Hamburgers, Confidence and Trust

It was a beautiful day in March, warm and sunny. My husband and I spent the morning kayaking on Seattle’s Lake Washington. Afterwards, we were ready for a hearty lunch. We found the perfect spot: a restaurant with sidewalk-seating in the sun. 

We settled in and placed our order for burgers and iced tea. The waiter brought us our drinks. Then we waited.

And waited.

And waited.

And waited some more…way too long.

Between the time the waiter delivered our drinks and the time he delivered our burgers, we never saw him. 

What we didn’t know was that this restaurant was a sports bar, this day was the first game of March Madness, and the local team was playing. Inside, the bar was packed. The kitchen was overwhelmed. Once the game started and we heard the fans screaming, we figured out what was going on. 

We could not find our waiter. With no way to communicate with him, we had a tough decision to make. Should we stay or walk out? We stayed and eventually had okay burgers.

This is a story of the difference between confidence and trust.

During our extended wait, once we realized how busy the kitchen and the wait staff were, we wondered if our order had even been delivered to the kitchen. We wondered how long it would take the kitchen to make our burgers. How many orders were in line ahead of us?

These questions are about confidence: we did not have confidence in the kitchen or the restaurant. There was no face attached to our lack of confidence. We lacked confidence in the process. 

During our wait, we also wondered about the waiter. Where was he? Why wasn’t he communicating with us? We didn’t even have a chance to ask him about our concerns because he just disappeared. 

These questions are about trust. We did not trust the waiter. Trust is personal. It’s about another person. 

I thought about the difference between trust and confidence when it came to my clients. What is the source of their trust and confidence in me? And since many of my clients are professional practitioners, it’s useful for them to think about how they generate trust and confidence in their clients.

Clients want to have confidence in our professional competence: a tax lawyer’s knowledge of tax law, a surgeon’s skill in the operating room, a real estate agent’s knowledge of the market, my skill as an executive coach.  

But that has nothing to do with trust.

Clients have trust in me because of my personal characteristics: the care and concern I show towards them and their needs, the degree to which I am predictable and dependable.

Why does this distinction matter? Because there are different paths we can take to increase the level of trust and the level of confidence our clients have in us. 

When we want to increase confidence, we take steps to increase our knowledge and skills and we provide clients and prospects with information about our competence (hence all the letters after my name). Competence can be increased in the classroom. 

Confidence can also be increased by delegating work to competent others. I chose my financial advisor not simply on the trust I have in him, but also because of the confidence I have in the competence of the company standing behind him. 

Trust is won or lost in personal interactions. Trust is built over time by working together, dealing with difficult decisions together, experiencing and repairing breakdowns in the relationship.

On that warm and sunny March day, we were hungry not just for burgers but for the trust and confidence required for a relaxing dining experience. Unfortunately, although the burgers came, no trust in the waiter and no confidence in the restaurant were served that day. 

© 2010 Ann Kruse. All rights reserved. 

Social Trust: Revisiting Francis Fukuyama

Francis Fukuyama's Book TrustTrust is a hot topic these days. We sometimes forget how many flavors it comes in.

But there’s one sense of trust that we don’t talk enough about. I’ll call it “social trust,” and the person who arguably Wrote The Book on the subject is Francis Fukuyama. The book, published in 1996, is titled Trust: The Social Virtues and The Creation of Prosperity. The book is well-known in academic circles, but not enough in business and public dialogue.

I often hate it when people say this, but: if you’re going to talk about trust, you need to have read this book.

A Definition of Trust

Fukuyama defines trust this way:

The expectation that arises within a community of regular, honest, and cooperative behavior, based on commonly shared norms, on the part of other members of that community.

He takes the definition in breathtaking directions:

Although it involves an exchange of information, trust is not reducible to information.

The greatest economic efficiency was not necessarily achieved by rational self-interested individuals but rather by groups of individuals who, because of a pre-existing moral community, are able to work together effectively.

One of the most important lessons we can learn from an examination of economic life is that a nation’s well-being, as well as its ability to compete, is conditioned by a single pervasive cultural characteristic: the level of trust inherent in the society.

The entire imposing edifice of contemporary neoclassical economic theory rests on a relatively simple model of human nature: that human beings are “rational utility-maximizing individuals.”… But everyone of the terms of the neoclassical premise is subject to significant qualification or exception… between 40 and 60% of those [in an experiment] contributed altruistically to the groups well-being. The only exception was a group of entering graduate students in economics.

The greatest economic efficiency was not necessarily achieved by rational self-interested individuals but rather by groups of individuals who, because of a pre-existing moral community, are able to work together effectively.

If you think this sounds like dry stuff, then read on to the part where he talks about high-trust in low-trust cultures. And he names names.

Trusting Economies and Cultures

The French, for historical reasons Fukuyama explains, have trouble trusting peers: but they are very good at trusting central authority, hence have very competent national institutions and companies.

The Chinese, on the other hand, have a largely familistic society, which stresses family bonds over other social loyalties. This explains not only why there are few Chinese companies with global brand names like Wang laboratories, but also the reason for Wang’s dissolution–An Wang’s inability to break the chain of family management.

