Compete through trust building skills

…as a company’s most

competitive weapon

Using Trust…

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Importance of Trust

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With trust (Great benefits)

Without trust (Great liabilities)

1. Speed of execution slow down

2. Costs go up

3. Communication breaks down

On financial statements, there is no “cost of low trust” expense. But, just because there is no expense account does not mean it is not there. Once you start looking, you can see the expense everywhere.

1. Speed of execution go up

2. Costs go down

3. Communication improves

4. Collaboration improves

5. Execution methods improve

6. Strategic planning improves

7. Engagement improves

8. Excitement improves

9. Energy improves

10.Creativity improves

Trust Benefit or Liability

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…..but the net result can be extremely poor because of

low trust……. or a great success because of high trust.

A company can have an excellent strategy and a strong

ability to execute,…..

Strategy X Execution = Gross

Results Trust High

or Low =

Net Results

10 X 10 = 100 Less 40%

trust factor = 60

10 X 10 = 100 Less 10%

trust factor = 90

10 X 10 = 100 Plus 20%

trust factor = 120

Improving Trust

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Trust is measurable and can be improved on

with the right strategies and action-plan.

No matter how low the trust level is, you can

improve the trust relationship with methods to

create a more trusting environment.

Even in a conflict situation, there are methods

to restore the trust level.

This presentation will show

how to develop that asset.

The meaning of trust

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Regarding communication and trust, in a high-trust

relationship, you could say the wrong thing, and people could

still understand your meaning.

In a low-trust relationship, you could be very precise in

explanation, and people could still misinterpret what you mean.

Trust means confidence.

The opposite of trust is suspicion and doubt.

Confidence depends on two factors:

(1) Integrity or character, which is constant in any

situation.

(2) Abilities or competence, which is situational,

depending on the requirement.

Here is a major mistake regarding trust:

1. You assume people trust you and you do

not prove it to them first.

2. You failed to be proactive in establishing

and increasing your initial trust level.

We judge ourselves by our intentions and others by

their actions. We have to increase behavior that

will improve trust quickly and often (even through

small commitments).

These small commitments (theirs and ours) will

determine the trust level.

The assumption failure

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Trust and accountability

With accountability comes trust. Trust is one of the most

powerful forms of motivation. No pay incentives are

required, lowering costs and increasing execution speed.

Making a person accountable for a job or assignment can

greatly improve trust.

I’m giving you this job. That means I’m not going to do it anymore. It is your job, and

you are accountable from now on.

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Inward-outward levels of trust

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Do I set goals and achieve them

as promised? Do I do what I

say I will? Do I inspire others to

be trustworthy?

Do I earn the trust of

other people?

Is my behavior worthy of

other people’s trust?

Is trust a part of the organization’s

structure, systems and symbols?

Or, is trust only consider a vague,

individual theory? What is the

employee loyalty and reliability?

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What is the company’s market

reputation and brand image?

What are the feelings of the

customers and investors in

comparison with others?

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In everything the organization does, can I say

we are contributing to our city, country

and the total global community in general?

Your Integrity – Can you trust yourself? Does what

you say match what you do? Are you a person other

people can trust?

No one can keep his promises 100% of the time, but the

more you do, the higher his trust level.

Some people can be trusted less than 10% of the time. If

they are our competitors, we are in a very strong position.

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Improving our Trustworthiness

You and your business affiliate are not adversaries. The

more he gains, the more you can gain. The more

information you share, the more he will share. You both

have to act in the interest of each other. Our actions,

must show that.

1. Integrity – Does what is said match what is done?

2. Intent – What is your intent? Does what you do benefit

your affiliates too? Does what your business affiliates

do benefit you, and does he think about you? It is

best if both of you declare you intent to each other.

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Improving our trustworthiness

1. Integrity – Does what is said match what is done?

2. Intent – What does each party want from the

relationship?

3. Capabilities – Can you do what you say you can? Can

your affiliate do what he says he can? What are our

skills now.

a. For both, knowing what can be done, not what we would

like to be able to do, is very important.

b. Continuing to develop and present our skills to our

affiliates can build the value of our relationship and trust.

c. Sometime, we (and our affiliate) have skills we are not

aware of. Therefore, we always should be exploring if

these new skills would be helpful to each other.

