Every year the world’s largest PR firm, Edelman, conducts a significant study of trust and credibility. The 2009 Edelman Trust Barometer is the firm’s 10th, and for the first time includes Australia.
The interviewees for the 2009 survey are college educated with household income in the top quartile and report significant media consumption and engagement in business news.
Three of the most noteworthy findings are:-
1. % who trust companies less.
When asked whether they trusted companies more or less than the same time last year, the Global response was 62% trusted less, and alarmingly Australia was in 4th place among the 20 countries surveyed at 74%.
While the Global high percentage who trust companies less is not unexpected considering the GFC, it is alarming that in a country which avoided the high profile corporate collapses, Australian consumers have lost their trust in local business to the extent they have.
2. % who trust business to do what is right.
The US response to the question of what % of consumers trust business to do what is right, was the lowest ever recorded at 38%. Lower even than 2002 following Enron and the dot-com bust.
The 2009 figure for Australia is marginally higher at 39%, well below the Global average of 49%.
Of most concern is the comparison with the response to this question by Australia’s trade partners – in China 71%, Brazil 69%, Indonesia 68%, India 65% trust business in their own country to do what is right.
Australian businesses are asking their offshore customers in these growing export markets to trust them to do what is right, but 61% of the consumers who must be considered to best understand Australian businesses have declared they do not trust them.
3. How much do you trust government to do what is right?
The Global response to this question increased marginally from 43% to 44% who declared they trust their governments to do what is right.
The Australian figure was among the higher scores at 53%. For Australian business leaders, they need to confront the fact that Australian consumers have significantly more trust in government at 53% than they do in business at 39%. In 13 of the 20 markets surveyed, business is more trusted than government.
When you consider our politicians consistently rank towards the bottom of every trustworthiness poll, Australian business has a serious issue to address with their stakeholders, which includes the general public.
Most trusted industries.
Figures for the most trusted industries are not separately published for the 20 countries surveyed, but globally Technology and Health Care are the most trusted at around 70%, with Banks, Media and Insurance the least trusted industries at less than 50%.
Most trusted sources.
Again only Global figures are available from the survey, but the results do pose some interesting questions for Australian business on two fronts. Firstly as credible sources of information about a company, Conversations with friends and peers, and Conversations with company employees rank highly, and above TV and newspaper coverage, search engines and web portals. Well down the list of credible sources come CEO speech, corporate communications and business blogs. Corporate or product advertising is the least credible source.
The second issue to emerge from the question on credibility of sources is that consumers report they need to hear the same message from a number of sources, nominated as 3 to 5, before credibility is assured.
The Business Case for Trust.
Edelman reported “This year’s Trust Barometer leaves no doubt that there are tangible consequences for businesses that gain – or lack – the trust of their stakeholders. Trust influences consumer spending, corporate reputation, and a company’s ability to navigate the regulatory environment.”
Over the 12 month survey, 91% of respondents said they had bought a product or service from a company they trusted, while 77% had refused to buy a product or service from a distrusted company.
The Road to Rebuilding Trust.
Here is the Edelman summation:-
“ If businesses are to regain trust, they will need to adopt a strategy of Public Engagement, by means of a shift in policy and communications. The essence of Public Engagement is the commitment of companies to say – and do as they say.
Organisations must be forthright and honest in their actions and communications. In a time of utter distrust, business leaders must make the case for actions and then demonstrate their progress against those goals. When problems arise within companies, stakeholders need to see senior executives take a visible lead in acknowledging errors, correcting mistakes, and working with employees to avoid similar problems going forward. This adherence to transparency is at the core of each of the four pillars of Public Engagement:-
-Private Sector Diplomacy
-Mutual Social Responsibility
- Shared Sacrifice
-Continuous Conversation.
Against the prevailing background of distrust of Australian business, the rewards will be significant, measurable and instant for those organizations who place the issue of TRUST high on their 2010 agenda.
Monday, August 30, 2010
Trust-paced Selling.
Trust-Paced Selling is not intended to replace the activities or steps nominated within the organisation’s current Sales Process.