In contrast to familistic trust in countries like China, Italy, and parts of France, Fukuyama highlights high trust societies like Holland, Sweden, and Switzerland–small countries without classical economic scale, which nonetheless host major global corporations.

Thinking this way leads to Fukuyama to talk about trust as social capital. “ There is no necessary trade-off, in other words between community and efficiency; those who pay attention to community may indeed become the most efficient of all.”

Trust and the United States of today

Much of the book rebuts the surface idea that individualism in the United States was responsible for the US economic success. Going back to 19th century Toqueville’s work, he makes the distinction between a government-focused society (which the US never was), and a collaborative society–which the US historically always has been.

These same Americans who are against state regulation, taxation, oversight and ownership of productive resources can be extraordinarily cooperative and sociable in their companies, voluntary associations, churches, newspapers, universities, and the like Americans say they feel a strong distrust of “big government,” but they are good at creating and maintaining a very large, cohesive private organizations; they pioneered the development of the modern hierarchical (and later multinational) Corporation, as well as the huge labor unions spawned by them.

The real challenge for us today–and he identified it 15 years ago–is whether US society still maintains that collaborative instinct, or whether it has been washed away by greater levels of divorce, economic inequality, assertion of individual rights, business ideologies built on competition, and a press increasingly dependent on sound bites.

I read this book many years ago, and have gotten even more out of it on re-reading recently. My Kindle software supports digital yellow highlighting, and this is one book which is now half-yellow.

Trust: The Social Virtues and The Creation of Prosperity
by Francis Fukuyama
Free Press, 420 pages., $13.50

Introducing the Trusted Advisor Mastery Program

Our business at Trusted Advisor Associates is to help you become better trusted business advisors.

That started when I co-wrote The Trusted Advisor in 2000. It continued with my book Trust-Based Selling in 2005. In 2008, we added the Trust Quotient, a self-assessment survey which has now had over 14,000 takers.

Throughout, we have given practical, real-world advice to thousands of managers and professionals in major corporations throughout the world through our seminars, webinars, speeches and consulting.

On Monday November 15th we are beginning the first session of our new Trusted Advisor Mastery Program, and I want to tell you why we are excited about it–and why perhaps you should be as well.

What Will the Trusted Advisor Mastery Program Do for Me?

What Is the Trusted Advisor Mastery Program?

Who Should Consider Taking the Program?

What Are the e-Learning Modules About?

What Does the Program Include?

When Does the Program Begin?

How Much Coaching Does the Program Contain?

Who Does the Coaching?

How Much Flexibility in Scheduling Is There?

How Long Does It Last?

What Does the Online Learning Management System Do?

How Much Does the Program Cost?

How Do I Sign Up?

What Will the Trusted Advisor Mastery Program Do for Me?

It will make you a better trusted business advisor. That means:

Your clients/customers will be more likely to take your advice. They will be less likely to seek alternate providers. They become more likely to sole-source you going forward. Your opinions will carry more weight. You will be invited to discuss more open-ended issues than in the past, and invited earlier than before. You will get less price-resistance. Your repeat business, customer retention rates, and customer loyalty are all likely to increase as you become more trustworthy, and trusted.

Are these the kinds of benefits your business could use? What are they worth to your business? What are they worth to you personally?

What Is the Trusted Advisor Mastery Program?

It is a three-month program for cohorts of 5-10 people at a time. It combines e-learning modules with personalized coaching, group coaching, and a rich collaborative on-line environment. Each participant has a great deal of freedom to customize the program specifically around their very particular issues.

Who Should Consider Taking the Program?

External professionals (accountants, consultants, lawyers, etc.), internal staff professionals (HR, IT, Finance, Legal), sales and service people from complex product and services industries. The program is particularly attractive for those in smaller companies, including solo and partnership businesses that don’t have access to 20-30 person in-house training sessions in larger corporations.

What Are the e-Learning Modules About?

There are 20-plus modules, all delivered personally by me, Charles H. Green. All the content that I deliver to my major corporate clients I deliver here, in e-learning form, to participants, in ways you can rewind and read again. The materials are annotated, referencing two books, forty articles, and over 800 blogposts.

The modules dive deep into issues like creating trust in the sales process, understanding the dynamics of different trust temperament personalities, practical uses of the Trust Equation, the application of the four Trust Principles, trust-based leadership, successfully creating trust in conversations, creating trust in virtual teams, accelerating trust creation, recovery from trust loss situations, mitigating trust risk, asking difficult questions, and answering the most difficult sales questions.

What Does the Program Include?

You get:

· access to all online content

· 4 one-on-one coaching meetings, about an hour each

· 4 hours of group coaching (with other cohort members)

· unlimited access to the customized Learning Management System

· online forum conversations between your cohorts, coach, and myself

· copies of both books

· your own trust quotient and trust temperaments self-assessment.

When Does the Program Begin?

