Flo and Progressive Insurance – How Not to Do Trust Recovery

How does a nice gal like Flo end up in a nasty fix like this?

Flo is Progressive Insurance’s TV fictional character.  Flo’s twitter handle (come on, you knew Flo has to tweet) is @ItsFlo and “her” bio reads, “Progressive’s always-happy-to-help insurance expert. Lover of discounts, unicorns and tacos. Plays a mean air guitar.”

So this headline had to be a bit of an image hit for Progressive:

Progressive Insurance’s Response to the Fisher Scandal is a Textbook Example of a PR Catastrophe.

Yes, you could say that. Click the link for the long, sad tale: the (very) short version is that Progressive insured a woman killed in a car accident. Progressive refused to pay her family a claim of $75,000 on the grounds that it had not been proven she had not been at fault – even though the other driver’s insurance company did not dispute fault.

Through some bizarre twists of law and amazing judgment on the part of Progressive, the woman’s family was forced to sue the other driver – and the woman’s brother claimed that Progressive’s legal team had, in fact, actually ended up working for the other driver.  Get that: the dead woman’s insurance company, in court, on behalf of the driver who killed her.

That story got legs on FaceBook, Gawker et al. Progressive responded with a tweet, saying they’d investigated and were “within our contractual obligations.” They tweeted the identical message to dozens of complainers.  Of course, the carbon-copy tweets then got put together on another site, making Progressive look even more ham-handed and insensitive.

Progressive then explained that, in fact, “Progressive did not serve as the attorney for the defendant in this case.”  Rumor quashed.

Except that, one hour after that posting, the internet sleuths came up with court records showing a Progressive attorney had been granted an allowance “to intervene as a party Defendant.” It depends on the what the meaning of the word “defendant” is, I guess.

And then Progressive lost the case anyway. And it all ended up on the “real” news too.

What Not To Do

Ah, where to begin. Let’s start with the easy stuff.

  • If you’re accused of doing something bad, and in fact you’ve been doing something that looks like bad, walks like bad, and rhymes with bad – for heaven’s sake don’t try to get off on a technicality. Don’t do it anyway, but especially don’t do it at a time like this.
  • Don’t confuse the law with ethics. “But it’s not illegal” is the last defense of the morally lame, and will never win in the court of public opinion. How well does “I’m not a crook” go over?  Does “within our contractual obligations” sound any better?
  • Don’t think you can outrun the internet. You are naked out there, and everyone’s waiting for you to deny the truth.  Simple answer: don’t do bad stuff, and if you do, don’t lie about it. Karma has a deputy these days called “search,” and it’ll getcha.
  • Pay attention to backlash, for heaven’s sake.  You pay good money for market research to give you feedback. When you get it for free in the form of bad publicity, look at what the optics are telling you! D’ya think defending your client’s killer might not play too well? D’ya think that robo-tweeting might not be a great social media strategy?  D’ya think that doubling down against a viral human interest story might suggest a little more PR sensitivity?

I’m a firm believer that we learn more by failure than by success.  If this hasn’t happened to your company, go knock on wood, and then go to school on Progressive. Such clumsiness shouldn’t go to waste: someone should learn from it before it happens to them.

If I Were You…

Mike O. explains how he came to understand what it means to be a trusted advisor.

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Getting It Right

I had been a consultant for many years. I had a good sense of what client service meant – that I should pursue the right thing for my client, rather than just what I thought was the coolest idea.

I had learned the importance of communication. You had to be clear on your thinking in the first place, then be articulate about getting points across. I knew about body language, about using graphics and not just data, and about dramatic presentations.

I knew all this was hard work and that even with good effort and skill, it was still not an easy task to persuade clients of what I knew to be in their best interest.

Then one day something happened.

Getting It Inside Out

I’d gotten to know Manuel reasonably well. We had spent time together “thinking aloud” and had gained respect for each other as thinkers.

We were talking about some business issue, I honestly don’t recall what. Toward the end he asked me what I thought he should do about a particular angle.

At that moment I was completely at ease. The job was going well. He and I got along nicely. It was a sunny day.

I knew the issue inside out. I knew what Manuel was good at and not good at, what he liked and didn’t like, and how he was likely to respond to the particular situation.

In that moment I could envision exactly what would work for him – while still from my perspective as an outsider. It was like being him, but without any attachment to either his limitations, or to my ego. I knew what would be exactly right for him to do.

