The Speed of Trust

1. Trust is the hidden variable that affects everything in business and life

Nothing is as fast as the speed of trust.

Trust impacts speed and cost. When trust is low, speed decreases and costs increase. Conversely, high trust accelerates business processes and reduces expenses. This "trust tax" or "trust dividend" affects every interaction and transaction in both personal and professional spheres.

Trust is quantifiable. While often considered a soft, intangible asset, trust can be measured through its effects on organizational speed and costs. Companies with high-trust cultures outperform their low-trust counterparts by up to 286% in total return to shareholders.

Trust is a learnable skill. Contrary to popular belief, trust can be effectively taught and learned. By understanding the core components of trust and practicing trust-building behaviors, individuals and organizations can systematically increase their trustworthiness and reap the benefits of high-trust environments.

2. Self-trust is the foundation for all other forms of trust

To retain those who are present, be loyal to those who are absent.

Credibility is key. Self-trust is built on personal credibility, which comprises four cores:

• Integrity: Congruence between words and actions
• Intent: Genuine care and concern for others
• Capabilities: Relevant skills and constant improvement
• Results: Consistent delivery of promised outcomes

Self-trust impacts all relationships. When individuals lack trust in themselves, it becomes difficult to trust others or inspire trust from others. Building self-trust requires making and keeping commitments to oneself, identifying and living by personal values, and maintaining an open mindset to growth and learning.

Credibility can be increased. By focusing on improving each of the four cores, individuals can enhance their personal credibility and, consequently, their self-trust. This forms the foundation for building trust in all other relationships and spheres of influence.

3. Relationship trust is built through consistent behavior

We judge ourselves by what we feel capable of doing, while others judge us by what we have already done.

13 key behaviors build trust. These behaviors, rooted in character and competence, include:

1. Talk Straight
2. Demonstrate Respect
3. Create Transparency
4. Right Wrongs
5. Show Loyalty
6. Deliver Results
7. Get Better
8. Confront Reality
9. Clarify Expectations
10. Practice Accountability
11. Listen First
12. Keep Commitments
13. Extend Trust

Consistency is crucial. Trust is built or destroyed through repeated interactions. Consistently demonstrating trust-building behaviors creates a positive cycle of increasing trust, while inconsistency or betrayal can quickly erode even long-standing relationships.

Trust accounts. Every relationship has a metaphorical "trust account" where deposits and withdrawals are made through our behaviors. Building a healthy balance in these accounts provides a buffer against occasional mistakes and misunderstandings.

4. Organizational trust relies on alignment of systems and structures

All organizations are perfectly aligned to get the results they get.

Alignment creates trust. When an organization's systems, structures, and symbols align with its stated values and trust-building principles, it creates a high-trust environment. Misalignment between words and actions leads to cynicism and low trust.

Trust taxes and dividends. Low-trust organizations suffer from:

• Redundancy
• Bureaucracy
• Politics
• Disengagement
• Turnover
• Churn
• Fraud

High-trust organizations enjoy:

• Increased value
• Accelerated growth
• Enhanced innovation
• Improved collaboration
• Stronger partnering
• Better execution
• Heightened loyalty

Culture reflects leadership. Leaders play a crucial role in shaping organizational trust through their own behavior and the systems they put in place. Creating a high-trust culture requires intentional design and consistent reinforcement of trust-building practices.

5. Market trust is about building and maintaining a strong reputation

We've got a business principle that says, "Our assets are our people, our capital and our reputation." And if any of those are diminished, the last one is the hardest one to regain.

Brand equals trust. In the marketplace, a company's brand is essentially its reputation, which is built on trust. A strong, trusted brand can command premium prices, attract top talent, and weather crises more effectively than less trusted competitors.

Trust can be built quickly. While traditionally thought to take years to establish, trust can be built rapidly in today's fast-paced business environment. Companies like Google have achieved high levels of trust in relatively short periods through consistent delivery of value and adherence to trust-building principles.

Reputation management is crucial. In an interconnected world, companies must actively manage their reputations across all stakeholder groups. This involves not only delivering quality products and services but also demonstrating social responsibility and ethical behavior.

6. Societal trust stems from contribution and global citizenship

The evolution of capitalism has been in the direction of more trust and transparency, and less self-serving behavior; not coincidentally, this evolution has brought with it greater productivity and economic growth.

Contribution builds trust. Companies and individuals that actively contribute to society's well-being generate higher levels of trust. This "principle of contribution" is becoming increasingly important in the global economy.

Global citizenship is an economic necessity. As the world becomes more interconnected, businesses are finding that being good global citizens is not just ethically right but also economically advantageous. Companies that demonstrate social responsibility often outperform their less engaged counterparts.

Trust is the foundation of society. High-trust societies enjoy greater economic prosperity, social cohesion, and quality of life. Building societal trust requires individuals and organizations to prioritize long-term, mutual benefit over short-term, self-serving actions.

7. The "Smart Trust" matrix balances analysis with propensity to trust

Trust men and they will be true to you; treat them greatly and they will show themselves great.

Smart Trust combines analysis and propensity. The Smart Trust matrix helps individuals and organizations find the right balance between analyzing situations and maintaining a propensity to trust. This balance allows for informed risk-taking while avoiding both blind trust and crippling suspicion.

Four zones of trust:

1. Blind Trust (High propensity, Low analysis)
2. Smart Trust (High propensity, High analysis)
3. No Trust (Low propensity, Low analysis)
4. Distrust (Low propensity, High analysis)

Smart Trust leads to best outcomes. Operating in the Smart Trust zone allows for the benefits of high trust while mitigating risks through careful analysis. This approach enables faster decision-making, stronger relationships, and better overall results.

8. Restoring lost trust is possible through intentional effort and behavior

Though it may be difficult, in most cases, lost trust can be restored—and often even enhanced!

Trust restoration is a process. Rebuilding trust requires acknowledgment of the breach, sincere apology, changed behavior, and consistent demonstration of trustworthiness over time. While challenging, this process can often lead to stronger relationships than before the trust was broken.

Character vs. competence violations. Breaches of trust stemming from character issues (integrity or intent) are generally more difficult to restore than those arising from competence issues (capabilities or results). Understanding the nature of the trust violation is crucial for effective restoration.

Self-forgiveness is essential. Restoring self-trust after personal failures or mistakes is a critical step in rebuilding trust with others. This involves self-compassion, learning from errors, and committing to improved behavior in the future.

9. Extending trust to others can be a powerful leadership tool

The first job of a leader is to inspire trust.

Trust begets trust. Leaders who extend trust to their team members often find that trust reciprocated. This creates a positive cycle of increasing trust and improved performance throughout the organization.

Extending trust empowers others. When leaders trust their team members with important responsibilities, it often brings out the best in people. This approach can unleash creativity, initiative, and commitment that might otherwise remain dormant.

Smart trust is key. While extending trust is powerful, it must be done wisely. The Smart Trust matrix can guide leaders in determining when and how much trust to extend based on the situation and the individuals involved.

Last updated: September 8, 2024