The first session starts November 15, and is fully subscribed. If you send an email to [email protected], we will notify you when the next cohort-session begins. (Your email will be used for no other purpose, and will not be sold or given to anyone else).

How Much Coaching Does the Program Contain?

Each participant gets 4 individual, one-on-one hour-long coaching sessions with a professional, Trusted Advisor Associates coach; either Stewart M. Hirsch, TAA’s head of coaching, or coaches under his guidance. The four group coaching calls include exercises and discussions on issues that arise in the online forum.

Who Does the Coaching?

Stewart M. Hirsch, Trusted Advisor Associates’ head of coaching, is the lead coach for the Trusted Advisor Mastery program; he does much of the coaching, and other qualified coaches work under his guidance. Stewart is a superb and experienced coach, steeped in the Trusted Advisor approach and dedicated to the success of all his clients.

How Much Flexibility in Scheduling Is There?

One of the most attractive characteristics of the Trusted Advisor Mastery program is the extreme degree of flexibility in scheduling it offers you. With the exception of the four group coaching hours, which require minimal coordination with other members of your cohort, you have great freedom. The online learning can be done 24-7; your individual coaching can be arranged at any time that is mutually convenient to you and your coach.

How Long Does It Last?

The program typically last about three months, though the precise beginning and ending, as well as the pace, are well within your control. The modules and online forum remain open for a total of five months, to allow discussion and learning to continue after the formal portion of the program is completed.

What Does the Online Learning Management System Do?

It is a customized environment, built on an Adobe LMS, the same kind of platform used by major universities for large scale delivery. This is not your retail-available webinar-online type software. It offers you forums, special readings, eLearning materials, webcasts, a diary function, and rich controls for customization and privacy.

How Much Does the Program Cost?

The material delivered in this program is exactly the same material we deliver live to groups of 20-30 in-house for major corporations–except that it is priced far less. By combining online learning with designed high-quality interaction and just-in-time coaching, we have been able to keep this program affordable, and yet very high value at the same time.

How Do I Sign Up?

The November 15 session is fully subscribed. We will be doing more programs in the future, though specific dates have not yet been set. To be notified when we schedule the next program, send an email to [email protected].

How Lexus Made a Customer for Life

My good friend Judy bought a Lexus last spring, from Prestige Lexus of Ramsey, NJ.

A previous owner of a Pontiac, a (used) BMW convertible, and a string of Toyotas, she wasn’t quite sure her self-image was that of a Lexus owner; truth be told, she felt slightly talked into it by her boyfriend.

But that all changed last week.

She had a bad head cold. Her car was due for its 10,000-mile checkup, and there was a product recall check due as well. She set out early for the 40-minute drive to the dealership, and was dismayed to find 20 people there ahead of her for service at 7:30 in the morning.

But the lines shrank instantly in the face of the dealership’s rapid processing, and she was quickly off home in a loaner car—the same model she owned.

At about 11:30AM, John DeSantis of Prestige called her. “That cold of yours sounded bad, Judy,” he said. “Would you like it if we drove your car home for you and picked up the loaner, so you didn’t have to come back out and drive up here?”

Does a duck like water? Judy was grateful for the offer, and even more delighted when she realized the charge for the whole day—checkup, recall, loaner, home pickup service—was $0.00.

“I think I’m a Lexus owner now,” Judy says.

How Prestige Lexus Does It

At first, I figured this was an exceptional event. Turns out, it’s policy, at least on a space-available basis, for scheduled maintenance. 

(On the social media front, I was impressed that @prestigelexus is also tweeting—not a lot yet, not terribly well, but hey give ‘em credit. Though I was very impressed that they’ve got a QR code on their service page!).

It’s tricky to offer services and not have them become commoditized, demanded by customers, standard operating procedure. A lot of doing it successfully has to do with the personal touch; a policy is just a policy until someone makes it personal for you.

That’s what Prestige Lexus did. And no, I’m not getting any recognition or credit or tie-ins with them of any kind. I’m just passing good stuff on.  Judy told me, and I told you, and now you know.

The November Trust Matters Review

Dilbert’s pointy-haired boss on creating trust.  Because you’ve been in this meeting, I know I have.

John Gies discusses what lawyer David Boies did when faced with a clear conflict of interest: how he identified it, how he resolved it so those he owed loyalty to were well served and how it turned out for him.

Anita E. Kelly explains when to brag, when to be modest and with whom.  Learn how to not seem like a self-absorbed jerk!

Erica Christoffer interviews Patrick Lencioni about his book on transparency, Getting Naked.  Lancioni explains what the greatest barrier to transparency, to being honest with clients, is, and how to get past it.

Kelly and Marshall Goldsmith wonder if you’re training people to suck up to you.

David Berreby discusses the hidden rules of blame  Out of 295 terrorist attacks in the European Union last year, how many were committed by Muslim extremists?  Figure out your number, then head on over to find the answer.  Do you know who to blame?

Kay-Yut Chen and Marina Krakovsky explain what you can learn from Disney about trust and distrust.

Jake Bernstein and Jesse Eisinger explain how self-dealing made the financial crisis much, much worse.

