1. Some Impressionistic takes from the book
Stephen M.R. Covey’s
“ The Speed of Trust”
Trust”
by Ramki
ramakrishnan@gmrgroup.in

2. About the Author
Stephen M. R. Covey is co-founder and CEO of CoveyLink Worldwide. A
sought-after and compelling keynote speaker and advisor on trust trust,
leadership, ethics, and high performance, he speaks to audiences
around the world. He is the author of The SPEED of Trust, a
groundbreaking and paradigm-shifting book that challenges our age-old
assumption that trust is merely a soft social virtue and instead
soft,
demonstrates that trust is a hard-edged, economic driver—a learnable
and measurable skill that makes organizations more profitable, people
more promotable, and relationships more energizing. He advocates that
nothing is as fast as the speed of trust and that the ability to establish
establish,
grow, extend, and restore trust with all stakeholders is the critical
leadership competency of the new global economy. Covey passionately
delivers that message and is dedicated to enabling individuals and
organizations to reap the dividends of high trust Audiences and
trust.
organizations alike resonate with his informed, practical approach to real-
time issues that affect their immediate and long-term performance.

3. Prelude
Trust is so integral to our life both in personal & professional platform . We often
take relationships for granted. In an era marked by business scandals and a desire
for ownership & accountability this book by leadership expert Mr. Covey is a
welcome guide to nurturing trust in our lives.
Drawing on anecdotes and business cases from his years as CEO of the Covey
Leadership Center the th
L d hi C t , th author effectively reminds us th t th ' plenty of room f
ff ti l i d that there's l t f for
improvement on this virtue. Following a touching foreword by father Stephen R.
Covey (author of The 7 Habits of Highly Effective People and related books), the
j
junior Covey outlines 13 behaviors of trust-inspiring leaders, such as demonstrating
y p g , g
respect, creating transparency, righting wrongs, delivering results and practicing
accountability.
Mr.Covey's down-to-earth approach and disarming personal stories go a long way
to establish rapport with his reader, though the book's length
Happy Reading

4. 1
Trust & its Economics

5. Context- Trust
 Trust means confidence
 When we trust people, we have confidence in them – in
their integrity and in their abilities.
 When we distrust people, we are suspicious of them.
 The difference between high and low-trust relationships is
g p
palpable!
 In a high-trust relationship, we can say the wrong thing, and
high trust
people will still understand us.
 In a low-trust relationship despite precise communication
relationship, communication,
people will still misinterpret us.

6. Trust & Relationship
 Relationships of all kinds are
built on and sustained by
trust.
 They can also be broken and
destroyed b l k of t t
d t d by lack f trust.
 Trust in others depends on
how much we trust ourselves.
 If we can’t trust ourselves,
we’ll have a hard time trusting
others.
others
 This personal incongruence is
often the source of our
suspicions about others.

7. Trust
 We judge ourselves by our intentions and others by
their behavior.
th i b h i
 This is why, one of the fastest ways to restore trust is
to make and keep commitments to ourselves and to
p
others.
 Trust affects two outcomes – speed and cost.
 When trust goes down speed will also go down and
down,
costs will go up.
 When trust goes up, speed will also go up and costs
will go d
ill down.

8. The Two dimensions of trust
Trust always affects two outcomes – speed and cost.
cost
When trust goes down, speed will also go down and costs will go up.

9. The Trust /Emotional Tax
Trust Speed Cost
=
The serious practical impact of the economics of trust is that in
many relationships, in many interactions, we are paying a hidden
low –trust tax right off the top – and we don’t even know it!
trust don t

10. The Trust/Emotional Dividend
Trust Speed Cost
=
Obviously, the dividends are not just in increased speed and
improved economics; they are also in greater enjoyment and
better
b tt quality of life.
lit f lif

11. Hidden Variable
(Strategy ( S) ) x Execution ( E)) =
Results ( R)
But there is a hidden variable to this formula:
Trust – either the low-trust tax, which discounts the output, or
low trust
the high-trust dividend which multiplies it:

12. The Trust Myth

13. How Trust works
Trust is a function of two things:
 Character – Constant
 Includes your integrity , your motive & your intent with
people
 Competence- Situational
 Competence includes your capabilities , your skills,
results & track record
Both are vital

