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Disclosure Is Not Transparency

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Transparency, most of us would agree, is a positive thing.  And disclosure is an obvious way to get there.

But transparency and disclosure are not the same thing. And confusing them can actually harm transparency.

So – what’s the difference between disclosure and transparency?

Transparency and Trust

Besides “able to transmit light,” the dictionary defines transparent as:

  • easily seen through, recognized, or detected: transparent excuses.
  • manifest; obvious: a story with a transparent plot.

In the simplest business terms, “transparent” means you can tell what’s going on.

If the link between transparency and trust isn’t self-evident, here are a few citations to help clarify it:

If I can see what’s going on, I know that I am not being misled. Motives become clear. Credibility is affirmed. Transparency is indeed a trust virtue.

Disclosure

Disclosure is a time-honored tool of regulators to achieve transparency. Food and pharmaceutical manufacturers are required to disclose ingredients, medical authors are required to reveal payment sources, the SEC frequently proposes disclosure as a tool, and so on.

Certainly you can’t find out what’s going on if information is actually hidden.  So disclosure is a necessary condition for transparency. But it’s hardly a sufficient one.

I don’t have much to say about the cost/benefit trade-off of greater disclosure in pursuit of transparency. Sometimes the benefit is obvious, other times not so much, sometimes not at all.

What’s more interesting to me is how the blind pursuit of disclosure can actually reduce transparency – even reduce people’s awareness of the distinction.

Over-Disclosure

Is it possible to have too much disclosure? So much disclosure that information gets lost in the blizzard of data?

On the face of it, disclosure is the handmaiden of transparency. But if disclosure becomes the end rather than the means, if regulators and consumer advocates become fixated on indicators rather than on what they indicate, then disclosure can actually become self-defeating.

Lawyers know that massive responses to discovery requests can overwhelm opposing counsel. Cheating spouses know that the best lies are those that disclose the most truth. Consumer lenders know to fast-talk the disclaimers at the end of radio ads, much like the small print on the ads and loan statements.

If disclosure isn’t accompanied by an ethos of transparency, it can be positively harmful. It is like crossing your fingers behind your back, taking movie reviews out of context, or word parsing a la “it depends on what the meaning of the word ‘is’ is.”

A trustworthy person, team or company will not settle for disclosure, but seek to offer transparency. A competent regulator will always remember that disclosure is just evidence, and partial evidence at that. And a wise buyer will always look for the spirit of transparency that may, or may not, underlie the act of disclosure.

Trust relies on both data and intent.

 

Was It Something I Said? The Trap of High Self-Orientation

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Interesting thing happened this week. Even though I’ve been at this business game for some time now – there are still these little gaps, where I fall victim to a little thing that I like to call the “trap of high self-orientation.” I started to doubt, to question if I had said or done something that would cause a potential client to not respond as quickly as we had during an earlier email exchange. Turned out to be all in my head, a self-inflicted ‘trap’ – if you will.

It got me thinking about the last time I reflected on this subject matter. So, here it is – a little insight into the psychology and the spirituality of getting off your S.

—-

It happened again yesterday. It happens about once a week, though I don’t generally notice it until later.

I had a proposal phone call with a potential client. It went well, but they came back a few days later with a concern. I responded at length in an email. The day ended. Another day passed. By then, it had begun to happen.

I started thinking, “Was it something I said? I’ve probably blown it. I knew I should have done X, I shouldn’t have done Y. On the other hand, maybe I should have…” and so on. You probably know how it goes.

I once kept track of these episodes for a month. There were ten of them in that month. And in 9 out of the 10 cases, the result was: the other person was just busy, that’s all. They weren’t thinking those negative things about me, in fact quite the contrary.

9 out of 10 times I was wrong. And not just about what they were thinking, but about how much time they spent on it.

Self-Orientation in Trust

The denominator in the Trust Equation is self-orientation (the numerator factors are credibility, reliability and intimacy). The higher your self-orientation, the lower your trustworthiness. The logic is simple: if you’re paying attention to the other person (client, customer, friend, spouse, whatever), then you’re probably interested in them, care about them, and have some positive intent toward them.

By contrast, if your attention is devoted inward, you will not be trusted. Why should you be? You’re obsessed with yourself. We trust people who appear to care, and who demonstrate that caring by paying attention. He who pays attention largely to himself is not the stuff of trusted advisors. (Note: you can take your own Trust Quotient quiz at the upper right of this page.)

Get Off Your S

For those of us who need catch-phrases to remember (count me in), here’s one: Get Off Your S. That is, stop being so self-oriented.

Here’s the psychology of it. You’re not as good as you think you are, you’re not as bad as you think you are–you just think more about yourself than others think about you. To live between your ears is to live in enemy territory. You empower what you fear. If you have a foot in yesterday and one in tomorrow, you’re set to pee on today. Blame is captivity. It’s never too late to have a happy childhood.

