Ever pondered why some organizations thrive while others struggle? How did Oprah Winfrey build a trustful brand that withstands mistakes? What led to McDonald's restaurants surviving the Rodney King riots untouched? And how did Warren Buffett and Bill Gates manage to inspire societal trust with their philanthropy? Dive into the fascinating world of trust-building, exploring tools and principles that could revolutionize your personal and professional relationships.

The Speed of Trust: The One Thing that Changes Everything

Trust is the cornerstone of every relationship, team, organization, and society. Without it, the strongest governments, businesses, and friendships crumble. Conversely, nurturing trust can lead to unparalleled success in all aspects of life. Far from being an elusive quality, trust is a tangible asset that can be built and restored more quickly than commonly believed.

Consider the merger between Franklin Quest and Covey Leadership Center. The merger faced challenges due to trust issues, slowing down decision-making and increasing bureaucracy. Covey, the author, realized that without addressing trust head-on, the situation would only worsen. He chose transparency and candid communication, which eventually restored trust and improved organizational performance.

Trust affects us on multiple levels—societal, organizational, relational, and personal. Low trust is prevalent in today's society, with only a small percentage of people trusting institutions or even each other. This crisis of trust has measurable economic impacts. For example, post-9/11 security measures, necessary due to low trust, have significantly increased travel time and costs.

Trust affects speed and cost. When trust decreases, speed decreases and costs rise. Conversely, high trust speeds up processes and reduces costs. For instance, Warren Buffett's acquisition of McLane Distribution took only a two-hour meeting and a handshake due to mutual trust, saving millions in due diligence costs.

Trust can be established and restored. Covey shares how extending trust, even in small ways, can lead to significant dividends. He recounts a simple story from his childhood when his father trusted him to maintain the yard. This trust motivated him to take responsibility and perform well.

There are 5 Waves of Trust:

1. Self Trust: Confidence in oneself and one's ability to inspire trust.
2. Relationship Trust: Building trust with others through consistent behavior.
3. Organizational Trust: Creating structures that promote trust within organizations.
4. Market Trust: Building a trustworthy brand and reputation.
5. Societal Trust: Contributing to society to foster trust on a larger scale.

Beware of Trust Myths and Realities:
- Myth: Trust is soft.
  Reality: Trust is hard, real, and quantifiable.
- Myth: Trust is slow.
  Reality: Nothing is as fast as the speed of trust.
- Myth: Trust is built solely on integrity.
  Reality: Trust requires both character and competence.

Trust is not just a nice-to-have virtue; it is a critical economic driver and leadership competency in the global economy. Whether in personal relationships or professional settings, trust changes everything. Building, extending, and restoring trust leads to better outcomes, more opportunities, and a higher quality of life.

Can Trust Really Change Everything in Our Lives and Economy?

The "5 Waves of Trust" model begins with the First Wave—Self Trust, emphasizing that trust starts with our own credibility. This credibility is built on four cores: 
1. Integrity, 
2. Intent, 
3. Capabilities, and 
4. Results. 

Integrity means being honest and congruent, aligning actions with values. Intent refers to genuine motives and seeking mutual benefits. Capabilities are our talents and skills, and results are the outcomes we achieve.

A powerful example of integrity is Andy Roddick's decision to overrule a favorable call during a tennis match, which cost him the win but earned lasting respect. Similarly, a story of a father’s concern about a store manager's suggestion to evade tax on a coat purchase highlights how small acts of dishonesty can erode trust.

Building self-trust involves making and keeping commitments to oneself. For instance, the author shared a personal struggle with consistently failing to wake up early to exercise, which led to a loss of self-confidence. By adjusting his approach and following through on commitments, he rebuilt self-trust.

In organizations, leaders like Jon Huntsman of Huntsman Chemical have shown that standing by one's word—such as honoring a handshake deal despite potential financial loss—builds immense trust. Similarly, the experience of Wally Thiim, who transformed a poorly performing military unit into a top performer, illustrates how credibility can inspire trust and exceptional results.

Trust also hinges on intent, as seen in a humorous story about Stephen Covey accidentally leaving his wife, Sandra, on the side of the road, which led to a misunderstanding of his intent by a passerby and a highway patrol officer. This underscores how we often judge others by their behavior and ourselves by our intent.

