A Better New Year’s Resolution

iStock_000014342439XSmallI wrote a good blog post at this time six years ago, and haven’t improved on it yet. Here it is again.

Happy New Year.

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My unscientific sampling says many people make New Years resolutions, but few follow through. Net result—unhappiness.

It doesn’t have to be that way.

You could, of course, just try harder, stiffen your resolve, etc. But you’ve been there, tried that.

You could also ditch the whole idea and just stop making resolutions. Avoid goal-failure by eliminating goal-setting. Effective, but at the cost of giving up on aspirations.

I heard another idea: replace the New Year’s Resolution List with a New Year’s Gratitude List. Here’s why it makes sense.

First, most resolutions are about self-improvement—this year I resolve to: quit smoking, lose weight, cut the gossip, drink less, exercise more, and so on.

All those resolutions are rooted in a dissatisfaction with the current state of affairs—or with oneself.

In other words: resolutions often have a component of dissatisfaction with self. For many, it isn’t just dissatisfaction—it’s self-hatred. And the stronger the loathing of self, the stronger the resolutions—and the more they hurt when they go unfulfilled. It can be a very vicious circle.

Second, happy people do better. This has some verification in science, and it’s a common point of view in religion and psychology—and in common sense.

People who are slightly optimistic do better in life. People who are happy are more attractive to other people. In a very real sense, you empower what you fear—and attract what you put out.

Ergo, replace resolutions with gratitude. The best way to improve oneself is paradoxical—start by being grateful for what you already have. That turns your aspirations from negative (fixing a bad situation) to positive (making a fine situation even better).

Gratitude forces our attention outwards, to others—a common recommendation of almost all spiritual programs.

Finally, gratitude calms us. We worry less. We don’t obsess. We attract others by our calm, which makes our lives connected and meaningful. And before long, we tend to smoke less, drink less, exercise more, gossip less, and so on. Which of course is what we thought we wanted in the first place.

But the real truth is—it wasn’t the resolutions we wanted in the first place. It was the peace that comes with gratitude. We mistook cause for effect.

Go for an attitude of gratitude. The rest are positive side-effects.

 

Trust, Gun Control, and Neuroscience

It may be hard to imagine, given the horrific events of Newtown Connecticut, but violence of almost all types has been declining rapidly in the US and around the world.

That’s the story in the book The Better Angels of Our Nature: Why Violence Has Declined, a sweeping psycho-historical view of human nature by Harvard psychology professor Steven Pinker. Pinker makes the case with some compelling data, though his ideas may be even more interesting than the statistics. And, they have something to say about Newtown and about gun control.

One theme Pinker touches on is self-control. Have you heard of Walter Mischel’s marshmallow experiment with kids? Young kids grappled with the choice – to take one marshmallow now, or to get two if you can wait a bit? Pinker perfectly describes the accelerating discount rate that we apply to near-term gratification vs. long-term: how much more is a bird in the hand worth than two in the bush?

The answer is, it partly depends on how “in the hand” the bird is. Faced with a two-for-one tradeoff at two points in the distant future, we have no trouble – imagine choosing between two investments, one with a 10% payoff in a year, another with a 100% payoff in two years.

Self-Will and the Proximity of Temptation

The problem comes when that 10% payoff is right here, right now. Deciding whether you should have a grilled chicken salad or a Big Mac for lunch tomorrow is pretty easy.  But what about right now?  When you just happen to be standing in front of a Mickey D’s. And it’s lunchtime.

The closer we are to temptation, the weaker our self-will becomes when up against it.  We know not to shop for food when we’re hungry.  AA reminds alcoholics not to hang around bars. We put the candy on the upper shelf where the kids can’t get at it. “Just say no” has proven no match for making condoms available when it comes to halting teen pregnancy.

In short, moral development and ethical behaviors aren’t just a matter of self-will and integrity.  Good behavior is greatly affected by the social milieu – some of which can be designed into the environment.

Gun Control and Self-Will

We give up all kinds of rights in order to not tempt bad behavior. We post speed limits on roads, and enforce them.  We enforce guidelines about additives in food, and advertising guidelines about health. First amendment rights of free speech don’t extend to shouting “Fire!” in a crowded theater.

Yet in the gun control debates, the United States is conspicuous by its refusal to recognize this simple fact of moral design – the fact that availability of guns per se is a driver of gun-based violence.

Proponents of gun control insist on framing it as an issue of self-control, pure and simple –it’s psychology, they say. But even advocates of gun control have been co-opted; they generally focus on approaches like background checks, to make sure mentally impaired people can’t acquire guns.

