Trust Across America-Trust Around the World™

Ask any C-Suite executive about organizational trust and most will tell you that the “soft stuff” belongs to another department. Soft stuff? How many business executives do you know who could pass this “trust” test?

The Hard Cost of Low Trust

Question: Gallup’s research (2011) places ________ % of U.S. workers as either not engaged or actively disengaged.

Answer: A startling 71%

Question: The price tag of disengagement (Gallup) is $________

Answer: $350 billion a year. That roughly approximates the annual combined revenue of Apple, General Motors and General Electric.

Question: The Washington Post reported that “the federal government imposed an estimated $_________ in regulatory costs on the economy (in 2012).”

Answer: $216 billion in 2012, nearly double its previous record.

Question: The cost of the tort litigation system alone in the United States is over $________.

Answer: $250 billion. – or 2% of GDP, Forbes, January 2012

Question: The six biggest U.S. banks, led by JPMorgan Chase & Co. (JPM) and Bank of America Corp., have piled up $___________ in legal costs since the financial crisis.

Answer: $103 billion in legal costs since the financial crisis, more than all dividends paid to shareholders in the past five years. Bloomberg, August 2013

Question: According to The Economist Intelligence Unit (2010), __________ % of senior leaders say disengaged employees are considered one of the biggest threats facing their business. However, only ____________ % of them reported doing anything about this problem.

Answer: 84%, 12%

Question: In 2011 , WIQ calculated that mistrust is costing companies between ______% to ______% revenue loss, and _____% to _______% loss of profitability. WIQ is a team sourcing technology company

Answer: 14-18% revenue loss and 17-24% loss of profitability.

Question: In the 1960’s, if you introduced a new product______% of the people who viewed it for the first time believed the corporate promise. Forty years later, if you performed the same exercise less than _______% believed it was true. Howard Schultz, Founder & CEO Starbucks

Answer: 90% believed the corporate promise, now less than 10% believe it to be true.

Question: According to Edelman globally, _____% of consumers trust businesses, but just ______% trust business leadership.

Answer: 50% of consumers trust business, while 18% trust business leadership.

Question: In the United States, Edelman’s statistics are similar, but the story is a bit worse for leadership. While _____% of U.S. consumers trust businesses, just ____% trust business leadership.

Answer: 50% of consumers trust business while just 15% trust business leadership.

The Low Cost of Hard Trust

Unfortunately, it’s easier to find data on the cost associated with low trust. But here are a few test questions addressing the cost savings of hard trust.

Question: A study by the Russell Investment Group finds the “100 Best Companies to Work for in America (In which trust represents 60 percent of the overall criteria) earned over _______ times the returns of the market at large.

Answer: See for yourself. resources.greatplacetowork.com/article/pdf/how_trust_affects_the_bottom_line.pdf

Question: The Towers Watson 2011-2012 “Change and Communication ROI Study Report” shows that companies that have highly-effective communications practices are _________ times more likely to outperform their peers financially.

Answer: 1.7 times

And finally, Trust Across America – Trust Around the World continues to track the performance of America’s Most Trustworthy Companies agains the S&P 500 and the findings are nothing less than remarkable.

 

 

The next time a business executive tells you “trust is soft”, suggest he take the “Test” and maybe (even) buy our new book:

Trust Inc., Strategies for Building Your Company’s Most Valuable Asset.

 

Trust Inc.

 

 

I don’t eat cookies, except for Mallomars. I love Mallomars. They take me back to my childhood. I ceremoniusly pull off the tops and eat the cookie separately. I wait for Mallomar Week every year and then I indulge in a box (or even two)!

So when I walked into our local chain supermarket earlier today with one of my teenage sons (he also has the Mallomar excitement gene) and we were greeted with an ENORMOUS display of Mallomars, we high-fived each other and added two boxes to the shopping cart (at $1.99 a carton). And then we read the fine print. “Sale is in effect for 4 days from September 11 through September 15 (today is September 8).  And my son said, “That’s deceptive advertising” just as one of the store managers walked past, and he must have heard the comment.

