TrustThe Key Component

John HorakRegion 18

jhorak@esc18.net

Trust

• Whether you are on a sports team, in an office or a member of a family, if you can’t trust one another there’s going to be trouble.

Joe Paterno Penn State

• Only 51% of employees trust top management• Only 36% of employees believe their leaders act with

honesty and integrity.• Over the past twevle months, 76% of employees

have observed illegal or unethical conduct on the job – conduct which , if exposed would seriously violate the public trust.

Cost of Trust Trust Speed Cost

Trust Speed Cost

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

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

• At your work, your top responsibility should be to build trust.

Robert Eckert, CEO, Mattle

TrustTrust = Character and Competence

Character

• Integrity• Motive• Intent

Competence

• Skills• Results• Track Record

• People who make things happen!

Leaders

• “Live the values” Deliver results” - Jack Welch• “Extreme personal humility” “Intense

professional will” - Jim Collins• Ethics theory says. “Do the right thing” and

“Get the right thing done”• Decision making approaches focus on

balancing the “heart” and the “head”

Five Waves of Trust

Self Trust

Relational Trust

Organizational Trust

Market Trust

Societal Trust

Restoring Trust

• Trust is the absolute key to long term success. Jim Burke CEO, Johnson & Johnson

The Principle of Credibility

• Four Cores• Integrity – Honest and Congruent• Good Intent – you are not trying to deceive or

protect anyone, hidden agenda• Credentials are Excellent• Good Track Record

Be ready to face the lawyer for the defense!

Be credible to yourself

• Little things count. Like when someone calls in to talk to a manager and his assistant says he is in a meeting when he is not. It’s the little things that employees notice.

Frank Vandersloot CEO of Melaleuca

The 4 Cores of Credibility

Character

1. Integrity

2. Intent

3. Capabilities

Competence

4. Results

Defining Integrity

• He who is careless with the truth in small matters cannot be trusted with important matters. - Albert Einstein

• There is no gap between intent and behavior.• Recognizing principle and putting it above self.• Standing firmly for principle, even in the face

of opposition.

Courage to do the right thing

• Courage is the first of the human qualities because it is a quality which guarantees all the others.

Winston Churchill

How to increase your integrity

• Do I genuinely try to be honest in all my interactions with others?

• Do I typically “Walk my Talk”• Am I clear on my values? Am I comfortable

standing up for them?• Am I open to new truths that may cause me to

redefine my values?• Am I able to consistently make and keep

commitments to myself?

Integrity

• Make and Keep commitments to Yourself• Stand for Something• Be Open

Intent

• What is your agenda?• In law, a man is guilty when he violates the

rights of another: In ethics, he is guilty if he thinks of doing so.

Immanuel Kant

• People just want to know that somebody knows, and cares.

Dennis P. LeStrange

The motive of caring will do more than anything else to

build credibility and trust.

Agenda

• The agenda that inspires the greatest trust is seeking mutual benefit.

Behavior

• The behavior that best creates credibility and inspires trust is acting in the best interest of others.

The Trustee Standard

• Acting in the best of others

How to improve intentThe first thing a leaders must do is inspire trust

Doug Conant – Campbell Soup

• Declare your intent and expressing your agenda• With new co-workers• Let people know how you operate so people

can know what to expect.• Tell them explicitly that your agenda is to build

trust with them, and that you want them to gain trust in you as they see you do what you say you are going to do.

• Declaring intent not only builds trust but it also puts more accountability on you to be true to what you say you are going to do.

• This signals people what to look for.

Capabilities

• What capabilities do I have that make me credible and that inspire the trust and

confidence of others?

TASKS

• Talents• Attitudes• Skills• Knowledge• Style

How to increase your Capabilities

• Keep yourself relevant• Run with your Strengths• Know Where you are going

What is your Track Record

• Results Matter

What and How

• What results am I getting?• How am I getting those results?

Defining Results

How to improve Your Results

• Take responsibility for Results• Expect to win• Finish Strong

Relational Behavior

• The truth is that in every relationship – personal and professional – what you do has a far impact that than anything you say.