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People make honest mistakes, so it is best to

recognize and admit them to maintain trust.

People have different habits and customs. One

person could think he need not pay until asked, even

though the pay date has passed. Understanding

that, you could regularly ask for payment to

maintain the trust level and keep the cash flowing.

It might not be a trust issue, but a habit issue.

1. Integrity – Do what you say match what you do?

2. Intent – What is you plan?

3. Capabilities – Can you do what you say you can?

4. Results – What is your performance history? Do you

achieve the results you promised? Does your affiliate?

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You can increase trust by what you do and what you say,

not what you intend to do.

There are two sides of the trust level. One is your trust in

someone. The other is someone’s trust in you.

The level can be lowered with violation of an agreement or

raised by a demonstration of competence.

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Relationship Trustworthiness

Your trust in him His trust in you

1. Openness – How open with information are you? How open is your

affiliate with you? Is the level acceptable to both of you?

2. Demonstrate Respect – Do you demonstrate that you care and respect

your affiliate? Does he demonstrate care and respect for you?

3. Correct Mistakes – This is not just an apology. It is correcting a mistake.

It is action that makes the situation normal and then moves it forward. It

can increase loyalty.

4. Give Credit – Regularly giving credit to others builds trust.

5. Deliver Results – Do you do what you say? Does your affiliate? Doing it

builds trust.

6. Improving – When you learn something and offer a new service to

someone you become a valued partner to them.

7. Confront Reality – When there are problems, through courage,

responsibility, awareness and respect, it is best to quickly and openly

discuss the problems, even though it is difficult.

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Weighing & improving relationship trust

7.Confront Reality – Giving bad news or feedback is a big

problem, so here are some best practices:

• Get together– Try to get together in person. Sit side-by-side.

This help make you and him work as a team to solve a

problem. You are not attacking him.

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Giving bad news & negative feedback

You

Direction of pressure

Direction of pressure

You

• Start with questions – It gives the person joint ownership

of the problem and helps him feel his opinion is important.



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How do you think you are performing on your job?

Source: Effective Feedback Psychology Today, March/April 2011

You

• Do not give feedback unless asked – Hopefully, through your

questions, he will respond by asking you questions. If he

asks you, he will be more willing to listen and accept your

comments.



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Since you asked how I thought I was doing, how do you think I’m doing?

You


• Expert support – A person values the opinion of another

person if he thinks that person is a specialist or has great

knowledge. If you are not considered an expert, it is best

to find an expert and let the expert give the feedback.



Actually, I am not that qualified to answer how you are doing on your job, as I have never done it. Bill has

years experience. Lets ask him.

You

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• Know what you want to achieved – You want to make sure

the goal is to help someone improve. It should not be totally

because you personally would like something.



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The reason why I would like to talk to you about your performance is I think I can be helpful with some suggestions.

You


• Never have discussion when angry – Know your emotions and

break off the meeting if you have strong, negative emotions.

These emotions will show up in your facial expressions and

gestures which will weaken the chance of success.



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It is heard for me to think about that right now. Lets both think about it and

talk in a few days.

You


• Know who you are talking to – Have a good feeling how the

person will response in difficult situations. Then, plan your

strategy.



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I think we should work on this problem very slowly. I think you might feel very sad

if we tried to do too much, too fast, and failed to do what you wanted to.

You


• Know yourself – Determine if you can handle criticism well

or not. Then, plan the strategy, as your perspective is

important.



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I would feel very sad if I could not help you improve on the job. Therefore, let me

show you the method I use. Then, you can let me know what you think.

You


• Expect defensiveness – It might be best to deliver your bad

news. Ask the person to think about it. Tell him you have to

leave. Then, plan to discuss it at a later date (giving him

time to think it over).



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That is the problem. I’ve got to leave the office now. Lets talk about it in a couple days.

You


Lastly on relationship trust, lets consider

trust level, risk level and investment level and

what would be a comfortable balance.

8. Clarify Expectations – Both people should make their expectations as

detailed as possible. Plans should be discussed and agreed on (possibly in

writing as well as conversation).

9. Being Accountable – Take as much responsibility for the relationship

as possible. This will help insure success and maintain the trust you want.

Also, confirm your affiliate knows what he is expected to achieve.

10. Listen First – Try to learn the other person’s thoughts, experience and

point of view. Then, you will know why he does what he does.