He politely asked if he could help and I explained the issue to him. At first he “pretended” (I’ll tell you why I chose that word in the next paragraph) not to understand until I pointed out that anyone who bought the cookies between now and  September 11 would not do so at the advertised price. And not only did he agree, but he immediately removed the signs; and my son and I felt like we had all won (including the store manager for doing the right thing) and we had all done a good deed for the shoppers who would have mistakenly paid full price before the sale date.

And then we went shopping, discussing how people can, and do act with integrity and will admit their mistakes…until I realized that I had forgotten the tomatoes, which were on display next to the Mallomars, where the signs had been put right back up, as soon as we walked away.

And that, my friends, is today’s story about trust, or lack thereof. And when I finally do buy that box (or two) on Wednesday, I bet they won’t taste quite as good as in the past. The bitter taste of today’s experience may linger for a while.

Shame on all the companies that try to “put one over on their customers.” Remember, without your customers, you have no business.

ALLIANCE OF TRUSTWORTHY BUSINESS EXPERTS: OUR FIRST FIVE INITIATIVES

We are pleased to announce the formation of our Alliance Steering Committee and five initiative task forces. 

1. Community Ambassadors: Increasing the Global Dialogue on Organizational Trust

2. Trust Talks™: Delivering Expert Content, Speakers and Panels on the Topic of Organizational Trust

3. The Trust Project™: Constructing a Framework and Master Database for Trust: A General Framework with Customized Components for Specific Organizational Needs

4. Making the Case for Trust: Proving the Correlation Between Trustworthy Behavior & Organizational Leadership Success

5.Generational and Cultural Trust: Exploring Generational and Cultural Trust Synergies and Differences

For additional information: Barbara Kimmel, Executive Director, Trust Across America – Trust Around the World

and visit our Alliance to learn more.

Email: Barbara@trustacrossamerica.com

1. Our name changes to Trust Across America – Trust Around the World, reflecting our global expertise and program reach
2. Our membership expands to almost 20 countries
   
3. Our Alliance members organize into task forces to tackle five early initiatives in our Campaign for Trust
4. 46,000+ page views in May! Organizational trust is a global concern and a popular subject
5. Our book, Trust Inc.: Strategies for Building Your Company’s Most Valuable Asset is now available for preorder 
   
6. Construction of a master Framework of Organizational Trust (for use in any organization regardless of size) is underway
7. Trust Talks™ launches: Delivering speakers and panels for worldwide events
8. Trustworthy businesses continue to outperform their less trustworthy peers bit.ly/111ZtjV
9. Community Ambassadors to our Alliance are joining us from around the world
10. A Google search of the term “trustworthy business” returns the first 4 listings to us!

Collaboration is a powerful tool, especially in addressing and advancing a global issue like trust!

For more information, please contact Barbara Kimmel, Executive Director, Trust Across America – Trust Around the World

Email: mailto:Barbara@trustacrossamerica.com

Who is tweeting on trustworthy business? Here are just some of the “Best of the Best!”

