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The Five Levels of Trust that Drive Success or Failure

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The Five Levels of Trust that Drive Success or Failure

  1. 1. The Five Levels of Trust That Drive Success Or Failure How Trust Affects Your Business, Your Close Relationships, and Your Personal Success Phillip C. Thomas Founder Boston Business Group/CXO Leadership Institute www.bostonbusinessgroup.com
  2. 2. That Simple Word That Affects Every Relationship, Every Deal, and Every Company.
  3. 3. A Little About My Background…  BYU undergrad; executive development courses at Stanford and Harvard Business Schools  Naval Officer - eight years  6 different CEO level opportunities to lead/25 years  Also serve as a CEO Group Chair w/Vistage Int’l  Continually seeking to improve my ability to gain, retain, and extend Trust with others
  4. 4. Leading At The Speed of Trust Based on the Best-Selling Book by Stephen M. R. Covey Author Speaker Leader A person I know, admire and trust
  5. 5. Key Areas of Discussion • What Is Trust? • What Key Attributes Form The Basis of Legitimate Trust? • How Do We Obtain Trust? • How Do We Retain Trust? • How Do We Regain Trust? • 13 Key Behaviors That Reflect Trust - And Their Counterfeits • 5 Areas Where Trust Has A Major Influence In Our Lives – And How They Interconnect • Trusted Leadership – What It Means In Terms of Growing Your Company
  6. 6. Trust In Today’s World Edelman Trust Index - www.edelman.com The 2012 Edelman Trust Barometer sees an unprecedented nine- point global decline in trust in government. There is still a yawning trust gap for business. While traditional media sources are still the most trusted, the diversification of trusted media sources continues. In fact, social media, which consists of social networking sites, content-sharing sites, blogs, and micro-blogging sites, saw the biggest percentage increase in trust among media sources.
  7. 7. The 5 Waves of Trust “As Trust Is Manifest In Each Successive Wave, The Effect Of Trust Becomes Cumulative And Exponential.” - Stephen M. R. Covey The Case for Trust
  8. 8. What Is Trust? “The Degree Of Confidence Born Of The Character And Competence Of A Person Or An Organization.” The Opposite Of Trust Is Suspicion…. “I Could Give A Dictionary Definition, But You Know It When You Feel It. Trust Happens When Leaders Are Transparent, Candid, And Keep Their Word. It’s That Simple.” - Jack Welch Introduction
  9. 9. Trust Myths and Reality Myth Reality Trust is soft. Trust is hard, real, and measurable. Nothing is as fast as the speed of Trust is slow. trust. Trust is a function of both character Trust is built solely on integrity. (which includes integrity) and competence. Trusting people is too risky. Not trusting people is a greater risk. Trust is established one person Establishing trust with the one at a time. establishes trust with the many. The Case for Trust
  10. 10. The Economics of Trust Low Trust Adds Cost And Slows Everything Down The Trust Tax The Case for Trust
  11. 11. The Economics of Trust High Trust Lowers Costs And Speeds Up Your Business The Trust Dividend The Case for Trust
  12. 12. 12
  13. 13. The Four Core Elements Of Trust Personal Trust 13
  14. 14. The Four Core Elements Of Trust Integrity Consistency, Humility, Courage, Respect Intent Your Motives, Agendas, Behaviors Capabilities TASKS: Your talents, attitudes, skills, knowledge, & style Results Your Personal Track Record  What have you actually accomplished?  What impact did it have on the business or relationship? Personal Trust 14
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  16. 16. Relationship Trust Think of a high-trust relationship you have What is it like to be around this person? How long does it take to get things done? What is communication like? What kind of results are you able to achieve? Think of a low-trust relationship you have How does it compare with high trust relationships you enjoy? How does it change the way you operate day to day? At the end of the day, are you drained or uplifted? Does this person build you up or wear you down? Relationship Trust 16
  17. 17. 13 Behaviors of Trusted Leaders 1. Talk Straight 8. Confront Reality 2. Demonstrate Respect 9. Clarify Expectations 3. Create Transparency 10. Practice Accountability 4. Right Wrongs 11. Listen First 5. Show Loyalty 12. Keep Commitments 6. Deliver Results 13. Extend Trust 7. Get Better Relationship Trust 17
  18. 18. 13 Counterfeit Behaviors 1. Lie or deceive 8. In denial; ignore 2. Demonstrate lack of respect 9. Intentional vagueness or concern 10. Avoiding or not “owning 3. Hide, cover up, obscure up” to a situation 4. Deny or rationalize wrong 11. Speaking first, not listening behavior 12. Violating promises 5. Self credit taking, betraying 13. Withholding Trust others 6. Fail to achieve 7. Become irrelevant Relationship Trust 18
  19. 19. Extending Smart Trust Propensity to Trust Thoughtful Analysis Primarily a matter of the Primarily a matter of the heart mind Your willingness or tendency to trust Wisely assessing: others. The job to be done Instinctual or intuitive The risks involved “Trust your gut” The credibility of the organization Experiential based judgment or person involved “It takes 20 years to obtain 20 Their character and years of experience…” competence Adhering to basic principles or Past results time tested truths Third party endorsements Relationship Trust 19
  20. 20. Extending Smart Trust Relationship Trust 20