Here’s the spirituality of it. To give is more blessed than to receive. To get what you want, focus on getting others what they want. Treat others as you’d wish they’d treat you. Pay it forward. Put change in a stranger’s parking meter. Do a good deed a day. Humility doesn’t mean thinking less of yourself, it means thinking of yourself less. Fear is lack of faith.

Here’s the business of it. Never Eat Alone. Listen before making recommendations. To get tweets, give tweets. Inbound marketing not outbound marketing. Customer focus. Customer service. Samples selling.

———

Oh, and my potential client? They were just busy. They’re going to buy, they always were.

It’s not about you. It never is.

Is Selling Too Hard? Maybe You’re Doing It Wrong

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The Financial Trust PuzzleMost salespeople love athletic metaphors. For example, consider these well-known maxims:

  • No pain, no gain
  • The harder you try to hit the ball, the worse you do.

Note – these two platitudes express precisely opposing points of view. So – which is the right answer? Is it effort – or form? Is it grit – or ease?

Many sales pundits will tell you that an essential ingredient in selling—perhaps the essential ingredient—is effort. Gumption, grit, hustle, sweat—whatever the word, the image it conveys is that success in selling is tough. No pain, no gain.

This view posits selling as being like football: the team that exerts the most effort is the team that wins.

And there is a lot of truth in that viewpoint.

But consider another truth. Think about hitting a golf ball. As anyone who’s tried can attest, the quality of your golf shot is in inverse proportion to your effort. That pleasing “thwock” of a well-struck iron almost never comes from trying hard.

Instead, the “trick” in golf is not how hard you swing—it’s how smooth, relaxed, and “at ease” your swing is. If you’re swinging too hard, you’re almost certainly doing it wrong.

And there’s a lot of truth in that viewpoint as well.

But here’s the thing – most dichotomies like this are false. Selling isn’t only like football, or like golf. It’s both – in different ways. But that’s a different article. This article is about just one side—the golf side, if you will, where if you’re working too hard at selling – you’re doing it wrong.

Adam Smith, Competition, and Selling

Blame it on Adam Smith’s The Wealth of Nations, if you will. The Scottish moral philosopher and economist famously claimed that by the self-oriented struggling of the butcher and the baker, the “invisible hand” of the market makes itself known by balancing out all for the greater good. Out of individual selfishness grows the maximum collective good.

While Smith has been unfairly characterized as arguing against regulation and in favor of unfettered free markets, there’s no question that his powerful formulation rhymes with competition—individuals seeking their own betterment. Perhaps ever since, business has been full of metaphors from war and sports. And nowhere are those metaphors more prevalent than in sales.

Take just one sport alone: pitch, curve ball, hitting cleanup, bottom of the ninth, pinch hit, get our signals lined up, strike out, bases loaded, don’t swing at the first pitch, home field advantage, double play, we’re on the scoreboard, leaving men on base, pop-up, foul ball, home run hitter, shut-out, and so on.

Here’s the thing about sports metaphors: they’re all about competition. Real Madrid vs. Barca. Yankees vs. Red Sox. All Blacks vs. Wallabies. Seller vs. competitor.

And—most of all—seller vs. buyer.

Selling without Competition

It’s hard for most people to even conceive of selling without that competitive aspect between buyer and seller. Isn’t the point to get the sale? Isn’t closing the end of the sales process? If a competitor got the job, wouldn’t that be a loss? And why would you spend time on a “prospect” if the odds looked too low for a sale?

When we think this way, we spend an awful lot of energy. It’s hard work—particularly because much of it is spent trying to persuade customers to do what we (sellers) want them to do. And getting other people to do what we want them to do is never easy (if you have a teenager and/or a spouse, you know this well).

There is another way. It consists in simply and basically changing the entire approach to selling.

The first approach is the traditional, competitive, zero-sum-thinking, buyer vs. seller—the age-old dance that to this day gives selling a faint (or not-so-faint) bad name. It is one-sided, seller-driven, and greedy.

Social media haven’t made this approach to selling go away—they have empowered it. Just look at your inbox, spam filters, LinkedIn requests, Instagram feeds, Twitter hustles, and pop-up ads on the Internet.

And boy do you have to work hard to sell that way.

The second approach is different. The fundamental distinction is that you’re working with the buyer, not against the buyer. Your interests are 100% aligned, not 63%. If you do business by relentlessly helping your customers do what’s right for them, selling gets remarkably easier.

You don’t have to think about what to share and what not to. You don’t have to control others. You don’t have to white-knuckle meetings and phone calls because there are no bad outcomes.

Selling this way works very well for one fundamental reason: all people (including buyers) want to deal with sellers they can trust—sellers who are honest, forthright, long-term driven, and customer-focused. All people (including buyers) prefer not to deal with sellers who are in it for themselves, and constantly in denial about it.