Patricia Aburdene   @paburdene

Randy Conley  @RandyConley

Kellie Cummings @Kellcummings

Charles Feltman @CharlesFeltman

Linda Fisher Thornton @leadingincontxt

Robert  Galford  @RobertGalford

Bahar  Gidwani @CSRHub

Charlie Green @CharlesHGreen

Jim  Gregory @CoreBrand

Parveen  Gupta @ParveenPGupta

Nadine  Hack  @NadineHack

Stewart  Hirsch @Stewartmhirsch

Michael  Hopkins @mjdhopkins

Noreen Kelly @NoreenJKelly

Kimmel, Barbara @BarbaraKimmel

Jim  Kouzes  @Jim_Kouzes

Deb Krizmanich  @Powernoodle

Mike Krzus @mikekrzus

Par Larshans   @PLarshans

Greg Link  @CoveyLink

Linda Locke  @Reputationista

Eric Lowitt  @ericlowitt

Elsie Maio  @Soulbrand

Jon Mertz @thindifference

Deb Mills-Scofield @dscofield

Carol Sanford  @carolsanford

Omer Soker @OmerSoker

Frank Sonnenberg @FSonnenberg

Roger Steare @RogerSteare

Davia Temin @DaviaTemin

Robert Vanourek @BobVanourek

Bob Whipple @Rwhipple

Who should be added to this list. Drop me a note and let me know. barbara@trustacrossamerica.com

Barbara Kimmel, Executive Director, Trust Across America

www.trustacrossamerica.com- Leaders in information, standards and data, and the “Who’s Who of Trustworthy Business”

Once upon a time, in the land of gardens, also known as New Jersey, a somewhat small “Jersey Girl” named Barbara (Barb to her good friends) had a rather tall vision to change the world, or at least the conversation.  Barb believed that if she could increase the dialogue around trust, particularly in business, it would spring eternal- similar to Jersey’s blueberries- and the trust crisis would subside.

And so Barb began to knock on the doors of corporate America (and businesses in lands far away) to politely inquire about trustworthy business practices. Oddly, the response was not what she expected to hear. “We are big business. We are trustworthy. We are beating our quarterly earnings and expanding globally. We give to charities. The trust crisis is not out problem. You are just one person named Barb from NJ. Go away with your “soft words.”  Go knock somewhere else.”

And so she did because Barb had changed her middle name from Jane to “Tenacity” right around the same time that she turned 39 for the third year in a row. She knocked and knocked and did not give up until the right people started to listen-and even offered to help. And then she came up with an idea- if one rather small woman from NJ could get some “trust lovin’”, imagine how much 100 men and women, or 1000, or even a million could attract? And so she started a movement- A Campaign for Trust, and she invited everyone who didn’t slam the door to join her-  (except the mainstream media because they are still stuck on bad news)!

And in a few months, eyebrows around the world began to “raise” as did the roster of alliance members, almost 200 from 13 countries and counting. Men and women from academia, consulting, the “alternative” media, and even a few from “big business” (including some CEO’s) signed up to help. They weren’t exactly sure what “signing up” meant, but they trusted Barb enough to know they wanted to be part of this particular movement- because without trust, what else really matters?

Do you want to be part of the problem or part of the solution? Do you want to learn more about what Barb and the band of “trustnicks” are up to?

Read more about our alliance here.

trustacrossamerica.com/cgi-bin/alliance.cgi

PS- Barb’s teenage son cautions about trying to be funny about trust. It’s a serious subject. Barb disagrees. She thinks trust can be funny and fun, and serious too! What do you think? Email her at barbara@trustacrossamerica.com

As the Executive Director of Trust Across America, I often find myself discussing the difference between being legal and being ethical. The legal side of the discussion is pretty easy to explain. If you and/or your organization comply with the law, you are meeting your legal requirement. Being ethical- not so easy to describe. It’s going beyond what’s legal to “doing the right thing” and I’ve learned there is no standard for the “right thing.”

In reading today’s headlines, I may have found a perfect case study for legal vs. ethical, right in my own backyard. Talk about not “getting it!” The story has do do with NJ taxpayers paying dozens of school superintendents twice via a paycheck and a pension. It’s called “double-dipping” and it’s perfectly legal. But is it ethical? You can read the full article here.

bit.ly/12m0p3Q

BARBARA KIMMEL INTERVIEWS DEB MILLS-SCOFIELD

Barbara Kimmel: Deb – tell us a bit about your background, qualifications and expertise. If you have written a book, please provide the title.