  21. 21. Restoring Trust Three Conditions 1. The nature of the loss 2. The importance of the relationship 3. The willingness of both parties to restore trust When others have lost your trust… Don’t be too quick to judge Be quick to forgive Be “smart” about it…but don’t overthink it When you have lost the trust of others… Strengthen the 4 Cores of Credibility Behave in ways that inspire trust Be humble and willing to serve without a hidden agenda Relationship Trust 21
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  23. 23. The Organizational Trust Dividend Total return to shareholders for organizations with high trust is almost 3x higher than that of organizations with low trust. - Human Capital Index Watson Wyatt Worldwide Organizational Trust 23
  24. 24. Organizational Trust: Dividends and Taxes Organizational Trust 24
  25. 25. Symbols of Low Trust Organizational Trust
  26. 26. Symbols of Trust Organizational Trust 26
  27. 27. Your Symbols of Trust Can you name some symbols of trust in your organization? If you were CTO – Chief Trust Officer, what changes in symbols of trust would you make? Why and with what intent? Organizational Trust 27
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  29. 29. What Brands Do You Trust – And Why? ? Market Trust
  30. 30. Market Trust in the 21st Century 20th Century 21st Century Passive consumers. Active participants. Traditional print-radio-TV “Social media” - Internet advertising. communities, blogs, video share. The organization owns and Consumers influence and share controls the brand “top down.” ownership of the brand. Market Trust 30
  31. 31. Dramatic Decline In Market Trust “In the 1960s, if you introduced a new product, 90 percent of the people who viewed it for the first time believed the corporate promise. 40 years later, if you performed the same exercise, less than 10 percent of the public believed it was true.” - Howard Schultz, Founder, Starbucks Market Trust
  32. 32. Everyone’s Talking… What is your organization doing in this new world of interconnected communications? Which behaviors are becoming increasingly important in this new world? “He Posted What?!” (recent attorney presentation) “Monitoring Off-Duty Conduct” “When You Foul Up Now, It’s Google-able. In The Old Days, You Just Had To Wait Three Days And No One Would Remember.” Christopher Buckley, editor, Forbes FYI Market Trust 32
  33. 33. Segmenting Market Trust Three Attitudes Example I recommend them to my friends, I go out of my Promoter way to buy from them, I would nearly have an emotional breakdown if they went away. I do business with them because they are Passive convenient, but I wouldn’t much care if they went away. I would not do business with them myself, and I Detractor would warn others to stay away. Market Trust 33
  34. 34. Consistency Counts! Market Trust 34
  35. 35. Your Brand Does your brand have integrity? How would you know? Does your brand demonstrate good intent? How is that accomplished? Is your brand associated with results? Are they legitimately expressed? What does your brand say about YOU personally? Is your brand an accurate reflection of who you are? Market Trust 35
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  37. 37. Societal Trust in the 21st Century 20th Century 21st Century Business is responsible to Business is responsible only to shareholders and the community at shareholders. large. Unconscious consumers. Socially conscious consumers. Profit and contribution are the Profit is the measure of success. measures of success. Societal Trust 37
  38. 38. Socially Responsible Companies Prosper Comparison of Shareholder Return Over A Six-Year Period Percentage of Shareholder Return Source: “The 100 Best Companies to Work For,” Fortune. Societal Trust 38
  39. 39. Compassion And Cash Flow “The idea that business is responsible only to its shareholders mortifies me with its narrowness… Business has to be a force for social change. I can imagine a day will come when compassion counts as much as cash flow.” - Anita Roddick, founder, The Body Shop Societal Trust
  40. 40. One Example Over ten years, New Leaf Paper customers saved the following resources by using post-consumer recycled fiber instead of virgin tree fiber: 1,400,649 fully grown trees 331,001,041 gallons of water 660,267 million BTU’s of energy 66,519,808 pounds of solid waste 115,297,918 pounds of greenhouse gases Societal Trust 40
  41. 41. Trust Taxes Paid by Non-CSR Companies CSR = Corporate Social Responsibility North Latin Global Respondents… EU Asia America America Refused to buy their products or 83% 85% 79% 74% use their services. Refused to work for them. 46% 51% 37% 59% Refused to invest in them. 72% 80% 61% 65% Actively demonstrated or 24% 14% 42% 23% protested against them. Source: Edelman Trust Barometer, survey of 2800 college-educated people in 18 countries. Societal Trust 41
  42. 42. Integrating With The 4 Cores Integrity: What are your values in relation to society? Intent: What do you intend to do to make a beneficial societal contribution? Capabilities: What are you uniquely capable of doing to make a societal contribution? Results: What have you already done to make a meaningful societal contribution? Societal Trust 42
  43. 43. The Fundamental Elements of Trusted Leadership
  44. 44. The Five Levels of Trust That Drive Success Or Failure How Trust Affects Your Business, Your Close Relationships, and Your Personal Success Phillip C. Thomas Founder Boston Business Group/CXO Leadership Institute www.bostonbusinessgroup.com

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