This is the golf part of selling: the part where if you lighten up, relax the muscles, let it flow, you end up with superior results. And there’s a whole lot of truth to that view. If you’re working too hard, you’re not doing it right.

The Twelve Steps of Business Relationships

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Twelve-step programs are commonly known as ‘recovery’ programs – a structured approach to getting out of a problem situation.  But what if you turned that perspective on its head? What if you saw a program – particularly one with twelve steps – as something to advance you from an already-good situation to an even better, new level of life, thought, and – relationships?

Below are twelve steps to take when looking to grow strong, trust-based business relationships. Easy? Yes. Simple? Well, see for yourself.

With much respect and genuflection to the original source…

—–

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 in fact 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. Also:  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 transaction, 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?

Beyond the Sales Process: Interview with authors Dave Stein, Steve Andersen

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BSPangleI have known Dave Stein for many years. He’s an expert in the sales field, particularly in evaluating sales training. He has always been a clear and incisive thinker, with opinions as well-grounded in data as they are in thoughtfulness.

His new book, with Steve Andersen, is called Beyond the Sales Process: 12 Proven Strategies for a Customer-Driven World.

Dave and Steve shared some thoughts with me about the book, and about the state of selling.

———————–

Charlie: B2B selling and buying have been transformed during the past 8 years—what changes have you seen regarding the role of trust in selling? And as salespeople seek to adapt to those changes, how are they doing?

Steve and Dave: Beginning in 2008, when the last financial crisis hit, the concept of increasing revenues as a business objective was forced onto the back burner in many companies and replaced, or at least supplemented, with a scramble to reduce costs. In the process, the procurement function in many organizations gained unprecedented power, became more strategic, and began reaching further into daily operations.

Mostly unprepared for this fundamental transformation in their customers’ business practices, many salespeople found themselves in over their heads, often floundering in their negotiations with “the new procurement.” Under pressure to produce, they responded by upping the ante, throwing more products and services at their customers, despite supply being greater than demand in most cases, and – most importantly – despite the fact that many of their customers simply weren’t interested in these additional offerings.

The result has been a dismaying drop in the degree of trust that many contemporary buyers are able to place in their suppliers.

Charlie: Shocking – who could’ve seen that coming!

Steve and Dave: Right! Anyway, throughout this challenging period we observed consistently that sales professionals and account managers who truly understood their customer’s world—their wants and needs, the potential impact of external drivers on their business objectives, and the internal challenges they faced in meeting those objectives—continued to collaborate with and create value for their customers. For those top performers, earning credibility and focusing on the customer is an approach that continued to pay off.

Charlie: Makes total sense. So, what precipitated the two of you collaborating on a book?

Steve and Dave: After meeting and working together years ago at a software company we became friends and kept in touch as our careers continued on what might be considered parallel but related trajectories. Steve eventually leveraged his experience and expertise in B2B sales to establish Performance Methods Inc. (PMI), an industry-leading sales best practices consulting organization, and Dave authored his first book, “How Winners Sell” and went on to found ES Research Group, Inc. (ESR), an independent advisory firm that focused on B2B sales training.

When Dave closed ESR several years back, Steve seized the moment and proposed that we join forces and share what we have learned and experienced with other B2B sales professionals. A co-authorship was born and it was based on a common perspective—that sales needs to evolve in order to keep up with the changes that buyers have adopted. We also share a real concern that the sales training industry all-too-often leaves the “guest of honor” off the guest lists at the sales training parties: the customer!

Charlie: Indeed – seller-centric sales training is not the right idea. In the face of that drift away from the customer, what impact do you hope this book will have on the reader?

Steve and Dave: In the past eight years, and frankly even in the period leading up to the recession, the idea of a strong, enduring customer relationship has withered and commoditization has reigned. In the fierce competition for customers, value, trust, and credibility have been pushed onto the sales “back seat,” while features, benefits, pricing, and a willingness to discount in order to win business sit up front. Overall, our observation is that this hasn’t been a period of growth for the B2B sales profession, and for that matter, for business in general.

We wrote Beyond the Sales Process because we firmly believe that it’s time to rethink what has become accepted as the new norm—that in business, relationships and trust don’t matter so much any more. We disagree: not only do they matter, but we provide evidence in the book that relationships matter now more than ever.

Charlie: As you might imagine, I couldn’t agree more.

Steve and Dave: As salespeople ourselves, we also know that it’s not enough to simply urge our B2B colleagues (who face these challenges on a daily basis) to change their approach; they must be equipped with how to make those changes. They need to know why it’s crucial to rethink their approach, and they need to know how to implement strategies that will lead to more wins and greater success for themselves, as well as for their customers.

Beyond the Sales Process provides what we refer to in the book as “actionable awareness”—proven strategies and tactics for developing, offering, and creating unique differentiable value that will directly address the customer’s external drivers, business objectives, and internal challenges, as well as their individual wants and needs. And we substantiate this by providing examples of industry-leading companies, their customers, and the actual people that are creating and co-creating this value together.

