the speed of trust_affan for readers club

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THE SPEED OF TRUST:The one thing that changes everything

Prepared by Affan MawardiProgram Development Dept, Training Division

Tailored for Readers Club Discussion, 29 September 2010

Authors: Stephen M.R. Covey and Rebecca R. MerrillPublished: Free Press, 2006


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AGENDA

What the Book does2

Books Summary & Review1

How to Leverage the Idea for BSM3


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AGENDA

What the Book does2




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In the book The Speed of Trust: The One Thing That Changes Everything, Covey concludesthat trust is the one thing that can build or destroy every human relationship.

The good news is that trust can be built. The better news is that trust can be rebuilt fasterthan most of us think. Trust is built on two things: competence and character.

He shares a trust formula. He states When trust goes up, speed will also go up and cost willgo down. The inverse is also true. When trust goes down, speed will go down and costs willgo up.

The ability to build trust with customers, bosses, co-workers and subordinates is essential tobusiness success. The ability to build trust with your spouse, children and friends is essentialto personal success.

Covey breaks trust down into five waves: 1. Self trust, 2. Relationship trust, 3. Organizationaltrust, 4. Market trust, 5. Societal trust.

Books Summary


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STEPHEN M.R COVEY is cofounder and CEO of CoveyLinkWorldwide. A sought-after and compelling keynote speaker, author,and advisor on trust, leadership, ethics, and high performance,Covey speaks to audience around the world. A Harvard MBA, he isthe former CEO of Covey Leadership Center, which under hisstewardship became the largest leadership development company in

the world. Covey resides with his wife and children in the shadows ofthe Rocky Mountain. www.thespeedoftrust.com

Rebecca R Merrill is an accomplished writer and coauthor with Stephen R. Covey and RogerMerrill of First Things Firstand with Roger Merrill of Life Mattersand Connections.

Who the Authors are
http://www.thespeedoftrust.com/http://www.thespeedoftrust.com/http://www.thespeedoftrust.com/http://www.thespeedoftrust.com/http://www.thespeedoftrust.com/http://www.thespeedoftrust.com/


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Books Review

Value added Systematic in terms of organising the ideas and its explanation

Easy to understand by using diagram and giving relevant examples

Ideas can be leveraged to enhance BSMs new business model

Things to consider Co-branding with his father, Stephen R. Covey

The way to deliver the idea is similar to his fathers book

Quotes some ideas from his fathers

Need adjustments to build a trust through Timur Way


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AGENDA

What the Book does2




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Mind MappingMind Mapping


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A Crisis of Trust

Trust affects us on all levelssocietal, institutional, organisational,relational, and personal, and it has perpetuating effect.

You dont need to look far to realise that, we have a crisis of trust on our hands, foralmost all levels. Considers the following headlines on newspaper:

-Employees New Motto: Trust No One-Companies Urged to Rebuild Trust- Relationships Fall Apart as Trust Dwindles

O n the organisational level, a crisis of trust could be indicated at the followingconditions:

- Only 51% of emloyees have trust and confidence in senior management.- only 36% of employees believe their leader act with honesty and integrity


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S X E = R(Strategy times Executionequals Results)

(S X E)T = R([Strategy times Execution] multiplied byTrust equals Results)

A Benefit to work, collaboration, execution,innovation, strategy, engagement, partnering, and

relationships created by a high-trust environment.

With Trust

Without

Trust

Speed

Cost

Speed Impact Formula

The Trust Tax

The Trust Dividend

An added cost to work, relationships, all activities,that comes from a lack of trust

The Economics of Trust


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Trust Barometer & Its Myths and Reality


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When trust goes up, speed will also go up and cost will go

down. The inverse is also true. When trust goes down, speed

will go down and costs will go up.


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The First WaveSelf Trust

The Second Wave- Relationship Trust The Third Wave- Organizational Trust

The Fourth Wave Market Trust The Fifth Wave Societal Trust


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IntegrityIntent

CapabilitiesResults

Credibility boils down to two simple questions. First, do I trust myself? Second, am I someone who otherscan trust?

The First CoreIntegrity

Most of the major violations of trust are violations of integrity.Covey asserts that integrity is more than honesty.

The Second Core-Intent

Intent springs from our character. It is part of our value system. It ishow we know we should act.