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Weighing & improving relationship trust

Points to consider: 1. Determine Integrity Level: There are some people you should not work with

under any conditions. 2. Determine Value Level: What is the value of working with this person? What is

the value to him working with you? 3. Determine Initial Investment Level: How much excess assets would be

appropriate? 4. Determine Communication/monitoring Level: How detailed must the

communication be to determine differences in ways of doing business/trust? 5. Determine Time Required: How much time will be required to determine the

level of trust? Best is six month – one year.

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Relationship Trustworthiness Evaluation

Time 6 months

Tru

st L

evel

Low or Unknown

High & Known

= 2nd highest risk level (90% excess assets)

= Lowest risk level (50% excess assets)

= Highest risk level (100% excess assets)

= 3rd highest risk level (70% excess assets)

Low Trust ≠ Unknown Trust (Need time to analyze)

1 year

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2 3 8

High Integrity

5 4 6 7 10 9 1

Low Integrity

Determine Integrity Level: Has he committed a crime? Does he have many trusted, long-term relationships now? How much does he care about others?

2 3 8

High value to him

5 4 6 7 10 9 1

Low value to him

Determine Value Level: What is the value to you working with this person (company)? What is the value to him working with you?

2 3 8

High value to you

5 4 6 7 10 9 1

Low value to you

Appropriate Trust & Investment Risk

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Determine Excess Assets Level Required: How much excess assets would be appropriate initially to analyze trust? Excess assets are funds you could spare for a new project. If you lose these funds you will not be too heavily damaged.

2 3 8

50% Excess Assets

5 4 6 7 10 9 1

100% Excess Assets

Determine Time Required: How much time will be required to determine the level of trust? Best is six month – one year.

2 3 8

One year

5 4 6 7 10 9 1

Six months

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2 3 8

Detailed daily confirmation

5 4 6 7 10 9 1

Basic weekly confirmation

Determine Communication/monitoring Level Required: How detailed must the communication be to determine differences in ways of doing business/trust? Do you need a long list of items to confirm on a regular basis, or can you take many things for granted?

Value Level Low

Tru

st L

evel

Low

High

= 2nd highest risk level (90% excess assets)

= Lowest risk level (50% excess assets)

= Highest risk level (100% excess assets)

= 3rd highest risk level (70% excess assets)

High

Trust & Investment Risk Conclusion

1. Integrity – Does the organization need rules to maintain integrity? If a

company’s people have high integrity, rules are not needed.

2. Intent – Are the goals balanced among all stakeholders (shareholders,

employees, customers, suppliers, affiliates, etc.)?

3. Capabilities – Can the organization do what it says it will?

4. Showed Trust: Does the organization show trust to its own employees,

customers, investors, suppliers, etc.?

5. Incentives: Are there systems that give reward for trust in the organization

regarding sharing information, collaboration and decision making?

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Organizational Trustworthiness

High trust organizations benefit from increased customer value, accelerated growth, more innovation, improved collaboration, better affiliations, faster execution and higher loyalty.

Low trust organizations suffer from an under employed staff, bureaucracy, showing favorites, disinterest of employees, employee turnover and even theft.

1. Brand – Are your customers loyal to the company brand? In terms of

quality, delivery, value for money, safety and after-sales service, does

the public trust the organization?

2. Reputation – This is a valuable asset or costly liability of an

organization. It should have a system in place to protect that asset.

3. Market research – A study could inform an organization what is

expected of it to increase its reputation.

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Market Trustworthiness

With the world moving toward “global citizenship”, doing good is no longer seen as something to do in addition to business. It is becoming part of the business strategy. That is why the internet is free. A popular company statement is “We don’t run our company to earn profits, we earn profits to run our company to serve others.”

Whether for your community, country or the entire global economy, if you feel good about what your organization is donating and contributing, it is trustworthy. Social trustworthiness is about contribution. A global organization will thrive in society if it is honest in what it says, is open with the public, corrects its mistakes voluntarily and keeps its promises.

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Social Trustworthiness

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Use this material and put in a trust

building action-plan.

You will get things done faster

and save money.

Thank you

What this presentation introduces is very

obvious, but in our busy lives worrying

about time and money, we do not put

enough direct attention to trust levels.

Business

Compete through trust building skills