Charlie: Companies don’t focus enough on developing new business from existing clients. What do you recommend for salespeople, account managers, and sales leaders seeking to build their trustworthiness and grow their relationships with their customers?

Steve and Dave: Most sales book focus primarily on that small period of time when there’s a specific sales opportunity on the table, and that’s absolutely an important topic. But there’s another area that is too-often neglected—“after the sale,” you have an existing customer that has experienced your value. Will they want to work with you again? Did they realize the value that you and your organization promised to deliver? As the salesperson, are you going to stick around to measure and validate the impact you delivered? Are you willing to apply the lessons learned and adapt your approach?

Your past proven value can and should be leveraged to build and strengthen your future relationship with your customer and provide you with momentum for the future potential value that you will create and co-create together. The strategies we lay out in the third section of Beyond the Sales Process provide a clear roadmap for how to make this happen.

Charlie: In your book, you frequently use the word “trust.” Since you know trust is near and dear to my heart, how do you respond to those who believe that relationships in sales don’t matter much anymore? How can you make time for trust in our high-pressure, fast-paced B2B world?

Steve and Dave: We’ve interviewed hundreds of customers over dozens of years, and not a single one has ever told either of us that relationships don’t matter. Credibility is a critical success factor for the contemporary salesperson—so as far as we’re concerned, the real question to ask yourself is this: how can I expect to be successful if I don’t make time to build trust?

This is not just a theory or a philosophical argument. Over and over again, the numbers show that it is considerably more costly to pursue and acquire a new customer than it is to grow your relationship with an existing one. And, when a customer trusts that you have their best interests at heart, there’s a good chance that they’ll want to talk to you, to consult with you, and to hear what you have to say before they start developing requirements for their next specific opportunity. If you haven’t developed a relationship with your customer based on trust, you can expect to hear about their next opportunity at the same time that your competitors do, or worse, you’ll realize that your competitor may have been able to influence your customer’s thinking and view of success while you were waiting for the RFP to arrive.

Before there’s a sales opportunity, the savvy salesperson realizes that they have an opportunity to build trust and credibility by understanding the customer’s world, how they define success, and by visioning value creation together. On the other hand, once the customer is in buying mode, they’re under a great deal of pressure, they’re stressed, and the opportunity to engage differently, explore possibilities, and vision success is lost. If you haven’t already taken the time to establish customer mindshare, you are just one of many providers clamoring for your customer’s attention, and you’ve missed a golden opportunity to build trust.

Charlie: You obviously put considerable work into creating, vetting, and getting approval for your case studies. How were you able to get companies such as these to contribute with such depth? What was it was like working with these industry leaders to capture their successes and best practices?

Steve and Dave: We’ve built trust with these companies over the years, and it’s reflected not only by their full participation in the case studies but also in their willingness to have their own customers to take part. They demonstrate that the twelve proven strategies actually work by using them to create trust-based relationships with their customers themselves. They have embraced the idea that it’s not about control or manipulation, or a methodology that every reader or company has to follow in lockstep, but instead an approach that puts the customer first and creates value for everyone involved. It was an absolute pleasure to work closely with these smart and successful industry leaders, their people, and their customers to give our readers insights and actionable awareness that they can use to ensure their success with their own customers.

Charlie: The market is responding favorably to the concepts in your book, including the notion of engage, win, and grow with your customers. How is this idea more inclusive, holistic, and customer-oriented than traditional sales approaches that have been around for a while?

Steve and Dave: Focusing on benefits rather than features has long been accepted as the “right” way to peddle one’s offerings, but we think it’s an approach doesn’t go nearly far enough. How can you sell on benefits to the customer if you don’t know what they value? How do you establish credibility when it’s obvious you haven’t taken the time to understand the world in which they live? How can you build on the value you’ve created after the sale closes to grow trust and credibility, and to expand your relationship with the customer? In Beyond the Sales Process, we look at all of this, and we equip the reader to implement a new, more contemporary approach for engaging, winning, and growing your customer relationships, and for selling in the customer-driven world in which we live today.

Charlie: That’s a great statement of the value of relationships in selling, and its linkage to some of the more traditional aspects of selling. Thanks guys for taking the time with us today, and best of luck with this excellent new book.

Destroying Trust with Just a Verb

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The Associated Press decided to drop the term “illegal immigrant” from its reporting. Their point: the term ‘illegal’ should be applied to actions, but not to persons. It’s the immigration equivalent of, “hate the game, not the player.”

Of course, that’s red meat to a lion for some. Senator John McCain said, “You can call it whatever you want to, but it’s illegal. There’s a big difference…I’ll continue to call it illegal.” And so the battle is joined. Where one side sees respect, another sees absurd political correctness.