Screening for gun purchasers is not the problem – the problem is ubiquity, pure and simple. The marshmallows guns are lying all around, tempting the unhinged to seek immediate gratification for their fevered fantasies.

Consider: Per capita gun ownership in the US is double that of any other country – the second-highest being Yemen, far behind. We have more guns in the US than we do passenger vehicles. We have 300% more guns per capita in the US than they do in France, Germany or Austria.

The result is as predictable as it is horrific. The rate of death by assault is about 300% higher in the US than in any other OECD country.  Two-thirds of murders in the US are committed with guns. Our gun-related murder rate is second only to narco-war-afflicted Mexico.

The solution does not lie in buyer screening. The problem is that we are awash with guns in the US.

Yet the response of pro-gun forces to mass murders is always the same – to focus on the self-will of the perpetrator, or on greater defenses by potential victims. This is akin to arguing for greater investor education in the face of a Bernie Madoff, less provocative clothing in the case of rape victims, just-say-no lectures in the case of teen pregnancy.

I don’t think we’ll hear anyone arguing that 1st-graders should be armed to protect themselves. And yet, sure enough, some argue that the solution is armed teachers. Enough insanity.

It in no way reduces the moral culpability of wrong-doers for us to focus on removing the source of the temptation. Why torture a kid with marshmallows if you’re trying to teach him self-control? Why allow ourselves to be surrounded by guns if we’re serious about cutting gun violence?

If we want to create a trust-based society, rather than regress to a Hobbesian world of armed camps (and schools), we have got to recognize the critical role that society plays in establishing norms, taboos, ethics, codes of conduct, and moral behavior. What we do is greatly influenced by what’s around us.

We are not born into the world with fully-formed moral codes that can be appealed to as sufficient conditions for ethical behavior. Ethics is a social construct as much as it is innate. The gun control debate needs to move not just toward tightened purchase requirements and limitations by type of weapon, but toward significantly fewer guns, period.

Trusting: the Other Side of Trust

A lot has been written about trust.  It’s often not clear, however, whether the subject is trustworthiness, or trusting.  If trust in banking is down, does that mean that banks are less trustworthy? Or that people are less inclined to trust?

Most of my work has been about trustworthiness (e.g. The Trusted Advisor). Other people write more overtly about trusting – a good example is the HBR article ReThinking Trust,  by Stanford Professor Rod Kramer, which focuses on the danger of trusting.

Some people write about the big subject of trust itself – the end result of the interaction between trustor and trustee.  A fine example is Francis Fukuyama’s classic Trust: the Social Virtues and the Creation of Prosperity.

Finally, many other sources end up talking about all three; think Covey’s Speed of Trust, or Bob Hurley’s The Decision to Trust.

The Power of Trusting

The sources above are largely academic. In the popular press, by far the most common topics are trustworthiness and the state of trust itself (trust as the result of an interaction between trustor and trustee). Throw a dart into a pile of 100 popular press articles on trust, and you’re likely to find Congress, investment bankers, and the Madoff-du-jour scandal as the subject.

This means most public policy debates focus on trustworthiness.  Most examples are negative; hence trusting is positioned as cautionary, i.e. watch out for car salesmen, lawyers, etc. The moral of the story is tut tut, another untrustworthy group, watch out.

And all this focus on negative examples of trustworthiness is having an effect on people’s inclination to trust. How could it not! And that is a terribly unfortunate thing. Because the scarce trust resource increasingly is not trustworthiness, but the willingness to trust.  We need to start focusing on the trustor, not just on the trustee.

The power of trusting is enormous. When it comes to trust, there is an answer to the chicken and egg dilemma of which comes first, the trustor or the trustee?  The answer is trustor.  Consider:

  • Until one party decides to take a risk and trust another, trust does not come into existence
  • Trusting has a profound impact on trustworthiness – think “the fastest way to make a man trustworthy is to trust him,” or “people live up or down to the expectations of them”
  • Trusting is inherently an act of optimism; a decline in trusting in the business world drives down innovation, and prevents collaboration and alliances

I’ll be writing more about this in the coming weeks. There is interesting material out there on the lessons from Prisoner’s dilemma, game theory, sociobiology, and the global decline in violence over the centuries – not to mention the backlash against competitive strategy going on in business schools.

I welcome any comments on the subject; I’m trying to do some thinking out loud here.  And I trust the readers of this blog to come up with great contributions.

Willful, Wishful Blindness: Trust and the Real Learning from the BBC Crisis

The UK press is screaming ‘blue murder’ about the recent turn of events in the BBC:

  • ‘How to restore trust in the BBC’
  • ‘You don’t trust us – and maybe you never will’
  • ‘Trust lost, hard to regain!’

