In ??? We Trust

Trust is a big word. It evokes strong feelings and diverse meaning, from infant bonding to faith in God to the death of the handshake as a binding contract in business.

The erosion of trust in business, families, and society at large is the topic of many progressive discussions centered around change.  In Karen Stephenson's pioneering work on organizational change outlined in her article The Quantum Theory of Trust, she contends that "the assocation between trust and learning is a vast, untapped source of organizational power.  People have at their fingertips tremendous amounts of knowledge that aren't captured in computer systems or on paper. Trust is the utility through which this knoweldge flows." Her premise (based on social research) is that high trust societies have enormous competitive advantage in a global economy, because their transactional costs are lower.

Actively building environments in which trust can flourish makes good business sense too.  Dutch traffic engineer Hans Monderman writes "The greater the number of prescriptions, the more people's sense of personal responsibility dwindles."  If people are bound by too many rules, they become less mindful of their impact on others and more fearful.  Significant creativity and intelligence is repressed or unavailable in cultures in which punitive retaliation or fear are dominant.

What are the implications if you're leading change?

In business, trust in a common purpose and values that hold steady no matter what, are key. During any change, the purpose, values and systems are called into question.  In order to understand what is changing and what stays the same, people need to trust what is happening and who is leading. Environments where constant change is followed by more change, where leaders do not explain the common purpose and values, are characterized by a "workplace A.D.D." that feels frenetic and "on guard." People disengage as a way to survive. 

This is why efforts to build trust during change are high-payoff and low-risk, and critical if you want sustainable change among people.

Even more importantly, in our technology-driven society, people are starving for relationship and meaning. Engaging people in conversations that matter enhances the trust-commitment engine.  Trust is the "starter" for the engine of engagement, which in turn accelerates commitment. Most HR programs are interested in greater workplace "engagement."  True engagement will lead to better business performance, but it is the RESULT of strong trust, not something you create through surveys, training or compensation.

Building trust can be as simple as two people talking about their needs on a project ... or as complex as the CEO of an organization setting a new course through a major acquisition or new strategy. The good news? There is a process and a structure to building stronger trust in your organization.

A few ideas to simplify trust-building:

1) Establish "consultative change" as the prevailing wind in your organization. It simply means leaders don't make major changes without first seeking input from employees. It means conversations about the purpose of change, how it aligns with our values, and how leaders will support it, take place through live dialogue (not email) among the decision-makers, the implementors, and those impacted. Look for opportunities to foster dialogue, inquiry, and relationship. Remember, trust is the starter, engagement is the engine, commitment is the result.

2) Cultivate trust by giving it. In western Massachusetts, there's a growing movement where fresh local food is sold through an honor system of roadside farm stands. The signs are simple "Fresh Eggs." "Sweet Corn." "Bouquets." You stop, pick up your produce, leave money in an old coffee can or cigar box. No one supervises the transaction - you are trusted to do right. No surveillance cameras. No internet monitoring systems. And while there's the possibility of theft, most people don't steal. In fact, some customer make a point of over-paying, or leaving an I.O.U. note even if it's just for 50 cents. What makes this work? Both parties perceive benefit and are engaged in the transaction. This is a far cry from the work environments portrayed in the popular TV series "The Office."  Today's "employment contracts" and work environments often do not benefit both sides nor foster a sense of community.  When people feel they're anonymous, being used, or powerless, they look for ways to retaliate and create their best life -- including discretionary energy and creativity -- outside of work.  

3) Be transparent and authentic and COMMUNICATE. If you exude trust, you will create it around you. Everyone has a "BS" meter and can detect sincerity or lack of it. If you are a "glass-half-empty" leader or feedback shows there are trust issues in your team or organization, look in the mirror.  Chances are people don't trust YOU.  Get a good coach to help you see and correct your blind spots. And never forget the cardinal rule of communication: Actions speak louder than words.

Trust is the first stage an infant must pass through to develop into a healthy person.

Trust that your business operates by the same principle.

Rules of Engagement

Meet Joe.

Joe is the CEO of a software company and they're growing leaps and bounds -- projecting to top $52 million in sales in 2007, doubled from 2006.  Joe has several hundred employees working for him now.

Joe has put in place sound management practices ... but he is noticing something about the business: He used to be able to manage the people by instinct. Communication was easy because everyone was in the same building; any person was a short walk away. Hierarchy didn't matter as much as getting things done.

Now, you have "channels" of communication. Rumblings of "morale" are seeping through the walls for the first time: Burnout,  confusion about priorities, the dreaded "us vs. them"   language being used by employees toward management.

Joe has been through this in the corporate world ... and vowed things would be different when he started his own company.