The Third Core-Capabilities

Capabilities are the talents, skills, knowledge, capacities andabilities that we have that enable us to perform with excellence.

The Fourth Core-Results

People don't trust people who dont deliver results. Results are thedeliverables. They are what you contribute to the company. Youcant hide from your results

All four cores are necessary for credibility. A person of integrity thatdoes not produce results is not credible. If you are not credible youare not trustworthy!

Self trust is the foundation principle that enables us to establish and sustain trust at all levels. The principleis credibility.


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Congruency is when one acts according to hisvalues. It is when there is no gap between what oneintends to do and what one actually does.

Humility is the ability to look out for the good ofothers in addition to what is good for you.

Courage is the ability to do the right thing evenwhen it may be difficult.

INTEGRITY INTENT

Motive is why you do what you do. The best motive inbuilding trust is genuinely caring about people.

Agenda stems from our motive. The best agenda ishonestly seeking what is good for others. Its not aboutwanting, but seekingwhat is good for others.

Behavior is important because it is what people seeand judge. Telling someone you love them isimportant, but showing them you love them isessential.

Covey suggests Three ways to increase yourintegrity. First, make and keep commitmentsto yourself. Second, stand for something.Third, be open.

Covey gives three suggestions to improve intent.First, examine and refine your motives. Second,declare your intent. Third, choose abundance.


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CAPABILITY RESULTS

Dimensions of capabilities, Covey uses the acronym

TASKS: Talents, Attitude, Skills, Knowledge, andStyle.

Talents are the things we naturally do well. These arethe things we usually love to do.

Your attitude is how you see things. It is how we areinside. Skills are the things you have learned to do

well. He suggests that talent is a deeper well than skill.

Knowledge is what you know and continue to learn.Style is your unique way of doing things. It involvesyour personality.

How to Increase Your Capabilities:

First, follow your strengths and your passions. Second,remain relevant by continually increasing yourknowledge and improving your skills. Third, know whereyou are going (goals).

People don't trust people who dont deliver results.

Results are the deliverables. They are what youcontribute to the company.

There are three areas of results people look at to judgeyour credibility.First, your past results: what you have proven youcan do. Second, your current results: what you arecontributing right now. Third, your potential results:

what people anticipate you will accomplish in thefuture.

How to improve your resultsFirst, take responsibilityfor results, not activity. Second,expect to achieve your goals. Assume you will be

successful. This assumption will translate into action.Third, finish strong. Results are all about finishing. Youare probably aware of the old adage; Beginners aremany; finishers are few.

The fastest way to build trust with a client is to deliver results. Results give you instantcredibility and trust.


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A humble person is more concerned about what is right than about being

right, about acting on good ideas than having the ideas, about embracingnew truth than defending an outdated position, about building the team than

exalting self, about recognizing contribution than being recognized for it.


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1. Talk Straight! - Say what is on your mind. Dont hide youragenda.

2. Demonstrate Respect - The principle behind demonstratingrespect is the value of the individual.

3. Create Transparency

Tell the truth in a way that can be verified. Transparency isbased on principles of honesty, openness, integrity andauthenticity.

4. Right WrongsTo right a wrong is much more than apologizing. It involvesmaking restitution.

5. Show Loyalty

There are many ways to show loyalty to your employees.

6. Deliver ResultsThe fastest way to build trust with a client is to deliverresults. Results give you instant credibility and trust.

7. Get BetterIn todays ever changing environment one must continue toimprove.

8. Confront Reality - We cannot close our eyes to the tough

realities we face.

9. Clarify ExpectationsWhen expectations are not clearly defined up front, trust and

speed both go down.

10.Practice Accountability

Great leaders build trust by first holding themselves accountablethen holding others accountable.

11.Listen First

Listening before prescribing builds trust. Trying to give advicebefore knowing all the facts is a waste of time and simply not fair.

12.Keep Commitments

Covey refers to this as the Big Kahuna of all the trustbehaviors. When you make a commitment you build hope. Whenyou keep a commitment you build trust.

13.Extend TrustThe other behaviors help you become a trusted leader; thisbehavior helps you become a trusting leader.

