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Four Principles of Organizational Trust: How to Make Your Company Trustworthy

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This week, as we get ready to say goodbye to 2012, we’re going to be posting some of what we call “Golden Oldies,” great posts from our Trust Matters vault. We hope everyone has a safe and happy holiday and wonderful New Year.

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iStock_000018524776XSmallTrust, in case you hadn’t noticed, has gotten “hot” lately. But much of it sounds very vague—soft, fluffy, nice-to-have, the buzzword du jour.

I’d like to do my part to make it real.

To me, that means breaking it down and making it sound; tapping into the strategy and mysticism, but also staying grounded in the tactical and the practical.

So let’s review some context; then talk about four specific operating principles a business can hone in on to improve its trustworthiness.

Putting Trust into a Workable Context

I’ve suggested elsewhere that “trust” is too vague a term to work with. To do something practical, we need first to identify the trust realm: are we talking about personal trust, or business/organizational trust, or social/institutional trust?

The next question is about the trust role: are we working on being more trusting? Or more trustworthy? They are not the same thing.  And “trust” is the result of them both interacting.

Building a Trustworthy Business

In the realm “personal” and the role “trustworthy,” we can point to personal beliefs and behaviors as indicated in the Trust Quotient. But in business, trustworthiness is built through a set of daily operating principles. Trustworthiness is built from habitually behaving in accordance with a set of commonly shared beliefs about how to do business.

I suggest they can be boiled down to four.

The Four Trust Principles

1. A focus on the Other (client, customer, internal co-worker, boss, partner, subordinate) for the Other’s sake, not just as a means to one’s own ends.  We often hear “client-focus,” or “customer-centric.” But these are terms all-too-often framed in terms of economic benefit to the person trying to be trusted.

2. A collaborative approach to relationships.  Collaboration here means a willingness to work together, creating both joint goals and joint approaches to getting there.

3. A medium to long term relationship perspective, not a short-term transactional focus. Focus on relationships nurtures transactions; but focus on transactions chokes off relationships. The most profitable relationships for both parties are those where multiple transactions over time are assumed in the approach to each transaction.

4. A habit of being transparent in all one’s dealings.  Transparency has the great virtue of helping recall who said what to whom. It also increases credibility, and lowers self-orientation, by its willingness to keep no secrets.

Executing on the Trust Principles

What are the tools an organization has at its disposal to make itself more trustworthy? Any good change management consultant can rattle off the usual suspects, but for trustworthiness, the emphasis has to shift somewhat.

The usual change mantra includes a heavy dose of behaviors, metrics and incentives. Some of that works here, but only to a point.

For example, Principle 1, focus on the Other, is contradicted by too much extrinsic incentive aimed at leveraging self-interest–it undercuts focus on the Other.  And Principle 3, relationship over transaction, forces metrics and rewards to a far longer timeframe than most change efforts employ.

Another great shibboleth of change is that it must be led from the CEO’s office. But with trust, it ain’t necessarily so.  Trustworthiness is a great candidate for infectious disease change strategies; guerrilla trust strategies can work at the individual level, and individual players can lead. Behavior in accord with these principles cannot be coerced; the flipside is, it can be unilaterally engaged in.

The most powerful tools to create a trustworthy organization are things like language, recognition, story-telling, simply paying attention to the arenas where the principles apply—and the will to apply them.  Role-modeling helps; some skill-building helps.  But most of all, it is the willingness to notice the pervasive opportunities to work in accordance with this simple set of four principles.

Trustworthiness breeds trusting (the reverse is true too); the combination is what leads to trust. Which, by the way, is quite measurable in its impact on the bottom line.

Trust on the Rocks

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You know those exercises where you fall back into a partner’s arms and trust that he or she will catch you?  What if that person is a family member, like a 16 year old daughter, or 18 year old son?

Do you trust them?  What if your relationship is on the rocks?  Literally!

Our family spent Thanksgiving rock climbing, outdoors, at a local quarry.   I like to think of it as complex cliff climbing; though for experts like my kids, the 50-75 foot climbs were mere child’s play.