“If I were you,” I began – and suddenly everything changed.

He leaned in toward me, relaxed, but focused and intent on what I was going to tell him.  He really wanted to hear what I would say next – and I knew he was going to do exactly what I suggested.

Now, I know how to read body language. I realized this had not happened before. Every other time I gave advice to clients, they leaned back or sat up straight; they stiffened their back, rather than relaxing. Their eyes narrowed, rather than opening up; they were preparing to evaluate what I had to say.

But Manuel wasn’t in evaluation mode; he was going to accept exactly what I said, and we both knew it.

If I Were You…

I realized later those words both triggered and expressed a new perspective. Until then, I had always thought of consulting as telling the client what I thought they should do. I was the expert, they were paying me to get my expert advice. I packaged my advice to maximize the chances they’d do the right thing.

But it was always me, advising them. With Manuel, for the first time, I’d gotten outside myself. I’d realized what I would do if I were him.

I no longer had to be me, telling my clients what to do. I could tap into being them, imagining what it was like, what would work, and what wouldn’t. All I had to do was imagine putting myself in their shoes.

I realized they really did want my advice – if I was a steward about it, really reflecting their take on things.  I became more careful about giving my advice, waiting until I not only had the facts and the problem straight, but had a chance to empathize with the client as well.  That way, when the time came, I knew I could sincerely say, “If I were you…”

Consulting began to get a lot easier. I still had to do the leg work, the thinking, the presenting. But I no longer felt it was a struggle. I now know, my best advising comes when I’m able to put myself in the other guy’s shoes.

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Thanks, Mike, eloquently said.

Butt-Kicked by the Universe

Oh man, did I do something stupid, embarrassing and untrustworthy today.

A colleague forwarded me a calendar invite originally sent by a client. I NEVER respond to an actual calendar invite as if it’s an email; I always respond to the actual invitation using the buttons “accept,” “reject,” or “tentative.”

But today, for reasons unknown only to whoever is in charge of the universe, I replied (I thought!!) to my colleague, regarding the client (Fred).

I wrote:

“…I’m so mad at Fred…seems like he hasn’t sent out all the materials we worked on last week.  I am trying not to be pissed.  I’m really frustrated. I’m trying to hold off getting too irate in case he did send stuff out…”

You guessed it. My response went straight to Fred.

He wrote back, “Hi Sarah, was this meant for me?”

That Gut-Punched Feeling

Ughh. As I had been writing that email, my gut was screaming at me: “You always say not to put in writing anything you wouldn’t be comfortable having the whole world read.”

You could say – I would – that the universe intervened because I had violated the “Inner Voice” rule.  The Inner Voice Rule is, “Say the things you’re thinking but don’t share.”  It’s where truth lies, and turbo-boosts the Intimacy component of the Trust Equation.

The Inner Voice Rule.

I groaned. Then I immediately wrote back to Fred:  “I am so embarrassed.  The email was meant for Julie, not you, and I’m sorry.  Are you somewhere I can call you?”  We spoke five minutes later.

I started: “Fred, I’m so sorry.  I knew as I was typing that email that I needed to pick up the phone and call you…I’m aware I have been avoiding a conversation with you.”  Fred was extra-gracious, acknowledging that he hadn’t met his commitments and that he understood where my frustration came from.

He then said, “And we’ve both been to Trusted Advisor programs,” which created a clearing for us to deal in an authentic way with the trust breakdown.  We worked through things; we both left the conversation having said what we needed to say, and feeling complete (and a commitment on my part to talk to Fred next time instead of complaining to my colleague).

He sent out the materials within 15 minutes.

The Universe Kicks Butt

I’m a bit fearful of calling myself a hypocrite on a blogpost destined for internet eternity. But if I’m real about it, what I salvaged from my mess du jour is that I talk a big game about clear speaking, using Inner Voice, and sharing constructive feedback – while the truth is, I’m woefully out of practice.  I choose to believe that the universe intervened today to give me a butt kick wake up call; to call me on being real and not a poser.

There, I said it.

So: what did I learn from the Universe today?

  • NEVER, EVER put in writing anything you wouldn’t want shared with the world
  • When what you have to say about another serves to diminish them, it’s time to either:

a) admit you’ve been a jerk and have a conversation with that person, or

b) own up and end the relationship.