A crisis for the BBC? Certainly. But a “complete loss of trust” is a wild exaggeration. Still, there is one troubling problem at the heart of things, and the BBC must get at it: a willful and wishful discomfort with facing truth.  Vital for any organization, truth-facing is especially so for a news outfit.

The Apparent Problem

The problem in recent weeks has been in one part of the vast BBC operation – its flagship current affairs programme, ‘Newsnight’. There has been real incompetence and mismanagement, and people are rightly angry and critical. But this is an organisation that has real pedigree and a brand that is deeply respected and trusted the world over for the quality and integrity of its daily product.

Deeply held trust, reinforced over many years, simply does not disappear in one moment with one incident.  The BBC will take the steps to right the ship around ‘Newsnight’ and move on.

To recap quickly:

It turns out that one of the BBC’s leading (and well loved, but now dead) entertainers in the last quarter of the 20th century, Sir (!) Jimmy Savile, was for many years a serial and horrific abuser of many young and vulnerable people who came under his influence. It was extensive. It went on a long time. He was never stopped.

Then, ‘Newsnight’ did a poor job of investigating and communicating about the Savile case.  Compounding the error, ‘Newsnight’ wrongly accused a senior politician of serious sexual abuse in another situation. The newly appointed Director General of the BBC – George Entwhistle – resigned after just a few months in the job. Indignation, blue murder – loss of trust! – pour forth through all the media channels.

Here’s what caused the hullaballoo:

  •  Sheer incompetence – “ Newsnight’s journalism would have disgraced a student newspaper,” wrote one commenter
  • Over-bureaucratic, over-layered management, with diffuse accountability
  • Poor crisis management
  • A public primed to be cynical because of other recent scandals (not just NewsCorp)
  • A tone-deaf full year ‘pay-off’ of £495k to the resigning DG who had only been in the job for a few months
  • Hugely toxic ‘hatred’ of the BBC in some political and media circles that is easily stirred and spoiling for any fight
  • A shift in the dynamics of trust regarding media output. Restraint, rigour, caution, consideration of consequences – these apparently no longer engender trust. With the impact of the social media, trust today means sharing everything you know; transparency replaces judgment.

If that’s all there were, this would be just another scandal, albeit very public. But there is another, deeper level of concern.

Willful, Wishful Denial

What is much less certain is whether the BBC can change a culture that was willfully – perhaps wishfully? – blind to the horrible sexual abuse that took place around some of its programmes for young people. In one of the hospitals where Savile got away with all this, one interlocutor has recently said, ‘ We did wonder whether something was going wrong. But Savile simply pulled in too many funds for anyone to want to do something about it.’

This is a culture that suborns, induces, and nurtures moral blindness.

Margaret Heffernan talks about this in her recent book Willful Blindness: Why We Ignore the Obvious at Our Peril’ (Walker and Company, 2011). She says:

We are all susceptible to willful blindness, ignoring truths about ourselves, each other and the way we live, that threaten our sense of identity and security…We all succumb to the human tendency to prefer people like ourselves, to readily accept information that confirms our sense of ourselves, and discredit data that doesn’t fit our dominant ideologies. And when people are tired, busy and distracted, it’s clear that the mind falls back on stereotypes and received wisdom.

Think News Corporation, Enron, Lehman Brothers (‘The CEO, Richard Fuld, organised his life to ensure that he never encountered employees unexpectedly’), Bear Stearns (‘The CEO chose not to implement a form of risk analysis that might have revealed how much debt the bank actually carried’) and the Catholic Church (‘When first confronted with the fact of child-abusing priests, the Church chose first of all to take out insurance’).

Heffernan argues that the root cause of our willful blindness is our human instinct to obey authority. ‘Research into conformity shows that most of us would rather give a wrong answer than jeopardise belonging to a group.’

It’s the Culture, Stupid

This is where the really fundamental work lies for the BBC – reshaping a culture that is less prone to willful blindness, and more driven by its values of independence and integrity. This kind of work is not easy.  So perhaps some of Heffernan’s prescriptions might come in handy along the way:

  • Become more aware of our biases
  • Overturn corporate cultures that reward long working hours
  • Actively seek out dissenters in our circle of friends and colleagues
  • Ensure that the powerful surround themselves with independent thinkers and critical allies who have the freedom and moral courage to tell them the truth
  • Re-examine the role of obedience and compliance
  • Teach critical thinking.