14. Trust Ch
T t Characteristics
t i ti
No Trust
N T t Low Trust
L T t Moderate T t
M d t Trust High T t
Hi h Trust Extraordinary
E t di
Trust
Intense CYA Behaviors Employee Focus on work & High Collaboration
Micromanagement Satisfaction is results & Partnering
(Cover you’re a..)
mixed
Redundant Beauracratic Some Systems & Helpful systems & Fully Aligned
Hierarchy Systems & Structures structures systems &
Processes misaligned structures
Punishing Systems Hidden Agendas •Focus on
Focus Strong creativity & Positive,
Positive
& structures Maintaining Status innovation transparent
Quo relationships
Angry Guarded Slow Approvals Healthy workplace Inspiring work
Confrontations Communications done together with
purpose
Abusive, Dissatisfied Interactions are Mutual tolerance and Positive energy &
Unprofessional Employees polite but cautious acceptance people
Behaviors
Militant Real Issues Not Unnecessary Focus on leveraging Loyalty, innovation
Stakeholders Openly Discussed hierarchy strengths & confidence

15. 2
Five waves of Trust

16. The 5 waves of Trust
 The first wave- Self Trust
 Deals with the confidence we have in ourselves . Set & achieve goals
 To keep commitments- walk the talk – and also with our ability to inspire trust in
others.
 We try to become a person who is worthy of trust.
 The second wave- Relationship Trust
 Is about how to establish and increase trust vis-a-vis others.
 The key principle underlying this wave is consistent behavior.
 The third wave- Organizational Trust
 Deals with how leaders can generate trust in different organizations
organizations.
 The fourth wave- Market Trust
 Reflects the trust customers, investors, & others in the marketplace have in the
company.
 The underlying principle behind this wave is reputation
 The fifth wave, Societal Trust, is about creating value for others and for society at
large.
 The principle underlying this wave is contribution.
 By contributing or “giving back ” we counteract the suspicion cynicism and
giving back, suspicion, cynicism,
low-trust that exist within our society.
 We also inspire others to create value and contribute

17. 3
First Wave-Self Trust
Principle of Credibility

18. It begins with each of us personally,
continues into our relationships, expands
into our organizations, extends into our
marketplace relationships, and
encompasses our global society at large.

19. Self-Trust- Building Blocks to Credibility
Core 1
Core-1 - Integrity
Core-2- Intent
C 2
Core -3- Capabilities
Core 4
Core-4 – Results

20. 3A
The four cores of
credibility

21. Core 1- Integrity
 Integrity means honesty, telling the truth,
and in the process, leaving the right
p
impression.
 Congruence. A person has integrity
when there is no gap between intent and
behavior… when he or she is the same
– inside and out
out.
 Humility. A humble person is more
concerned
 About what is right than about being right,
 Abo t acting on good ideas than ha ing the
About having
ideas, about embracing new truth than
defending outdated positions
 About recognizing contribution than being
recognized for making it.
 Courage. We must have the courage to
do the right thing even when it is difficult. Integrity Accelerators
 Make & keep commitments to
 Openness inspires credibility and trust. A yourself
closed mindset fosters suspicion and  Stand for something
mistrust.  Be Open

22. The Andy Roddick Response
At the Italia Masters in Rome in May
2005, Andy Roddick chose
sportsmanship over gamesmanship
p p g p
by refusing a call by a line judge that
an opponent’s serve was out of
bounds.
bounds Had he accepted the rulingruling,
he would have won the match.
Instead, his opponent went on to win
the match and Roddick was
eliminated from the tournament.

23. Core 2 -Intent
Intent
 Intent grows out of character. People
often distrust us because of the
conclusions they draw about what we
do. It is important for us to actively
influence the conclusions others draw by
“declaring our intent.”
 Intent has three dimensions - motive,
agenda, and behavior.
 Motive is the reason for doing
something. When the motive is laudable,
trust increases. The motive that inspires
p
the greatest trust is genuine caring .
 Agenda grows out of motive. The
agenda that generally inspires the
greatest trust is genuinely wanting what
is best for
i b t f everyone i involved.
l d
 Behavior is the manifestation of motive Intent Accelerators
and agenda. The behavior that best  Consider your motives
creates credibility and inspires trust is  Open your agenda
acting in the best interest of others
others.  Choose Abundance

24. Core 3 –Capabilities
 Our capabilities inspire the trust of others,
particularly when they are specifically those
needed for the task at hand. Our capabilities
p
also give us the self-confidence that we can
do what needs to be done. Capabilities
include talent, attitude, skills, knowledge and
style.
 Talents: T l
T l Talents are our natural gifts and
l if d
strengths.
 Attitudes: Attitudes represent our paradigms –
our ways of seeing, as well as our ways of
being towards work life learning our abilities
work, life, learning,
and opportunities to contribute.
 Skills: Skills are our proficiencies, the things
we can do well.
 Knowledge: K
K l d Knowledge represents our
l d t
learning, insight, understanding, and
awareness. Capabilities Accelerators
 Style: Style represents our unique approach  Run with your strengths & with
and personality
personality. your purpose
 Keep yourself Relevant
 Know where you are going

