Speed of Trust

Creating Transparency

Creating transparency is gaining recognition as a critical behavior in high-trust companies. According to PricewaterhouseCoopers, the – spirit of transparency – is the first key to restoring public trust.

Is there a business consequence to a lack of transparency? I bet you can think of several examples but here’s a good one:

Eckhard Pfeiffer, the former CEO of Compaq, had two different types of executives on his team. The first was a group of executives whose instinct for self-preservation biased them to consistently reinforce his vision (whether they believed in it or not).  The second was a group of astute observers willing to speak truth to power.  As you might have guessed, Eckhard preferred the first group because they boosted his self-esteem.

There were many on his staff that realized that both Gateway and Dell were dominating Compaq in the marketplace through the use of innovative manufacturing technologies and customer service strategies to build custom computers unique to the needs of each customer. But Pfeiffer was unwilling to receive counsel from the second group on this issue.

As a result, he not only failed to notice that other firms were gaining on his; he also failed to seize the opportunities created by the Internet and these new manufacturing technologies, as others had done.

The consequences for Compaq?

After consistently missing revenue and profit goals, they were acquired by Hewlett Packard for a fraction of what this once mighty company had been valued.

As a leader you might want to ask yourself, “Do people who are not in my inner circle have a way to get information to me?” “How do I react – what do I do – when someone brings me unwelcome news that might undermine my own assumptions or strategy?” “Am I able to reward the messenger even though I don’t like the message?”

Please drop us a line and share your transparency stories with us. We particularly welcome positive examples of the demonstration of this Speed of Trust behavior.

Today, trust and transparency are as important to corporate reputation as the quality of products and services. Attend Blueline’s Building & Restoring Trust Webinar. Click here to learn more.

Reengage Your Employees by Building Cultures of Trust

The worst recession in three generations has wreaked havoc on our markets and the companies that operate within them. And our employees are living with fear and uncertainty about the economy, their jobs and their careers.

More than ever, there is urgency around building and restoring trust – between departments, within teams, across suppliers, with customers, and in the marketplace.

Now the organization looks to you. How are you, as a learning professional, going to help your leaders to rebuild trust in your organization, trust in its leadership, and trust among peers?

On August 24th and Sept 1st, Blueline Simulations will be holding a complimentary webinar on Building and Restoring Trust in the workplace.  Should you be attending? Click here to learn more.

Organizations don’t build trust, people do — one conversation and one behavior at a time.

If you are facing a trust issue, please send us an email or leave a comment in the box below. We will do our best to tailor the webinar to the needs of the participants.

Most importantly, if you have a successful story or tip, please share that, too!

Little Black Globs of Mistrust

With its headquarters located in Tampa, Florida, the people of Blueline Simulations have been casting their gaze to the water. Here, it is mostly rocky and not sandy, but the water is blue and warm. A drive across town is marked by sightings of pelicans, and sometimes even a few dolphins. You see a lot of fishing boats here in Tampa; the families who make their living from the sea are not some far-away abstraction. They’re right there on the side of the freeway with their lines in the water.

I haven’t seen any oil. At least, not yet.

I remember the early, bitter-sweet sense of relief that we all felt when the news reported that most of Florida coast would be spared from the rush of oil that was escaping into the gulf. That relief is gone, and today it is replaced with a dread that is creeping as surely as thick, black ooze.

Today in the morning paper, I saw a full-page ad from BP. The headline and copy in the ad struck a reassuring tone. The message was that the company would make things right, and would take full responsibility.

My wife looked over my shoulder. “How much do you think they paid for that ad?” she asked. I knew what she was going to say next, because the thought had crossed my mind, too: “Wouldn’t that money be better spent cleaning up the mess?”

As an organizational guy, I often find myself imagining how these kinds of public relations disasters look from within the organization. I am confident that the BP organization takes no joy in harming the environment, or the public’s trust. I wonder about the meetings that take place internally, the growing internal anxiety, as time and again, the organization’s well-intentioned public statements and actions are received in the worst possible ways: “Don’t they see how hard we’re trying?!”

When we talk about trust here at Blueline Simulations, we cast it in terms of behaviors. There are things you can do to build trust and to restore trust. There are also certain behaviors that will destroy it in a heartbeat. One of our partners in learning, Stephen M. R. Covey, has identified 13 behaviors of high-trust organizations, and they read like a really, really bad report card for BP.

Covey’s behaviors include talk straight, confront reality, and right wrongs.

Think about the statements you’ve heard company representatives make in the news and also the ways those statements have been mercilessly picked apart by pundits. Now play a little “Monday morning quarterback” and imagine how you would recast each of those press events. Think about the statement that Tony Hayward, CEO of BP, made: “The Gulf of Mexico is a very big ocean. The amount of volume of oil and dispersant we are putting into it is tiny in relation to the total water volume.”

If you were Tony’s “trust consultant,” what would you advise? In this case, what does it look like to talk straight, confront reality, right wrongs?

