 – Results
- 20. 3A The four coresof credibility
- 21. Core 1- Integrity Integrity means honesty, telling the truth, and in the process, leaving the right p impression. Congruence. A person has integrity when there is no gap between intent and behavior… when he or she is the same – inside and out out. Humility. A humble person is more concerned About what is right than about being right, Abo t acting on good ideas than ha ing the About having ideas, about embracing new truth than defending outdated positions About recognizing contribution than being recognized for making it. Courage. We must have the courage to do the right thing even when it is difficult. Integrity Accelerators Make & keep commitments to Openness inspires credibility and trust. A yourself closed mindset fosters suspicion and Stand for something mistrust. Be Open
- 22. The Andy RoddickResponse At the Italia Masters in Rome in May 2005, Andy Roddick chose sportsmanship over gamesmanship p p g p by refusing a call by a line judge that an opponent’s serve was out of bounds. bounds Had he accepted the rulingruling, he would have won the match. Instead, his opponent went on to win the match and Roddick was eliminated from the tournament.
- 23. Core 2 -Intent Intent Intent grows out of character. People often distrust us because of the conclusions they draw about what we do. It is important for us to actively influence the conclusions others draw by “declaring our intent.” Intent has three dimensions - motive, agenda, and behavior. Motive is the reason for doing something. When the motive is laudable, trust increases. The motive that inspires p the greatest trust is genuine caring . Agenda grows out of motive. The agenda that generally inspires the greatest trust is genuinely wanting what is best for i b t f everyone i involved. l d Behavior is the manifestation of motive Intent Accelerators and agenda. The behavior that best Consider your motives creates credibility and inspires trust is Open your agenda acting in the best interest of others others. Choose Abundance
- 24. Core 3 –Capabilities Our capabilities inspire the trust of others, particularly when they are specifically those needed for the task at hand. Our capabilities p also give us the self-confidence that we can do what needs to be done. Capabilities include talent, attitude, skills, knowledge and style. Talents: T l T l Talents are our natural gifts and l if d strengths. Attitudes: Attitudes represent our paradigms – our ways of seeing, as well as our ways of being towards work life learning our abilities work, life, learning, and opportunities to contribute. Skills: Skills are our proficiencies, the things we can do well. Knowledge: K K l d Knowledge represents our l d t learning, insight, understanding, and awareness. Capabilities Accelerators Style: Style represents our unique approach Run with your strengths & with and personality personality. your purpose Keep yourself Relevant Know where you are going
- 25. Core 4 –Results Results In considering results, we always need to ask two critical questions. What results are we getting and how are we getting those results? T To i increase t t trust, we must t effectively communicate results so that people become aware of them. Results Accelerators Take responsibility for results & not just activities Expect to win Finish strong
- 26. The 4 Coresof Credibility 4. ________ Results Competence 3. ___________ Capabilities 2. ________ Intent Character Integrity © 2004-2006 CoveyLink
- 27. 4 Second wave wave- Relationship Trust
- 28. Relationship Trust Inevery relationship, what we do has far greater impact than anything we can say say. Good words signal behavior, declare intent and can create enormous hope. p And when those words are followed by appropriate behavior, they increase trust, sometimes dramatically. d ti ll Covey lists 13 behaviors that can go a long way in building an environment of trusttrust. The first five flow initially from character, the second five from competence and the last three flow from p both.
- 29. Behavior 1: Tlk Straight B h i # 1 Talk St i ht Talking straight can go a long way in inspiring trust Th opposite b h i i t li or t The it behavior is to lie to deceive The counterfeit behaviors are beating around the bush, withholding information, double- talk, flattery, “t h i ll ” t lli th t lk fl tt “technically” telling the truth but leaving a false impression and so on.