  • The courage to have un-had conversations leads to growth, learning and deeper trust.
  • If we think of constructive feedback as “scary, bad, judgmental or otherwise” then we don’t share the most important stuff.  Then all that stuff builds up and – we send stupid emails.
  • If you make a mess – make it Priority One to clean it up immediately.

Trust Me, I’m Your Doctor

We all hear about health care. Usually it’s through the microcosm of someone’s illness, or the macro-view of dueling pundits and politicians. Frequently it’s adversarial, or negative.

Thanks to long-time Trust Matters’ own trusted advisor Shaula Evans, I met Dr. Craig Koniver. He brings a fascinating perspective to the topic, as you’ll see.

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Charlie Green: Craig, you’re a doctor in South Carolina. Are you a native?

Craig Koniver: No. I grew up in Delaware, went to one year of undergrad at Johns Hopkins, hated it, and transferred to Brown. I then went on to medical school at Jefferson Medical College in Philadelphia. So I did end up being a doctor, mostly in Arizona, and recently moved here.

Charlie: You say you practice “organic medicine.” How did you come to that?

Craig: First of all, I am a “regular” doctor, board-certified and all that, but I also came to believe in a certain approach to medicine. The transformative event in my life was when our daughter was colicky.

The pediatrician said what I’d been trained to say, but since it was our daughter this time, we were wholly unsatisfied. We went out and found unconventional approaches to the issue. And once you’ve seen behind the curtain, it’s hard to stop.

Charlie: What is behind the curtain?

Craig: The standard routine is label, diagnose, prescribe medicine or surgery. Repeat, repeat, repeat. The paradigm of modern medicine is medicine-based, which is to say, pharmaceutical – pills and chemicals.

100 years ago this was not the case; the doctor had a relationship with the patient. But today, the doctor is trained to see the patient as a series of chemical pathologies.

Charlie: So, on a practical level, what do you do differently than other doctors?

Craig: I am interested in helping the patient reach optimal health through natural means. I am not against prescription medicine, but I think they are highly over-utilized by doctors not interested in pursuing alternative/ natural modalities.

So with my patients we look for the root cause of disease by running specialty lab tests and then use herbs and vitamins and nutrients to get their health back on track. I am a firm believer that there is a natural option for everything–we just have to look in the right place and be willing to try any different options.

Charlie: What’s the effect on patient health?

Craig: One telling study suggested that as many as 1/3 of prescriptions get tossed away on the patient’s way out of the doctor’s building. They want more than a prescription, they want a relationship and they want options.

Charlie: What did you do as this became apparent to you?

Craig: I finally decided to move to a holistic practice. That entailed moving away from insurance, and cutting my patient load from about 4,000 to about 400.

Charlie: Wow. Now, hang on a minute; that raises all kinds of interesting issues. What does that say for coverage?

Craig: It affects many people differently. First, there are a large number of people who are quite willing to pay for personalized, holistic healthcare. It is quite valuable to them!

In addition, remember that existing health insurance policies don’t generally cover doctors suggesting things like exercise and nutritional changes; as well, procedures like bypass surgery are reimbursed while time-tested acupuncture is not.

And I now get to spend real, quality time with my patients. I take as much time as I want and they want, and they leave satisfied feeling that I’m concerned about their whole life.  Which I am! A lot of people find this hugely valuable.

Charlie: What about those who can’t afford it?

Craig: Before we get there, there are number of people who may or may not be able to afford it, but don’t see the value in it. They’re used to thinking that a doctor visit should cost the amount of a co-pay. They can’t get past a more cost-based model.

Are there those who are left out by this? Absolutely there are and it’s a real tragedy because they continue to get the acute-based, chemical-and-surgery, impersonal kind of medicine that doesn’t help them.

Charlie: Ah, interesting. You’re not a selfish doc going off to serve well-heeled patients, there really is no choice.

Craig: That’s true. I’m not abandoning poor people, I’m abandoning bad medicine. And the existing insurance system simply cannot support the kind of medicine I like to practice. Is it tragic? Yes, and a real shame.

You pretty much cannot have a holistic medicine practice that operates within the existing high-volume insurance-based delivery method we have today. The choice is not which clientele to go after – it’s which kind of medicine I want to practice.

Charlie: Does the patient-physician relationship of trust affect health?

Craig: Yes. Again, if the relationship is pill-based, then it’s not personal; that is not a good basis for trust. Before too long, patients will stop trusting a physician because there is only that basis for the relationship.

