Only 29 percent of employees believe that manage- Returning once again to the metaphor of the tree, results are the fruits the tangible, measurable, end ment cares about them developing their skills. purpose and product of the roots, trunk and branches.
Only 42 percent believe that management cares There are three key indicators by which people evalu- about them at all. ate results: past performance, present performance and It s important to keep in mind that sometimes, unfor- anticipated future performance. tunately, poor behavior turns out to be bad execution of Given the importance of results in establishing credi- good intent. bility and trust both with ourselves and with others, the 1. Examine and redefine your motives. It s human question is: How can we improve our results? tendency to assume we have good or at least jus- 1. Take responsibility for results. tifiable intent. 2. Expect to win. 2. Declare your intent. It signals your behavior and 3. Finish strong. % lets people know what to look for so they acknowl- edge it when they see it. 3. Choose abundance. Abundance means there is For additional information on your credibility, go to: http://my.summary.com 4 Soundview Executive Book Summaries® The Speed of Trust SUMMARY downplay others contribution when they are away. To The Second Wave: exhibit a trustworthy character, give credit freely, don t Relationship Trust badmouth people behind their backs and don t disclose others private information. The Second Wave Relationship Trust is all about behavior ... consistent behavior. More specifically, Competence-Based Behaviors it s about the 13 Behaviors that are common to high- Behavior #6: Deliver Results. This is a way to con- trust leaders and people throughout the world. As you vert cynics and establish trust in a new relationship. work on behaving in ways that build trust, one helpful Because it is often difficult to measure results, take time way to visualize and quantify your efforts is by thinking to define results up front. By establishing a track record, in terms of Trust Accounts. Remember that each trust making the right things happen, being on time and on account is unique; all deposits and withdrawals are not budget, and not making excuses for not delivering, you created equal; and what constitutes a deposit to one per- quickly restore lost trust on the competence side. son may not to another. Behavior #7: Get Better. Continuously improve by All 13 Behaviors require a combination of both charac- learning, growing and renewing yourself. Others will ter and competence. The first five flow initially from char- develop confidence in your ability to succeed in a rapid- acter, the second five from competence, and the last three ly changing environment. The opposite is entropy and from an almost equal mix of character and competence. deterioration, while the counterfeit is the eternal student Taken to the extreme, however, these Behaviors do always learning, but never producing. Don t be afraid not build trust, and the opposite or counterfeit of to make mistakes but learn from them. Develop formal each Behavior creates the biggest withdrawals. and informal feedback systems and respond to them. Character-Based Behaviors Behavior #8: Confront Reality. Take the tough issues head-on. This affects speed and cost by facilitat- Behavior #1: Talk Straight. Communicate clearly so that you cannot be misunderstood. Preface your discus- ing open interaction and fast achievement, and also allowing you to engage the creativity, capability and sions by declaring your intent, so you leave no doubt synergy of others in solving problems. When leaders about what you are thinking. Counterfeit behaviors use the opposite behavior by ignoring problems, they include withholding information, flattery and spin. Be pay a huge tax when people feel they are being dishon- honest and call things what they are. Don t manipulate est. It is far better to address the real issues and lead people, distort facts or leave false impressions. courageously in discussions of uncomfortable topics. Behavior #2: Demonstrate Respect. This behavior is Behavior #9: Clarify Expectations. Create shared based on the principles of respect, fairness, kindness, vision and agreement up front. The opposite is to leave love and civility. The opposite is commonly experienced undefined expectations and the counterfeit is to be as showing disrespect, which is a huge issue, both at vague about specifics. Consider that most circumstances work and at home. The counterfeit is to fake respect or encompass three variables quality, speed and cost concern, or, most insidious of all, to show respect and but you can only have two. Always discuss and reveal concern for only those who can do something for you. expectations, and never assume they are clear or shared. Behavior #3: Create Transparency. Be real and gen- Renegotiate if necessary, but don t violate expectations uine and tell the truth in a way that people can verify. once they have been validated. The opposite is to obscure, and the counterfeit is illu- Behavior #10: Practice Accountability. Hold your- sion or pretending things are different than they are. You self and others accountable. Leaders who generate trust can establish trust quickly by being open and authentic, do