Deb Mills-Scofield: I was raised to challenge and question the status quo. I went to Brown University and helped create the Cognitive Science concentration and went to Bell Labs after graduation where I received a patent for one of AT&T & Lucent’s largest revenue generating products. I have my own strategy and innovation consulting practice, am a partner in an early stage Venture Capital firm, teach a class on business model innovation at Oberlin College. I love spending time at Brown on the Engineering Advisory Council, as a Visiting Scholar mentoring students in entrepreneurship and social ventures, and guest lecturing. I also blog for Harvard Business Review. I’ve done a few startups that failed and succeeded and love working with young entrepreneurs to keep my business acumen nimble and open-minded.

Barbara Kimmel: Trust Across America’s mission is to rebuild trustworthy business behavior across the globe.  How would you generally define trustworthy business behavior? 

Deb Mills-Scofield: The golden rule is a great start – do unto others as you would have them do unto you, no matter what the situation.  This means keeping commitments and promises, being accountable, acting with integrity, being vulnerable and humble, and understanding that having the right doesn’t make it right.  It means always being able to look your customers and employees in the eye because you know you’ve done the right things.

Barbara Kimmel: In your opinion, what are some of the specific components of trustworthy business behavior?

Deb Mills-Scofield: Treating people (customers, employees, etc.) fairly, which isn’t always equally; taking the 2^nd, 3^rd etc. order consequences of your business’s operations and offerings into account in decision-making (for customers, employees, communities, environment); focusing on profit and money as outputs (means to an end) which enable outcomes (ends) of purpose and meaning; first truly understanding customers’ needs and circumstances before rushing to a solution.  This starts with the people around you, your personal relationships with peers, bosses, those that work for you and goes on from there.

Barbara Kimmel: We all know that the erosion of corporate trust is a big problem. What are companies doing to combat this, and is it enough?

Deb Mills-Scofield: Companies are trying in various ways.  A common way is compliance – which is obedience of the mind, not heart – to the letter of the law versus the spirit of the law.  I think it has to start with leadership making themselves vulnerable, admitting they are wrong, that they need input and don’t know all the answers but know the direction.  Leader need to trust their people: treat them like adults, reward, recognize, give autonomy and permission to try, fail and learn, let them create their own jobs and self-organize.  And this is done in sincerity and authenticity towards the goal of freeing one’s people to delight customers instead of constantly checking to see if it improves the bottom line (outcome vs. output again).

Barbara Kimmel: Is the global “trust” climate improving or worsening? What actions will turn things around?

Deb Mills-Scofield: At a macro level, I think it is worsening.  Even if it is getting better, there is a time lag before people will trust again.  In my practice, admittedly self-selecting, I see a concerted effort to increase genuine trust and integrity within the organization and with customers and suppliers.  The issue is having the tenacity to stick with while you’re building up credibility and a track record.

Barbara Kimmel: Can you provide a few examples of companies that are doing the “right” thing in your opinion? What steps are being taken by these companies that sets them apart?

Deb Mills-Scofield: There are the famous ones you hear about – Whole Foods, Zappos, etc.  I know several ‘unknowns’ that are remarkable.  One is Menasha Packaging, a 164yr old 6^th generation family business over $1B that has to be one of the most incredible teams I’ve ever worked with in terms of compassions, integrity, honesty, transparency resulting in terrific profitability and growth. Their president, Mike Waite’s (who is joining me for the Feb 13^th  Trust Across America radio show) primary concern is making sure his people, at all levels, can live their dreams at home.  The leadership lives up to their commitments, gives their people autonomy, allows failure, encourages self-organization and keeps a flat organization with a true open-door policy.  The other company is Thogus, a 21^st century manufacturing polymer and 3D printing company.  Matt Hlavin, the president, makes sure he owns the culture – keeping it vibrant, open and transparent about his strengths and weaknesses.  It truly does feel like a family.

Barbara Kimmel: Anything else you would like to add as a closing comment?