What happens when you think you know what a person is?  Adam Alter digs into the often disastrous, and self-fulfilling, consequences of labeling people.  Should we stop using Myers-Briggs types?

James Surowiecki explains the paradox of customer service: why most companies end up abusing their most profitable customers.

Can you trust the best seller lists? The example of Mitt Romney’s best-seller hardly anyone read.

Adita Kinkhabwala on the New York Giants top-tanked defense: it’s all based on trust.

Sarah Cunnae explores the question of whether a woman can be seen as both competent and likeable, and therefore trusted with power.

Bill Taylor’s enchanting story of how simple kindness, which used to be called consideration, won the business day, and yes, engendered trust.

Dr. Raymond Fisman of Columbia University explains that we are what we learn.  What do all those ideas about rational actors and self-interst do to economics majors, for example?

Mike at Pharma Reform suggests that trust in Pharma will return when scientists and doctors have more say than management, and not before.


The Trust Matters Review highlights the best articles and posts on trust our research has turned up in the last month.

If you’d like to share a great article about trust, let us know, in the comments here or through the Trust Matters Review submission form.

For more links to outstanding articles on trust, see:

Are your company values important enough to fire people over?

Warning: Rant ahead.

Odds are the company you work for will fire employees for serious criminal conduct. And maybe for sexual harassment, or BSIP (Behaving Stupidly In Public).

But does your company fire people for VVs (values violations)? You know, values like respect and integrity (from Enron’s values list), or performance, innovation, progressive, and green values (from BP’s Lubricant Business).

———–

I got a call recently from a BWKC (Big Well Known Company); it employs many VSPs (Very Smart People). Here is what they said:

We have a group of VHPS (Very Highly Paid Salespeople). They’re mainly commission-paid and very successful. Problem is, they don’t pitch-in on corporate initiatives—recruiting, people development, internal sessions.  They prefer to focus just on making more money. 

We want to incent and motivate them to be more participative. We’re looking for ideas from other commission structure industries that have figured out how to keep the high-pay but incent and motivate team behavior.

OK. This is like meat to Pavlov’s dogs. There is such a feast of things wrong with that statement: where, oh where, to begin! 

 

1. “Incenting Values” is an Oxymoron

The call came from a staff person. Which means somewhere, there’s an RDB (Really Dumb Boss) who is thinking, “How do I motivate my employees to live the company values?” Here’s what that boss should be saying:

“It has come to my attention that y’all are not showing up to do some real basic stuff. Further, I understand this is because you’re not ‘motivated’ or ‘incented’ to do these things.

“Instead, y’all are getting rich at the corporate buffet by cutting in line. You’re eating scrambled golden eggs while you’re starving the goose that lays them. You’re suckling at the teats of the money-pig and refusing to clean up the pen. So I got some motivatin’ for you.

“First, TCSRN (This Crap Stops Right Now). Starting today, if I see any more of this, it’s LDHYWGLSY (Let the Doorknob Hit You Where the Good Lord Split You). Adios. 

“And if that’s not incentive enough for you, I can OUCOWA (Open Up a Can of Whup Ass) and show you the door.

You don’t “incent” values. Values are Jacks for openers, table stakes. If you’re not motivated to live by your company’s values, your company should tell you that you’ve got the wrong company. If you insist on incentive for living your company’s values, your company should politely suggest that your employment contract should be incentive enough.

This company basically has three choices:

1.    Exempt the salespeople from the values, and say so publicly; at least that’d be honest;

2.    Tell the salespeople this is non-negotiable, and a firing offense (fat chance); or,

3.    Just keep the values on the website where they belong, away from the money, now walk away, nothing to see here…

2. When Did We Start Calling Boneheadedness “Smart?”

This company is hardly unique—and you all know it. We have an epidemic in Corporate America of what I’ll call behavioralism, the beliefs that:

a.    nothing’s real if you can’t measure it;

b.    management consists largely of placing the correct amount of cheese in front of just the right rats at just the right points of the maze;

c.     really ‘smart’ people are the ones who can model, quantify and produce metrics with respect to cheese, rats and mazes.

Push this line of thinking far enough and you get entire BWKCs, with lots of VSPs, who don’t have the commonsense to spot a values issue when it personally insults them to their face. And yet we call them ‘smart.’

The word ‘smart’ has come to be, in the anthropological dictionary that is daily corporate usage, synonymous with high SAT scores, good colleges, spreadsheet-dexterity, quantitative skills and a belief that human-life-is-messy-but-fortunately-we’re-figuring-out-the-neuro-secrets-behind-it-all-and-we’re-nearly-there. 

How else to describe VSPs (and the companies who hire them) who have no other mental construct for management besides money-cheese-rat-metrics? Concepts like wise, commonsense, intuition, curiosity, empathy, relationships—these have no place in the world of VSPs.

Let’s all just give up on ‘smart;’ that word’s been co-opted. Let’s find something else. May I suggest we take ‘wise’ for a spin. And start by not using it lightly.

