10 Laws of Trust, Expanded Edition

1. Trust is the foundation of successful organizations and relationships

Trust is the operating system for a life well lived.

The power of trust. Trust accelerates decision-making, creates durable and flexible agreements, and makes life more pleasant. It acts as a lubricant in organizations, binding associates, customers, and suppliers together. High-trust organizations consistently outperform low-trust ones, as they foster collaboration, innovation, and employee satisfaction.

Elements of trust. Trust depends on three key conditions:

• Character: valuing others' interests as your own
• Competence: having the ability and training to achieve goals
• Authority: being empowered to deliver on promises

Trust can take three forms:

• Reciprocal trust: mutual advancement of interests
• Representative trust: reliance on others to represent our interests
• Pseudo trust: temporary alignment of self-interests

2. Personal integrity is essential for building trust

You can't talk your way out of a problem you behaved your way into.

Consistency is key. Leaders must demonstrate integrity in both their private and public lives. Inconsistency between words and actions erodes trust quickly. High-integrity leaders integrate their personal values with their professional conduct, ensuring that their behavior aligns with the principles they espouse.

Building integrity habits:

• Sync words with actions
• Avoid hypocrisy
• Work on establishing integrity as a habit
• Turn values into reality before temptation appears

Leaders should remember that their credibility rests on the many small decisions they make every day, not just the big ones. Even if most people don't witness these decisions, they will feel their effects.

3. Respect and empowerment foster a high-trust environment

Respect is the currency of trust, the way it's exchanged among people.

Demonstrating respect. Leaders can show respect by:

• Listening without an agenda
• Empowering team members
• Celebrating contributions
• Helping employees learn from missteps

Empowerment principles:

• Assume the best in people
• Be action-oriented
• Forget the past and outdated practices
• Expect and learn from failures
• Eschew the paraphernalia of paranoia
• Balance empowerment with accountability

Empowering others allows them to function at their best and inspires trust. When people feel respected and empowered, they are more likely to take risks, innovate, and contribute their best work to the organization.

4. Clear accountability and measures are crucial for maintaining trust

Trust comes with a scoreboard, with clarity around how results will be measured.

Defining success. Leaders must clearly articulate what winning looks like and establish specific, measurable goals. Without clear expectations and accountability, trust erodes as team members become confused about priorities and their standing within the organization.

Key principles for accountability:

• Define what winning looks like
• Set clear expectations
• Link accountability to enhanced trust
• Accompany accountability with credit for success

Accountability illuminates trust and makes empowerment work by giving people the clarity and confidence they need to be trustworthy in meeting objectives. It also ensures that credit is given where it's due, further reinforcing trust within the organization.

5. A shared vision unites and motivates teams

Pick a goal that the team will be proud to achieve.

Creating a compelling vision. A shared dream or vision of success animates the entire team and helps them tackle challenges together. The most effective organizational objectives are tangible and inspire people to push through inevitable disappointments.

Elements of a powerful vision:

• Make it inclusive for all stakeholders
• Go beyond a mere mission statement
• Collect and celebrate "hero stories"
• Replace aging visions when necessary
• Think simple but not small
• Expect that great dreams require sacrifice

When people can rally around a common goal that's consistent with their values, they'll sacrifice together, lift each other's burdens, and do their utmost not to let each other down. This shared commitment builds trust and drives the organization forward.

6. Open communication strengthens trust bonds

Err on the side of overcommunication.

Transparency builds trust. Leaders must be determined to share facts with everyone, simply, persuasively, and thoroughly. This means telling it like it is, during good times and bad. When people are left in the dark about the company's broader goals, trust erodes quickly.

Communication principles for building trust:

• Own the bad news
• Discipline yourself to stay positive
• Pay attention to body language and atmospherics
• Consider what budgets say about priorities

Open communication, especially about challenges and setbacks, allows team members to come up with creative solutions and demonstrates respect for their ability to handle difficult information. This openness fosters a culture of trust and collaboration.

7. Constructive conflict resolution builds stronger relationships

Facing conflict requires courage.

Embracing respectful conflict. In high-trust organizations, disagreement is seen as a path to better ideas and stronger relationships. Leaders should encourage open debate and ensure that the best ideas win, regardless of their source.

Principles for constructive conflict:

• Set the standard that the best ideas win
• Think like a mediator, not a judge
• Don't let tensions boil over

By fostering a culture where conflict is processed openly and constructively, leaders can drive innovation and build trust simultaneously. This approach requires courage but ultimately leads to better outcomes and stronger team cohesion.

8. Humility in leadership enhances trust and team cohesion

To be trusted is a greater compliment than to be loved.

The power of humility. Self-promoting leaders destroy organizational trust, while humble leaders see their role as stewardship. Humility allows leaders to build something that outlasts them and to focus on the success and well-being of the organization as a whole.

Practices for cultivating humility:

• Remember the mantra: "It's about the mission, not about me"
• Gather and celebrate the organization's history
• Celebrate achievements openly and give specific recognition
• Look for meaningful ways people can interact outside work

Humble leaders inspire trust by demonstrating that they value the contributions of all team members and are focused on the organization's mission rather than their personal glory.

9. Win-win negotiations create lasting trust

To build a high-trust organization, one needs to demonstrate personal integrity, invest in interpersonal respect, empower team members, measure what one wants to achieve, create a dream, communicate lavishly, and make conflict constructive.

Trust-building negotiation strategies:

• Assume ongoing relationships, not one-off deals
• Consider the other side's interests
• Aim to create value for all parties
• Eschew psych-out tactics
• Find power in inquiry
• Choose negotiation partners carefully

By approaching negotiations with a win-win mindset, leaders can build a reputation for fairness and deepen trust among all members of the team. This approach results in more flexible arrangements and enjoyable relationships among teammates.

10. Addressing trust breaches promptly is critical for restoration

Trust inescapably contemplates risk.

Dealing with betrayal. While building trust is crucial, leaders must also be prepared to address breaches of trust promptly and effectively. Betrayal, though devastating, need not signal the end of one's ability to trust.

Steps for restoring trust:

• Accept some responsibility for the breach
• Recognize you're not alone in experiencing betrayal
• Consider the seriousness of the breach
• Fix quickly what can be fixed
• Be realistic about the potential for restoration
• Forgive and move on
• Avoid seeking vengeance
• If restoration is possible, construct it carefully

By addressing trust breaches promptly and following these steps, leaders can often repair damaged relationships and create even stronger bonds of trust within their organizations.

Last updated: August 9, 2024