In a holistic practice, where by definition the doctor is concerned about the whole patient, you have the basis for a personal relationship. That means you have the basis for trust. And with trust, patients share more with you, they take your advice, and there is probably even the positive placebo effect.

Charlie: One implication of what you’re saying is that our existing approach, based on insurance reimbursement of pills and surgery, is basically built to minimize trust.

Craig: Yes, I think that’s an accurate statement of the current situation. The health care delivery system is tied to the doctor-patient trust level. And not in a good way just now.

Charlie: Well, this has been enlightening indeed; thanks so much for spending time with us.

Craig: Thank you, Charlie.

Truth In Talking: Calling Things By the Right Name

I’m going to quote Confucius, something I’d never have done were it not for TAA friend Shaula Evans:

“A superior man, in regard to what he does not know, shows a cautious reserve. If names be not correct, language is not in accordance with the truth of things. If language be not in accordance with the truth of things, affairs cannot be carried on to success. When affairs cannot be carried on to success, proprieties and music do not flourish. When proprieties and music do not flourish, punishments will not be properly awarded. When punishments are not properly awarded, the people do not know how to move hand or foot.

Therefore a superior man considers it necessary that the names he uses may be spoken appropriately, and also that what he speaks may be carried out appropriately. What the superior man requires is just that in his words there may be nothing incorrect.”  [Via Wikipedia]

                         Confucius, Analects, Book XIII, Chapter 3, verses 4-7, translated by James Legge

When “language is not in accordance with the truth of things,” music does not flourish. (Neither do presidential campaigns). It seems rather clear and direct; and hard to argue with. Shouldn’t we all strive to speak the truth?

Exaggeration is nothing new. But Confucius is talking about a good deal more than hyperbole here.  He’s talking about a moral perspective on the way we conduct our social lives.

What would Confucius say about a few aspects of modern life?

The Cops and the TSA

Congresswoman Marsha Blackburn (R-TN) writes in Forbes that the TSA people who screen you in airports have gotten an upgrade in terms of uniform, badges, and title.  They look a lot more like Federal Law Enforcement officials.

However, says Rep. Blackburn, they’re still being recruited from pizza boxes, and are not being given federal law enforcement training. What you see is not what you get.

Rep. Blackburn didn’t cite Confucius, but she might well have: this is a case where “language is not in accordance with the truth of things.”

Does it matter? It does, Blackburn says, because the “language” of a Federal Law Enforcement uniform commands respect. But if a loosely-recruited TSA employee uses that uniform to get a woman to halt, and then sexually assaults her – well, there’s your harm. It matters greatly.

Confucius and Facebook Friends

At least twelve billion people have pointed out that Facebook “friends” are not quite the same as “real” friends. It’s obvious, right?

Well, when something becomes so “obvious” that we no longer comment on it, you might say it’s entered our subconscious. We still talk about real “friends,” and we still have Facebook friends.

The fact that it’s in-your-face obvious and mind-numbingly common doesn’t alter the Confucian fact that “the language is not in accordance with the truth of things.” It’s not. We are using one word to describe two very different realities.

In Confucian terms, when we speak in this double-speak manner, we are not behaving as “superior men.” If the shoe fits…

Confucius Meets Business Best Practices

Expectations.  One of the more common mundanities of management is the exhortation to “always exceed expectations.” This is – let’s be clear – considered a good thing according to the canons of management.

In other words, we should lead people to expect one thing – and then surprise ‘em by giving them something else. Again, this is considered a good thing.

Except by Confucius, who reminds us that this is a rather clear-cut case of “the language not being in accordance with the truth of things.” Indeed, the whole point of this ‘best practice’ is to intentionally do the opposite of what Confucius suggests.

Public Relations.  What would Confucius make of the public relations industry? According to the Encyclopedia of Business Dictionary:

“The point of public relations is to make the public think favorably about the company and its offerings.”

Perhaps the PRSA (the industry association) doesn’t care for language that so easily suggests manipulation.

The Arthur Page Society, “a select membership organization for senior public relations and corporate communications executives who seek to enrich and strengthen their profession” almost certainly doesn’t like it. Their first of seven principles of public relations is, “tell the truth.”

Well, which is it? Is the purpose of public relations to “tell the truth?” Or to “make the public think favorably about the company?”

