Business Energetix

The Speed of Trust: The One Thing That Changes Everything

by Stephen M. R. Covey (2007)

Reviewed by Marti Benjamin, MBA, PPC

The author of this book is the son of the well-known author, Dr. Stephen R. Covey who has written books bridging the realms of business and personal development, like The 7 Habits of Highly Effective People. The experience of being the child of such an astute observer and practitioner of personal growth led to the insight that nothing has as great an impact as the level of trust in relationships, whether family or corporate. "Nothing is as fast as the speed of trust. Nothing is as profitable as the economics of trust. Nothing is as relevant as the pervasive impact of trust," according to the younger Covey. (Page 258)

The business case for trust is based on several studies, one of which was conducted between 1984 and 1999, showing that companies that excel in relationships with all stakeholders (shareholders, investors, customers, employees, suppliers and communities) outperformed the S&P 500 by 126 percent. (Page 279) A 2002 study by DePaul University found similarly that the companies comprising the Business Ethics' 100 Best Corporate Citizens performed significantly better than the S&P 500. These studies make the point that it is not necessary to choose between building trust and building profits.

Covey defines trust as confidence and the opposite of trust as suspicion. (Page 5) His book makes the point that high trust environments operate with lower cost and higher speed, which in turn reduces costs further. He uses the metaphor of a trust tax and a trust dividend to describe the impact on business operations and relationships. When trust is low, there is a hidden tax in force, taking a toll on the ability to move decisively and cohesively, usually evidenced in bureaucratic procedures and organizational politics. "When trust is high, the dividend you receive is like a performance multiplier, elevating and improving every dimension of your organization and your life. High trust is like the leaven in bread, which lifts everything around it." (Page 19)

"The ability to establish, grow, extend and restore trust with all stakeholders—customers, business partners, investors, and coworkers—is the key leadership competency of the new global economy." (Page 21) Trust is the foundational issue upon which motivation, inspiration and results are based, the function of character and competence. "How you go about achieving results is as important as the results themselves, because when you establish trust, you increase your ability to get results the next time." (Page 40)

Using the metaphor of the ripple effect, Covey describes "5 Waves of Trust":

Self-trust: deals with our own "...ability to set and achieve goals, to keep commitments, to walk our talk—and also our ability to inspire trust in others...The key principle underlying this wave is credibility." (Page 34)
Relationship Trust: establishing and increasing our trust accounts with others; the key principle is consistent behavior.
Organizational Trust: the way leaders generate trust in organizations and teams; the key principle is alignment, which helps leaders develop structures, systems and symbols of trust that decrease or eliminate costly organizational taxes.
Market Trust: a company or personal brand which reflects the trust the marketplace has in you; the key principle is reputation.
Societal Trust: creating value for others and for society at large; underlying principle is contribution.

Covey describes the 4 Cores of Credibility as:

Integrity: Being an honest person with congruence between talk and action

To develop integrity, practice the three accelerators—"make and keep commitments to yourself, stand for something, and be open." (Page 72)
Intent: Motives that are straight-forward and based on mutual benefit; absence of hidden agendas

Improve your intent by examining and refining your motives, declare your intent and choose abundance. (Page 84-88)
Capabilities: Talents, attitudes, skills, knowledge and style to produce results

Increase capabilities by running with your strengths and purpose, keeping yourself relevant and know where you are going. (Page 104-106)
Results: A good track record of performance for getting the right things done. (Page 54-55) "And there's no place to hide here—either you produce or you don't. You may have excuses. You may even have good reasons. But at the end of the day, if the results aren't there, neither is the credibility and neither is the trust. It's that simple; it's that harsh." (Page 110)

To improve results, take responsibility for results ("Do or do not; there is no try." Master Yoda), expect to win and finish strong. (Page 119-122)

Think of the 4 Cores of Credibility as a tree, with the qualities of integrity and intent being reflections of character and existing under the surface, like the root system of the tree. The other two cores, capabilities and results are the competence qualities and they are the trunk and branches of the tree, the visible part that all can see.

Building on character and competence, Covey outlines 13 behaviors to build trust.