Trust-Paced Selling is meant to pervade and penetrate the existing Sales Process , and the rationale behind it, and to act as a set of “guiding principles” and a measuring stick for all future evaluation and proposed amendments to the Sales Process. Trust-Paced Selling is not a sales tactic. Unless there is authentic commitment to the principles of Trust-Paced Selling at all levels of the organisation, unless it can co-exist culturally, your target market will perceive it as an attempt to deceive, and Trust will be the first casualty.
The Principles of Trust-Paced Selling.
1.Customer Orientation.
The first principle of Trust-Paced Selling is to value the customer relationship above the next transaction.
This principle may involve the ultimate test of the salesperson’s commitment to Trust-Paced Selling. For the sake of the long term customer relationship, the salesperson may recommend a competitive supplier for the next transaction if that represents a better outcome for the customer.
2. Invert the Focus.
In truth, most salespeople focus on the interests of (1) themselves (2) their employer (3) the customer.
Trust-Paced Selling requires the salesperson to not only focus first on the customer, but always for the customer’s sake, not their’s or their employer’s. Most selling presentations start with the emphasis on the seller’s expertise – displaying, proving, claiming leadership. Trust-Paced Selling requires the initial emphasis to display genuine interest in the buyer.
The single most powerful variable affecting trustworthiness is the perceived level of self-orientation of the seller. Many world class companies prove the paradox that by being willing to put their customers’ interests ahead of their own, they achieve a better bottom line than if they had their own interests as their primary focus.
3. The 3C’s Selling Style.
--Collaborative. Trust-Paced Selling cannot co-exist with the combative, winners & losers, battle for control evident within many sales processes. Control of the process must be evenly distributed between buyer and seller – in perception and reality.
--Consistent. For Trust to flourish, every aspect of the salesperson’s approach must be consistent for every interaction. If more than one salesperson is involved, consistency in approach between the salespeople, including sales management if introduced, is equally important.
--Congruent. Congruency needs to be evident between every marketing initiative and every selling activity.
4. Extend the Time Perspective.
In assessing the value of a customer relationship, extend the time perspective beyond the short term, into the medium and long term. Patience is not only a virtue, it is a business essential. Short term expediency should never outrank the lifetime value of a customer relationship.
5.Transparency in all dealings.
Contrary to the thinking behind manipulative selling processes, Trust-Paced Selling requires Transparency in all aspects at all times. If the customer asks a question on price, or raises an objection relating to a known product deficiency, the topic should be openly addressed at the time the customer dictates.
When is Trust most important?
In some buying circumstances Trust in the seller is relatively less important. These circumstances generally involve low cost, easily assessed , tangible products, with little likelihood of repeat business. Conversely, in other circumstances , Trust takes on absolute “deal breaker” importance. This is particularly true when selling intangible, complex products and services – for example in financial services where the products are advice, opinion and experience.
Similarly in any selling environment involving mature age consumers, Trust is an upfront non-negotiable. When selling to mature age consumers, product centred approaches are less effective. As we age we are more attracted to meaningful experiences than gaining material goods.
The best illustration of this point is Retirement Accommodation , which in most circumstances is not a real estate “bricks and mortar” decision – it is a lifestyle experience decision centred on intangibles such as a sense of community, belonging, security, insurance for the future.
What lifestyle does the prospective resident want to experience, and who do they trust to deliver that experience?
Trust Building Sales Process.
As stated earlier, the Trust-Paced Selling principles are intended to interact with the steps of an existing sales process.
If there is no real compliance with a prescribed sales process, or as a means of reviewing the effectiveness of your process as currently nominated, here are the steps of our Trust Building Sales Process, and a brief explanation of the intent behind each:-
T – Talk to me.
R – Really listen.
U – Unanimous on Issues.
S – Share the future
T – Take action.
1. Talk to me.
Encourage the prospect to talk about what is important to them, their values and aspirations, and specifically their objectives for this current interaction. Resist the temptation to display your selling expertise or the competitive advantage of the organization you represent.
You have the right to remain silent. Exercise it.