There’s a lot to learn about trust when rock climbing.  For example, see this three part series in July, 2012 “Three Things You Need to Know about Trust” by Charlie Green.  Three distinct topics emerged:

Trust Fall? Try this!

  1. Trust is a Two-player Game
  2. Trust Requires Risk
  3. Trust is Reciprocal

As Charlie notes:  one party must do the trusting, and the other party must be trusted.  That is true in business and personal life, as well as in climbing.  And it’s risky.  All involved must trust each other in order to do well, be safe and have fun. 

Securing the Ropes 

In rock climbing, if the rope isn’t secure at the top of the cliff – well, I don’t want to go there.   So the climber must trust the one who secures the rope.  That person must be credible, one of the elements of the Trust Equation.

Climbers might be comfortable climbing on the ropes they set themselves.  I, for one, am not yet experienced enough to know what a secure top rope should even look like.  However, I do know my kids who secured the ropes.  They are careful, and take calculated risks.  They learn before they do, and they learn from people who know what they are doing.  So I simply trust that it will be done right.  And I don’t worry about it.  How often do we do that in business?  In life?

On Belay – Belay On; Climbing – Climb On

Top rope rock climbing is about more than trusting that the foundation is secure.  It’s trusting that the partner belaying (anchoring and holding the rope at the bottom) you will not let you fall.  And it’s reciprocal.  When there are only two of you, you have to belay the person who belays you.

Belay me downRemember the trust fall exercise?  Try this: imagine you are 50+ feet high on a rock wall with a 90 degree slope, and the only thing between you and a hospital bed is your 16 year-old daughter.

As I leaned back, I worried needlessly about whether the fact that I weighed a lot more than her would send her flying off the ground if I fell.  After all, she wasn’t secured to the ground.  At one point while I was descending, she wasn’t even watching – just feeling the tension on the rope and releasing it at just the right speed so I could safely descend the cliff until I reached the bottom.

I belayed for her climb next.  She didn’t worry about anything.  She tried something.  It did not work.  She fell and trusted that I would catch her.  And I did.  Several times.  Once when she dropped a little further than she would have liked, I got the “how did that happen?” look from her.  But she trusted it wouldn’t happen again.  And it did not.

By trusting her, and her trusting me, we strengthened our bond.  We knew we wouldn’t let the other get hurt, and we got to prove it a few times.  It kind of made us reliable.  This was repeated with each of my other kids as well.  Among all of us, I was the least trusting – and they knew it.

Trust Yourself Too

I had difficulty with one of the climbs – all right, all of the climbs.  But on one of them, my kids gave me sage advice.  “Just trust that you can do it.”  “It will be ok.”  “Take a risk.”  “Try it – we don’t know what will work either until we do it.”  “Commit.”  “The worst that will happen is you will fall and I will catch you.“

They had me on the last one.  And each of them was very reliable.  After all, I got home safely and could write this.

Next time, I will practice trusting even more.  Because the more I can let go of fear and just trust that it will work out, the better I will do, the more I will be able to do, and the more I will enjoy it.  And with rock climbing, with my kids, the more I trust them, the more we connect, bond, and appreciate each other.

Funny thing.  Doesn’t that apply to most everything in life and in business?

 

 

Who Do You Trust? Honesty Ratings by Career

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Periodically, someone does a survey on the trustworthiness of various professions. Last month it was time for Gallup to do their annual poll of “Honesty and Ethical Standards of Professions.”

All the fun happens at the bottom of the list. The good news for politicians is that their ratings were up from last year. The bad news is that puts them in next to last place, just ahead of car salesmen.

Over the years, the ratings of engineers have gone steadily upward. Pharmacists and doctors rate near the top of the lists, as they have for years.

But heading the list of most honest and ethical professions are – nurses. As the article puts it:

[nurses] have scored at the top of all professions every year since they were first included in the list in 1999 — apart from 2001, when Gallup asked about “firefighters” on a one-time basis after the Sept. 11 terrorist attacks. Nurses receive a 10-percentage-point higher rating than pharmacists, who in turn are five points above medical doctors.

This finding makes perfect sense if you’ve followed the findings of Trusted Advisor Associates’ Trust Quotient Assessment, outlined in the White Paper – Think More Expertise Will Make You More Trusted?  Think Again.