25. Core 4 –Results
Results
 In considering results, we always
need to ask two critical questions.
 What results are we getting and
how are we getting those results?
 T
To i increase t t
trust, we must t
effectively communicate results so
that people become aware of them.
Results Accelerators
 Take responsibility for results &
not just activities
 Expect to win
 Finish strong

26. The 4 Cores of Credibility
4. ________
Results
Competence
3. ___________
Capabilities
2. ________
Intent
Character
Integrity
© 2004-2006 CoveyLink

27. 4
Second wave
wave-
Relationship Trust

28. Relationship Trust
 In every relationship, what we do has far greater
impact than anything we can say say.
 Good words signal behavior, declare intent and can
create enormous hope. p
 And when those words are followed by appropriate
behavior, they increase trust, sometimes
dramatically.
d ti ll
 Covey lists 13 behaviors that can go a long way in
building an environment of trusttrust.
 The first five flow initially from character, the second
five from competence and the last three flow from
p
both.

29. Behavior 1: T lk Straight
B h i # 1 Talk St i ht
 Talking straight can go a long way
in inspiring trust
 Th opposite b h i i t li or t
The it behavior is to lie to
deceive
 The counterfeit behaviors are
beating around the bush,
withholding information, double-
talk, flattery, “t h i ll ” t lli th
t lk fl tt “technically” telling the
truth but leaving a false impression
and so on.

30. Behavior 2: Demonstrate R
B h i #2 D t t Respect
t
 We must show respect, fairness,
kindness, l
ki d love, and civility t
d i ilit to
individuals.
 The opposite behavior is showing
disrespect, or not showing people
we care.
 The counterfeit of Demonstrate
Respect is to fake respect or
concern, or to show respect and
concern for some (those who can
do something for you), but not for
all (th
ll (those who can’t).
h ’t)

31. Behavior #3: Create Transparency
 This is about being open, real and
genuine and telling the truth in a way
people can verify
 It’s based on the principles of honesty,
p p y,
openness, integrity, and authenticity.
 The opposite of this behavior is to
hide,
hide cover or obscure It includes
obscure.
hidden agendas, hidden meanings,
hidden objectives & Sarcastic
 The counterfeit of behavior is illusion.
It’s pretending, “seeming” rather than
“being,” making things appear different
than they really are.
y y

32. Behavior # 4: Right Wrongs/ Do the right thing
 Do what’s “right” in that situation
 Base decision on values
 Don’t base decision on “mood” at
the time
 Get beyond personalities
 Win-Win
 A you trying to BE right?
Are i i h?
(and therefore you’re wrong)

33. Behavior # 5: Show Loyalty/ Be Loyal
 Gi credit where credit i d
Give dit h dit is due
 Acknowledge the contributions
made by others
 Don’t gossip
 Keep confidences
 Be respectful to those who
aren’t present

34. Behavior # 6: Deliver/Get Results
 Get the right things done.
 Take initiative
 M t & exceed expectations
Meet d t ti
 Meet deadlines & within
budget.
budget
 Under promise/over deliver
 Don’t make excuses

35. Behavior #7: Get Better/ Continuously improve
 Increase your skills and knowledge
 Work t l
W k to always add value
dd l
 Ask for feedback
 Work to follow through on the
feedback

36. Behavior 8 Confront Reality/ Address t
B h i # 8: C f t R lit / Add tough challenges
h h ll
 Address the difficult issues
 Acknowledge what isn’t said
isn t
 Don’t pretend the issues aren’t
there
 Don’t play the blame game
 Address the issues head on &
with t t
ith tact

37. Behavior 9: Clarify Expectations /M k expectations clear
B h i # 9 Cl if E t ti /Make t ti l
 Clarify Expectations is based on
the principles of clarity,
clarity
responsibility, & accountability.
 Discuss and negotiate
expectations
 Follow up on expectations
 Give feedback regarding
progress
 Renegotiate when necessary

38. Behavior # 10: Practice Accountability/ Be Accountable
 There are two key dimensions to this. The
first is to hold ourselves accountable; the
second is to hold others accountable.
 Trust results when people know that
everyone will be held to certain standards.
When leaders don't hold people
don t
accountable, it creates a sense of
disappointment, inequity, and insecurity.
 When things go wrong and we find
ourselves blaming or accusing others, we
g g ,
must draw back and ask, how we can stop
this.
 At work, we must practice accountability
by holding our direct reports accountable
for th i actions. W must clarify our
f their ti We t l if
expectations first so that everyone knows
what they’re accountable for and by when.
 We must look for ways to create an
environment of accountability in our home
home.

