The ABC’s of Leadership (Day 20): Trust
Trust is the lubrication that makes it possible for organizations to work. (Warren Bennis)
Day 20 – ‘T’
Transparency was king this election cycle. Americans demanded answers on everything from tax returns, to health records, to information about private email use; some candidates, and third-parties (Wikileaks) obliged. The American people demanded a candidate they could trust.
Few delights can equal the presence of one whom we trust utterly. (George MacDonald)
Dr. Christ Hitch, Program Director at the University of North Carolina Executive Development studies organizations. Where trust is higher, his 2016 whitepaper, ‘How to Build Trust in an Organization’, reports:
42 percent higher return on shareholder investment;
Organizations outperformed the posted annualized returns of others by close to 2x, and 3x respectively; and
The same survey also noted these companies experience half the turnover rate compared to similar organizations in their respective industries.
Trust is just necessary. It simplifies the cost of doing business. It makes managing relationships easier. According to the Harvard Business Review’s ‘The Enemies of Trust’, “If people trust each other and their leaders, they’ll be able to work through disagreements. They’ll take smarter risks. They’ll work harder, stay with the company longer, contribute better ideas, and dig deeper than anyone has a right to ask.”
So how do you build trust? It starts with transparency. Give of yourself. Share (unconditionally) the good, the bad, and the ugly. It won’t be easy, but it will be worth it.
Transparency increases the cost of hiding the truth. More efficient interactivity exposes truths that used to be inexpensive to hide. (Don Peppers and Marth Rogers)
Want more on leadership? Check out my partner Dale Richardson’s thoughts in his Live the Goals podcast here!
“The ABC’s of Leadership” is a web series highlighting principles of leadership.
Each day, we’ll highlight a new focus area and concept. Done in partnership with Dale Richardson, a Podcast Host and John Maxwell Team certified speaker, trainer and coach, we’ll also offer a podcast exploring each idea further.
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