The Trust-Power of Intimacy

These findings are based on the four factors of the Trust Equation – credibility, reliability, intimacy, and self-orientation. Based on 12,700 people who took the assessment (since grown to over 25,000), it turned out that the most powerful of the four factors was – intimacy.

High overall trust scores were more highly correlated with high intimacy scores than with any other component. (Intimacy in this study was defined as giving others a sense of security and willingness to confide in them).

Interestingly, women scored as more trustworthy than men. And almost all of the higher ratings for women were due to women’s higher score on one of the four factors – intimacy.

Back to nursing. Ask yourself: which of the four trustworthiness factors are most associated with nursing? Intimacy comes top of mind. We are, figuratively and literally, naked before nurses, and we trust them. It makes perfect sense that nurses consistently outrank all others in most-trusted-professions surveys.

The Soft Stuff is the Hard Stuff

If you’re interested in improving trust in your organization, or in becoming more trustworthy as an individuals, the best route there lies not just through advanced degrees, track records and testimonials – it lies in increased intimacy.

Intimacy correlates with a group of what’s commonly known as “soft” attributes – emotional intelligence, listening, empathy.  Want to move the needle? Show some hard results? This is how you do it. The soft stuff turns out to be the hard stuff.

The Fast Track to Partner: An Interview with Charles H. Green

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Across the pond there’s a slew of interesting and driven professionals making strides towards building a stronger foundation for business–one built heavily on ideas of cultivating trust-based relationships and business practices. That group includes, though is not limited to, Ian Brodie, Sonja Jefferson, David Tovey – and Heather Townsend.

Heather’s just-published book is How to Make Partner and Still Have a Life. She also hosts an insightful audio-based masterclass series entitled, “Fast Track to Partner.”

This interview-based series is full of tips, action items, and stories. If you’re on partner track somewhere, or are wondering whether you want to be, you want to check this out.  And I’m not just saying that because in her latest edition, I happen to be the expert interviewee.

Heather and I spoke last week about how to be a trusted advisor.

Listen to the audio version of my Fast Track To Partner interview. Or, if you’re more of the reading type, we’ve included the full transcript of the interview.  

Thanks Heather, and best wishes on the book.

 

 

The Power of Transparency in Marketing

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It’s a temptation that lures almost all marketers and salespeople: the desire to limit and control information to consumers. It seems so obvious – lead with your best attributes, downplay your least. Yet in many cases, this impulse turns out to be quite wrong.

An example – online car auctions:

Common sense would suggest some information—a car’s age and mileage—is essential, but that total transparency about other things (precise details on subpar paintwork) might deter buyers, and lower auctioneer commissions.

[Two researchers] set up a trial, randomly splitting 8,000 cars into two groups. The first group were auctioned with standard information, including age and mileage. The second had a detailed report on the car’s paintwork.

The results were striking: cars in the second group had better chances of a sale and sold for higher prices. This effect was most pronounced for cars in poorer condition: the probability of a sale rose by 23%, with prices up by 5%. The extra information meant that buyers were able to spot the type of car they wanted. Competition for cars rose, even the scruffier ones.              The Economist

The example is from an article about insights that micro-economists are bringing to business, but you don’t have to be an economist to get it.  Our trust in the seller, as well as our trust in the product, is increased when we know we have access to all relevant data.

Transparency in Talent

(Many) years ago I coordinated MBA recruiting for a small consulting firm. Our competitive offers fared poorly in terms of acceptance against BCG, Bain and McKinsey. Then I had an idea.

We had a worldwide partners’ meeting scheduled in Boston during recruiting season. I arranged for a select group of MBAs from Harvard and Sloan to have cocktails and dinner with all of our partner group (about 30 people at that time). The pitch was, we were the only firm who would offer 100% access to all partners worldwide.

Now, MBA students are not nearly as risk-seeking as they’d like you to believe – not, at least, about their first job. It turns out that the promise of transparency removed lots of perceived downside risk, and our acceptance rate soared that year.

Transparency in Marketing and Sales

The biggest fear consumers have of salespeople is that the salesperson will manipulate or mislead them – so their default position going in is mistrust. The early phases of a buying decision are also the times when the buyer has the least amount of information. In other words: salesperson suspicion is highest when the customer has the least data.