Confucianism, like the Arthur Page Society, likes to emphasize the normative aspect of things. The truth of things, they both might say, should accord with the ideal meaning of “Public Relations.” And presumably the Page society strives mightily to bring that goal about.

Meanwhile, in the real world, the one in which the Encyclopedia of Business tries to make sense of common-language usage for the ordinary businessman, the ‘truth’ is “we want you to think of us this way.”

Let’s be honest about that: because that is the fact on the ground, and it’s known and understood by any man on the street. To deny that is to speak language not in accordance with the truth of things.

Confucius and Trust

I am no Confucian scholar. To be more in accord with the truth of things, I am ignorant of Confucian teachings. He may have written on trust, and I don’t know of it.

But any of us can plainly see the eloquence and truth of his words to us, written 2500 years ago. There is a place in life for exaggeration and hyperbole. That place encompasses art and literature, inspiration and motivation. In that context, it is good.

But if we fail to keep our social and commercial interactions grounded in fundamental notions of honesty and candor – if we let our language stray from the truth of things – the music does not flourish. Nor do we, along with it.

Story Time: It’s Trust, Therefore It’s Personal

Our Story Time series brings you real, personal examples from business life that shed light on ways to lead with trust. Our last story illustrated how one conversation changed everything. Today’s selection highlights  the value of making a personal connection.

A New Anthology

When it comes to trust-building, stories are a powerful tool for both learning and change. Our new book, The Trusted Advisor Fieldbook: A Comprehensive Toolkit for Leading with Trust (Wiley, October 2011), contains a multitude of stories. Told by and about people we know, these stories illustrate the fundamental attitudes, truths, and principles of trustworthiness.

Today’s story is excerpted from our chapter on selling to the C-suite. It vividly demonstrates the value of paying attention to more than just the task-at-hand, and taking the risk to put personal before business.

From the Front Lines: Taking a Chance on Connection

Gary Celli tells a story of the business value of building trust quickly with a C-level client.

“I was working in California for a multi-national high-tech company. I was a project manager at the time, and the project I was leading was rife with difficulties—nothing atypical, just the usual stuff. We were also trying to position additional work with the customer.

“One day, the CIO asked specifically to meet with me. Until that point I had been dealing with his directors, so he and I hadn’t spent any time together beyond a brief interaction at the big project kickoff meeting. You can imagine I was a little on edge about the meeting.

“The first thing I noticed when I arrived at his office was what a mess it was. There were papers all over the place. One chair was so stacked with stuff it wasn’t usable. I glanced around and noticed a copy of the Scranton Journal on the floor—the magazine for my alma mater, the University of Scranton, a small Jesuit university in Pennsylvania. I looked around for a diploma on the wall, but didn’t see anything. So I asked about the magazine.

“It turns out that we were both graduates, now living nearly 3,000 miles away in California. Talking about that really helped break the ice and took the edge off. We spent 30 minutes reminiscing about the school, the campus, the local hang-out bar that all the kids went to. Then we spent about 15 minutes talking about project issues.

“It was a very successful meeting. The bond we had established made it possible for me to glean more information from him and he seemed very open to hearing my perspectives on the project. We got to the heart of the matter in no time. My company also got the follow-on work, and the CIO was a loyal client for years to come.”

—Gary Celli

What’s your next opportunity to make it personal?

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Read more stories about trust:

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Many Trusted Advisor programs now offer CPE credits.  Please call Tracey DelCamp for more information at 856-981-5268–or drop us a note @ [email protected].

25 Warning Signs You Have a Low-Trust Organization: Part 5 of 5

If your customers and clients tell you they don’t trust you, things have gotten bad. But you could have seen it coming. There were many early-warning signs of low trust in your organization.

This is the last in a series of five. The other posts address warning signs of low-trust organizations coming from:

How Your Clients and Customers Tell You You’re Low-Trust

It’s almost inconceivable that a high-trust organization will have low-trust relationships with its clients or customers. And that works in reverse: low-trust buyer relationships are a tip-off that something is amiss internally as well. Sometimes it’s easier to read the external signals, so here they are:

1.    Your colleagues speak disparagingly of your customers.

  • “They’re trying to pull a fast one on us; we can’t let them get away with it.” Whoa, simmer down. People who ascribe negative motives to customers’ actions without data, will generally do the same within the organization.  With all due respect to Andy Grove, paranoia is rarely a good corporate value to promote.
  • “I’ll believe it when I get it in writing.” If your people insist on contractual, legalistic relationships with customers, they’ll do the same internally. And since trust greatly reduces time and costs, that attitude is costing you dearly, internally as well as externally.