Talk straight: "Be honest. Tell the truth. Let people know where you stand. Use simple language. Call things what they are. Demonstrate integrity. Don't manipulate people or distort facts. Don't spin the truth. Don't leave false impressions." (Page 143)
Demonstrate respect: "Genuinely care for others. Show you care. Respect the dignity of every person and every role. Treat everyone with respect, especially those who can't do anything for you. Show kindness in the little things. Don't fake caring. Don't attempt to be 'efficient' with people." (Page 151)
Create transparency: "Tell the truth in a way people can verify. Get real and genuine. Be open and authentic. Err on the side of disclosure. Operate on the premise of ‘What you see is what you get.' Don't have hidden agendas. Don't hide information." (Page 157)
Right wrongs: "Make things right when you're wrong. Apologize quickly. Make restitution where possible. Practice ‘service recoveries'. Demonstrate personal humility. Don't cover things up. Don't let pride get in the way of doing the right thing." (Page 164)
Show loyalty: "Give credit freely. Acknowledge the contributions of others. Speak about people as if they were present. Represent others who aren't there to speak for themselves. Don't bad-mouth others behind their backs. Don't disclose others' private information." (Page 171)
Deliver results: "Establish a track record of results. Get the right things done. Make things happen. Accomplish what you're hired to do. Be on time and within budget. Don't overpromise and underdeliver. Don't make excuses for not delivering." (Page 176)
Get better: "Continuously improve. Increase your capabilities. Be a constant learner. Develop feedback systems—both formal and informal. Act on the feedback you receive. Thank people for feedback. Don't assume today's knowledge and skills will be sufficient for tomorrow's challenges." (Page 184)
Confront reality: "Address the tough stuff directly. Acknowledge the unsaid. Lead out courageously in conversation. Remove the ‘sword from their hands.' Don't skirt the real issues. Don't bury your head in the sand." (Page 191)
Clarify expectations: "Disclose and reveal expectations. Discuss them. Validate them. Renegotiate them if needed and possible. Don't violate expectations. Don't assume that expectations are clear or shared." (Page 199)
Practice accountability: "Hold yourself accountable. Hold others accountable. Take responsibility for results. Be clear on how you'll communicate how you're doing—and how others are doing. Don't avoid or shirk responsibility. Don't blame others or point fingers when things go wrong." (Page 207)
Listen first: "Listen before you speak. Understand. Diagnose. Listen with your ears—and your eyes and heart. Find out what the most important behaviors are to the people you're working with. Don't assume you know what matters most to others. Don't presume you have all the answers—or all the questions." (Page 214)
Keep commitments: "Say what you're going to do, then do what you say you're going to do. Make commitments carefully and keep them. Make keeping commitments the symbol of your honor. Don't break confidences. Don't attempt to ‘PR' your way out of a commitment you've broken." (Page 221)
Extend trust: "Demonstrate a propensity to trust. Extend trust abundantly to those who have earned your trust. Extend conditionally to those who are earning your trust. Learn how to appropriately extend trust to others based on the situation, risk, and credibility (character and competence) of the people involved. But have a propensity to trust. Don't withhold trust because there is risk involved." (Page 229)

The next three of the five waves of trust are focused on the individual's interactions with others, toward those stakeholders that have an investment in the success of the business. The third wave, Organizational Trust is built on alignment, the way that the organization's systems, structures and procedures communicate the level of trust. An example of strong, positive alignment is the Nordstrom's employee handbook, which consists of one card, welcoming the new employee on one side and on the other: ONE RULE: Use good judgment in all situations. Please feel free to ask your Department Manager, Store Manager, or Human Resource office any question at any time. (Page 242) This simple system speaks volumes about the level of organizational trust.

The fourth wave is market trust or as we often describe it, reputation. What is your brand, both personally and as a company? Is it one of high trust? Trusting brands are built on a reputation for honesty, a perception of genuine care, demonstrated capabilities and delivering the promised results.

The fifth wave is societal trust, the extension of the trust that begins with self, rises up through relationships to the organization as a whole, the external market and then to the world at large. "It's the intent to create value instead of destroy it, to give back instead of take." (Page 275)

The author is not an advocate of blind trust, given with no analysis of the situation or the individual/company. Rather he suggests that smart trust is based on a combination of a high propensity to trust combined with a high level of analysis to manage risk wisely. He offers this general guideline for extending trust, "Extend trust conditionally to those who are earning it and abundantly to those who have already done so. Keep in mind that even when you extend trust abundantly, there should still always be accountability because that is a principle that actually enhances trust." (Page 298)

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©2008, Marti Benjamin