The answer seems obvious: make all relevant information easily available to consumers, in a manner which they control, and which minimizes the chance of manipulation. Your website, for example.

Having self-educated, consumers will then seek out salespeople for advice that goes beyond the data (does this work with Windows XP? can you customize it for wholesale grain distributors?). And this time, the interaction is near-free of suspicion.

The success of both inbound marketing and content marketing give evidence of the increasing use, and success, of this simple insight: transparency in marketing and sales helps all parties.

Good marketing and sales are enhanced by following trust principles, not by avoiding them. What’s good for the buyer is good for the seller too.

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

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

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

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

The Apparent Problem

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

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

To recap quickly:

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

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

Here’s what caused the hullaballoo:

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

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

Willful, Wishful Denial

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

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

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

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

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

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

It’s the Culture, Stupid

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

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

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

Warning: Don’t Read This Blogpost

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Well, well. You saw the title, right?  And yet here you are, reading this blogpost.

Worse yet – you’re probably here reading this blogpost because you saw the title warning you not to. What does that say about you?

We Are All Teenagers

You’re hardly alone. People don’t really ever grow out of our rebellious teenage phase.  You know, the phase where whatever someone tells you to do just drives you in the other direction?

Partly that’s about finding our wings. But mostly, I suspect, it’s about wanting respect from the Others – in teen-hood that’s parents; in adulthood, it’s Everyone Else.

Whatever the reason, I suggest to you: we are all teenagers.  We all do not like being told what to do. In fact, we are sorely tempted to do the opposite of what we are told to do.

Teenage Buying

The implications for sales are profound. Permanent teen-hood means a continual state of resisting being told what to do. It would seem obvious that the worst way to sell someone, the worst way to get your advice taken, the worst way to persuade another to your worldview, is to tell them what they should do/think/believe/buy.

And yet – salespeople everywhere insist on trying to sell us.

The best way to persuade someone turns out to be paradoxical – you mainly listen to them.

That’s right – to best persuade, first stop trying to persuade.  In fact, stop talking. Listen. The natural reaction of our species is then to return tit for tat, listen for listening.

As proof, here are some time-tested samples of folk-wisdom that express the same point more eloquently than I can.

You might even try it on a teenager. It worked for me, and on me.

How Not to Get a Guest BlogPost Spot

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Guest blogging is a valid and potentially powerful strategy for getting your message out and increasing your audience. Danny Iny, for example, teaches people very well how to do it.

But as night follows day, a good social media idea will be jumped on immediately by those seeking low cost high volume.  To wit, a recent example:

Hi There,

I am sure you get pitched on guest posts on a daily basis so I’ll keep this short. I am a long time reader of your blog and have been meaning to contribute – but I held back because I didn’t have a great idea that I think you’ll love.

Well, now I do. I stumbled upon an interesting topic on [topic which I can’t imagine readers of this blog wanting to read].  The article will help your readers become better equipped when dealing with such scenarios. Would you be interested in a guest post about the topic?

Well, at least he capitalized “There,” as in “Hi There.” I hate it when I get lower-cased. (And by the way, this letter was better than most; and, it’s clear his intentions were good. But, that’s not good enough).

People, people, people. How many times must it be said? Fake is fake, and real is real. Stop faking it.

A long-time reader of my blog would have known my name – and taken the time to use it.  (Also, he would have sent it to my email address, readily enough available, rather than to my info@ address).

A long-time reader of my blog would also have some kind of clue about what sort of material is of interest to my readers.

If you want to read someone intelligent about guest-blogging, go read Danny Iny on the subject. He’s good.  And one of the things he’ll tell you is to start with an honest list of names you’d like to guest-post on, and a list of topics you might address.

Only – you have to think about it!

You Actually Have to Think About It

This is where so many fall down. They think blogging, and writing, and thinking, and work in general, consists of punching one shiny object button after another. But it doesn’t – not when it comes to content.

When it comes to content, content matters.  Not fake lame-oh quasi-content, I mean something that is meaningful to the blogger you want to write for.  You can’t just mail it in.