both. The opposite is not to take responsibility, and erring on the side of disclosure and not having hidden the counterfeit is to point fingers. Other people respond agendas. to accountability particularly performers. They want Behavior #4: Right Wrongs. Make restitution instead to be held accountable. Don t avoid or shirk responsibil- of just apologizing. The opposite is to deny or justify ity, and be clear on how you ll communicate progress. wrongs because of ego and pride, and the counterfeit is to cover up mistakes. Apologize quickly, take action to Character & Competence Behaviors make restitution when possible, and demonstrate per- Behavior #11: Listen First. Genuinely understand sonal humility to achieve this behavior. another person s thoughts and feelings, before trying to Behavior #5: Show Loyalty. Give credit to others diagnose or advise. The opposite and counterfeit are to and speak about people as though they are present. The speak first and listen last, or not at all, and to pretend to opposite is to take credit or not represent people fairly. listen while waiting for your own chance to speak. The counterfeit is to appear to share credit but then (continued on page 6) 5 Soundview Executive Book Summaries® The Speed of Trust SUMMARY ciples not only individually, but organizationally. The Second Wave: Relationship Trust (continued from page 5) Leaders are missing the solution because they are not looking at the systems, structures, processes and polices Listening teaches you which behaviors create dividends. that affect day-to-day behaviors. They are focused on the Use your eyes and your gut to listen as well as your ears, symptoms instead of the principles that promote trust. and don t presume you know what matters to others. This misalignment creates symbols that represent and Behavior #12: Keep Commitments. It is the quickest communicate underlying values to everyone in the orga- way to build trust in any relationship. The opposite is to nization or family. A symbol can be either negative or break commitments and the counterfeit is to make positive; from a 500-page employee handbook, to a vague, unreliable commitments, or never make them in newly appointed CEO who refuses to accept a pay raise the first place. Some cultures view commitments differ- because it might send the wrong message to workers. If ently, and understanding the difference is key to getting your organizational symbols communicate and cultivate dividends and avoiding trust taxes. People tend to see distrust or less trust than you want, return to the Four family commitments as more flexible than work com- Cores. mitments, but they are just as important. Make keeping Fourth Wave: Market Trust all commitments the symbol of your honor. Market Trust is all about brand or reputation. It s all Behavior #13: Extend Trust. Shift trust from a noun about the feeling you have that makes you want to buy to a verb. While the other Behaviors help you become a products or services or invest your money or time more trusted person or manager, this 13th Behavior and/or recommend such actions to others. This is the helps you become a more trusting leader. Extending level where most people clearly see the relationship trust leverages it to create reciprocity. between trust, speed and cost. The opposite is withholding trust. The counterfeit is Brand is important to all organizational entities, includ- extending false trust by giving people responsibility, but ing governments, school districts, charities and hospitals, no authority or resources to complete a task. There is not to mention corporations. School reputation affects also fake trust that seems like trust until you follow-up who moves into the district and therefore the taxes avail- behind people and micromanage. Based on the situation, able to the school. Cities have reputations that turn into extend conditionally to those who are earning your trust, tourist dollars and attract business. but extend it abundantly to those who have earned it. % On a micro level, every individual has a brand or repu- For additional information on building a Behavioral Action Plan, tation that affects trust, speed and cost. It comes across in go to: http://my.summary.com your resume in comments from your references and it translates into how people interact with you in social situ- ations. Stakeholder Trust In the global marketplace, many brands are now being The Four Cores and the 13 Behaviors of the First and taxed or receiving dividends based on people s percep- Second Waves are all trust-building tools. Stakeholder tion of and trust in the country of origin. Whether a trust focuses on the context in which you can use these company is based in China, France, India or the U.S. tools to increase speed, lower cost, create value, estab- affects people s perception of whether the company can lish trust, and maximize your influence and the influ- be trusted to do what is right. Currently a trust tax is ence of your organization. An organization can be a company, a department or eBay Creates Transparency your family, but the Third Wave deals with internal stakeholders. The Fourth and Fifth Waves deal with eBay CEO Meg Whitman and her team lead what external stakeholders. she describes as a dynamic self-regulating econo- my in