39. Behavior # 11: Listen First/ Listen Listen Listen
Listen, Listen,
 It’s vital to listen, to understand first.
Otherwise we may be acting on
assumptions that are totally incorrect –
acting in ways that turn out to be
embarrassing and counterproductive.
 The principles behind this behavior include
understanding,
understanding respect and mutual benefit benefit.
 The opposite is to speak first and listen last
– or not to listen at all. It’s going ahead with
our agenda without considering whether
others may have perspectives that could
influence what we have to say.
 The counterfeit is pretend to be listening,
while thinking about our reply and just
waiting for our turn to speak Or it’s
speak. it s
listening without understanding.
 Listen First also means to listen to
ourselves, to our gut feelings, our own
inner voice before we decide and act
voice, act.

40. Behavior 12: Make /Keep C
B h i # 12 M k /K Commitments
it t
 This is the quickest way to build trust in
any relationship
relationship.
 To break commitments or violate
promises is the quickest way to destroy
trust.
 The counterfeit of this behavior is to
make commitments that are so vague or
elusive that nobody can pin us down.
Alternatively, we are so afraid of breaking
commitments that we don’t even make
any in the first place.
 Keeping commitments is based on the
principles of integrity, performance,
courage, and humility.
 It’s the perfect balance of character and
competence.
 Particularly, it involves integrity
(character) and the ability to do what we
say we are going to d (
i do (competence). )

41. Behavior # 13: Extend Trust
 This behavior is based on the principles of
empowerment, reciprocity, and a fundamental
belief that most people are capable of being
trusted,
trusted want to be trusted and will do well
trusted,
when trust is extended to them. The opposite of
this behavior is to withhold trust.
 The first is extending “false trust ” i e giving
false trust, i.e.,
people the responsibility, but not the authority
or resources, to get a task done.
 The second is extending “fake trust” – acting
fake trust
like we trust someone when we really don’t.
 Be the type to trust others
 Assume the best & Allow people to earn your
p p y
trust
 Extend trust incrementally when needed
 Even though there may be a risk involved,
don’t withhold trust unnecessarily

42. 5
Third wave-
wave
Organizational Trust

43. Organizational Trust
In Low trust organizations In High trust organizations
 People manipulate or distort facts.  People are candid & authentic.
 People withhold and hoard  Information is shared openly
openly.
information.  People are willing to share
 Getting the credit is very credit.
important.  Transparency is a practiced
p y p
 People spin the truth to their value.
advantage.  New ideas are welcome.
 New ideas are resisted and stifled.  Mistakes are tolerated &
 Mistakes are covered up or encouraged as a way of
covered over. learning.
 There are numerous “meetings  There are few “meetings after
after the meetings”. the meetings”.
 There are many “undiscussables”.  People talk straight and confront
 People tend to over-promise and real issues.
under-deliver.  There is a high degree of
 There is low energy level
level. accountability.
accountability
 There is high energy level

44. 6
Fourth wave-
wave
Market Trust

45. Market Trust
 Market trust is all about brand or
reputation.
reputation
 It is trust that makes us want to buy a
company’s products or services.
 Corporate brands are important not
p p
only to companies but also to other
organizational entities, including
governments, charities, hospitals and
cities.
 Brands are judged, based on people’s
perceptions.
 When brands are perceived to be
trustworthy,
trustworthy they generate a strong
competitive advantage for the
company.

46. 7
Fifth wave-
wave
Social Trust

47. Social Trust
 Trust is an integral part of the fabric of our society.
 It s
It’s hard to imagine a world without trust
trust.
 Heavy costs are incurred by a closed, low-trust society.
 On the other hand, several benefits are reaped by a high-
trust
t t society.
i t
 These include shared knowledge, medical breakthroughs,
technological advances, economic partnerships, and
cultural exchanges
exchanges.
 In a high-trust society, there’s more for everyone.
 There are more options and opportunities. People interact
with l
ith less f i ti
friction, resulting i greater speed and l
lti in t d d lower
cost.

48. Social Trust
If we have on our glasses to see, we realize that
it is at this societal level that the words of
psychologist Carl Rogers become clear: “That
which is most personal is most general ” We see
general.”
that trust at the Fifth Wave is a direct result of
trustworthiness that begins in the First Wave and
flows outward in our relationships, in our
organizations, and in the marketplace to fill
g p
society as a whole.