This is a worthless, useless, and totally unnecessary argument. It is also typical of a great many pretend arguments – full of energy and fury, truly signifying nothing.

And who’s the culprit? A verb. To be precise, the verb “to be.” I’m not kidding.

The Tyranny of the Verb “To Be”

In Spanish (and other Romance languages, I think), the English “to be” actually has three forms: estar, tener, and ser. Estar refers to a temporary condition: he is tired, she is in Europe, I’m sick. Tener refers to “having” a passing state – I have hunger, you have thirst, he has luck. Ser, the third form of “to be,” has to do with permanence: he is a man, you are virtuous, she is from the US.

In English, all those forms translate into one word, to be: I am, you are, he is.

Why is that a problem? Consider these interactions:

“The new Bond movie is great.” “No it isn’t, it stinks.”

“He is always negative.” “No, he’s just realistic.”

“You’re not serious.” “I am totally serious!”

“He’s an illegal.” “How can you be so judgmental?”

Because we have only one verb in English to cover so many situations, we end up bludgeoning each other. Since we can’t distinguish our several meanings, we assume others mean the same thing we do.  And when it turns out they meant something else, we chalk it up to obtuseness and  bad will on their part.

Which explains why I always have good intentions – but you! You’re always working some angle.

The American Burden

We’re not about to add two new verbs to American English (I can’t speak for the British or the Strines). But it’s not like we’re handcuffed. All we need is a little clarity of thinking.

1. Distinguish between actions and actors. The AP had this one right. You can still morally condemn people if you want – just don’t be sloppy about your definitions of morality.

2. Distinguish between your preferences and the other’s characteristics. I am not annoying – you are annoyed.

3. Avoid using personal pronouns with “to be” except for “I” and “it.” We have a right to say “I am __.”  We don’t have the same right to say “you are __” or “he is __.”  Only a rocking chair is oblivious to the difference.

I am fairly confident it’ll work for you. Unless you’re seriously pigheaded, that is.

This post first appeared on TrustMatters.

Integrity: What’s Up With That?

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Like trust, integrity is something we all talk about, meaning many different things, but always assuming that everyone else means just what we do.  That leads to some vagueness and confusion. But a careful examination of how we use the words in common language is useful.

Integrity and the Dictionary

Merriam Webster says it’s “the quality of being honest and fair,” and/or “the state of being complete or whole.”

If you’re into derivations of words (as I am), then it’s the second of these definitions that rings true. The root of “integrity” is Latin, integer.  That suggests the heart of the matter (integral), and an entirety. “Integer” also has the sense of a non-fractional number, i.e. whole, not fragmented, complete.

In manufacturing, we have the idea of “surface integrity,” the effect that a machined surface has on the performance of the product in question: integrity here means keeping a package of specified performance levels intact. Similarly, a high-integrity steel beam is one that will not break or otherwise become compromised within certain parameters of stress.

Related also to this theme of wholeness is the idea of transparency, of things being whole, complete, not hidden – in this sense, we have high integrity to the extent we appear the same way to all people. Think of the phrase “two-faced” as an example of someone without integrity. (For a somewhat different and nuanced take on this issue in cyberspace, see @danahboyd on Mark Zuckerberg and multiple online identities).

Sometimes when we say someone has integrity, we mean they act consistently, in accord with principles. We say someone has high integrity when they stick to their guns, even in the face of resistance or difficulty.

Which raises an interesting question: where’s the line between integrity and obstinacy? For that matter, can a politician who believes passionately in the art of compromise ever be considered to have high integrity?

Then there’s that other common use of integrity that has a moral overtone – honorable, honest, upright, virtuous, and decent. Some of it has to do with truth-telling; but some of it has to do with pursuing a moral code.

Yet that raises another interesting question: can a gang member or a mafioso be considered to have integrity? Can an Occupy person ever consider a Wall Streeter to have integrity? Or vice versa? There may be honor among thieves, but can there be integrity?

Integrity – Your Choice?

So which is it?  Does integrity mean you tell the truth? Does it mean you operate from values? Does it mean you always keep your word? Does it mean you live a moral life? Does it mean your life is an open book?

Let’s be clear: there is no “right” answer. Words like “integrity” mean whatever we choose to make them mean; there is no objective “meaning” that exists in a way that can be arbitrated.

But that makes it even more important that we be clear about what we do mean. It just helps in communication.

For my part, I’m going to use “integrity” mainly to mean whole, complete, transparent, evident-to-all, untainted, what-you-see-is-what-you-get.

For other common meanings of “integrity,” I’m going to stick with synonyms like credible or honest; or moral and upright; or consistent.

What do you mean when you think of integrity?

This post first appeared on TrustMatters.

When the Client Cuts Your Face Time in Half

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Are you having trouble with scheduled client meetings getting blown off?

For example: your progress update meeting with the client is scheduled for an hour, starting at 11AM. You’re hopeful it might extend to a lunch invitation.

