I recently published an article titled Twelve Ways to Kill Stakeholder Trust. It explained how “check the box” practices will not fix trust. Why is that? Because trust is interpersonal and starts with your people who do not fit into square boxes. Leaders who are counseled to perform trust work arounds, while calling them trust, should have no expectations of trust improving. In fact, they are elevating organizational risk by failing to commit to being consistently and continuously involved in trust building activities. Said another way, those who choose to delegate expensive box checking activities and treat trust as a soft skill will continue to build on their current trust deficit.
The article concluded with a promise to provide some actionable steps that business leaders can take to elevate trust. I asked some of our Trust Alliance members to provide their suggestions and selected the twelve most actionable responses. They are offered in no particular order. Each action stands alone as a powerful step in elevating trust. Pay careful attention to the words highlighted in bold. Read the actions published on Medium by clicking here.
Find out how you can elevate trust the “right” way.
Start by answering this one question (it will take no more than one minute and your response is 100% anonymous) and compare your response to 700 others.
How many of the following trust substitutes are present in your organization? The larger the organization the more prevalent these work arounds are becoming and the faster they are multiplying, crushing any hopes for long-term sustainable trust.
These days it does not take much to lose stakeholder trust given that most organizations have failed to build that essential trust bank account. Now, facing a low balance, many companies are scrambling to find a quick and easy deposit into their account. That is not how trust is built. There are no quick fixes and work arounds are dangerous, further eroding trust despite what leaders are being told. These trust substitutes fail time after time and then like clockwork a new one takes its place. If history has taught any lessons, they will also fail. And how many times should the same mistake be forgiven? For example, excessive employee turnover currently occurring in some companies tells me that the time has come to stop treating trust like a soft skill that can be taken for granted. The business case for trust has been made. It is time to start paying attention to it.
Are you part of the problem?
In 2010 I approached a colleague, a relatively well known consultant to senior management and boards, who had recently published a new book. In it he highlighted one of his clients as a role model for others in their industry. Our FACTS® Framework data told another story (see chart below.) I approached him in confidence, shared our data, and suggested he present it to his client. His response shocked me. “Why would I bring this “bad” news to my client? It might be the end of my very lucrative consulting contract. I’ve got college bills to pay.” Did I fail to mention that his specialty was/is crisis repair/reputation management? That was over 10 years ago. What has changed?
Expensive Trust “Cures” that Will Kill Any Hope of Trust
The following is a list of some of the most egregious trust violations happening every day under the leadership of those who should know better. If you find this list offensive please think about why you are having that reaction. Are you part of the problem or part of the solution?
Unwillingness to acknowledge or take ownership of trust. Delegating it to corporate communications or the PR department, or these days maybe compliance or audit.
Excluding freedom of expression and opinions from the “Diversity & Inclusion” program.
Talking about the importance of data privacy while installing the latest surveillance software upgrades on subordinates computers (and referring to them as subordinates.)
Putting customers before employees.
Telling customers how important they are while they wait on hold.
Filling the next Board seat with an ESG “guru” instead of the most competent candidate. And speaking of ESG, checking that box with carbon offsets.
Following massive layoffs with big annual raises and bonuses for those in the C-Suite.
In the interest of profitability, overlooking the long-term supply chain risk of relying on foreign manufacturers while local suppliers are forced out of business. (The current drug supply debacle is an excellent learning opportunity.)
Treating trust like a short-term “soft serve” flavor of the day instead of a long-term business strategy.
Making the compliance budget the largest and hiring more compliance staff.
Taking a “stand” not because of a belief in the cause but because PR thinks it’s a good idea.
Spending big money on a great place award or better yet a motivational speaker, while employees are told there is no budget for salary increases. (And maybe employees completing satisfaction surveys should not be coached on which boxes to check and their responses should remain anonymous.)
Kick Those Trust Busting Recommendations to the Curb
So what should should business leaders do?
Start by refusing to make these trust busting business decisions and challenge the advisors who are recommending them. Remember, they are in the business of creating dependency.
Assign an internal team to review the trust violations occurring in your organization and fix them.
Make each “fix” your next BIG PR announcement. It will be meaningful and your stakeholders will applaud and reward you. Rinse and repeat.
Do not allow anyone to tell you that any of these violations can be ignored.
Do not shrug this list off because your peer group is choosing to do so. The longer you do, the less trust you will have. You may have lots of “friends at the top” but your trust bank account will remain low and the next crisis may just be your last.
Take this list seriously. Do not toss it until every violation is fixed.
Getting back to the story at the beginning of the article. This is the historical FACTS® data on the referenced company.
Somewhere in the middle of the chart the company paid one of the largest fines in the industry’s history. My guess is the same consultant was called in on the reputation repair team.
Our next article will provide some actionable and workable ideas to build trust. We are gathering the best suggestions from our Trust Alliance members and Top Thought Leaders and will be sharing them soon.
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