3. Tactics Are Not Management

Three years ago I wrote about The CEO vs. the Bankers. The CEO was an MBA from the late 1970s and was, as he put it, amazed at how little the newer MBAs seemed to know. He was talking about VSPs, too—from, as he put it, “Goldman Stanley, Morgan Sachs.” 

It’s a great read, I don’t want to spoil it for you, but the gist of it was: the new MBAs had been taught analytical techniques—tactics. The CEO had learned strategy: the wisdom kind, not the numbers kind. And when you read his story, you realize that in the real world, all those ‘smart’ models were dead wrong, and he was dead right.

Not only do we over-celebrate ‘smart,’ the concepts our ‘smart’ people are focusing on are not—systemically—wise. Our best and brightest are learning to do things that aren’t good.

What things? Looking at transactions, not systems. Believing that everyone only pursues their own interest. Believing that letting those who do pursue only their own interest somehow magically produces wealth and happiness for all. Believing that human emotions are most effectively dealt with through physical abstractions like chemistry and behaviors. 

Most of all: believing that values are something for which you can incent or motivate people.

What’s to be done? A good start would be to find out if anyone ever got fired for a values violation in your company. And if not, to seriously question how seriously your company takes its values. 

OK, end of rant-warning. All clear. Thanks for listening.

TrustedAdvisor Associates Workshops & Events, Fall 2010

Join us this Fall at one or more of our 2010 TrustedAdvisor Associates events through globally accessed programs and webinars!  Topics include  the new Trusted Advisor Mastery Program!
 
We hope you’ll be able to attend and  look forward to seeing you!

——————————

Mon. Nov. 15th        Global          Charles H. Green & Stewart Hirsch

We are launching a new program on November 15th! A three-month Trusted Advisor Mastery Program combining e-learning with one-on-one coaching, group learning, and more. Find out more by watching this video: http://bit.ly/a39Q19 and contact Stewart Hirsch, Practice Lead for TAA Coaching at 781.784.5280; [email protected].

How to Recover from Trust Lost: Part II

Two days ago I wrote in Part I how trust is not necessarily as slow to be gained, or as quick to be lost, as we think.  Part 2 is about how you recover lost trust.

Sometimes trust recovery is confused with reputation management; or with apologies; or with legal maneuvers. Any or of all of those may be appropriate in a given case, but only one is critical to all—acknowledgment.

At root, trust betrayal is a fundamental lie about intentions. When umpire Jim Joyce made a bad call to rob Andre Gallaraga of a perfect game, he told an “untruth,” but his act was clearly out of sync with his intentions. It is not hard to clarify intentions, if they were in fact clean all along.

By contrast, when a preacher or politician fulminates against moral turpitude and is then caught in a compromising position with a prostitute, he has lied about his intentions. In his case, the fact proves his bad intentions. 

In the first case, acknowledgement means stating exactly what happened, and taking full responsibility. Umpire Joyce saw the replay, and immediately stated he was wrong. Of the opposing players, he said, “I don’t blame them a bit, I would’ve said it myself.” He went directly to Galarraga to acknowledge and apologize. 

In Joyce’s case, an apology was clearly warranted. That’s not always the case; it may not be appropriate to apologize for something someone else did (unless in a the chain of command); it can come off as insincere, or patronizing. But what is required—always—is a full acknowledgement of precisely what happened, and a statement of accountability where that is clear.

The same rule applies in the case of an errant preacher or politician, or to BP for that matter regarding the oil spill. Leaving aside apologies and reparations, what is absolutely necessary for trust recovery is a full accounting of what happened, and to the best of one’s ability, why. 

Until our motives are re-aligned with our actions, we are stuck in a state of un-trust. Acknowledgement is what re-establishes the linkage. 

Name It and Claim It: The Language of Trust Recovery

The reason trust recovery is hard is that it requires soul-searching of our motives. We hate to admit we might have had bad motives, that  and: that we acted from bad faith. Yet that is what is required.

If you name it, you can claim it. What I mean by that simple phrase is that acknowledging the truth (“naming it”) is a necessary condition for recovering trust (“claiming it”).

There is a simple grammatical rule for successfully doing Name It and Claim It, and it looks like this:

List as many caveats as are necessary to slightly overcompensate for what you’re about to say—then say it.

Caveats, in this case, are made up the things both of you are afraid to say.

Let’s take a simple example first, then build up to the situation facing Joseph and Suzanne (see Part 1). (More examples can be found in another article, A Tool for Emotional Risk Management—Name It and Claim It.

Let’s say you are going to mention price for the first time in a sales meeting, and you’re a little nervous about it: You might say:

“I realize this is a little early to talk price, we haven’t mentioned value yet, and you haven’t asked about it, but in my experience sometimes one of us might feel embarrassed if it turned out later that our expectations were mis-aligned; so at the risk of putting something out there, I’m thinking this is a low 6-digit project. Does that feel wildly at odds with what you were thinking? Are we off by an order of magnitude?”