This is not the stuff of MBA programs. These are not issues to be solved by technocrats, or lawyers, or business process experts. They are the simple stuff of creating an ethics-friendly culture. Simple, of course, doesn’t mean easy.  But it is – let’s not forget – still simple. Seek the right thing, talk about it, and walk the talk.

The Real Reason Productivity is Down in the US

I clicked on the Time Warner Cable Live Chat Support box.

Here is the actual transcript of what followed.

———

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

Malvin>Thank you for contacting Time Warner Cable. At the end of our chat you will be given the option of talking a brief survey. My name is Malvin. Please give me a moment while I access your account.

Charlie_>Ah hi Malvin

Malvin>Hello Charlie, how are you doing today?

Charlie_>fine thank you

Malvin>You are most welcome!

Malvin>How may I help you today?

Charlie_>I have no internet service; I use cable for internet only; wonder when I can expect it back?

Charlie_> Account Number xxx-xxx-xxx-xxxx Customer Code: zzzz

Malvin>Please let me know your region.

Charlie_>Manhattan, New York NY

Malvin>Oh!

Malvin>You chat is landed to the LA region.

Malvin>I need to transfer this chat to the right department to assist you with this. Please stay connected, while I transfer this chat.

Malvin>Please wait, while the problem is escalated to another analyst

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

We are experiencing higher than usual service times. Please wait and an analyst will be with you shortly.

Zachary>Thank you for contacting Time Warner Cable. As our valuable customer, at the end of this chat you will be given the option of taking a brief survey in order to help us improve our customer support experience for you. My name is Zachary. Please give me a moment while I review your account information.

Charlie_>Hi Zachary

Zachary>Hello Charlie.

Zachary>Can you please help me your 16 digits account number?

Charlie_>xxx-xxx-xxx-xxxx

Zachary>Thank you.

Zachary>Thank you for being our valuable customer. Please give me a moment while I review your account information.

Charlie_>OK thanks

Zachary>You’re welcome.

Zachary>Thank you for being our valued customer. How may I assist you?

Charlie_>My service is out: I want to know how long to expect it to be out?

Zachary>I apologize for the inconvenience caused to you.

Zachary>Please tell me, since when are you facing this issue?

Charlie_>Since the hurricane a week ago

Zachary>I see.

Zachary>Please share some details on the inconvenience you’re facing.

Charlie_>I have internet-only service. I get no cable signal from the modem, neither when I pass it through the router, nor when I try it directly from the modem to my computer. I have tried turning them off, in different sequences, then turning them on — no change. I do not have TV service so I can’t tell you more

Zachary>Thank you for sharing this information with me. I’d be glad to assist you with this.

Zachary>I understand this could be frustrating for you.

Charlie_> My address is

Zachary>I’ll go ahead and troubleshoot this issue for you.

Zachary>Let me go ahead and transfer this chat session to our next level of support where you’ll be assisted further with this concern.

Zachary>Please stay connected while I transfer you.

Charlie_>oh groan OK

Zachary>Thank you.

Zachary>Please wait, while the problem is escalated to another analyst

Analyst has left the room. Your problem is being escalated to another analyst

Aaron>Thank you for contacting Time Warner Cable. At the end of our chat you will be given the option of taking a brief survey. My name is Aaron. Please give me a moment while I access your account.

Charlie_>OK

Aaron>Thank you for your patience, Charlie.

Aaron>How may I assist you?

Charlie_>Read the transcript above! My service seems to be out, and I’m trying to find out when it might be restored.

Charlie_>Do you need me to re-enter the information about account number, location, length of time of outage?

Aaron>Please give me a moment while I review your interaction with previous agent.

Aaron>Thank you for your patience, Charlie.

Aaron>I have reviewed your previous communication with Zachary.

Aaron>I would like to inform you that by mistake you have been transferred to a wrong department.

Charlie_>OK thanks

Charlie_>This is the third time today that happened. How can this be?

Aaron>Please stay connected as I transfer you to the concerned department.

Charlie_>OK

Aaron>Please be assured that I will connect you to the right department.

Aaron>Please wait, while the problem is escalated to another analyst

Charlie_>Hi

Margaret>Thank you for contacting Time Warner Cable’s chatroom. Please give me a moment to view your account.

Charlie_>Sure

Margaret>Hello Charlie, I could not pull up an account with the info provided. Please provide a telephone number or account number.

Charlie_>Please wait, while the problem is escalated to another analyst

Charlie_>Account Number xxx-xxx-xxx-xxxx

Charlie_>Phone xxx xxx-xxxx

Charlie_> Customer Code: zzzz

Charlie_>New York NY

Margaret>TWC account numbers in LA start with 8448

Charlie_>Goddam it I’m in New York. This is the fourth time someone has sent me to LA. I’m assuming LA doesn’t handle New York issues, right? How in the world can I get someone to answer a simple outage question about New York service?

