White Paper
White Paper
Trust has taken a hit lately in all facets of our lives. Draw it up to the combined effects of the
economic meltdown, financial mismanagement, and an increasing sense that, in business at least,
everyone seems to be in it only for themselves. The result has been dwindling levels of trust in
organizations.
A poll by Maritz indicates that only seven percent of workers strongly agree that they trust
their senior leaders to look out for their best interest.
A survey by MasteryWorks indicated that a lack of trust correlated highly to employee
turnover.
Restoring trust has become a top priority for companies that are looking to break out of the negativity
that has become pervasive in many organizations. A self-centered “What’s in it for me” attitude robs
an organization of the best that employees have to offer.
When employees perceive that an organization or its leaders are less than forthcoming, employees
become unwilling to contribute any discretionary energy or make any commitments to their
organization’s well-being beyond the absolute minimum.
Lack of trust creates cynicism, doubt, and anxiety which leads people to waste valuable work time.
When people don’t trust their leaders, they don’t come toward something; they pull back and
withdraw instead. They doubt rather than cooperate.
The result: Because they need a pay check, employees will often stay with the organization and do
their job, but not much more. It becomes purely a transactional relationship with employees asking
themselves, “If the organization does not do right by me, why should I do right by them?” Sometimes
employees will even leave an organization where trust is lacking.
Fifty-nine percent of individuals indicated they had left an organization due to trust issues,
citing lack of communication and dishonesty as key contributing factors.
The Four Elements of Trust
There are four key elements that leaders need to be aware of when they are looking at building or
restoring trust with the people they lead. The four elements are Able, Believable, Connected, and
Dependable which forms the Building Trust Model.
1) Able is about demonstrating competence. Do the leaders know how to get the job done?
Are they able to produce results? Do they have the skills to make things happen?
2) Believable means acting with integrity. Leaders have to be honest in their dealings with
people. In practical terms, this means creating and following fair processes. People need to
feel that they are being treated equitably.
3) Connected is about demonstrating care and concern for other people. It means focusing
on people and identifying their needs. It is supported by good communication skills. Leaders
need to openly share information about the organization and about themselves. This allows
the leader to be seen as more of a real person whom a direct report can identify with.
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The Leadership Challenge
When people believe they are working for trustworthy leaders, they are willing to invest their time
and talents in making a difference in an organization. People who feel more connected will invest
more of themselves in their work.
Trustworthy leaders are rewarded by employees who stretch, push their limits, and volunteer to go
above and beyond. When leaders create a high-trust environment that is consistent over time,
collaboration increases and organizations leap forward.
For leaders looking to turn things around in their organization, Blanchard recommends they take a
hard look in the mirror and examine their own behaviours. Are they being trustworthy? Is there
transparency and honesty with people at all levels of the organization?
The key is to exhibit the behaviours that people look for in their leaders. This is critical, because
people need to see trust in action more than they need to hear about it.
The Transparency Challenge
Everyone agrees that leaders should be open and candid in sharing information. The challenge with
transparency is to identify the behaviours that clearly define the concept. It’s important to remember
that trust is in the eyes of the beholder. What does transparency mean in your organization? Should
employees be getting all of the information? Who should be included in meetings?
For leaders looking to be more up-front and authentic, three behaviours will help them get started.
1) Be accessible. As a leader, particularly during tumultuous times, it’s important to be out in
front of the organization, sharing plans for the future. Don’t hide behind closed doors or
delegate the important task of communicating to others. As a leader you have to be very clear
about what the plan is. “What are we going to do?”, “When does it start?”, and “How does it
get implemented?” are all questions that will have to be answered.
2) Acknowledge that people have concerns. Once you’ve communicated the vision for the
organization, you also need to take the time to listen for concerns and anxieties that people
might have. Create opportunities for dialogue.
3) Follow through. If you don’t know the answer to a question immediately and say that you
will get back to the employee, make sure that you do so in the promised amount of time.
Keeping your word on small things demonstrates dependability and reliability that people can
count on when it comes to big things.
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Transparency
Disclosure
Two-way
feedback
High
Involvement
2) Sharing Information: Information is power. One of the best ways to build a sense of trust in
people is by sharing information. Sharing information sometimes means disclosing
information that is considered privileged, including sensitive and important topics such as the
competition’s activities, future business plans and strategies, financial data, industry issues or
problem areas, competitors’ best practices, the way group activities contribute to
organizational goals, and performance feedback.
3) Telling It Straight: Study after study have indicated that the number-one quality people want
in a leader is integrity. People want to follow someone they trust. Business leaders who tell it
straight, who are open and honest even about bad news, develop the trust essential for strong,
long-term relationships inside and outside the company.
4) Providing Opportunities for Everyone to Win: Do you want your people to work together
or to compete against each other? When people within an organization are forced to compete
against one another, you lose everyone’s trust. Now all people are concerned about is looking
out for number one.
5) Providing Feedback: Make sure leaders schedule and hold regular progress check meetings
with their direct reports. This will allow managers to catch problems before they become
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major issues and significantly increase the chances that a direct report’s performance will
meet expectations when it’s time for their performance review.
6) Resolving Concerns Head-On: Resolve concerns head-on by putting challenges on the table
and giving people an opportunity to influence the process. When leaders expand people’s
involvement and influence, there is more buy-in because people are less likely to feel they are
being controlled.
7) Admitting Mistakes: An apology can be an effective way to correct a mistake and restore the
trust needed for a good relationship. But in many organizations, employees and managers are
conditioned to hide mistakes because it’s not acceptable to make them. And that leads to
bigger problems. Leaders who admit mistakes when they are wrong are not seen as weak,
they are seen as having integrity and being trustworthy.
8) Walking the Talk: A leader, above all, has to be a walking example of the vision and values
of the organization. The key to leadership is being able to develop a trusting relationship with
others. Without trust, it is impossible for an organization to function effectively. Trust
between leaders and the people they lead is essential for working together. If leaders say one
thing and do another, people will question their trustworthiness.
Summary
Trust in both personal and professional relationships is delicate. Trust must be treated as
being precious, highly valued, and a treasured organizational trait. It must be viewed as if it
were an egg that could shatter if treated roughly.
Building trust is the foundation of all solid and healthy relationships. Actions speak louder
than words. Trust can take a long time to build, but can be destroyed by a single action or
misconception.
By being aware and using the Building Trust Model and using the guidelines presented in this
white paper, organizations and individuals can watch for signs that trust is eroding, analyse
where the breakdowns are occurring, and work to rebuild high levels of trust.