Moreover, taking responsibility for results, expecting to win, and finishing strong are key accelerators for improving outcomes. For example, Johnson & Johnson’s response to the Tylenol tampering crisis by taking immediate, responsible action, and issuing a mass recall of 31 million bottles, restored public trust.

Ultimately, the 4 Cores of Credibility—integrity, intent, capabilities, and results—are vital for personal and organizational trust. Understanding and developing these cores can help us build trust in every aspect of our lives.

First Wave Of Trust: Insights from Andy Roddick, Jon Huntsman, and the 4 Cores of Credibility

Building trust in relationships boils down to behaviors—consistent, reliable behaviors. Stephen M.R. Covey's approach highlights 13 essential behaviors that enhance trust. Here are the first seven of these behaviors, each illustrated with anecdotes and advice:

1. Talk Straight.
Covey recalls working with a colleague who would never commit until a decision was validated. This sidestepping eroded trust. In contrast, Warren Buffet exemplifies "Talk Straight" by acknowledging his mistakes bluntly in his annual letters. Integrity and straightforwardness build trust, while deception or spin destroys it. 

2. Demonstrate Respect.
Covey shares a story of a university president who used centerpieces made by an elderly housekeeper for a prestigious dinner, honoring her contribution and gaining immense respect from all involved. Respect builds deep trust and loyalty.

3. Create Transparency.
Donald Carty’s tenure as CEO of American Airlines is a cautionary tale. Secretive executive bonuses during union negotiations shattered trust. His successor, Gerard Arpey, rebuilt it through radical transparency and inclusive management. Transparency fosters trust, as people feel informed and valued.

4. Right Wrongs.
Covey shares a personal story of dumping water on his nephew Kam during a heated basketball game. His repeated apologies and efforts to make amends not only restored but strengthened their relationship. Admitting mistakes and making restitution shows humility and integrity, critical for rebuilding trust.

5. Show Loyalty.
Loyalty means giving credit where it’s due and speaking about others as if they were present. Covey recounts how a colleague’s habit of bad-mouthing absent coworkers eroded trust. Conversely, Colleen Barrett of Southwest Airlines shows loyalty by defending employees against unreasonable customers, fostering a high-trust environment.

6. Deliver Results.
Results build trust rapidly. Covey shares a story of turning around a struggling division by holding them accountable to a tight deadline. Delivering results not only achieved financial success but also built credibility. Results demonstrate competence and reliability, critical for trust.

7. Get Better.
Continuous improvement is vital. Covey’s story of his skiing plateau illustrates how avoiding risk can halt progress. In contrast, Karl Malone, an NBA star, constantly improved his game, setting a high standard in the league. Ongoing learning and adaptation build trust by showing competence and commitment to excellence.

To apply these behaviors, identify two relationships—one professional and one personal—where you wish to build trust. Reflect on which behaviors would make the most significant impact and create an action plan. Remember, trust is built through consistent, principled behavior that reflects both character and competence. Make each interaction a "moment of trust" and watch as your relationships transform.

Second Wave Of Trust: Can Stephen M.R. Covey's 13 Behaviors Improve Your Relationship Trust?

Here are the next six of 13 essential behaviors:

8. Confront Reality.
Have you ever sat through a meeting only to have the real issues hashed out in the hallway afterward? Or been part of a family where no one discusses the "elephant in the room"? This is why Confront Reality is so vital. It's about addressing tough issues head-on. Consider U.S. Admiral James Stockdale, who survived eight years as a POW by confronting brutal realities while maintaining hope. Or Anne Mulcahy, who turned Xerox around by facing their dire situation directly, making tough calls, and rebuilding trust with her team.

9. Clarify Expectations.
Similarly, Clarify Expectations can prevent conflicts before they start. For example, Covey's 16-year-old daughter, McKinlee, thought she had fulfilled her chores, but her standard of "clean" didn’t match her mother’s. Misaligned expectations almost led to her being grounded. By discussing and defining what "clean" meant, they avoided future misunderstandings. In business, clear expectations are equally critical. When Walgreens decided to exit the restaurant business, CEO Cork Walgreen set a clear five-year deadline, driving decisive action.