Charlie_>Here’s what Aaron before you said: Charlie_>OK Aaron>Please be assured that I will connect you to the right department.

Margaret>no cursing – I will escalate you to the NY chat.

Charlie_>And Zachary before him?

Margaret>Please wait, while the problem is escalated to another analyst

Diosdado>Thank you for contacting Time Warner Cable Online Sales, Home of the Best Triple Play. My name is Dandy, How can I help you today?

Charlie_>Hi

Charlie_>You are the fourth person I’ve had this dialoge with; do you have access to the script?

Diosdado>Hello.

Diosdado>Yes,let me just check that.

Charlie_>My service is out. I want to know when to expect it back. Thanks

Diosdado>Thank you for the information.

Diosdado>One moment please.

Charlie_>OK

Diosdado>Thank you for waiting since you’ve been transferred to sales department i will just provide you the number that you should call.

Charlie_>WAIT!!!!!!! Every time I call a number, there is no answer

Charlie_>That’s why i went to the chat service!

Charlie_>I’ve spent the last 45 minutes on chat, you’re going to say it was all wasted, there’s no one on chat who can answer a simple service outage query?

Charlie_>I am dismayed

Diosdado>I’m sorry for that,But the thing is i will just transfer you to the technical support team so that they can answer your concern.

Charlie_>That’s what I was hoping for all along…

Diosdado>I’m sorry for the wrong transfer.

Charlie_>(s) plural, 3 of them

Charlie_>Thanks

Diosdado>Please wait, while the problem is escalated to another analyst

Charlie_>Yes, I know the drill

Charlie_>thanks

Erik Jacobs>Please wait, while the problem is escalated to another analyst

Analyst has left the room. Your problem is being escalated to another analyst

Antione>Thank you for contacting Time Warner Cable. At the end of our chat you will be given the option of taking a brief survey. My name is Antione. How may I assist you?

Charlie_>Antione, do you have access to the transcript preceding?

Charlie_>I’ve talked with Erik, Diosdado, Margaret, Zachary, Aaron and Malvin

Charlie_>I can re-enter the data; basically my service is out, and I want to know when I can expect it to return

Charlie_> Account Number xxx-xxx-xxx-xxxxCustomer Code: zzzz

Antione>Thank you for the share your concern again. Please give me a moment while I access your account and check for the information.

Charlie_>phone number xxx.xxx-xxxx

Charlie_>Thanks

Antione>Thank you for the information.

Antione>Please give me a moment while I check that for you.

Antione>xxx-xxx-xxx-xxxx

Antione>Thank you for your patience. I am checking that for you.

Charlie_>OK…

Antione>Charlie, I need to transfer this chat to the concern department. . Please remain online while I transfer the chat.

Charlie_>This is really amazing. This will be the 7th person I speak to about this. OK I’ll wait

Antione>Please wait, while the problem is escalated to another analyst

Shadd>Thank you for contacting Time Warner Cable. At the end of our chat you will be given the option of taking a brief survey. My name is Shadd. Please give me a moment while I access your account.

Charlie_>Hi Shadd

Shadd>Charlie, how are you doing today?

Charlie_>Fine except for this chat has been quite frustrating: you are number 7

Shadd>I am sorry for the inconvenience caused to you.

Charlie_>Thank you

Shadd>I understand how frustrating it is.

Shadd>You are most welcome.

Shadd>How may I assist you today?

Charlie_>Shadd, do you not have access to the transcript preceding?

Charlie_>My service is out: I want to know when to expect it back

Charlie_> Charlie_> Account Number xxx-xxx-xxx-xxxx

Shadd>I am sorry to hear that, I will definitely help you with the information.

Shadd>Please help me with the account number?

Charlie_>I just typed it in: read four lines higher

Charlie_>Here it is again: xxx-xxx-xxx-xxxx

Shadd>I am sorry for that.

Shadd>Thank you for the information.

Shadd>Charlie, I checked the details and I found that there is an outage in your area, that’s the reason of your services are out,

Shadd>I would like to inform you that, we have already made all the arrangements to make sure that it is fixed at the earliest.

Shadd>Be rest assured, our team is working on this issue.

Shadd>As I see the technician notes indicate about an Emergency maintenance carried in your area.

Shadd>We regret the inconvenience caused to you.

Charlie_>Well, thank you, that’s good to know it’s not just me, I do appreciate it. OK then, thank you. What does “emergency maintenance carried in my area” mean? I assume it means they’re expediting repairs probably, yes? Many thanks

Shadd>Yes, be rest assured the technician are currently working in the same issue.

