What is The Business Case for Trust?

I am repeatedly asked to make the business case for trust.

Trust is the foundation of any successful relationship, both personal and professional, yet it sometimes seems to lack in the workplace. Why?

Trust Me…

One reason that is seems to be lacking in the workplace is that trust is one of those intangibles things that is difficult to quantify and measure in easy ways. This means that showing a value-add and making the business case for trust can sometimes prove difficult. Other than the usual statements about trust reducing transaction costs, increasing employee and customer loyalty, and shortening the sales cycles, evidence seems difficult to find.

One thing I’ve used as an example with clients is the financial crises in the U.S. Due to the unethical business practices of the leaders of some of the financial institutions and government polices that put social concerns over financial prudence, the markets went on a downward spiral. The U.S. Government tried to help bail out the banks and restore consumer confidence, but those efforts failed to bring positive growth in the private sector.

Although positive progress is being made in some areas, it’s being made very, very slowly. This is partly because the American people (and many others across the globe) have lost trust in the U.S financial system and those affiliated with running those types of firms. The massive deficit spending also has most people in investment markets losing trust in the ability to pay back the piling debt.

It will be a slow process to regain this trust, and we may continue to see the negative impacts for some time.

Noticing the negative impacts that lack of trust and transparency have had on the U.S economy, and using this as a real example for clients, seems to give a tangible basis for the necessity of addressing trust in the workplace.

Concerning a review on Amazon.com on the popular book The SPPED of Trust: The One Thing That Changes Everything by Stephen M.R. Covey, reviewer Sahra Badou says this:

“There is one thing that is common to every individual, organization, nation, and civilization throughout the world–one thing which, if removed, will destroy the most powerful government, the most successful business, the most thriving economy, the most influential leadership, the greatest friendship, and the deepest love.

On the other hand, if developed and leveraged, that one thing has the potential to create unparalleled success and prosperity in every dimension of life. According to the author, that one thing is trust.”

Without Trust

I like to offer a cause and effect view on trust to my clients:

Without trust within your company, your engagement, and morale will suffer.

~ If engagement and morale suffer, then retention declines.

~ If retention declines, then costs increase and performance slips.

~ If performance slips, customer satisfaction declines.

~ If customer satisfaction declines, revenue declines.

~ If revenue declines too much, business stops.

This example serves as simple and tangible business case for trust, one that highlights the importance of increasing trust in the workplace.

So, what are you doing to help your bottom line by working to increase trust? How are your daily behaviors reflecting trust-building with the people you work with? Are you also behaving in a way that extends into your customer base and supply chain? Would the people around you say that you work to build trust? I would love to hear your comments!

Bookmark What is The Business Case for Trust?

——————–
Scott Span, MSOD is President of Tolero Solutions OD & Change Management firm
He helps clients be responsive, focused and effective to facilitate sustainable growth

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2 Comments

  1. Mark Fryer on June 24, 2010 at 8:16 am

    Scott, excellent blog. As you mention, trust is so important in all areas of one’s life. Dr. Covey talks about building one’s emotional bank account. My opinion is the only way to build trust is by personal accountablity by walking the talk while builing an “emotional bank account.” Unfortunately, we are all human and occaisionally make mistakes. But if one builds his or her emotional bank account with positive interactions with others, when he/she does stumble, past honest performance will prevail in maintaining trust with one’s customers.

    Thanks for the post. I enjoyed reading it.

    Regards,
    Mark Fryer
    706.718.2349



  2. Scott Span, MSOD on June 24, 2010 at 9:45 am

    Thanks for the comments Mark. I am familiar with Dr. Covey’s work. The “emotional bank account” is not only beneficial in professional life, but personal as well. I agree, personal accountability is key!



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