11AM comes and goes, and the client is still in a meeting. Word comes from the client’s AA that the meeting has to move to 2PM. At 1:30, it gets kicked to 5:30 – and it’s cut to half an hour, as the client really has to leave no later than 6PM.

What do you do?

This came up in a large workshop recently; the setting was such that only a 1-minute answer was appropriate.  I gave the 1-minute answer – and I’ll include the longer answer here.

Involve the Client in Problem Resolution 

The quick answer is you start the meeting by saying something like, “Listen, it’s late in the day, and it sounds like yours has been hectic. Ending up in a review session may not be your idea of a good time. Would you rather reschedule?”

And then go with the client’s answer, whatever it is. If the client prefers to push on, then do so. And you’d better be willing to trim your presentation to 30 minutes, rather than trying to double-time it, or passive-aggressively running out of time.

The principle here is to make the client part of the problem resolution.

Involve the Client in Problem Definition

The longer answer is to make the client part of the problem definition – not just problem resolution. Why is it that a previously scheduled meeting slipped so drastically?  That it got cut in half?  That’s a discussion worth having on occasion.

Is it because the client doesn’t particularly care about an update, and it’s really your need for approval that’s driving the meeting? Are you able to specify real decisions that are needed from the client? Is this a box-ticking meeting to fulfill your internal processes? Are you trying to cover your behind? Do you know what the meeting was bumped for, and are you satisfied with the decision? Is this a meeting that neither one of you really wants, resulting in joint procrastination – and if so, what’s that about?

The answers may be perfectly innocuous, or they may uncover a deeper issue – where there’s smoke, there might be fire. The point is not about the answers – it’s about having the vulnerability and courage to re-invite the client to visit the tough questions, to define the issues jointly.

 

The Trusted Executive: John Blakey

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John Blakey is a UK-based author, speaker and executive coach. He just came out with a new book, The Trusted Executive. In this issue of Trust Matters, I chat with him about the book, and about his view of trust.

John, welcome to Trust Matters. You’ve got a new book out – The Trusted Executive. It’s your second book, right? Why did you write this book?

You could say this book is the story of my life! And hopefully, the story of all our lives at least in some part. It’s about how trust is lost and how trust can be regained.

I was reminded of this by the events of the global financial crisis of 2008-2009; a time when trust in ‘big business’ was lost and we all paid the price. A devastating event that jarred our notions of what we expect from executive leadership. Sometimes it’s helpful to forget the impact of such a breach of trust, to move on and to keep yourself busy. But other times we need to stop and think and learn the lessons we need to learn.

My own response was to first write a book called ‘Challenging Coaching’ with my colleague, Ian Day. The purpose of this book was to help the executive coaching profession learn the lessons it needed to learn from the global financial crisis. I then enrolled on an executive doctorate at Aston Business School in 2012, because I wanted to research the lessons that the wider world of business leadership needed to learn from the events of 2008-2009. This research path led me to the work on trust and I devoured the academic literature, before interviewing a host of CEOs on the topic of trust, including those in the UK, US, Europe and Asia. Gradually, my thoughts became clearer and ‘The Trusted Executive’ started to be written.

At the end of the day, I care about the reputation of business and it makes me sad that this reputation has been damaged in recent years. I have committed thirty years of my career to being a business leader, whether that be as the international managing director of a global multi-national or as an award-winning entrepreneur. Like many others, I came into business because I thought it was a force for good in the world. It seems we are at risk of losing that reputation and we need to show we care about getting that reputation back.

Excellent, thank you. I am aware, as of course are you, of the dwindling levels of trust in business these days. Say something about that?

The topic of trust has been brought to the fore by a number of recent events. Not just the global financial crisis I have just mentioned, but also the series of corporate failures and scandals that have occurred since 2008 – the events at FIFA, Volkswagen Group, Barclays Bank and BP.

Against this backdrop, the trustworthiness of business organisations continues to suffer. The 2014 Edelman Trust Barometer found that only one in five public respondents trusted business leaders to tell the truth and make ethical and moral decisions. Furthermore, only 43 per cent of respondents would trust a company CEO (compared to 62 per cent who would trust ‘someone like myself’.)

A recent paper from the Council on Business & Society summed up the mood when it stated ‘Society’s trust in corporations and their executives is dismally low, with the crisis in leadership fuelled by a relentless media cycle and a growing consumer influence through the global spread of information and viewpoints over the internet.’

Give my readers a quick story line of the book, if you would please?

The story goes like this:

In the old model of business, leaders worshipped profit and got things done through intellectual ability and authority. This worked to a degree and for a while. But transparency has broken the old model. Through globalization, diversity, technology and shifting demographics we now see through the opaque lives of organisations. As a result, we have lost trust in authority and lost trust in organisations and leaders who worship profit.