Shadd>Most probably within 24 hours the service will be restored.

Charlie_>OK Shadd thank you.

Shadd>I will make sure that you get a prorated credit on your account as the outage is gone.

Shadd>You are most welcome.

Shadd>I will also make notes on your account regarding the same.

Charlie_>Thank you

 

Traveling Trust

I’m in Munich for a one-day stopover en route to Bucharest. I left New York a day earlier than planned to avoid Hurricane Sandy. And I’m realizing yet again – travel has a way of doing that – what an extraordinary level of trust we all take for granted in our modern world.

Yes, the news is full of the opposite. Political campaigns spin the truth (though trust-weary Americans might want to check out the Greek scandal du jour to feel a bit better).

Doctors have a hard time trusting pharmaceutical manufacturers. Patients have a hard time trusting their doctors, and doctors have a hard time trusting their patients. Some patients trust the internet more than their doctors, often with bad results. And let’s not even start with trust in financial services.

A Trusted Trip

With all that going on, it’s easy to forget some basic things. I can freely cross national borders with some mere papers. I can trust the exchange rate when I buy Euros. I can trust the flight controllers that govern the airspace, the airline handling companies that do catering, the bus and taxi systems I encounter.

But most of all, I know I can rely deeply on the basic human decency of people I run into to help with any simple issues – even though we may not speak the same language, and we’ll never see each other again. I can trust that people will give me directions, help me with travel issues, take a moment to help sort out a problem. And I’m almost never, ever wrong in that basic level of trust.

Which motivates me, of course, to try and return the favor whenever I can. And you do the same, I know.

What’s Really Amazing

What’s really amazing is not how often trust goes wrong, but how often it goes right.  Our modern life is unbelievably complex, and yet runs remarkably well.

I don’t want to be Pollyana-ish about this. The fact that trust is so pervasive is precisely the reason we notice and feel trust violations so deeply. We are all right to be deeply offended by untrustworthy behavior; if we lose our capacity to be outraged, we have lost our ability to recover.

Lots of things can be said about lost trust, but I want to highlight one.  Trust is reciprocal. My trusting you causes you to trust me, and vice versa. An absence of trust starts with one party. The presence of trust starts with one party. The question facing all of us is, will you be the one to start?  Or will you always insist on the other party going first?

Do you insist on your vendors insuring you against all losses?  Then don’t be surprised when they don’t trust you.  Do you have all your employees sign cutting-edge non-compete clauses?  Then perhaps you can understand why they might seek ways around it.  Do you give lie detector tests to your employees? Then you might gain insight into why you have a shrinkage problem.

You can do your part as an individual too. To be trusted, be trustworthy.  And if you think others are not trustworthy as you – try trusting them first.

For starters, that’ll make your travel a lot easier.

Social Media: The End of Friends? Or the Beginning of Friendship?

Remember all those curmudgeonly quips about how online “friends” were cheapening the real thing? How the Facebook generation was mistaking true friendship for the faux, virtual kind?

Can we finally lay all that to rest?

Who’s Kidding Whom?

People with a thousand LinkedIn connections, 2,000 Facebook friends and 10,000 twitter followers are perfectly aware that what they have is not the same thing as the relationship with their high school buddies.  They don’t even use “relationship” to describe it.

But neither are those connections always number-bling (though yes, some of them are).

Social media hasn’t so much redefined “friend” as it has offered a new channel to find friends.

LinkedIn and Twitter are to friends what Match.com was to dating – a vastly superior mode for doing lead-generation and processing early-stage pleasantries.  Does anyone really think singles bars were a preferable way to find romance?

The online dating services, like online genealogy services, simply made it vastly easier to broaden the range of people from whom one might choose to become better acquainted.

The Social Impact on Business

I find my business life has been remarkably impacted by social media these past few years.  A lot of the people I now call friends – real friends, in the old-fashioned meaning of the word, and rich business acquaintances – I have initially met through social media.

People like @davidabrock, @iannarino, @julien, @chrisbrogan, @johngies, @zerotimeselling (Andy Paul), @jillkonrath, @robincarey, @ianbrodie, and more, I have gotten to know personally – through social media.

Social media are a “starter drug,” if you will; just because you “friend” someone on social media doesn’t mean you’ll end up being real friends.  But increasingly, a lot of real friends start out with the online “friend” channel.

Online “friends” may not be friends, but they can be the beginning of a beautiful friendship.

 

 

Short Yardage vs. the Long Game: The NFL’s Fumble

NFL Referee LockoutWould you risk your company’s reputation in an attempt to save what amounts to 0.16% of your annual revenue?