- 30. Behavior 2: DemonstrateR B h i #2 D t t Respect t We must show respect, fairness, kindness, l ki d love, and civility t d i ilit to individuals. The opposite behavior is showing disrespect, or not showing people we care. The counterfeit of Demonstrate Respect is to fake respect or concern, or to show respect and concern for some (those who can do something for you), but not for all (th ll (those who can’t). h ’t)
- 31. Behavior #3: CreateTransparency This is about being open, real and genuine and telling the truth in a way people can verify It’s based on the principles of honesty, p p y, openness, integrity, and authenticity. The opposite of this behavior is to hide, hide cover or obscure It includes obscure. hidden agendas, hidden meanings, hidden objectives & Sarcastic The counterfeit of behavior is illusion. It’s pretending, “seeming” rather than “being,” making things appear different than they really are. y y
- 32. Behavior # 4:Right Wrongs/ Do the right thing Do what’s “right” in that situation Base decision on values Don’t base decision on “mood” at the time Get beyond personalities Win-Win A you trying to BE right? Are i i h? (and therefore you’re wrong)
- 33. Behavior # 5:Show Loyalty/ Be Loyal Gi credit where credit i d Give dit h dit is due Acknowledge the contributions made by others Don’t gossip Keep confidences Be respectful to those who aren’t present
- 34. Behavior # 6:Deliver/Get Results Get the right things done. Take initiative M t & exceed expectations Meet d t ti Meet deadlines & within budget. budget Under promise/over deliver Don’t make excuses
- 35. Behavior #7: GetBetter/ Continuously improve Increase your skills and knowledge Work t l W k to always add value dd l Ask for feedback Work to follow through on the feedback
- 36. Behavior 8 ConfrontReality/ Address t B h i # 8: C f t R lit / Add tough challenges h h ll Address the difficult issues Acknowledge what isn’t said isn t Don’t pretend the issues aren’t there Don’t play the blame game Address the issues head on & with t t ith tact
- 37. Behavior 9: ClarifyExpectations /M k expectations clear B h i # 9 Cl if E t ti /Make t ti l Clarify Expectations is based on the principles of clarity, clarity responsibility, & accountability. Discuss and negotiate expectations Follow up on expectations Give feedback regarding progress Renegotiate when necessary
- 38. Behavior # 10:Practice Accountability/ Be Accountable There are two key dimensions to this. The first is to hold ourselves accountable; the second is to hold others accountable. Trust results when people know that everyone will be held to certain standards. When leaders don't hold people don t accountable, it creates a sense of disappointment, inequity, and insecurity. When things go wrong and we find ourselves blaming or accusing others, we g g , must draw back and ask, how we can stop this. At work, we must practice accountability by holding our direct reports accountable for th i actions. W must clarify our f their ti We t l if expectations first so that everyone knows what they’re accountable for and by when. We must look for ways to create an environment of accountability in our home home.
- 39. Behavior # 11:Listen First/ Listen Listen Listen Listen, Listen, It’s vital to listen, to understand first. Otherwise we may be acting on assumptions that are totally incorrect – acting in ways that turn out to be embarrassing and counterproductive. The principles behind this behavior include understanding, understanding respect and mutual benefit benefit. The opposite is to speak first and listen last – or not to listen at all. It’s going ahead with our agenda without considering whether others may have perspectives that could influence what we have to say. The counterfeit is pretend to be listening, while thinking about our reply and just waiting for our turn to speak Or it’s speak. it s listening without understanding. Listen First also means to listen to ourselves, to our gut feelings, our own inner voice before we decide and act voice, act.
- 40. Behavior 12: Make/Keep C B h i # 12 M k /K Commitments it t This is the quickest way to build trust in any relationship relationship. To break commitments or violate promises is the quickest way to destroy trust. The counterfeit of this behavior is to make commitments that are so vague or elusive that nobody can pin us down. Alternatively, we are so afraid of breaking commitments that we don’t even make any in the first place. Keeping commitments is based on the principles of integrity, performance, courage, and humility. It’s the perfect balance of character and competence. Particularly, it involves integrity (character) and the ability to do what we say we are going to d ( i do (competence). )
- 41. Behavior # 13:Extend Trust This behavior is based on the principles of empowerment, reciprocity, and a fundamental belief that most people are capable of being trusted, trusted want to be trusted and will do well trusted, when trust is extended to them. The opposite of this behavior is to withhold trust. The first is extending “false trust ” i e giving false trust, i.e., people the responsibility, but not the authority or resources, to get a task done. The second is extending “fake trust” – acting fake trust like we trust someone when we really don’t. Be the type to trust others Assume the best & Allow people to earn your p p y trust Extend trust incrementally when needed Even though there may be a risk involved, don’t withhold trust unnecessarily
- 42. 5 Third wave- wave Organizational Trust
- 43. Organizational Trust In Lowtrust organizations In High trust organizations People manipulate or distort facts. People are candid & authentic. People withhold and hoard Information is shared openly openly. information. People are willing to share Getting the credit is very credit. important. Transparency is a practiced p y p People spin the truth to their value. advantage. New ideas are welcome. New ideas are resisted and stifled. Mistakes are tolerated & Mistakes are covered up or encouraged as a way of covered over. learning. There are numerous “meetings There are few “meetings after after the meetings”. the meetings”. There are many “undiscussables”. People talk straight and confront People tend to over-promise and real issues. under-deliver. There is a high degree of There is low energy level level. accountability. accountability There is high energy level
- 44. 6 Fourth wave- wave Market Trust
- 45. Market Trust Market trust is all about brand or reputation. reputation It is trust that makes us want to buy a company’s products or services. Corporate brands are important not p p only to companies but also to other organizational entities, including governments, charities, hospitals and cities. Brands are judged, based on people’s perceptions. When brands are perceived to be trustworthy, trustworthy they generate a strong competitive advantage for the company.