Authority as the glue of organizational life is no longer sufficiently ‘sticky’ to hold it all together. We need a new glue. The new glue of business of is partly a broader sense of purpose (results, relationships and reputation) and partly a deeper bonding of stakeholders through trust. Leaders need to take their trust-building skills to a completely new level if they are to create this new glue of 21st century business life.

Of course, the devil is in the details. What’s your view of how we do that?

Building trust is not as simple as delivering on your promises. I posit trustworthiness as ability x integrity x benevolence. For each pillar of trustworthiness, the book proposes three habits that modern leaders need to master. Typically, our understanding of trust has amounted to solving only 10% of the problem. Successful leaders will master all nine habits.

Some habits are familiar to us, such as choosing to deliver, to be honest and to be open. Others are more radical and challenging such as choosing to be morally brave, to be kind and to be humble.

Through these habits we will architect a new business model populated by trusted executives. This will be a model fit for diverse 21st century stakeholder of business and a model that will drive not just financial results but also inspiring relationships and a positive, long term reputation.

Give me a specific example, if you would? Say, a habit from the integrity section?

Under the pillar of integrity there are three habits – choosing to be honest, choosing to be open and choosing to be humble. If we take choosing to be open as an example, according to a 2014 survey of 1,600 managers in the UK by the Institute of Leadership & Management, openness is by far the most significant driver of trust. This finding was backed up by various CEO comments in my own research interviews such as ‘The first way to build trustworthiness is through open communication.

Consistent, open communication builds a belief that you are being told everything you need to be told’ and, ‘As a Chair going into a company, I get an instinct about the CEO. It’s really important what my gut feeling says about their trustworthiness. I’m testing it out all the time. I’m watching how open they are.’

But openness is not simply about telling the truth. Being open goes beyond being honest; it involves speaking the truth and then giving something more. Being open requires a leader to expose themselves and reveal some vulnerability. As Patrick Lencioni, puts it, choosing to be open involves ‘getting naked’.

In the book, I explore how leaders can show appropriate vulnerability and openness without undermining their credibility in front of their followers. At its root, this involves reframing their perception of vulnerability as a strength of the modern, 21st century leader who is focussed upon building trust rather than a weakness of the 20th century leader who was focussed upon winning battles regardless of the longer term cost to their underlying relationships.

What is your greatest wish for the book?

That it spark a debate in the boardroom regarding the role of trust in a modern business. I hope it will make CEOs and corporate leaders sit up and think again about their individual role in the trust-building challenge and so inspire them to commit to new habits for themselves and their organisations.

Beyond this, it would then be a bonus if the book’s impact leaks further outside the business realm into the worlds of education, politics, sports and parenting, where trust is also a key driver of success and sustainability.

I have a colleague in Slovakia who is writing a version of the book for 10-12 year olds which will convert the book’s messages into a parable for children based on the progress of a sports team competing in a handball tournament. I was initially surprised that he saw the relevance of the book to children, but then I suppose trust is something inherent to all successful relationships whatever your age or your profession.

How can the book help business leaders at a practical level?

It should help them to deliver outstanding results; inspire relationships; and leave a positive long term legacy.

I hope that after reading the book, business leaders will understand why trust is such an important driver of success, and why it is becoming ever more critical in a world where nothing can be hidden. The models in the book will help leaders translate this understanding into practical steps to improve their own trustworthiness and that of the organization as a whole.

On the one hand, this involves role-modelling specific behaviours on a day to day basis. On the other, it involves leading transformational change across the whole organization and instilling a culture of trust. It is both a micro and macro level challenge.

We also know that we all make mistakes. The book will help leaders recover from mistakes where trust has been damaged quickly and effectively through using proven coaching techniques that I’ve practiced myself and taught to over 120 CEOs across 22 different countries in my role as an executive coach.

If you could share only three insights about trust with a business leader what would these be?

First, I’d stress that trust matters. Whether you look at the academic research or listen to the front-line leaders, that it is clear. In 2002, Tony Simons and Judi Parks at Cornell University conducted a survey of more than 6,500 employees at 76 US and Canadian Holiday Inn hotels. They discovered that a one-eighth improvement in a hotel’s score on leadership trustworthiness led to a 2.5% increase in profitability. They concluded that ‘no other single aspect of manager behaviour that we measured had as large an impact on profits’.

Second, you cannot control trust. According to Rousseau, ‘Trust is a psychological state that comprises the intention to accept vulnerability based upon positive expectations of the intentions or behaviour of another’. It is my psychological state and my decision. Whatever you as the leader thinks, says or does, you cannot force me to trust you. However, as a leader, you can influence my decision and what influences my decision is your level of trustworthiness.

Finally, trust and authority are not the same thing. In the past, we trusted people because we were told to trust them by people in authority. When you were a child, you watched the politician speaking on TV and you might have said, “he looks a bit shifty to me”, and, no sooner had the words left your lips, your mother would snap back, “But you should trust the politicians!” “Why mum?”, “Because they are politicians”.