2.    You haven’t gotten a new referral client in 6 months.

  • This is such a key concept that it has been quantitatively refined (brilliantly) in the Net Promoter Score first developed by Bain’s Reichheld and Markey. At its heart: the single metric that best correlates with success is your clients’ tendency to promote you.
  • If you have great referrals, you almost certainly have delighted customers and energized employees. And that rarely happens without great levels of trust within the organization.

3.    You’re losing customers and don’t really know why.

  • Look at your customer list: is it basically growing or shrinking? Come on, you know the answer, pick one.
  • Now ask yourself: do I really know why that is? Or do I have a list of anecdotal, seemingly unrelated reasons? The CEO left; that guy’s a complete jerk; they decided to go with the low-price provider; they’re rationalizing suppliers.
  • That is not an unrelated list, after all. The common denominator is, they don’t trust you. And if your customers don’t trust you, the odds are remote that you live in a high-trust organization.

4.    You’re being asked to submit bids and respond to RFPs for long-time clients.

  • We don’t want to be dogmatic about this one: there is a long-term, secular trend toward professional procurement. That trend is not Evil incarnate; the procurement people are your new clients. Treat them as such, respectfully.
  • However: if YourCo seems to be singled out for this treatment, if it’s not a slow trend but a landslide for you, then maybe the market is telling you something. It’s telling you you’re not trusted. If you were trusted, you’d be seeing many fewer RFPs, you’d be getting sole-sourced where reasonable, you’d be getting in to define some RFPs, and you’d be getting some very personal coaching from the customer about how to operate in the new procurement world.
  • That’s not happening? Then odds are, your customers don’t trust you. They’ve never been shown the difference between genuine concern and manipulation. They’d prefer to deal at arms-length, with professional buyers who are immune to emotional bullying and enticement alike. They prefer to deal on price, because they haven’t been shown any good reason to deal on any other basis.
  • And if you’re quoting on price, using self-oriented sales tactics with your customers, then you probably don’t respect your own products, value and organization. Sounds like low-trust.

We hope you’ve enjoyed this little series on warning signs of a low-trust organization. Writing it has reminded us of two things:

1.    Trust is infectious. A high-trust organization is highly correlated with high performance on so many dimensions: innovation, people, leadership, products, and markets.

2.    Trust begins at home. Correlation is not causality, but causality is clearly at work in trust. Furthermore, it flows more in certain ways than in others. In very broad terms, the five factors we’ve discussed move in the following manner to create a high-trust organization.

It generally starts with leadership; but that’s a different series for another time.

 

25 Warning Signs You Have a Low-Trust Organization: Part 4 of 5

Are you part of a low-trust organization? There are a surprising number of symptoms and tip-offs; perhaps the least obvious are in the organization’s products and services. This is fourth in a series of five. The other posts address warning signs from:

Product/Service Warning Signs of a Low-Trust Organization

Take a hard look at YourCo’s products and services. Not only do they provide tipoffs about high or low trust – they are themselves the beneficiaries (or victims) of high or low trust. YourCo’s market offering is very much tied up with trust.

Here are some product/service indicators of low trust at YourCo:

1. Innovation is low in YourCo.

  • Pick five big-picture indicators of innovation and rank your organization vs. your competitors. If you rank high, you probably have a high-trust organization. Low? Then probably not so much.
  • If you don’t rank well, you’ve got well-rehearsed excuses. “We’re like Apple, we’re not first in but we get it right.” “We focus more on service quality than on innovation per se.”  But you know what? Apple innovates. Ritz-Carlton innovates. Just in different areas. What’s your area?
  • The simple truth is, high-trust organizations foster high levels of innovation; low-trust organizations don’t. The lack of innovation is a canary in the coal mine; innovation itself is one of the great benefits of high trust.

2. Complaints are considered routine at YourCo.

  • Nobody’s perfect? OK. But if a complaint about your product or service no longer produces pain or angst within YourCo, then you’ve lost trust. Customers will sense that you’re unreliable, and – worse – that you don’t care.
  • Maybe this is just us, but we think those “please take a moment and rate your service” approaches hurt trust. They are automated; they leave no room for creativity; worse, they are all about YourCo and YourCo’s internal evaluation scheme. And worst of all, they pretend to be about the customer.