Deb Mills-Scofield: I’m a bit concerned that trust will become, if it hasn’t already, a buzzword.  The issue and importance is that it has to come from within the person, from the heart.  It should have only one real motive – it’s about ‘the other’, not about you. It shouldn’t be a way to achieve corporate growth, career advancement etc.  It should be because you genuinely want to be trustworthy and that you want the best for your people, your customers, and your stakeholders.  Anything less is not sustainable.

Barbara Kimmel: Deb, I share your concerns that a new industry of “trust-washing” will emerge, if it hasn’t already.  I appreciate your insights and all you do to foster trustworthy business.

Deb Mills-Scofield can be reached at: dms@mills-scofield.com

Do you have questions or comments? Email Barbara@trustacrossamerica.com

BARBARA KIMMEL INTERVIEWS RANDY CONLEY,

DIRECTOR OF CLIENT SERVICES AND TRUST PRACTICE LEADER AT THE KEN BLANCHARD COMPANIES

Barbara Kimmel: Randy – tell us a bit about your background, qualifications and expertise. If you have written a book, please provide the title.

Randy Conley: I’ve been a part of The Ken Blanchard companies for nearly seventeen years, where I hold two roles: Director of Client Services and Trust Practice Leader. I think my dual role allows me to have a “real world” perspective when I work with clients to help them improve their abilities to build trust in their leadership practices. I have a Master’s Degree in Executive Leadership from the University of San Diego, and although I haven’t written a book (yet!), I do quite a bit of writing on my blog (www.leadingwithtrust.com). On the personal side, my wife and I are celebrating our 25^th wedding anniversary this year and our relationship has definitely been a living laboratory on the importance of trust in relationships!

Barbara Kimmel: Trust Across America’s mission is to rebuild trustworthy business behavior across the globe.  How would you generally define trustworthy business behavior? 

Randy Conley: I would define trustworthy business behavior as “doing the right thing” regardless of the circumstances. This applies to individual leaders as well as organizations as a whole. Of course there are many different components that fall under the umbrella of “doing the right thing” and that’s the beauty of the trust alliance Trust Across America has put together. bit.ly/13TX5Kj All of us have strengths and passions in the different aspects of trustworthy business behavior and together we can make a big difference in organizations around the world.

Barbara Kimmel: In your opinion, what are some of the specific components of trustworthy business behavior?

Randy Conley: My specific focus is the component of interpersonal trust. I believe that trustworthy business practices start at the individual level. How do you and I build trust as leaders and members of an organization? Once you’re clear on that, then I think you can apply the same principles and practices to the other areas of your business such as organizational governance, sustainability, public relations, brand management, etc.

Barbara Kimmel: We all know that the erosion of corporate trust is a big problem. What are companies doing to combat this, and is it enough?

Randy Conley: Some companies, not enough, but some are starting to “get it” when it comes to understanding the value of being trustworthy organizations. They are realizing that being trustworthy is not just the right thing to do in terms of ethical business practices, but there are bottom-line economic benefits to being trustworthy.

Barbara Kimmel: Is the global “trust” climate improving or worsening? What actions will turn things around?

Randy Conley: When you look at the various surveys and reports it appears that the climate of trust isn’t improving. It’s been at historic lows and is continuing to stay there. Leaders have to take specific, proactive steps to build and maintain trust with their stakeholders. Trust doesn’t “just happen” over time. It takes intentional effort over an extended period of time.

Barbara Kimmel: Can you provide a few examples of companies that are doing the “right” thing in your opinion? What steps are being taken by these companies that sets them apart?

Randy Conley: I think Whole Foods is a good example. Their CEO, John Mackey, is a proponent of trustworthy business behavior and puts specific focus on it as part of how he runs his company. I also work with a range of companies, from those in the Fortune 500 to small businesses that understand the importance of trust and are implementing training and development programs to create cultures of trust.

Barbara Kimmel: Anything else you would like to add as a closing comment?