“People don’t listen to you speak, they watch your feet.”

Anonymous

Build Trust Accounts

• Not all deposits and withdrawals are created equal.

• What constitutes a deposit to one person may not to another.

• Withdrawals are typically larger than deposits• Sometimes the fastest way to build trust is to

stop making withdrawals

Behaviors

Talk Straight - Summary

• Be honest. Tell the Truth. Let people know where you stand. Use simple language. Call things what they are. Demonstrate integrity. Don’t manipulate people or distort facts. Don’t spin the truth. Don’t leave false impressions.

Demonstrate Respect

• Genuinely care for others. Show you care. Respect the dignity of every person and every role. Treat everyone with respect, especially those who can’t do anything for you. Show kindness in the little things. Don’t fake caring. Don’t attempt to be “efficient” with people.

Create Transparency

• Tell the truth the way people can verify. Get real and genuine. Be open and authentic. Err on the side of disclosure. Operate on the premise of “What you see is what you get.” Don’t have hidden agendas. Don’t hide information.

Right Wrongs

• Make things right when you’re wrong. Apologize quickly. Make restitution where possible. Practice “service recoveries”. Demonstrate personal humility. Don’t cover things up. Don’t let pride get in the way of doing things right.

Show Loyalty

• Give credit freely. Acknowledge the contributions of others. Speak about people as if they were in the room. Represent others who aren’t there to speak for themselves. Don’t bad mouth others behind their backs. Don’t disclose other private information.

Deliver Results

• Estabilish a track record of results. Get the right things done. Make things happen, Accomplish what you’re hired to do. Be on time and within budget. Don’t overpromise and under deliver. Don’t make excuses for not delivering.

Get Better

• Continuously improve. Increase your capabilities. Be a constant learner. Develop feedback systems – both formal and informal. Act on the feedback that you get. Thank people for feedback. Don’t assume today’s knowledge and skills will be sufficient for tomorrow’s challenges.

Confront Reality

• Address the tough stuff directly. Acknowledge the unsaid. Lead out courageously in conversation. Remove the “sword from their hands”. Don’t skirt the real issues. Don’t bury your head in the sand.

Clarify Expectations

• Disclose and reveal expectations. Discuss them. Validate them. Recognize them if needed and possible. Don’t violate expectations. Don’t assume that expectations are clear or shared.

Practice Accountability

• Hold yourself accountable. Hold others accountable. Take responsibility for results. Be clear on how you will communicate how you are doing and how others are doing. Don’t avoid shirking responsibility. Don’t blame others or point fingers when things go wrong.

Listen First

• Listen before you speak. Understand. Diagnose. Listen with your ears – and your eyes and heart. Find out what the most important behaviors are to the people you are working with. Don’t assume you know what matters to others. Don’t presume you have all the answers – or all the questions.

Keep Commitments

• Say what you are going to do, and then do what you say you’re going to do. Make commitments carefully and keep them. Make keeping commitments the symbol of your honor. Don’t break confidences. Don’t attempt to PR you way out of a commitment you’ve broken.

Extend Trust

• Demonstrate a propensity to trust. Extend trust abundantly to those who have earned your trust. Extend conditionally to those who are earning your trust. Learn how to appropriately extend trust based on the situation, risk, and credibility (character and confidence) of the people involved. But have a propensity to trust. Don’t withhold trust because there is risk involved.

Organizational Trust

• Indicators of low trust• Redundancy• Bureaucracy• Politics• Disengagement• Turnover• Churn – turnover other than employees• Fraud

Market Trust

• Brand matters• The speed of trust in building (or destroying)

reputation.

Trust

• It is equally an error to trust all men or no man. Latin Proverb

Smart Trust Matrix

GULLIBILITYHigh Propensity

Low AnalysisBLIND TRUST JUDGMENT

High PropensityHigh Analysis

SMART TRUST

INDECISIONLow Propensity

Low AnalysisNO TRUST

SUSPICIONLow Propensity

High AnalysisDISTRUST

Trust ZONES

Smart Trust: Combine propensity to trust with the analysis to manage risk wisely