3. You don’t offer guarantees.

  • If you’re a retailer offering $1.99 items, “satisfaction or your money back” is no big deal. But if you’re a professional services provider, the value you provide may be way beyond the cost you charge.
  • What would it cost you to guarantee the cost of your service? If you’d lose money doing that – then maybe you have a service quality problem. The perception of not standing behind your service is that you yourself don’t trust it.
  • If you do offer a guarantee but it’s in small print, and you quibble over it, you just lost the value of the guarantee. That means you view guarantees as a cost of doing business, and not as a sign of confidence and customer respect. That will cost you trust.

4. Information is not forthcoming.

  • In this day and age, all customers – B2B, B2C – want easy access to every question they might have. The organization that gives you easy access to answers is the one that gets your trust.  The organization that manages your access to information so that you only see what they want you to see when they want you to see it – that’s the organization that loses your trust.
  • Put everything you can imagine on your website. That doesn’t mean it has to be all above the fold on page one; it just means you have to make it very available, and reasonably accessible. If I can’t find it, I infer you must be hiding it.  And I don’t trust you.
  • There are some questions I want help with; that’s when you make 800 numbers available, click here for live chat…  If instead of those options I get, “this is a recorded message; please call back during the hours of…” that’s when trust declines.

5. You think you’ve got the hamburgers.

  • In the early days of McDonald’s in Moscow, I’m told, customer service attitudes were hard to change. As one employee told a hapless American from corporate, “You people don’t seem to understand.  You see, we have the hamburgers; the customers don’t. They should be nice to us.”
  • Working from trust in business means you don’t trap people into doing what you want. Instead, you give them what they want; then let them live up to their humanity and give you what you want. The best way to create trustworthy customers is to trust them with your products and services.

The next blogpost in this series will be the last: client and customer tip-offs about whether you’re a low-trust organization.

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Many Trusted Advisor programs now offer CPE credits.  Please call Tracey DelCamp for more information at 856-981-5268–or drop us a note @ [email protected].

25 Warning Signs You Have a Low-Trust Organization: Part 1 of 5

Low-trust organizations are petri dishes for low growth, profitability, and ultimately survival. Yet the signals are easy to ignore.

The canaries in the low-trust coal mine fall into five groups: we’ll devote one blog post to each of:

  • Employees (today’s post)
  • Teams
  • Leadership
  • Products and Services
  • Clients and Customers

Employee Warning Signs of a Low-Trust Organization

Look around your offices. Do you see the following five signs? Then you might be a member of a low-trust organization.

1. The copy room bulletin board has those round smiley cartoon figures laughing and rolling on the floor saying, “You want it WHEN?!”

    • Humor is revealing. This particular cartoon pokes fun at the internal customer. Allegedly. When is it a good idea to make jokes about the customer?
    • What it really indicates is insecurity on the part of the copy room staff. What it really says is, “Please don’t blame me, I feel un-validated around here. And besides, all I want is to follow simple rules that I don’t have to think about, why are you making my life so miserable with all your requests?”
    • And when you see those cartoons, it isn’t just about the copy room. They’re a canary in the company mine. It means you’ve got insecure employees reporting to people who can’t give clear feedback, and a culture of entitlement. Good luck trying to get things done around that place.

2. People email others on the same floor way more than they talk to each other.

    • Sure, email provides an invaluable record of communication. And yes, it’s efficient. And no, I’m not going to say you have to be more empathetic and caring in all your relationships – that’s your call.
    • But email is for transactions. An organization that kids itself that it can reduce all decisions to transactions is an organization that can’t tell forests from trees.
    • Interactions that are overweighted into transactions become poor at executing  strategies (despite their attention to detail), because strategies require frequent strategic-level thinking.
    • A culture that over-celebrates impersonal transactions is likely to be non-innovative, because innovation thrives on the trust that allows people to challenge each others’ ideas.

3. Blame stalks the halls.

    • One of the worst sayings is, “No one ever got fired for hiring [IBM, McKinsey, etc].” It may not be bad for IBM or McKinsey, but it means that business decisions are being made by employees based on personal risk-aversion, rather than on the organizational good. That makes for some very bad decisions.
    • Behind blame lies fear. Employees driven by fear will never properly value risk. They will avoid people and decisions based on their personal fears; this avoidance increases inefficiencies and lowers innovation. Ironically, it ultimately also raises risk.
    • Blame is captivity, as Phil McGee says. When blame reigns, you can’t tell who’s responsible. When you’ve got no responsibility, accountability is meaningless. Blame leads to ineffectiveness; and that means you can’t make decisions, respond to markets, or do positive things.