That is how it used to work, but this model is breaking down. As part of my research into trust, I interviewed Ben Page, CEO of the market research company, IPSOS Mori. Ben told me that their surveys reveal the level of deference to authority is dropping with each successive generation. Today, he says, only 29% of us believe that those in charge know best.

Who inspires you as a trusted executive in the business world?

There are some great role models out there, but if I had to pick one it would be Paul Polman, the CEO of Unilever. When it comes to ‘big business’, they don’t come much bigger. They have 172,000 employees, annual revenues of more than $50 billion and sell products in 190 countries.

When Polman was appointed CEO in 2009, he launched the company’s ‘Sustainable Living Plan’, which has since become a benchmark for triple bottom line thinking. The ‘Sustainable Living Plan’ aims to reduce Unilever’s environmental footprint and increase its positive social impact while also doubling sales and increasing long-term profitability. In 2014, a review of the ‘Sustainable Living Plan’ revealed the following progress:

  • Unilever’s ‘Sustainable Living’ brands accounted for half of the company’s growth and were growing at twice the rate of the rest of the business.
  • More than 55 per cent of Unilever’s agricultural raw materials were being sustainably sourced, more than half way to the 2020 target of 100 per cent.
  • CO2 emissions from energy and water in manufacturing had reduced by 37 per cent and 32 per cent per tonne of production respectively.
  • Unilever had improved the health and wellbeing of 397 million people; 40 per cent of the way towards its 2020 goal.

The punchline is that, in the same period, Unilever’s share price rose by more than 40 per cent! The story of Unilever under Paul Polman’s stewardship shows that a company can deliver results, relationships and a positive long term reputation in society as a whole. It is an inspiring story and I was privileged that Paul wrote the foreword to my book because I can think of no-one else who is currently ‘walking the talk’ as well as he does.

 

Thanks John for taking the time to share your thoughts.

 

Can Trust Replace Contracts?

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Too often trust is thought of as a nice-to-have but vaguely soft, squishy, liberal sort of relationship thingy. Not often enough do we realize it also holds the key to reducing costs and time, and to fostering innovation and new value creation.  It also mitigates risk.

It’s true: trust is highly profitable. Consider how Warren Buffett acquired McLean Distribution from Walmart. By deciding to trust the management team at Walmart, Buffett reached an agreement in a matter of days and at minimal cost, saving months and many millions in cost.

You may be saying, ‘Fine—but who’s going to double-cross Warren Buffett? It’s different for him.”

I don’t think so. Let me add my own small lesson.

To Sign a Contract? Or to Trust?

In addition to speaking and writing, I run a seminar business. I’ve spent this week training a half dozen worldwide potential trainers, sharing with them all the training manuals, approaches, ideas and concepts that I have developed over the years.

Normal procedure would be for me to have them all sign a non-disclosure agreement to protect my intellectual property, which is, after all, the source of my livelihood. Such agreements can be more or less complex. If violated, they give me the legal right to pursue redress in courts in various countries should one of my licensees/coaches/contractors abscond with my materials or be found to be using them for their own purposes without properly getting my approval or compensating me appropriately.

I could have done that.

Instead, I explained to them that I would prefer to trust them to do the right thing. We went through a 60-second ceremony. All of us raised our hands and, looking at each other, pledged two things: to respect my intellectual property in the commonsense way they felt was right; and if there was any question about what that meant, to talk to me and the rest of our team about it.

No papers. No contracts. Nothing written. Not enforceable in any court of law.

Where’s the Enforceability in Trust?

I feel more protected by this oath than I do by any legal agreement I might have signed. Why? Certainly not because it’s enforceable in a court of law.

Rather, because it’s enforceable in a higher court; the one of their conscience. Conscience is triggered by conscious, collaborative relationships between human beings.

I have no doubt that this group of people, with whom I have worked closely over several days and for months preceding this gathering, will honor the pledge. I trust them. This is partly because of who I know them to be, and also partly because I trust them.

Trust is not something you work on directly; trust is a result. It is the result of two parties interacting: one who trusts, and the other who is trusted. You can practice both trusting and being trustworthy. Probably the fastest way to make people more trustworthy is to trust them first.

Is it risky? Of course.  But I think it is less risky than relying on the rather impersonal and tenuous threads of trademark law. My recourse to legal violations is courts, which are costly, time-consuming, and generally manufacture ill-will in the pursuit of their justice.

By contrast, trusting my business relationships itself increases their trustworthiness, which also lowers my risk–and at near-zero cost. My means of enforcement is pre-installed within them in the form of their consciences.

It’s a win-win. Except maybe for the lawyers.

And frankly I think there’s room for lawyers to gain from this too. But that’s another blog.

 

This post first appeared on TrustMatters.