2. Really listen.
While gathering information in this step is vital to the Trust building effectiveness of the Process, information gathering is secondary to the emphasis “really listening” places on the buyer. This continues the buyer orientation to be maintained throughout each step.
Good listening technique, and your genuine intent, earns you the right to be right – later.
3. Unanimous on Issues.
Before considering any attempt to propose solutions, it is imperative there is unanimous agreement on an understanding of the issues to be tackled. This agreement must be genuinely inclusive of all parties on the buyer’s side.
4. Share the future.
This step is designed to jointly envision how the buyer’s situation will look once all the issues are solved, and to create shared ownership of the outcome. Vital in this step is envisioning the value to the buyer, understanding implications and complexities, and introducing acceptance of the actions required.
5. Take action.
Provided the first 4 steps of this Process have been handled effectively, the logical conclusion is a commitment to progress with the actions required to achieve the value for the buyer and to create the future situation envisaged.
Actions speak louder than words.
While much of this post has concentrated on listening and talking to maximise the pace of establishing mutual trust, as we have witnessed recently in several high profile examples, it is the behaviour of an individual or organization that determines their ability to build or destroy Trust.
“ You can’t talk your way out of a situation you behaved yourself into.”
The role of Trust in selling activities highlights the distinction between the character and competence components of Trust. Research has consistently confirmed most sales are emotionally driven and emotionally decided ( relying on an assessment of the seller's character component), and are then justified logically ( relying on the competence component ).
This thinking is also expressed in the maxim “ Buyers don’t care how much you know ( competence ), until they know how much you care ( character ).
Trust-Paced Selling is meant to pervade and penetrate the existing Sales Process , and the rationale behind it, and to act as a set of “guiding principles” and a measuring stick for all future evaluation and proposed amendments to the Sales Process. Trust-Paced Selling is not a sales tactic. Unless there is authentic commitment to the principles of Trust-Paced Selling at all levels of the organisation, unless it can co-exist culturally, your target market will perceive it as an attempt to deceive, and Trust will be the first casualty.
The Principles of Trust-Paced Selling.
1.Customer Orientation.
The first principle of Trust-Paced Selling is to value the customer relationship above the next transaction.
This principle may involve the ultimate test of the salesperson’s commitment to Trust-Paced Selling. For the sake of the long term customer relationship, the salesperson may recommend a competitive supplier for the next transaction if that represents a better outcome for the customer.
2. Invert the Focus.
In truth, most salespeople focus on the interests of (1) themselves (2) their employer (3) the customer.
Trust-Paced Selling requires the salesperson to not only focus first on the customer, but always for the customer’s sake, not their’s or their employer’s. Most selling presentations start with the emphasis on the seller’s expertise – displaying, proving, claiming leadership. Trust-Paced Selling requires the initial emphasis to display genuine interest in the buyer.
The single most powerful variable affecting trustworthiness is the perceived level of self-orientation of the seller. Many world class companies prove the paradox that by being willing to put their customers’ interests ahead of their own, they achieve a better bottom line than if they had their own interests as their primary focus.
3. The 3C’s Selling Style.
--Collaborative. Trust-Paced Selling cannot co-exist with the combative, winners & losers, battle for control evident within many sales processes. Control of the process must be evenly distributed between buyer and seller – in perception and reality.
--Consistent. For Trust to flourish, every aspect of the salesperson’s approach must be consistent for every interaction. If more than one salesperson is involved, consistency in approach between the salespeople, including sales management if introduced, is equally important.
--Congruent. Congruency needs to be evident between every marketing initiative and every selling activity.
4. Extend the Time Perspective.
In assessing the value of a customer relationship, extend the time perspective beyond the short term, into the medium and long term. Patience is not only a virtue, it is a business essential. Short term expediency should never outrank the lifetime value of a customer relationship.
5.Transparency in all dealings.
Contrary to the thinking behind manipulative selling processes, Trust-Paced Selling requires Transparency in all aspects at all times. If the customer asks a question on price, or raises an objection relating to a known product deficiency, the topic should be openly addressed at the time the customer dictates.
When is Trust most important?