What you have done in such a case is to state all your inner fears (and the client’s too) out loud, in a way that recognizes each of you feel a little risky here, together. The effect, oddly, is to neutralize the risk. Because having said these words, the worst thing the client will do is say, ‘Well, that is a little embarrassing, and we didn’t ask about it, and I don’t want to tip our hand just now by talking about it, so, no thanks.” That may feel harsh, but it’s far better than not saying anything, and finding out two meetings later that one of you was thinking one million and the other 75,000. 

It’s also rare; almost always, the other person is grateful for the mention. The much more likely response is, “Well, glad you mentioned that actually, it takes a bit of pressure off. And we’re not conceding anything, but yes, I think we’re in a range where we can comfortably keep talking. Thanks for making sure.”

What Name It and Claim It does is to take a risky situation and not only defuse it, but actually create trust by doing so. Because the shared experience of taking a risk creates a track record of trust. The next risky overture will be more welcomed because of the risk taken in the first instance.

Name It and Claim It and Trust Recovery

What would it sound like for Joseph and Suzanne to use Name It and Claim It to recover trust in their respective situations (see beginning of case)?

Joseph can set up a conversation with a key client individual in his client organization; probably off-line, one-on-one, after-hours, over drinks or a meal. Not too far into the conversation, Joseph might say something like this:

Look, Bob, I appreciate your coming to dinner tonight; you might have guessed I had something specific to talk about. I feel a little risky raising a delicate issue with you, an issue that has some history, and I suspect it’s not all comfortable for you either.

I want talk about what happened between my predecessor Bill and your organization. I don’t fully know what happened, and if you wouldn’t mind, I’d really like to. I have no axe to grind, no horse in this race; I have no requests, hopes or expectations; I look for no promises. I simply want to fully understand where you are coming from, from your perspective alone. 

I fear that if I don’t understand that, then we’ll never have a basis for working together again. I apologize in advance for any discomfort this causes you, and hope you will see my intent simply to learn. Maybe we can’t put this behind this, but maybe we can; I would feel remiss if I didn’t try.   

Suzanne’s is a different case; in her situation, mistakes were made, and made by her organization and by her. She might say:

Melinda, thanks for taking this meeting. I realize it’s the first time in 18 months, and our last interactions weren’t happy. I’m not sure if you had resistance to even having this meeting, or whether you even felt comfortable telling people we were meeting.

I want to acknowledge the difficulty in our relationship 18 months ago, and my role in it. In retrospect, I was focused on assessing blame, rather than on focusing your needs as my client. The more time passes, the more I realize what a fundamental error in perspective that was. 

It may not be easy for you to talk about without emotion—I’m not sure I could do so easily—but I would respectfully like to ask you to do so. I cannot fully say that I have understood your situation until I hear it from you. And I know that I can’t move along myself unless I feel I’ve understood things.

I’m not looking for re-admission here; that’s up to you. What I need to do regardless is to fully understand what things looked like from your perspective 18 months ago. Would you be willing to take some time with me now to fully understand our history?  

Sometimes Trust Recovery is Beyond Language

A firm like BP that has incurred numerous safety violations is not going to recover trust until it convinces others that it has changed its ways. That means processes, procedures, standards, incentives, vocabulary and culture. Yet the role of acknowledgement still stands at center. Employees will not believe their own leadership if leadership does not stand and speak the new truth to the public. 

Some companies fear that if they change, but don’t advertise the fact, then they will lose “credit” in the public’s mind. Thinking this way re-invites the same risky behavior that got them in trouble in the first place.   The risk of being seen as good while doing not-so-good is far greater than the risk of doing good and being seeing as doing not-so-good. Time will take care of the second strategy, but events will undermine the first. 

And twice-fallen, trust recovery is far more than twice as hard.

Ava J. Abramowitz on Essentials of Negotiation (Trust Quotes #15)

Ava J. Abramowitz is a lawyer, mediator, and author.  She is also an honorary member of the American Institute of Architects and currently is serving as the first public member of the National Council of Architectural Registration Boards. Not surprisingly, she teaches negotiation at George Washington University Law School; was in-house counsel for the American Institute of Architects; serves as a mediator in the Federal courts in Washington, DC; and lectures nationally on negotiation. 

As befits such an interesting woman, she is married to a man who is quite interesting in his own right, Neil Rackham.

But our main interest in this interview centers around a most remarkable book she has written, titled Architect’s Essentials of Negotiation (The Architect’s Essentials of Professional Practice). While it’s nominally about architects, the fact that it’s so readable outside that profession is a guarantor that she’s talking about universal truths. Let’s dig in.

CHG: Ava, thanks so much for doing this interview with us. I’m excited, because I was so taken by your book. Let me start in a very particular place. Outside of perhaps existentialist philosophers, theologians or therapists, you and I are the only ones I know who refer to the Other—in caps—when we’re talking about the protagonist in a commercial relationship. Why do you do that?

