The Power of Trust & 5 Ways to Build It

Trust between employees and management, and among both groups, is a critical element in organization survival and success today.

Trust is not a line item on a P&L, but the level of trust between two people, or people and organizations, shows the quality of the relationship. The quality of the relationship indicates whether the relationship will overcome challenges. Organizations today are facing the biggest challenges of the last 25 years (much more for many); therefore, they need solid relationships to thrive. Solid relationships are built on trust.

While trust is tough to measure in terms of dollars, lack of trust is expensive.

What does it cost your organization when a high caliber employee goes to a competitor? What does it cost when production is slowed by merely 5%? By 25%? What does it cost when disengaged employees work there, negatively impact morale among coworkers, or actively sabotage your company? What does it cost to replace good people who leave because poor performers are not held accountable? A culture of distrust is an expensive problem.

On the other hand, a culture of trust can be profitable. Jason Grove, Vice President of Operations for Dimensional Innovations (www.dimin.com), points out that trust is critical, but business success is based on making money. Mr. Grove says, “If you trust good people to do their jobs, they’ll do them. This is the way we do business, and it works.”

Unfortunately, the turbulent economic conditions facing many businesses today diminish the trust level within them. Several recent studies have shown up to 60% of employees do not trust their senior leaders to get their organizations back on track. Over the years, psychological studies consistently discuss trust as something which is built, rather than innate; therefore, management can do something about it.

Management can build a culture of trust using the following strategies:
1. Instill a compelling Vision. Herb Kelleher, co-founder of Southwest Airlines, distinguished his company by unifying everyone around the Vision of freedom. They are selling freedom “to move about the country” and their employees work toward that Vision. What is the greater purpose for your organization? If you cannot recite it immediately, you can bet your bottom dollar no one else there can either. Without it, people resort to their personal reasons for working there, which may not be synchronized with each other.

2. Get the right people in the right jobs. Jim Collins described it in Good to Great as getting the right people on the bus in the right seats. Leaders need to make decisions about people and hold them accountable for their performance to ensure the right ones work there.

3. Be open and honest about the facts. Face the truth about where you are and where you’re heading, and let your people know. It is common during a crisis for leaders to bury themselves in work and try to figure it out on their own, but that is precisely the wrong course to take. Employees want to know the truth, and they can handle it.

4. Make tough decisions. Leaders need to make decisions without being wishy-washy. Build trust among employees by doing what is right, even if it is hard. Do not be afraid to be a leader when faced with hard decisions.

5. Recognize success. Acknowledge accomplishments and thank employees for them. Give positive feedback when goals are met. Set reasonable goals which can be met in today’s circumstances.

Leaders should use the five strategies described here to build a culture of trust during this economic crisis and continue fostering the culture as the crisis subsides. If you build a relationship of trust with employees, they will perform their best for you and the company. The relationship is priceless and powerful.

Copyright © 2009 Kelly A. Tyler