In some buying circumstances Trust in the seller is relatively less important. These circumstances generally involve low cost, easily assessed , tangible products, with little likelihood of repeat business. Conversely, in other circumstances , Trust takes on absolute “deal breaker” importance. This is particularly true when selling intangible, complex products and services – for example in financial services where the products are advice, opinion and experience.
Similarly in any selling environment involving mature age consumers, Trust is an upfront non-negotiable. When selling to mature age consumers, product centred approaches are less effective. As we age we are more attracted to meaningful experiences than gaining material goods.
The best illustration of this point is Retirement Accommodation , which in most circumstances is not a real estate “bricks and mortar” decision – it is a lifestyle experience decision centred on intangibles such as a sense of community, belonging, security, insurance for the future.
What lifestyle does the prospective resident want to experience, and who do they trust to deliver that experience?
Trust Building Sales Process.
As stated earlier, the Trust-Paced Selling principles are intended to interact with the steps of an existing sales process.
If there is no real compliance with a prescribed sales process, or as a means of reviewing the effectiveness of your process as currently nominated, here are the steps of our Trust Building Sales Process, and a brief explanation of the intent behind each:-
T – Talk to me.
R – Really listen.
U – Unanimous on Issues.
S – Share the future
T – Take action.
1. Talk to me.
Encourage the prospect to talk about what is important to them, their values and aspirations, and specifically their objectives for this current interaction. Resist the temptation to display your selling expertise or the competitive advantage of the organization you represent.
You have the right to remain silent. Exercise it.
2. Really listen.
While gathering information in this step is vital to the Trust building effectiveness of the Process, information gathering is secondary to the emphasis “really listening” places on the buyer. This continues the buyer orientation to be maintained throughout each step.
Good listening technique, and your genuine intent, earns you the right to be right – later.
3. Unanimous on Issues.
Before considering any attempt to propose solutions, it is imperative there is unanimous agreement on an understanding of the issues to be tackled. This agreement must be genuinely inclusive of all parties on the buyer’s side.
4. Share the future.
This step is designed to jointly envision how the buyer’s situation will look once all the issues are solved, and to create shared ownership of the outcome. Vital in this step is envisioning the value to the buyer, understanding implications and complexities, and introducing acceptance of the actions required.
5. Take action.
Provided the first 4 steps of this Process have been handled effectively, the logical conclusion is a commitment to progress with the actions required to achieve the value for the buyer and to create the future situation envisaged.
Actions speak louder than words.
While much of this post has concentrated on listening and talking to maximise the pace of establishing mutual trust, as we have witnessed recently in several high profile examples, it is the behaviour of an individual or organization that determines their ability to build or destroy Trust.
“ You can’t talk your way out of a situation you behaved yourself into.”
The role of Trust in selling activities highlights the distinction between the character and competence components of Trust. Research has consistently confirmed most sales are emotionally driven and emotionally decided ( relying on an assessment of the seller's character component), and are then justified logically ( relying on the competence component ).
This thinking is also expressed in the maxim “ Buyers don’t care how much you know ( competence ), until they know how much you care ( character ).
Trust-Paced Marketing and Sales.
In an earlier post titled The Question of Trust, the basic principles of Trust nominated were :-
Definitions of Marketing and Sales.
There are many definitions of Marketing and Sales, and I favour the least complicated of all:-
--Marketing consists of all activities designed to convince individuals within the target market to initiate contact, and therefore includes web sites, brochures, advertising, events and displays.
--Sales consists of all activities where the seller initiates contact with individuals within the target market, and therefore includes outgoing telephone calls, face-to-face approaches, letters and proposals.
Peter Drucker summarised the challenge perfectly with “The aim of marketing is to make selling superfluous.”
Until marketing is consistently achieving that aim, selling will continue to be a very necessary activity, and a major determinant of business success.
In the process of converting prospects to customers, a consistent contributor to the erosion of Trust, or the instant and permanent destruction of Trust, is the lack of congruence between marketing and sales activities and perceived attitudes.Too often a sought-after prospect will respond favourably to a marketing activity, but when exposed to the organisation’s sales tactics, the prospect feels like they are now dealing with an entirely different entity.