the complete openness of the worldwide Third Wave: Organizational Trust Web. Whitman recognizes her company s distinctive- Most people find that their organization has symptoms ness: We have a unique partner millions of peo- of low trust people manipulating facts, withholding ple. According to BusinessWeek OnLine, rather than information, resisting new ideas and covering up mis- controlling or hoarding information, eBay has cho- takes. A lucky few find that people in their organization sen to let their citizens have full access to every share information openly, tolerate and encourage mis- trend, every sale, every new regulation in the eBay takes, are innovative and creative, and share credit abun- world. The system is utterly transparent. dantly. The low trust environment is a result of violating prin- (continued on page 7) 6 Soundview Executive Book Summaries® The Speed of Trust SUMMARY impact of trust; and the dividends of trust can signifi- Stakeholder Trust cantly enhance the quality of every relationship on (continued from page 6) every level of your life. hitting U.S.- based brands hard. Though they receive You may still be hesitant or fearful when it comes to dividends in the U.S. and Asia, they are taxed heavily in actually extending trust, but leaders who extend trust parts of Europe. become mentors, models and heroes. Inspiring trust is If you find you do not have the brand you desire, you the prime differentiator between a manager and a leader, can measurably increase its value by using the Four and the prime motivator of successful enterprises and Cores as a diagnostic tool to pinpoint the reason why, relationships. and where investment will bring the greatest return. Companies that choose to extend trust to their Then use the 13 Behaviors with external stakeholders employees become great places to work. Most people customers, suppliers, investors, communities and you respond well to trust and do not abuse it. We are born will build trust at the marketplace level. with a propensity to trust and choosing to retain or restore that propensity is key to our ability to forgive. Fifth Wave: Societal Trust We have countless opportunities to extend and inspire The overriding principle of high societal trust is con- trust to others, but it also makes a difference in our own tribution. It s the intent to create value instead of lives. Trust is reciprocal. destroy it; to give back instead of take. Microsoft guru Bill Gates, his wife Melinda, U2 lead Extending Smart Trust singer Bono and Oprah Winfrey are all high profile con- Have you ever trusted someone and gotten tributors, but society is full of individuals contributing burned? Have you ever failed to trust someone and time, energy and money in communities throughout the missed significant opportunities? world. Extending trust can bring great dividends. It also cre- This is not an impractical or utopian view of the ates the possibility of significant risk. world. The principles of contribution and responsibility create trust at a societal level through today s trend Smart Trust"! Matrix toward global citizenship, or corporate social responsi- Gullibility Judgment bility (CSR). Intel, Wells Fargo and Procter & Gamble, all in the top 10 of Business Ethics magazine s 100 2 1 Best Corporate Citizens show that doing good is no High Propensity High Propensity longer an addition to business; it is part of business Low Analysis High Analysis Blind Smart itself. Trust Trust CSR, or intentional virtue, was part of the original Z O N E S concept behind Adam Smith s free enterprise system. No Distrust Trust During the 1990s it was diluted, and massive violations Low Propensity Low Propensity of the Four Cores and 13 Behaviors led to greed, fraud, Low Analysis High Analysis and low trust taxes. Now a backlash is creating a global renaissance of Indecision Suspicion4 3 trust. Though initially fear of pain might motivate glob- al citizenship, over time, the dividends and abundance Low High ANALYSIS created by contribution will become primary drivers for both individuals and organizations. Global citizenship Zone 1: Blind Trust zone of gullibility. The suckers will be demanded as customers support companies that sure to fall for scams. demonstrate the Four Cores. % Zone 2: Smart Trust zone of judgment. Good busi- ness judgment and good people judgment combine to enhance instinct and intuition. Inspiring Trust Zone 3: No Trust zone of indecision. Those who Trust is a whole life choice, and until you are actually don t even trust themselves and are immobilized by in a front-line situation, you will not even see the full insecurity and protectiveness. power of the Cores and Behaviors on speed, cost and Zone 4: Distrust zone of suspicion. Those who trust. Look immediately for ways to apply them and rarely extend trust beyond themselves. find opportunities to teach them to others. Zone 1 (gullibility) and 3 (indecision) are definitely You will see how the speed of trust; the profits of the economics of trust; the relevance of the pervasive (continued on page 8) 7 Soundview Executive Book Summaries® High TO TRUST PROPENSITY Low The Speed of Trust SUMMARY RECOMMENDED bumpy original response to Inspiring Trust READING LIST (continued from page 7) criticism, however, and Nike s If you liked The