It reminds me of an alleged dating strategy back in college: “Hi, nice to meet you – wanna have sex?”  The theory went, your odds were pretty low, but if you propositioned enough women, you were bound to get lucky.

The problem being, the odds were really, really, really low. And since time and any given college campus are finite, you run the risk of alienating a lot of future interactions by deploying it.  All in all, probably not a great dating strategy.

Nor is this approach to guest posting. If you’re going to offer to guest-post on someone’s blog, for heaven’s sake find out their name, for starters; and do them the simple dignity of thinking through what might actually be useful.

Your odds might get a lot better. And you wouldn’t trash the market on your way through it either.

The Impact Equation: New Book by Julien Smith and Chris Brogan

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Yesterday was the official publication date of Chris Brogan and Julien Smith’s new book, The Impact Equation: Are You Making Things Happen, or Just Making Noise?

They are doing some cool promotion for the book; check it out on Julien’s site.  Meanwhile, I wanted to get out the word and give readers an early quick review, since I pre-ordered it and downloaded it to read yesterday.

It’s a very good book, first of all.  I have always had a lot of admiration for Julien and Chris, ever since meeting them at the Trust Summit in New York three years ago, shortly after their best-seller Trust Agents had come out.

This book reminds me why I like them so much, and why I get so much out of them every time I interact with them.

The Structure

Chris and Julien have an obvious flair for being cutting-edge social media communicators; so much so that it’s easy to overlook that they are serious subject matter masters. The subject they bite off here is pretty aggressive – how an individual can have an impact in today’s emerging business world.

This is a non-trivial book; it’s way beyond how-to, and will provoke your thinking on many dimensions, if you let it.

The book has a big picture structure:  think of two axes with “impact” on one dimension, and “plan” or “organization” on the other.

The “Impact” part of it I think of as coming mainly from Julien: they’ve got a very clever 5-part acronym (CREATE) which deconstructs the components of Impact. They are: Contrast, Articulation, Reach, Exposure, Trust, and Echo (echo).

Expressed as an equation, it is: I = C x (R + E + A + T + E).

Using an equation is a nifty idea (think the Trust Equation); it gets you thinking about relationships, magnitudes, and interactions. Very useful stuff.

The other dimension I think of as coming more from Chris: Goals, Ideas, Platform, and Network. Chris has a knack for organizing the world in Big-Picture, but very practical and provocative ways.

Making It Work For You

Just like Chris and Julien, these axes form a powerful combination. The book shows you how to think about your Impact in each of those critical areas (Goals, Ideas, Platform, Network).  And it’s  loaded with practical advice.

But that’s jacks for openers. What I really love about Julien and Chris (and I’m hardly alone in this) is that both are about as genuine, real, and sincere as you can get. Their whole approach to doing business reflects this. Their business strategy is a human business strategy.  The point of social media is to serve people, not vice versa.

And it works.  They are prime examples of it themselves, which is yet another reason the book is a delight.

I hope they sell a ton of books, they deserve it.

 

 

 

 

 

Trust-based Selling

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The goal of most selling is to make the sale. The goal of trust-based selling is to help the customer; the sale is an outcome, not a goal.

In trust-based selling, the right time to mention price is when it is useful to the customer to know it.

In trust-based selling, you don’t “handle objections” – you jointly explore the fit of the solution.

In trust-based selling, hard-sell is not a sin – wrong-sell is.

In trust-based selling, the acid test is whether or not you’d refer the customer to a competitor – if the competitor has the better solution.

In trust-based selling, a sale transaction is just an event along the path of a relationship.

In trust-based selling, the default mode of presentation is transparency.

In trust-based selling, the time-frame is lifetime. Assume that you will meet this customer again, along with his or her customers, cousins, bosses and Facebook friends, and that every interaction is evident to all of them instantly. That’s your reputation.

Trust-based selling relies on the proposition that people return good for good, and bad for bad. If you treat a customer respectfully and with trust, and they happen to need what you are selling, the natural response is to buy it from you.

That proposition is not only an ethical template – it is a business model.

Trust-based Selling: McGraw-Hill, also available in Kindle and CD-ROM format. It’s a good book.