Relationship trust is about consistent behavior. People judge us on behavior not intent. People cant see our

heart, but they can see our behavior

The 13 relationship trust building behaviors


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According to a 2005 study by Russell Investment Group, Fortune

magazines

100 Best Companies to Work for in America (in which trustconstitutes 60% of the criteria) earned over four times the returns of

the broader marker over the prior seven years.


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The 7 Low-Trust Organizational Taxes

1. Increased Value in two dimensions: stockholdersand customer gain value.

2. Accelerated Growth is a natural result of high trustcompanies. Customers will not only buy more but willrefer companies they trust.

3. Enhanced Innovation is a direct result of high trust.

4. Improved Collaboration is a must in todays globaleconomy. The bedrock of collaboration is trust.

5. Stronger Partnering is a result of high trust.

Outsourcing based on trust produces value up to40% of the contract.

6. Better Execution is a sign of a high-trustorganization.

7. Heightened Loyalty can be seen in lower turnover,repeat customers, and long term relationships withdistributors, suppliers, and investors.

The 7 High-Trust Organizational Dividends

In a Watson Wyatt 2002 study, high- trust organizations outperformed low-trustorganizations in total return to shareholders by 286 percent.

1. Redundancy is unnecessary duplication.2. Bureaucracy is when too many rules and

regulations are in place when too manypeople have to signoff on something.

3. Politics is when one uses strategy to gainpower.

4. Disengagement is when people are stillgetting paid even though they have clocked-out years ago.

5. Turnover is a huge business expense and

trust tax.6. Churn is the turnover of stockholders other

than employees.7. Fraud is flat-out dishonesty.

The Principle of Organisational Trust is based on alignment


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Customers buy more, buy more frequently, refermore, and stay longer with companies and

people they trust


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Fishdontcome to see the importance of water until it is polluted or nonexistent. Humansoften discover the essential nature of trust only when it is polluted or nonexistent.

THE PRINCIPLE OF CONTRIBUTION

Contribution is the intent to create value instead of destroying it. It is when we give back instead of take. Business are seeing the value in giving back to society. This includes giving money but also incorporates a spirit

of societal benefit into the very fabric of the business. The idea of corporate social responsibility is nothing new. Itwas originally the framework of the free enterprise system.

Adam Smith, father of the free enterprise, stated that for a society to be prosperous people had to compete fortheir own self-interest within the framework of intentional virtue.

TAKE LESSON FROM MCDONALDS AMAZING STORIES

During the 1992 L.A. riots sparked by the Rodney King trial many neighborhoods were burned andlooted. Amazingly, all McDonalds remained untouched. When asked why, the people in thecommunity responded by sayingthey would not want to harm a company that gives so muchback to the community. They received a huge trust dividend base on their contribution to society.

The Fifth Wave-Social Trust


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Zone 1 is characterized by gullibility. This is a person witha high propensity to trust combined with low analysis.

Zone 2 is characterized by judgment. This is one with ahigh propensity to trust combined with a high degree ofanalysis. This is the ideal quadrant.

Zone 3 is characterized by indecision. This is one with alow propensity of trust coupled with a low degree ofanalysis. Zone three is the worst zone. It is high risk andlow reward.

Zone 4 is characterized by a low propensity to trustcoupled with a high degree of analysis. This zone will

decrease trust and speed. It limits collaboration andteamwork.

Many competent managers never become leaders because they never learn to extend trust. They livein the suspicion quadrant.

The Trust Matrix (pictured at the below) describes four quadrants of trust. The vertical axis is a measure of ones

propensity to trust. The horizontal axis is a measure of degree of analysis.

Extending Smart Trust


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Self trustthis is the most difficult trust to restore. We must start by applying the 13 behaviors to our relationship with

ourselves.

Some say trust can never be restored. While it is best never to breaktrust, trust can be restoredand often even enhanced.

The good news is that we can increase our credibility faster, especially by havinggood understanding of two elements, which are Character and Competency.

Restoring Trust When It Has Been Lost


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AGENDA

What the Book does2




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Lets discuss to geta tailored-application for BSM


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Customer Pathways


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Customer Pathways & Its Business Process


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Lets the ball rolling out


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PROGRAM DEVELOPMENTDESK TRAINING G

ROW

YO

UR

SELF

YOUR

YOUR BUSINESS

PEOPLE


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PROGRAM DEVELOPMENTDESK TRAINING

Learn. Grow. Sustain

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