- 46. 7 Fifth wave- wave Social Trust
- 47. Social Trust Trustis an integral part of the fabric of our society. It s It’s hard to imagine a world without trust trust. Heavy costs are incurred by a closed, low-trust society. On the other hand, several benefits are reaped by a high- trust t t society. i t These include shared knowledge, medical breakthroughs, technological advances, economic partnerships, and cultural exchanges exchanges. In a high-trust society, there’s more for everyone. There are more options and opportunities. People interact with l ith less f i ti friction, resulting i greater speed and l lti in t d d lower cost.
- 48. Social Trust If we have on our glasses to see, we realize that it is at this societal level that the words of psychologist Carl Rogers become clear: “That which is most personal is most general ” We see general.” that trust at the Fifth Wave is a direct result of trustworthiness that begins in the First Wave and flows outward in our relationships, in our organizations, and in the marketplace to fill g p society as a whole.
- 49. Social Trust Truly, Tr l global citi enship is an indi id al choice citizenship individual and a whole-life choice. And as we make that choice in our lives we influence those with whom lives, we work and live to make a similar positive choice in theirs. Together, we build organizations g g and families that contribute to the well-being of the world.
- 50. Self Trust Relationship Trust Organizational Trust Market Trust Societal Trust Self S lf Relationship R l ti hi Organizational O i ti l Market M k t Societal S i t l Credibility Behavior Alignment Reputation Contribution © 2004-2006 CoveyLink
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- 52. Inspiring Trust Nthi i as f t as th speed of t t Nothing is fast the d f trust. Nothing is as profitable as the economics of trust. Nothing is as relevant as the pervasive impact of trust. And the dividends of trust can significantly enhance the quality of every relationship on every level of your life Extending Smart Trust A l i opportunity, risk and credibility ( h Analyzing t it i k d dibilit (character & t competence) of those involved Managing risk Restoring trust when it has been lost on all levels
- 53. Smart Trust -Matrix
- 54. Zone -1 –High Propensity to Trust ; Low analysis 1 “Blind Trust” zone of gullibility. It’s the Pollyanna approach where people blissfully trust It s everyone. This is where we find those “suckers who are born every minute” – th i t ” those people who are a sure b t t f ll f l h bet to fall for Internet, marketing, investment, & other scams. Zone -2 – High Propensity to Trust ; High analysis 2 “Smart Trust” zone of judgment. This is where you combine the propensity to trust with the analysis to manage risk wisely. This is where you get both good business judgment & good people judgment – including enhanced instinct & intuition.
- 55. Zone -3 –Low Propensity to Trust ; Low analysis 3 “No Trust” zone of indecision. People here tend to not trust anyone. Because their own p y analysis is low, they tend to not even trust themselves. This zone is characterized by indecision, insecurity, protectiveness, protectiveness apprehension, apprehension tentativeness, tentativeness & immobilization Zone -4 – Low Propensity to Trust ; High analysis “Distrust” zone of suspicion. This is where you find people who extend trust very cautiously or not at all. In fact, some are so suspicious that y , p they do not trust anyone but themselves. People in this zone tend to rely almost exclusively on analysis (usually their own) for all evaluation decision evaluation, making, and execution.
- 56. Restoring Trust whenit has been lost Though it may be difficult in most cases lost trust difficult, cases, can be restored-and often even enhanced The path to restoration is to increase your personal credibility and behave in ways that inspire trust Generally speaking, a l G ll ki loss of t t created b a f trust t d by violation of character (integrity or intent) is far more difficult to restore than a loss of trust created by a violation of competence (capabilities or results))
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- 58. The Speed ofTrust Example Trust- Gary Barron Exec VP approached Barron, Exec. Herb Kelleher, CEO, about restructuring the $700M maintenance department 3 page summary 1 concern Approval on the spot Elapsed time: 4 minutes Herb Kelleher CEO, Southwest Airlines
- 59. The Speed ofTrust Example Trust- Warren Buffett, CEO, Berkshire-Hathaway Executed a deal with Wal- Mart in 2003 for McLane a McLane, $23B company The whole deal was agreed t i one 2 h d to in hour meeting Wal-Mart had their money y in 29 days Berkshire-Hathaway Letter to Shareholders, 2003
- 60. To Summarize Effective Leadership! Credibility Character Competence Integrity Intent Capabilities Results 1. Talk Straight 6. Deliver Results 2. Demonstrate Respect 11. Listen First 7. Get Better 3. Create Transparency 12. Keep Commitments 8. Confront Reality 4. Right Wrongs 13. Extend Trust 9. Clarify Expectations 5. Show Loyalty 10. Practice Accountability
- 61. Conclusion Trust isessential to prosperity, joy, happiness and professional success. We can if we try establish grow can, try, establish, grow, extend and restore trust. Our behavior can inspire trust. By increasing trust, we can speed up things and cut transaction costs. costs The speed of trust should not be underestimated.
- 62. “Speed happens whenpeople at work truly trust Speed each other.” Edward Marshall CEO, CEO The Marshall Group Happy Reading , Learning & Building Trust