4. People talk about each other.

    • People talking frequently about each other suggests gossip, which usually means talking behind people’s backs. This signals an inability to confront real issues. This means politics replaces truth telling.
    • Ask someone where they work in an organization. At a great company, it might be “in bubble memory technology.” Or, “in the semiconductor division, in R&D.” In a low-trust organization, the answer will be, “In Robinson’s group.”
    • The cult of leadership is just another cult. Steve Jobs may have been revered (or not), but he knew the desired obsession was not about personality, but the business. Celebrate, but don’t idolize.

5. People complain.

    • Complaining is wrong because it is wishing, not doing. If you didn’t win the lottery, you’ve no business complaining if you didn’t buy a ticket.
    • And if you bought a ticket and are complaining about the odds, you don’t understand the lottery.
    • If you bought a ticket, understand the odds, and are still complaining, you have no sense of your obligation in this organization, which is to do something about it. Go make a better lottery.
    • Complainers suck out the air in the room. They are self-oriented, they drag down productivity, and slow results. If you don’t get rid of them, it’s probably because you’re fearful (see #3, above).

These employee behaviors are warning signals of low trust in an organization. Low trust threatens your economics, innovation, speed to market, cost position, overhead structure, employee turnover, and customer indifference or worse – and a whole lot more.

For some ideas on how to improve trust, see Three Strategies to Improve Business’s Trust.

In the next post we’ll explore Five Warning Signs in Teams that suggest a low-trust organization.

The Twelve Steps of Business Relationships

Rarely will you see someone fail in business who has thoroughly followed these simple suggestions. Those who do fail are typically people who are incapable of being honest – with their colleagues, their customers and their partners.

Other problems may temporarily deflect you, but the ability to be rigorously honest will prove immeasurably beneficial in all your business relationships.

Twelve Steps of Business Relationships

Step 1. Accept that you have no power over people, that all your attempts at control have failed. Trying to get other people to do what you want them to do is doomed to failure, no matter how good your intentions, how right your cause, or how much benefit it would bring the other.

People just wanna be free. Go with it.

Step 2. Recognize that by yourself, you can’t succeed. Your success will inevitably be tied up in the success of other people. Not only are you not driving the bus, you are just another passenger.

Step 3. Resolve that you’re going to stop trying to drive the bus, that you’ll start doing things to help other people, that you’ll focus on getting the group to succeed. When things don’t go your way, remember “your way” is what got you into this mess. Repeat steps 1 and 2.

Step 4. Make a list of all the stupid, controlling, selfish things you do to others. Be specific about whom you do them to, and what harm it does to them. Stop at ten people.

Now add to the list a few good things you do. You are, after all, worthwhile.

Step 5. Go share your list with someone you trust. Listen to what they have to say about it and learn from what they have to say. Don’t waste time arguing with them.

Step 6. Get yourself ready to stop behaving in those old ways. Think about it for a while. Make a list of the new things you’ll do. Envision yourself responding in new ways; rehearse new “lines.”

Hint: your list should probably include listening. Also, listening.

Step 7. Pick a time of your own choosing to begin the change. It could be right now, it could be next week, but not next summer. Write that date in your calendar. When it comes, step out of your old ways and start working the new.

Step 8. Think about the customers, co-workers, peers and partners you might have tried to control and what you did to them. Think of what you might have done better and plan to do better next time.

Step 9. Go back to the customers, co-workers and partners you’ve tried to control, and tell them you realize what you have done. Acknowledge your responsibility in those situations, and tell them specifically how you plan to behave differently in future.

Hint: Don’t do this if it causes upset or harm to the other person. And don’t confuse this with trying to get them to forgive you – see Step 1, above.

Step 10. At each day’s end, do a mental run-through of how you did in your new approach. Note where you fell short and what you could have done better.

Then let it go and get a good night’s sleep.

Step 11. Create a little mantra for yourself, to remind you that your job is to help others, not yourself. Get out of the instance, secure in the idea that better relationships will float all transaction boats.

Step 12. Having recognized how to apply these principles to your business affairs, give it a shot at home and in the rest of your life.  You saw that one coming, right?