The "rules of engagement" are proven tactics and sound psychology to help Joe (and every manager facing fast growth) get a grip back on the cozy, family-like feeling of the early days:

Align to Strategy -- create one message that every single employee understands about your direction.

Collaborate to Create Ownership -- ensure all leaders are engaging in forums where they are talking to those close to the customer.  Every week, every VP or C-level person should be in touch with a group of employees, no matter how many layers.

Communicate to Build Motivation -- a good story told consistently will energize people. Joe needs to create a compelling, short story that he tells everywhere he goes, about his vision for his company, and what it will do besides make money.  The younger generations care about meaning more than money, so you have to make them feel part of something.  Check out this article (from Small Business Trends) on how you boost morale when people are working harder: If hiring slows, how do you boost morale?

Bottom line: Good people practices are as important as management practices when growing your business.  Make sure you've got both in place.

The X Factor of Leadership Communication

Experts say that in organizational life, communication is under-done by a factor of 10-100x, compared to what is needed.  Especially during change.

The statistics are out there ... but to validate this, you need only to ask any employee how they learned about change in their company.  Upwards of 80% will tell you they learned about the change or trouble from the media; but inside the corporate walls, it was radio silence.

OK, so what does great leadership communication look like?

Here is what the experts preach ... but sadly, it is rarely practiced:

1) It's your job.  Your #1 job description is Chief Communicator.  Like it or not, the great CEO's will all tell you that. Your internal corporate communications group is NOT responsible for influencing behavior. Their job is to reinforce -- not inspire or direct -- people's actions.

2) Repetition is king. Remember parenting? How many times did you have to remind your kid to shut the door, wipe their feet, take off their shoes or wash their hands before they did it on their own?  Nobody remembers to do something after hearing it once. In this respect, adults are just overgrown kids -- make it clear and say it often.  The bigger the change, the more this applies.

3) KIS. Keep it simple. Borrow from PR and "brand" your message in a way that's catchy, makes them want to act, and shows them what's IN it for them. Slogans are great as long as you give them meaning.

4) Do before talk, ask before tell.  Almost all leaders over-talk and under-do. If you want people to make a change, DEMONSTRATE the change yourself first. Ask a lot of questions and listen well (it's why you have two ears and one mouth, right?). Fix something that is driving employees crazy.  You want more innovation? Show them an innovative idea you carried out. Want to cut costs? Cut one of your entitlements first. Anything less will be viewed as insincere and arrogant -- even though you are infinitely well-intended.

5) Show up and play to the heart.  Communication that is high-touch, low-tech inspires people to action faster than the one-way speech, the blog, the dry facts. If you want buy-in, find the passionate story, do the road show, and make it interactive. "We need more money" messages in ANY form fall flat, especially with the Gen X and Millenial crowd. Whether big or small, find the real meaning, stop hiding in your office, and get with the people.

Culture change experts take heed: If you can infuse these five practices into every leader's drinking water, you'll be more than halfway there.

It's really simple.......if not easy.   

The ROI of Authenticity

News flash:

The February 2007 Harvard Business Review article "Discovering Your Authentic Leadership" reports the key to great leadership IS authenticity.  In the largest in-depth study of leadership development ever undertaken, the authors asked "How can people become and remain authentic leaders?" The answer?

The #1 trait of great leaders is "know thyself."   

The payoff for self-aware leadership?

The study showed superior results over a sustained period of time is the ultimate mark of an authentic leader.  How to get there? 

According to the article (and our experience) these are what great authentic leaders do:

1) Know Thyself.  Great leaders examine and craft their life story in a way others can relate to, to show how they have been tested, overcome adversity, and exercised courage (whether written or not, you have a life story). For a great example of life story, check out Steve Jobs' Commencement Speech, Stanford 2005.  Great leaders also use these "setbacks" to identify their core values and principles, which they don't waver from when tested.  They understand that a satisfying life is less about about the "rewards" on the outside and more about the character you cultivate on the inside. That takes an investment of time and effort, beyond simply knowing it's important.

2) Build a Support Team.  Great leaders surround themselves with people who can do what they cannot. This emerges from self-awareness -- you have to  know yourself and your strengths and weaknesses to know how to hire others who can fill in the gaps.  Weak leaders hire people they like. Courageous leaders often hire people they don't like because they bring a different point of view. A strong team allows a leader to create a more balanced lifestyle with pursuits outside work.

3) Empowering Others.  Great leaders focus on building an organization that brings forth the great leadership in others -- whether or not those people have direct reports.  People all want to create and contribute to something great. But most organizational environments do not encourage this from their people. If you can do this one simple thing as a leader, performance will be a non-issue, and people will travel far beyond any strategy or vision you can dream up.

The Return on People equation for authentic leadership is simple, if not easy.

There's no way out but in.