AJA: In all my writing and always in my thoughts, I refer to the "Other" and not the "other side" when talking about those with whom we negotiate. "Other side" implies the people are opponents. "Other" implies they are just not us. It is hard to build common ground with opponents, but a bit exciting, invariably challenging, and sometimes even fun to build common ground with people who, although they want a solution to a shared problem as much as we do, view that problem differently because they have different sets of eyes and experiences. A small change in mindset, but it’s an important and useful one to use and remember. Not a friend. Not an enemy. Just an Other.

CHG: Let’s take the readers right to the punch line: in your view, what is the central message of this book?

AJA: In business and in everyday life, it is far more profitable for all the parties to forge strategic alliances with each other to solve the problems facing them. You need not like the Other. In the early stages of negotiation, you need not even trust the Other. But if you and the Other collectively can solve the problem in a way that meets both of your compelling short and long term interests and needs, you should do it. Solid negotiation skills will get you there. They can be learned.

CHG: Reading your book it seems so obvious that that’s how things should work. Why doesn’t it always turn out that way?

AJA: Sometimes the way people analyze the situation leads them to believe that there is no common ground. I don’t want to get into politics, but right now the United States is so bifurcated that people forget that everyone who is running for office believes in “life, liberty and the pursuit of happiness” and in “truth, justice and the American way.” They may differ on the definitions of those values or how best to achieve them, but at the core the persons sitting across the aisle from them are not an enemy to be destroyed. They are just Others with different views of the problem and the solution.

CHG: Notwithstanding what I said above, this book was written nominally for architects. And in one way, they are unique. Unlike most other professions, there are usually three parties involved in commercial discussions: the architect, the contractor, and the owner. Does that make architecture more complicated than, say, the practice of law?

AJA: Ah, good question, but no lawyer could say yes and survive. After all, the American legal system is not routinely described as “an adversary system” for nothing.  Here lawyers represent parties who may have entered a negotiation with no desire for a settlement. For example, parties may have retained a lawyer to obstruct a solution because they figure that delay is in their interests. Architecture and construction, at least at the outset, are less conflicted. At the start of every project everyone wants the project to come in on-time, on budget, and with no claims. And everyone wants to make a profit.

Additionally, risk is handled differently in the legal setting than on the construction site. Lawyers are taught to think liability first and foremost and to figure out ways to foist liability on the Other, freeing their client to risk without responsibility. Sophisticated parties in design and construction, however, recognize that risk and reward go hand in hand. To them, the easiest way to achieve success is to assign each exposure to the party most capable of managing it, and to give that party all the responsibility and the power—both authority and fee—needed to manage that exposure well. In other words, they forge strategic alliances with and among the parties with mutual success being the overriding goal.

CHG: You know quite a bit about the psychology of sales through Neil. Are there any sales insights that fit with your sense of negotiations?

AJA:  For many a person Getting to Yes: Negotiating Agreement Without Giving In by Fisher and Ury was their introduction to negotiation. There Fisher and Ury set out a staged theory of negotiation that building on common ground should produce a shared solution that meets the parties’ key interests and needs, and solves the problem that brought them to the table in the first place. The book and many of its derivative works, though, are less eloquent on how precisely do you do it.

For me, Neil’s book, SPIN Selling filled in that missing blank. By asking questions, particularly Implication and Need/Payoff Questions, one can uncover the explicit needs of the Other and address them. With that knowledge common ground can be more readily identified and built.

How powerful a tool are questions? Inestimable. Questions reveal the Other’s needs, values, and priorities. They help with elegant option development. They expose problems in your own thinking. Questions are a solid alternative to saying no. They help you manage the negotiation, giving you time to process the information you hear and figure out how you want to deal with it.

Questions help you build trust. There is nothing more powerful than listening and using the information you are hearing to build common ground. Nothing convinces the Other more that you care and are worthy of their trust.

CHG: Part of why this book resonated so well with me is the fundamental stress on relationship; that’s what trust is so much about, too. I know you’ve thought about trust, presumably about trust as it relates to negotiation and mediation. Do tell us what you think about it?

AJA: Trust is a matter of choice.You can choose to trust, or not. You can choose to be trust-worthy, or not. You can negotiate with people whom you trust and with those whom you do not. Trusting appropriately just makes negotiation easier.

Clients use proxy measures when deciding whom to trust. It is clear from research that clients look for competence, candor, and concern in the professionals they retain. The more the client sees the consultant being competent, candid, and concerned about the client, the more the client tends to trust the consultant. It is easy to say, “Be candid, concerned, and competent,” but it is not always easy to do and even harder to prove that you are being candid, concerned, and competent.

Try proving you are trustworthy by saying to someone, “Candidly….” Saying that invariably puts the Other instantly on guard. Additionally, it raises an issue where none existed: Were you not being candid before? When will you deceive again? There are clearly ways to prove you are Other-focused. Asking questions helps prove to the Other that what they say, think, and feel is important to you. Disclosure of internal information helps, too, particularly when it makes your motivations and perceptions transparent.

Your book brings this all home. In one of the best books on earning and deserving trust, The Trusted Advisor, you and your colleagues, David H. Maister and Robert M. Galford, take these earlier findings one step further, developing what you called the trust equation where trust is a function of credibility, reliability, intimacy, and self-orientation. You found that the more credible, reliable, and intimate one is with and about the Other and the less self-oriented they are, the more they will be trusted by the Other. Words to live by.