The owners of the NFL franchises have spent decades building the league’s reputation as a trustworthy, venerable institution – with a lot of success. Now, literally in the blink of an eye, the NFL has risked its credibility for relative peanuts.

In case you haven’t heard, the NFL has locked its referees out because they didn’t want to switch their pension plan from a defined-benefit to a defined-contribution model. A hill to die on? Not.

Unsportsmanlike Conduct

Referees missing calls isn’t quite news (insert your favorite blind ref joke here). Across all sports, poor decisions are made that affect the outcome of games. What makes the NFL’s referee lockout so newsworthy are the repeated bad calls the league has made.

The NFL made an initial, and forgivable, mistake by not standing by its refs. True, the NFL is a business, and it’s hard to overlook $16 million a year. But by not taking responsibility for their mistake, they are compounding the problem, letting it grow and sacrificing their reputation in the process.

When yesterday they unequivocally denied that a mistake was even made, they simply added further tension to an already stressed situation.

Time to Call an Audible

The NFL’s denial of the controversy is a classic example of institutional refusal to face facts confronting a failure of trust. The desire to cover up – from Watergate to Penn State – runs deep.

But this season is still young; there’s time to resolve the issue and begin to rebuild the lost trust. If the NFL acts humbly, admits its mistakes and ends the lockout, all can be forgotten in a matter of weeks or even days.

But the longer they refuse to admit the breach of trust, the more trust they’ll leave on the field.

If Trust in the Media is Down, is that Bias? Or Paranoia?

Trust in the Media is Down.  Again, still, more. Gallup is out with a new poll, showing that 60% of the US population “have little or no trust in the mass media to report the news fully, accurately and fairly.”

Strikingly, 58% of Democrats indicate a “great deal or fair amount of trust” in mass media – the comparable number for Republicans is only 26%.

The party line is that the fault lies with the media, that media needs to be and be seen as more trustworthy.  Here is Gallup’s own version of that line:

Media sources must clearly do more to earn the trust of Americans, the majority of whom see the media as biased one way or the other.

No, Gallup, not clear at all. In fact, far from it.

Trust, Trusting and Being Trusted

Gallup’s right about one thing: the media continues to miss a simple distinction–that between trust, trusting and being trusted. Simply put:

  1. To trust, a verb, is to willingly put oneself in harm’s way of another
  2. Being trusted, or trustworthiness, is a noun – a characteristic of the one being trusted
  3. Trust, also a noun, is the result of one party trusting, and the other party being trusted.

Every time you see a headline like this one – US Distrust in Media Hits New High – you can bet you’re seeing data about #3. But the commentary frequently assumes the data means #2.  In other words, this article and many others confuses “trust” with “trustworthiness.”

Suppose you have 10 customers who trust you. You could say the level of trust between you and your customers is high.

Now suppose you get five new customers, all of whom are highly suspicious people, hence are suspicious of you, even though you’ve done nothing different. You could say the level of trust has declined. But not because of any change in your trustworthiness.

The question is: if trust is down, is that because the trustee is less trustworthy? Or because the trustor is less inclined to trust?

The Tyranny of Metrics

Like the drunk who looked for his keys under the streetlamps not because he lost it there, but because there was more light, it’s tempting to measure trust, because that’s easier than measuring trustworthiness or the propensity to trust. But that’s unfortunate – because if all you can say about trust is that it’s up or down, you can’t say why that’s so. And if you can’t say why that’s so, you can’t develop sensible policies to affect it.

Metrics do exist, by the way, for both trustworthiness and for the propensity to trust.  At a corporate level, Trust Across America provides a sound definition of trustworthiness, and data for all publicly traded US companies.  At a personal level, the Trust Quotient from Trusted Advisor Associates does the same.

One of the oldest and most establish trust metrics comes from the General Social Survey, which has tracked for 40 years the answers to a few questions about the propensity to trust strangers.  One of academia’s most respected trust scholars, Dr. Eric Uslaner, writes mainly about the propensity to trust and the increase in distrust.

Next time you read an article asserting that “trust is down,” ask yourself – which side moved?

Trust in Media

The Gallup data show that Democrats with high trust in media went from 65% to 58% – a 10.8% decline. By contrast, Republicans went from 39% to 26% – a 33% decline. Whether you believe the trustworthiness of the media went up, down or sideways, it seems clear that the propensity to trust of one group went down more than another.