I know that the Tylenol scare of 1982 is one of the more overplayed business case studies, but doggone if those guys didn’t get it right. After seven people in the U.S. died from ingesting Tylenol, Johnson & Johnson alerted the nation to stop using Tylenol until they could determine the extent of the tampering. They recalled 31 million bottles, retailing at over $100 million. They offered to exchange capsules already sold for tablets which cost them millions more. They established relations with law enforcement officers on every level to help search for the person who laced the medication and to help prevent further tampering. When they reintroduced the product, it had new triple-seal, tamper resistant packaging. As a result of their actions, they turned what could have been a disaster into a victory in credibility and public trust.

J&J practiced accountability, confronted reality, talked straight. Yes, it was painful and yes it was expensive. (And remember that the crisis wasn’t even J&J’s fault.) To this day, that company enjoys a level of trust and credibility that others envy.

Again, imagine yourself as the trust consultant to BP. As you think about Tylenol’s response, what might Covey’s trust behavior of “practice accountability” look like? Winston Churchill said that it is fruitless to claim “we are doing our best.” You have got to succeed in doing what is necessary.

The opportunity exists today for BP — and for any company — to exercise behaviors that build trust at all levels of the organization. It requires resources and a fair amount of courage. But the rewards are great.

Today, trust and transparency are as important to corporate reputation as the quality of products and services. Attend Blueline’s Building & Restoring Trust Webinar. Click here to learn more.

Trust in the Marketplace

Isn’t it interesting?

The American Society for Training and Development’s (ASTD) International Conference was packed with sessions on virtual learning, social media, 3D, best practices for webinars and so on. I attended the conference, and while there, I received a press release about Ken Blanchard’s acquisition of the Trustworks Group. Yes, I did receive it on my iphone, and I admit, I read it while listening to the speaker. Seems this is typical behavior for certain generations.

Well, that definitely peeked my interest given that I have been working with Stephen M.R. Covey for the past three years to bring engaging and dynamic learning programs to the market based on his best-selling book, The Speed of Trust.

Obviously, other thought leaders besides Stephen M.R. are catching on to the idea that trust is a key leadership competency, and that there is a great need to develop leaders who inspire trust.

This is certainly no surprise given that in the past decade, both business and government have violated stakeholder trust and demonstrated how its loss erodes reputation. As a result, trust has emerged as a new line of business.

The 2010 Edelman Trust Barometer suggests that, to advance reputation, companies need to be everywhere, engaging everyone. That they must build a “mosaic of trust.” In fact, the barometer shows that trust and transparency are as important to corporate reputation as the quality of products and services.

High trust organizations out perform low-trust organizations. Total return to shareholders is almost three times higher than the return in low trust organizations. So we assert that trust is clearly a key competency. A competency or skill that can be learned, taught, and improved, and one talent to screen for.

Leaders need to be transparent and talk straight, instead of creating illusions, having hidden agendas, making things seem different from reality, or spinning the truth. These are two of the key behaviors in Stephen M.R. Covey’s book that came out of his work on trust.

We are glad to hear more buzz about trust in the marketplace. And we hope your trust work is based on trust as an economic driver, and about implementing the behaviors of trust at all levels in your organization – getting people to speak the language of trust and understand how to extend, restore and build it.

There are no trust falls or funny hats in our Speed of Trust simulation and Speed of Trust Meeting in a Box. These dynamic learning solutions are about trust as an economic driver; about making trust your operating system; about learning and applying the behaviors common to high trust. Now there is something to tweet about (or we’ll send a press release if you prefer)!

Trust in the Headlines

Turn on the TV or click to your favorite news website and it won’t take long to find a story about the decline of trust in organizations. Damaged trust is at the heart of economic turmoil, and millions of workers have felt the effects in painful and personal ways.graph

The 2009 annual Edelman Trust Barometer reports that “the world has more reasons than ever before to suspend its trust.”

The report goes on to say: “In no country is trust in a more dismal state than the United States, where government, business, and media are all distrusted by respondents to do what is right.”

Many of us don’t need a news headline to tell us this because we feel the effects of damaged trust every day.

So what do we do about it?

Stephen M. R. Covey, in his best selling book, The Speed of Trust, says “you can’t talk yourself out of a situation you behaved yourself into. You can behave yourself out of a situation you behaved your way into.”

Stephen identifies 13 behaviors that build trust:

  1. Talk Straight
  2. Demonstrate Respect
  3. Create Transparency
  4. Right Wrongs
  5. Show Loyalty
  6. Delivery Results
  7. Get Better
  8. Confront Reality
  9. Clarify Expectations
  10. Practice Accountability
  11. Listen First
  12. Keep Commitments
  13. Extend Trust

People and companies can learn these behaviors.  It’s not a simple process that happens overnight, but is a systemic, cultural process that can happen one leader at a time.

When you find yourself in a situation where trust needs to be restored, practice restoring it using these thirteen behaviors common to high trust individuals.