I was the COO of an international corporate finance company when the mayhem in the financial world let loose in the fall of 2008. It didn’t matter how long you had done business with a counterparty, or how much money they had made from you in the past. This was war; relationships became meaningless, and trust was suddenly a word that no one could recall. Corporations were insisting their employees go for the jugular and the bloodiest grab for what cash remained in the system ensued. The only thing that matter was cash in the bank. People thought they had long-term relationships and trusting partners, but they were mistaken. I saw some of the saddest displays of human behavior that I have ever witnessed in my 20-year career. I actually heard one CEO claim that they would rape and pillage their way to profitability.
Relationships are mere transactions, customers are markets, and employees a necessary evil. Somewhere along the way many corporations have turned what could be collaborative environments of business and economic progress into a civilized war on the very groups that hold the keys to their success. The sad part is, they don’t even realize it. At the end of the day, it all boils down to trust. And trust is not something that is heavily taught in business school.
In answer to the question, “Where did the trust go?” I don’t think it went anywhere. Big business, in the US anyway, never had it. From the first moving assembly line at Ford in 1913, people were disgusted with jobs that required no skill and had zero autonomy. People were basically asked to be robots for 9 hours a day and like it. At one point Ford had to offer a 100% increase in pay plus reduce the workday to 8 hours just to reduce the 380% turnover to a manageable level. Such working conditions spawned a massive increase in unions and other organizations designed to protect individuals from corporations and other establishments of power.1 People felt helpless as individuals.
Here we are, a century later, and big business sentiment really hasn’t changed all that much. There is still very little trust rattling around in the system. People, however, have changed dramatically. We are much more individualistic and very much desire autonomy and a chance to add value in our jobs, to our lives, and even the world. If big business doesn’t figure out how to change this dynamic soon, they are going to lose their best people to smaller organizations that are much more likely to provide an environment that suits their needs and desires. Besides, the illusion of security working for a large firm has been shattered with the tens of thousands of recent layoffs. Soon there will be choices in the job market.
The Financial Times recently reported (FAITH IN BUSINESS RETURNS) an annual survey by Edelman (communication consultancy) indicates that 52% of respondents said they trusted business, which was substantially up from 46% reported 6 months earlier in January 2009. Personally, I find 52% alarming even if it is only 2 points below the 2008 result. Another indication that we have become quite numb to the lack of trust that permeates business today. The article went on to say the survey indicates a movement away from a shareholder society and toward a stakeholder society, putting shareholders behind customers and employees in a list of importance. In conclusion, the article indicates that a Edelman spokesperson said the survey indicates that, “people ascribe a higher level of trust to those actions that appear to be against the norm and game-changing.”
Think of what companies can do if they create an environment of trust. With trust come passion, creativity, loyalty, and innovation. All are necessary ingredients to create a superstar company in today’s environment. It’s all about the connection to customers, employees, and communities.
Most hard-core, command and control type managers assume that if you trust people to run their own schedules that productivity will immediately drop. The opposite is actually true. Best Buy, who employs ROWE (Results Only Work Environment) is a great example. After evoking this new radical approach in their corporate office, where people can leave to catch a mid-day movie if they please, found that the productivity of teams actually went up. They simply trust employees to run their own schedules and get the work done. The two people who drove the idea from the inside have since written a book and provide consulting for other firms looking for a change.
When you are authentic, respectful and trusting, people will walk through walls for you. Billions of dollars in lost productivity and half-hearted work products churn through companies every day because employees don’t feel emotionally connected and aren’t assuming full responsibility for the success or failure of their employers.
If we are moving toward business models that places greater value and focus on trust (and I certainly hope that we are), then it makes sense that committing resources toward gaining the trust of employees and customers is money/time well spent. These are the seeds that will create the competitive advantage of the future.
What kind of messages do you think your employees portray to your customers (knowingly and unknowingly) if they feel that the company is not trusting or trustworthy? And imagine what will be communicated when they know that they work for one of the most trusting and caring organizations in existence.
How to promote trust in your organization?
Authenticity is the number one thing a leader can portray to gain trust. Most people have generally good BS meters and know when someone is not authentic. Most leaders want to be authentic they just aren’t confident enough to do it. Put down the script and speak from your heart. I promise it will work.
Trust people to do things their own way. Be laser focused on where your company is headed, and make sure every employee is on board, but be open and flexible about how you get there. When employees are allowed to figure things out for themselves, they take ownership and responsibility, which translates to higher productivity. You will be blown away by their creativity. Tell them exactly what to do every step of the way and they will immediately disengage, wondering why they are there if they can’t add any value.
Treat people as if they are already knocking it out the park. You will be absolutely amazed when you try this. For me, this was the best trick I ever playing on myself, and it really accelerated my leadership abilities. It allowed me to see the greatness in everyone and help others find it in themselves and start using it.
The days of better, faster, cheaper are over. The days of trust, collaboration, and connection are here to stay. The world will be a much better place. And a hell of a lot more fun . . .
1 THE SUPPORT ECONOMY, Shoshana Zuboff and James Maxmin, 2002, Penguin Books