Speed actions and behavior over the high risk, but people might think Zone 4 (suspicion) is of Trust, you ll also ensuing years has demonstrated like: the lowest risk zone because it is where you analyze and tangible results. In 2005 they 1. Crucial Conversations by calculate and consider issues by yourself. Actually, it is were listed as #13 on the Best Kerry Patterson. high risk, because high suspicion leads you to validate Patterson provides read- Corporate Citizens list. and analyze everything to death, decreasing speed and ers with tools for talking Organizational Trust: when the stakes are high. increasing cost. Restoring trust within an organi- 2. Overcoming the Five Managers in Zone 4 miss opportunities, cut off collab- Dysfunctions of a Team zation may seem difficult, how- oration and analysis from others. They incur low trust by Patrick M. Lencioni. ever, the fact that high-trust orga- Specific, practical guid- taxes including bureaucracy, politics, disengagement nizations outperform low-trust ance is supplied to lead- and turnover, and they lose high-trust dividends such as ers, managers and facilita- organizations by three times pro- tors in this breakthrough innovation, collaboration and partnering. vides a strong incentive to make guide. The lowest risk and highest return occur in Smart Trust the effort. 3. Vital Friends by Tom Zone 2 (judgment), where risk is wisely moderated and Rath. Employees who Relationship Trust: If you re have a best friend in the managed and you can carefully evaluate and consider a customer of a company that office are more produc- issues. Your propensity to trust releases, encourages and tive, more likely to engage violated your trust, you may not generates synergy. positively with customers, give them a chance to restore it. share new ideas and stay It is not necessary to extend Smart Trust automatically. That s a transactional thing. longer in a job. You can extend limited trust or no trust at all in Zone 2, But if a family member vio- 4. The Emotional just as you might do in Zone 4. The decision may be the Intelligence Quick Book lates your trust, it s not transac- by Travis Bradberry, Jean same, but the different approach and risk management tional. One area that creates Greaves and Patrick M. always builds trust, whether you are a business leader or a Lencioni. Emotional intel- huge trust issues in personal parent. ligence is now widely relationships is money. accepted, not only within Managers who don t become leaders don t know how to the psychological arena, Money problems are a key extend Smart Trust. They operate in Zone 4. They dele- but within the business cause of divorce. Two people world. gate tasks without parameters or extend fake trust, but coming into a relationship are 5. Power of an Hour by Dave they don t fully entrust people with stewardships that often scripted in different ways Lakhani. What if by engages genuine ownership and accountability. devoting just one hour a by family experience one week, you could make big Inspire trust by starting with yourself and your own may come from a background of improvements in your credibility, and then consistently behave in trust-building spenders, while the other comes professional life? ways with other people. You should also think about the from a background of thrift. way your style is perceived, so people do not misunder- Even in difficult situations in close, personal relation- stand you. ships, trust can be restored. And the very effort of Restoring Lost Trust restoring it can make it even stronger than before. Self Trust: Often, the most difficult trust to restore is The idea that trust cannot be restored once it is lost is trust in ourselves. When we violate a promise we ve a myth. Though it may be difficult, in most cases, lost made to ourselves, our self trust can really take a dive. trust can be restored and often even enhanced. Restoring self trust gives another dimension a power- Societal Trust: Restoring trust on the societal level ful dimension to the Cores and behaviors. means rebuilding trust in countries, institutions, indus- Broken Trust A Beginning: If you ve broken trust tries, professions and in other people generally. with someone else, it s an opportunity to get your own In the Republic of Ireland, leaders over the past 30 act together, to improve your character and competence, years have changed the nation s focus from inward to to behave in ways that inspire trust. Hopefully, this will outward. They have moved the nation from economic influence the offended party to restore trust in you. independence to interdependence from overhauling an If someone has broken trust with you, it s an opportu- archaic educational system to making Ireland one of the nity for you to grow in your ability to forgive, to learn world s undisputed education leaders. how to extend Smart Trust, and to maximize whatever Market Trust: In the 1990s, Nike was criticized by dividends are possible in the relationship. % activists for not being socially responsible, based on the conditions in some of the plants of their foreign manufac- For additional information on restoring organizational trust, turing partners. go to: http://my.summary.com Chairman Phil Knight acknowledged the company s 8 Soundview Executive Book Summaries®