Randy Conley: The last thing that I would add is that I don’t see a more important leadership competency than that of building trust. Trust is the foundation of any successful and healthy relationship and the most successful leaders in the 21^st century are going to be those that have the ability to create trustworthy relationships with internal and external stakeholders.

Barbara Kimmel: Randy, it’s always a pleasure hearing your insights on building cultures of trustworthy business. Thank you for your time.

Randy Conley can be reached at randy.conley@kenblanchard.com

and more information about The Ken Blanchard Companies can be found at:

www.kenblanchard.com

Do you have questions or comments? Email Barbara@trustacrossamerica.com

Barbara Kimmel is the Executive Director of Trust Across America, global leaders in information, standards, data and Who’s Who in trustworthy business. www.trustacrossamerica.com

Barbara Kimmel Interviews Jim Gregory, CEO CoreBrand

Barbara Kimmel: Jim- tell us a bit about your background, qualifications and expertise. If you have written a book, please provide the title.

Jim Gregory: I am the CEO of CoreBrand. My company focuses on building corporate brands and we are pioneers in the measurement of corporate brands. We have a proprietary database know as the Corporate Branding Index® that includes 20 years of consistent research of 1000 companies across 54 industries. This allows us the unique ability to connect the corporate brand to market capitalization. I’ve written four books on the subject, the most recent being The Best of Branding.

Barbara Kimmel: Trust Across America’s mission is to rebuild trustworthy business behavior across the globe.  How would you generally define trustworthy business behavior? 

Jim Gregory: Trust is built through the process of consistently meeting the needs of your key constituencies over time. Each constituency views trust from their own perspective and their own needs. Understanding how trust is built is critical for creating corporate value.

Barbara Kimmel: In your opinion, what are some of the specific components of trustworthy business behavior?

Jim Gregory: There are three elements of trust that can be managed by a corporation.

1) Business Processes must be in alignment with the overall brand strategy.

2) The Culture and Behavior of the company must adhere to the brand guidelines.

3) The Communications, whether planned or unplanned, should consistently reflect the brand over time.

Barbara Kimmel: We all know that the erosion of corporate trust is a big problem. What are companies doing to combat this, and is it enough?

Jim Gregory: We know from our proprietary research and models that trust is directly related to brand power, which is directly connected to market capitalization. Education of management and consistently reinforcing the importance of trust is the best way to rebuild corporate brands.

Barbara Kimmel: Is the global “trust” climate improving or worsening? What actions will turn things around?

Jim Gregory: Trust in corporations has been declining since 2004. CoreBrand’s research of Corporate Brand Equity as a Percentage of Market Capitalization for the average Fortune 1000 company shows a decline from 7.4% in 2004 to 5% in 2012. We believe this decline is leveling off and we are hoping for a rebound in 2013.

Barbara Kimmel: Can you provide a few examples of companies that are doing the “right” thing in your opinion? What steps are being taken by these companies that sets them apart?

Jim Gregory: Google’s brand has been consistently growing for years. Now they are ranked as the number one company to work for, and they have great programs in place to support this ranking — that is consistency.

Barbara Kimmel: Anything else you would like to add as a closing comment?

Jim Gregory: CoreBrand tracks 1000 companies across 54 industries. If your company is one of them we have information to share with you. If it isn’t one of them we will consider adding your company to our research survey. Please let us know more about your corporate brand.  Our data can also be combined with Trust Across America’s FACTS® Report to provide further depth and perspective on the trustworthiness of our company.

Barbara Kimmel: Thank you Jim for your ongoing research on the construction and measurement of trustworthy brands.

Jim Gregory can be reached at jgregory@corebrand.com

and more information about CoreBrand can be found at:

www.corebrand.com

Do you have questions or comments? Email Barbara@trustacrossamerica.com

Barbara Kimmel is the Executive Director of Trust Across America, global leaders in information, standards, data and Who’s Who in trustworthy business. www.trustacrossamerica.com