What does low propensity to trust mean? Eric Uslaner sums it up: people who trust others tend to be optimistic about the world, and to believe they have some control over their destinies. People who distrust, by contrast, tend to believe the world is going to hell in a hand basket, and that others (“those people”) are responsible.  If you see a parallel between the two major parties, may I suggest it’s no accident.

So when Gallup concludes, “Media sources must clearly do more to earn the trust of Americans,” I respectfully disagree. The purveyors of cynicism often have a lot more responsibility to bear for fomenting distrust and negativity.

When trust is down, who moved? Sometimes it’s the trustor, not the trustee.

The Tyranny of Low Cost Strategies and the Gospel of Walmart

High Frequency Trading is in the news again. HFT is highly computerized stock trading, which secures faster execution for bigger computers located physically closer to the stock exchange. It now amounts to over half the daily flow on the stock exchanges.  Critics argue it amounts to legalized front-running, is unethical, and should be illegal.

The issue was raised starkly in a July 24 2009 CNBC interview  wherein a critic of HFT (Joe Saluzzi) accuses a proponent (Irene Aldridge) of defending unethical behavior. Aldridge’s reply:

“How dare you accuse us being unethical! We are the ones cutting margins, you are the ones being unethical.”

Ms. Aldridge’s response captures perfectly the moral flip-flop that business has achieved in the past few decades. Never mind whether HFT amounts to front-running, involves collusive behavior by the exchanges, or is unfair to retail investors, says Ms. Aldridge – the moral high ground, the Ethical Trump Card, is Low Cost. In the name of lower prices, even fractions of pennies, all is justified.

The Gospel of Walmart

Let’s leave Wall Street for Main Street. We all know the Walmart story – low prices all the time. But as a Fast Company article wrote, back in 2007:

The giant retailer’s low prices often come with a high cost. Wal-Mart’s relentless pressure can crush the companies it does business with and force them to send jobs overseas. Are we shopping our way straight to the unemployment line?

If revenue were GDP, Walmart would be the world’s 25th largest economy. That is pretty big market power.

Walmart’s benefits are clear: lower prices, all the time, for millions of consumers. But along with those costs come trade-offs. The reduction of brand power. The exporting of jobs. The reduction of pay and benefits for workers in the name of lower costs to consumers.

More insidiously, what we get in the Walmart deal is lowest-common-denominator consuming. We get buyers who aren’t presented with quality alternatives, can’t recognize them if they are presented, and are trained to view low price as the primary Pavlovian trigger for purchasing.

That’s how we get tramplings at 5AM holiday store openings; that’s how the US produces twice the garbage per capita of Sweden; and I suspect (though can’t prove it) it helps us move toward becoming a nation of hoarders.

Is it all worth it?

The Tyranny of Low-Cost Strategies: Linking Wall Street and Main Street

What links high frequency trading to Walmart?  There is a common ancestor in the family tree of business thinking.

In the 1970s, thinking about business strategy took an abrupt turn – from CUS to COM.  That is, from being about the company’s relationship to its customers, to being about the company’s relationship to its competitors. (If you’re interested, the leading thinkers were Bruce Henderson, Michael Porter, and the Boston Consulting Group).

By 1980, the conversion was complete: anytime anyone said “strategy,” you knew it meant “competitive strategy.”

One of the most powerful points Porter made in his classic Competitive Strategy was that there were two successful generic strategies, and the first of them was Low Cost Producer. He who got the lowest cost got the greatest volume, which led to higher market share and higher profits, which led to lower costs, and so on. It was a road toward legal monopoly, insofar as laws permitted.

Porter’s rules were learned very well: by Jack Welch at GE, by Walmart, by the mortgage business, by Wall Street traders, and by every exec ed program in every business school in the world. It became – and I do not use the word lightly – gospel truth that the highest business good was to lower costs.

The root purpose of lower costs was to gain sustainable competitive advantage for the company. But the collateral benefit, the offshoot which could be spun for great PR, was that the consumer benefited as well. Allegedly.

This insight took only a little bit of tweaking (let’s revise Adam Smith and Milton Friedman, season with a dose of Ayn Rand and a dash of Alan Greenspan, and voila!) to come up with an ideology that said not only is low cost a successful business strategy, it is also the Key to Capitalism, which in a capitalist society is also the source of ethics. Allegedly.

This is how we get to Ms. Aldridge’s high dudgeon at being accused of unethical behavior (“Moi?!”) In this all-too-common alternative view of the world,  profit underlies ethics, business success is the root of morality, and low cost is the Ur-explanation that requires no further referent point for ethical discussion.

“We are the ones cutting margins – you are the ones being unethical.” In that statement, the transformation is complete: low cost is the new moral high ground.

Be careful what you wish for.