10. Practice Accountability.
Practice Accountability involves holding yourself and others accountable. At FranklinCovey, they faced numerous legal disputes. By listening and addressing the core issues, they resolved almost all within two months. This kind of accountability fosters trust and efficiency. Similarly, leaders like Scott Waddle, who took full responsibility for a naval accident, earn immense respect and trust, despite personal costs.

11. Listen First.
Peter Drucker elevated it to a rule of effective leadership: “Listen first, speak last.” When Mike Garrett became president of Georgia Power, he spent months listening before taking action. This approach builds trust and ensures better decision-making. At Covey Leadership Center, listening first helped resolve legal disputes and fostered a collaborative environment.

12. Keep Commitments.
Keep Commitments is the bedrock of trust. It’s about doing what you say you will. For example, Adam bought a company rife with broken promises. By making and keeping 14 specific commitments within a week, he transformed skepticism into trust, doubling revenues in a year. Breaking commitments, on the other hand, leads to instant distrust, as seen when a leader sold his stock after asking his team not to—undermining his credibility.

13. Extend Trust.
Lastly, Extend Trust leverages and amplifies trust. When coaching Little League, Covey trusted Anna, the only girl on the team, to make a crucial play. She rose to the occasion, pulling the flag and winning the game. This principle applies broadly. Companies like JetBlue extend trust to employees working from home, leading to high job satisfaction and productivity. Similarly, Ritz-Carlton empowers employees to resolve customer issues on the spot, fostering a culture of trust and excellence.

In essence, these behaviors are not just abstract concepts. They are practical actions that build and sustain trust in both personal and professional relationships. By adopting them, you can create a culture of trust, leading to faster and more cost-effective achievement of goals.

Six Trust-Building Behaviors: Lessons from Leaders at Xerox, Walgreens and Beyond

Imagine a toolbox filled with trust-building tools. This isn't just any toolbox; it's packed with the 4 Cores of Credibility and 13 Behaviors designed to build trust in various contexts. Let's dive into how you can use these tools to enhance trust at three pivotal levels: Organizational Trust, Market Trust, and Societal Trust.

Organizational Trust: Aligning Internally.
Peter Drucker once said, "Organizations are no longer built on force, but on trust." Picture a low-trust organization: people hoard information, spin the truth, and engage in blame games. Now, imagine the opposite—a high-trust environment where information flows freely, mistakes are learning opportunities, and collaboration is the norm. The difference is stark.

In trust-building workshops, they ask participants to describe their workplaces. Most identify with the low-trust scenario, realizing their daily struggles stem from a misalignment with trust principles. For example, a university's cumbersome policies forced a man to leave academia because he couldn't even get a pen without three levels of approval! Such policies are symbols of distrust.

Market Trust: Building a Reputable Brand.
Oprah Winfrey says, "In the end, all you have is your reputation." Market Trust is about creating a brand that inspires trust. Think about iconic logos you trust and why. Companies invest heavily in their brands to ensure customer loyalty and positive word-of-mouth. A high-trust brand can weather storms and maintain customer loyalty even when mistakes happen.

Consider Johnson & Johnson's candid "Direct to Consumer" campaigns or eBay's transparent marketplace. These companies build trust by being open and honest, listening to customers, and consistently delivering quality.

Societal Trust: Contributing to the Greater Good.
In 1992, during the Rodney King riots, McDonald's restaurants in Los Angeles were left untouched amidst the chaos. Why? Because McDonald's had built societal trust by supporting local communities. This principle of contribution is crucial for societal trust. It's about creating value and giving back, whether you're a corporation or an individual.

Bill Gates and Warren Buffett have set remarkable examples by donating billions to charitable causes. On a smaller scale, countless individuals volunteer their time and resources to uplift their communities. These acts of contribution build societal trust, benefiting everyone.

Steps to Build Trust:
1. Define Your Organization: Whether you're a CEO, manager, teacher, or student, think about your organization at the most actionable level.
2. Align Internally: Create systems and structures that promote a high-trust environment. Address low-trust behaviors and realign.
3. Build a Reputable Brand: Use the 4 Cores and 13 Behaviors to enhance your brand's trustworthiness.
4. Contribute to Society: Embrace global citizenship by contributing positively to your community and beyond.