CHG: Let’s get beyond architects alone here. Is there a Single Biggest Mistake people make in thinking about negotiation? Or a Big Three?  

AJA:  To answer that question, let us pin down the kind of expert negotiator I have in mind. Based on Huthwaite research I have come to classify as “expert” those negotiators who share three characteristics: They have a track record of reaching agreements, a track record of their agreements being implemented successfully, and a track record of the Other being willing to negotiate with them again. In other words, I value, as experts, people who, time after time, successfully resolve their principals’ long-term and short-term problems through negotiation and in such a way that the Other is willing to work with them again.

What do these experts have in common? They prepare and strategize for the negotiation before the negotiation so that when they sit down with the Other they have freed themselves to listen, and they listen hard and well. They use the information they hear to locate an idea they can support and build on, ultimately yielding common ground. And even as they close in on a negotiated agreement, they prod. “How will that work?” What if x happens?” “How will it play out if all things go well, and if they do not?” "Is there anything we can do to build success into the effort?"

These negotiators are committed to long-term success of the parties and the agreement. If the agreement is to fall apart, they want it to fall apart before it is signed, so that they can pick up the papers, shake them off, and try again. And that is why they and their clients succeed and the Other is willing to negotiate with them again.

CHG: Ava, this has been a delight. Thank you so much for ‘stopping by’ to chat with us, and for sharing your wisdom and insights.

Disclosure: I am an Amazon affiliate and receive a very small commission for products purchased through my Amazon links.

How To Recover from Trust Lost: Part I

Joseph says:

“When I took this account over 10 months ago, I didn’t understand why the client seemed so distant. We had been cut back 2 years ago and never really recovered; I figured I could turn it around.

“Come to find out, the reason was bad blood between my predecessor and the client organization. No one really talked about it; but there it was. So now what? How can I recover trust lost?”

Suzanne says:

“We made some mistakes. They weren’t critical, but we were partly at fault. We tried to show the client had a lot to do with it too—refusing to take accountability for changes in specs, delayed decisions, contradictory information—but it just made things worse. When the renewal finally came up, we didn’t get it. Surprise. That was 18 months ago. I don’t know when we can go back.”

If you recognize a little of your situation in Joe’s or Suzanne’s, then you’ve wondered about trust recovery.

If trust is lost, can you ever get it back? Or are you doomed to just slink away in defeat?

In this first part, I’ll describe how trust gets lost.  In the second part, two days from now, I’ll describe the key to getting it back.

Trust: a Long Time to Build, a Moment to Destroy? NOT

You’ve heard the usual platitude: trust takes a long time to establish, but only a moment to destroy. In truth, that’s a mis-statement; two mis-statements, actually.

First, trust does not necessarily take a long time to create.  We form strong impressions of trustworthiness of others in nano-seconds, based on all kinds of information and biases.

Second, trust isn’t necessarily destroyed in an instant; it took nearly a decade to destroy trust in Bernie Madoff–and he was a mega-crook!

The better formulation is this: shallow trust can be destroyed quickly; deep trust takes a long time to die.  Basically, what determines the time it takes to destroy trust is a function of quality–not of time itself.

How Trust Gets Lost

There are two ways in which trust gets lost.  The first is an illusion.

Suppose your ‘trust’ consists simply of the absence of mistrust.  Perhaps it even consists of untrustworthy practices garbed in clever PR, good advertising and an aggressive marketing campaign that provides the appearance of trust.. If suddenly the curtain is drawn back and the public sees the ugly reality behind the machine, it may appear trust was lost. But all that was really lost was the fig-leaf of appearance.

This was what happened to BP, whose safety record was obscured by a green advertising campaign until its comparative record was revealed by a horrible accident. This was Eliot Spitzer’s story too, when he lost the governorship of New York by using public money to secure prostitutes, while proselytizing against them. He didn’t lose trust–he lost plausible deniability.  The trust was gone long ago.

To recover from this kind of trust is possible, but it amounts to undergoing a conversion. The untrustworthy party cannot insist it was an accident—because it was the exact opposite of an accident. This kind of trust ‘loss’ is as good as planned.  Trust recovery here requires massive underlying change.

The second case is easier. Consider umpire Jim Joyce, who egregiously blew a call that cost a young pitcher the ultimate rare honor of a perfect game.

“It was the biggest call of my career, and I kicked the [stuff] out of it,” Joyce said, looking and sounding distraught as he paced in the umpires’ locker room. “I just cost that kid a perfect game.”

Did he recover trust? Before the very next day, Joyce had recovered the trust of the fans, the opposing team’s manager, and even pitcher Andre Galarraga. Note the error was egregious; and the recovery of trust took less than 24 hours.

These examples point out a few myths that need addressing:

1.    Trust recovery doesn’t necessarily take time

2.    Trust recovery is not (solely) a communications job

 

Read Part II: the How To part of trust recovery–acknowledgment.

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