49. Social Trust
Truly,
Tr l global citi enship is an indi id al choice
citizenship individual
and a whole-life choice. And as we make that
choice in our lives we influence those with whom
lives,
we work and live to make a similar positive
choice in theirs. Together, we build organizations
g g
and families that contribute to the well-being of
the world.

50. Self Trust
Relationship Trust
Organizational Trust
Market Trust
Societal Trust
Self
S lf Relationship
R l ti hi Organizational
O i ti l Market
M k t Societal
S i t l
Credibility Behavior Alignment Reputation Contribution
© 2004-2006 CoveyLink

51. 8
Inspiring Trust

52. Inspiring Trust
 N thi i as f t as th speed of t t
Nothing is fast the d f trust.
 Nothing is as profitable as the economics of trust.
 Nothing is as relevant as the pervasive impact of trust.
 And the dividends of trust can significantly enhance the
quality of every relationship on every level of your life
Extending Smart Trust
 A l i opportunity, risk and credibility ( h
Analyzing t it i k d dibilit (character &
t
competence) of those involved Managing risk
 Restoring trust when it has been lost on all levels

53. Smart Trust - Matrix

54. Zone -1 – High Propensity to Trust ; Low analysis
1
“Blind Trust” zone of gullibility.
 It’s the Pollyanna approach where people blissfully trust
It s
everyone.
 This is where we find those “suckers who are born every
minute” – th
i t ” those people who are a sure b t t f ll f
l h bet to fall for
Internet, marketing, investment, & other scams.
Zone -2 – High Propensity to Trust ; High analysis
2
“Smart Trust” zone of judgment.
This is where you combine the propensity to trust with the
analysis to manage risk wisely.
This is where you get both good business judgment &
good people judgment – including enhanced instinct &
intuition.

55. Zone -3 – Low Propensity to Trust ; Low analysis
3
 “No Trust” zone of indecision.
 People here tend to not trust anyone. Because their own
p y
analysis is low, they tend to not even trust themselves.
 This zone is characterized by indecision, insecurity,
protectiveness,
protectiveness apprehension,
apprehension tentativeness,
tentativeness &
immobilization
Zone -4 – Low Propensity to Trust ; High analysis
 “Distrust” zone of suspicion.
 This is where you find people who extend trust very
cautiously or not at all. In fact, some are so suspicious that
y , p
they do not trust anyone but themselves.
 People in this zone tend to rely almost exclusively on
analysis (usually their own) for all evaluation decision
evaluation,
making, and execution.

56. Restoring Trust when it has been lost
 Though it may be difficult in most cases lost trust
difficult, cases,
can be restored-and often even enhanced
The path to restoration is to increase your
personal credibility and behave in ways that
inspire trust
Generally speaking, a l
G ll ki loss of t t created b a
f trust t d by
violation of character (integrity or intent) is far
more difficult to restore than a loss of trust created
by a violation of competence (capabilities or
results))

57. 8
To Summarize

58. The Speed of Trust Example
Trust-
 Gary Barron Exec VP approached
Barron, Exec.
Herb Kelleher, CEO, about
restructuring the $700M
maintenance department
 3 page summary
 1 concern
 Approval on the spot
 Elapsed time: 4 minutes
Herb Kelleher CEO, Southwest Airlines

59. The Speed of Trust Example
Trust-
 Warren Buffett, CEO,
Berkshire-Hathaway
 Executed a deal with Wal-
Mart in 2003 for McLane a
McLane,
$23B company
 The whole deal was
agreed t i one 2 h
d to in hour
meeting
 Wal-Mart had their money y
in 29 days
 Berkshire-Hathaway Letter to
Shareholders, 2003

60. To Summarize
Effective Leadership!
Credibility
Character Competence
Integrity Intent Capabilities Results
1. Talk Straight 6. Deliver Results
2. Demonstrate Respect 11. Listen First 7. Get Better
3. Create Transparency 12. Keep Commitments 8. Confront Reality
4. Right Wrongs 13. Extend Trust 9. Clarify Expectations
5. Show Loyalty 10. Practice Accountability

61. Conclusion
 Trust is essential to prosperity, joy,
happiness and professional
success.
 We can if we try establish grow
can, try, establish, grow,
extend and restore trust.
 Our behavior can inspire trust.
 By increasing trust, we can speed
up things and cut transaction
costs.
costs
 The speed of trust should not be
underestimated.

62. “Speed happens when people at work truly trust
Speed
each other.”
Edward Marshall
CEO,
CEO The Marshall Group
Happy Reading , Learning & Building Trust