By applying these principles, you'll not only build trust but also speed up processes, lower costs, and create lasting value. Trust truly is the hidden variable that changes everything. So, grab your toolbox and start building!

Can Trust Principles from Oprah, Bill Gates, and Peter Drucker Transform Your Organization?

Inspiring trust is paramount in both personal and professional realms, and Covey emphasizes that nothing accelerates success like trust. However, many struggle to extend trust due to past betrayals or a low-trust environment. Covey introduces the concept of "Smart Trust," which balances the inclination to trust with analytical judgment, ensuring trust is extended wisely to maximize benefits and minimize risks.

For example, a company chairman learned of a coup attempt by his president, leading to a painful breakup. Yet, efforts to restore personal trust succeeded, demonstrating the power of forgiveness and cautious trust restoration.

The Smart Trust Matrix categorizes trust into four zones: Blind Trust, Smart Trust, No Trust, and Distrust. Covey encourages aiming for Zone 2, Smart Trust, where high propensity to trust meets strong analytical skills, fostering good judgment and optimal outcomes.

On a broader scale, Covey underscores the importance of trust in societal, market, organizational, and personal contexts. He cites examples like Ireland's economic transformation and Nike's recovery from a reputation crisis to show that trust can be rebuilt and even strengthened after being broken.

Forgiveness is crucial in restoring trust. Consider Nelson Mandela’s example of inviting his jailers to his inaugural speech as a powerful act of forgiveness. He argues that forgiving others frees us to extend Smart Trust, turning potential dead ends into new beginnings.

Ultimately, extending trust inspires others to reach their full potential, creating high-trust environments that drive success. Trust is reciprocal; by trusting others, we earn their trust in return, fostering a cycle of mutual respect and collaboration.

In essence, trust is the foundation of effective leadership and fulfilling relationships. By practicing Smart Trust, we can navigate risks wisely, restore trust when broken, and create environments where everyone can thrive.

Stephen M.R. Covey's Blueprint for Success: The Power of Smart Trust

Trust is essential for the success of any relationship, organization, or society. It's a tangible asset that can be built, restored, and nurtured to yield remarkable outcomes in all areas of life. Trust influences processes at multiple levels, from societal and organizational to relational and personal. When trust is low, speed decreases and costs rise, and vice versa. Trust can be built and restored by extending it, even in small ways. 

There's a "5 Waves of Trust" model that includes Self Trust, Relationship Trust, Organizational Trust, Market Trust, and Societal Trust. The first wave, Self Trust, is about having confidence in your ability to inspire trust. This is built on four cores: Integrity, Intent, Capabilities, and Results. Applying these cores can help build trust in all aspects of life.

Trust in relationships is built through consistent behaviors. There are 13 essential behaviors that can enhance trust: 
1. Talk Straight, 
2. Demonstrate Respect, 
3. Create Transparency, 
4. Right Wrongs, 
5. Show Loyalty, 
6. Deliver Results, 
7. Get Better, 
8. Confront Reality, 
9. Clarify Expectations, 
10. Practice Accountability, 
11. Listen First, 
12. Keep Commitments, and 
13. Extend Trust. 
These behaviors are practical actions that can be applied to create a culture of trust and achieve goals more quickly and cost-effectively.

Trust can be enhanced at the organizational, market, and societal levels. Organizational Trust involves creating structures that promote trust within organizations, while Market Trust is about building a trustworthy brand and reputation. Societal Trust is about contributing to society in a way that fosters trust on a larger scale. 

Lastly, the concept of "Smart Trust" is introduced, which balances the inclination to trust with analytical judgment to maximize benefits and minimize risks. This concept, combined with the ability to forgive and restore broken trust, fosters a cycle of mutual respect and collaboration, creating an environment where everyone can thrive.

Home

Trending Books

News & Mags

Relax

Curated

Collections

Key Ideas & Notes

Insights

Highlights & Bookmarks

Listening History

Key Ideas

#1