Trust-Paced Marketing.
To expand on the definition of marketing above, the role of Trust-Paced Marketing is to build a reputation or a brand that inspires Trust within your target marketplace.
One vital change in that marketplace, which did not exist 4 or 5 years ago, relates to the balance of knowledge about your products and services, between buyer and seller.
The one word explanation is the internet.
Previously the buyer approached your marketplace relying on your marketing, and that of your competitors, to compile their knowledge and take a purchasing decision.Apart from a possible testimonial or feedback from family and friends, the buyer gathered information from the seller’s marketing activities, or by attending sales presentations.
Today, the buyer can evaluate your marketing claims against an almost limitless, and rapidly multiplying amount of information via blogs, social media sites , and commercial operations such as Morningstar for financial products.
The buyer can do a detailed evaluation of every aspect of your business and product offerings, without exposing their interest or initiating direct contact. And the exchange rate between deposits and withdrawals in their Trust Account applies. Take your web site content as an example. 99% may be meticulously correct and Trust building, but an incorrect claim in the other 1% can destroy that Trust instantly and permanently, particularly when exposed and “authenticated” via the internet blogs.
And you probably will not get to defend your marketing claim – even if correct.
Harsh, but that’s today’s reality.
The takeaway from this harsh reality is that a commitment to trustworthy marketing is more important than ever. Minor Trust-eroding issues that in previous times caused little or no bottom line damage, can escalate today into business altering events.
- The success of every marketing and sales activity is dependent on the concurrent establishment of an acceptable level of mutual Trust.
- The DNA of Trust is comprised of 2 components, character and competence. Character has two elements of integrity and intent; the elements in competence are capabilities and results. This core is surrounded by 16 behaviours, encased in an outer layer of values and principles.
- People in all facets of life assess the trustworthiness of themselves , and the business they represent, by their intentions. They assess the trustworthiness of others by their actions and results.
- The pace of progress for marketing and sales activities cannot exceed the pace of establishing an acceptable level of mutual Trust.
- Businesses operate a Trust Account for every individual stakeholder – prospect, customer, supplier, distributor, shareholder, employee. Every marketing communication and sales activity will result in a deposit or withdrawal of Trust, and an updated Trust Account balance.
Definitions of Marketing and Sales.
There are many definitions of Marketing and Sales, and I favour the least complicated of all:-
--Marketing consists of all activities designed to convince individuals within the target market to initiate contact, and therefore includes web sites, brochures, advertising, events and displays.
--Sales consists of all activities where the seller initiates contact with individuals within the target market, and therefore includes outgoing telephone calls, face-to-face approaches, letters and proposals.
Peter Drucker summarised the challenge perfectly with “The aim of marketing is to make selling superfluous.”
Until marketing is consistently achieving that aim, selling will continue to be a very necessary activity, and a major determinant of business success.
In the process of converting prospects to customers, a consistent contributor to the erosion of Trust, or the instant and permanent destruction of Trust, is the lack of congruence between marketing and sales activities and perceived attitudes.Too often a sought-after prospect will respond favourably to a marketing activity, but when exposed to the organisation’s sales tactics, the prospect feels like they are now dealing with an entirely different entity.
Trust-Paced Marketing.
To expand on the definition of marketing above, the role of Trust-Paced Marketing is to build a reputation or a brand that inspires Trust within your target marketplace.
One vital change in that marketplace, which did not exist 4 or 5 years ago, relates to the balance of knowledge about your products and services, between buyer and seller.
The one word explanation is the internet.
Previously the buyer approached your marketplace relying on your marketing, and that of your competitors, to compile their knowledge and take a purchasing decision.Apart from a possible testimonial or feedback from family and friends, the buyer gathered information from the seller’s marketing activities, or by attending sales presentations.
Today, the buyer can evaluate your marketing claims against an almost limitless, and rapidly multiplying amount of information via blogs, social media sites , and commercial operations such as Morningstar for financial products.
The buyer can do a detailed evaluation of every aspect of your business and product offerings, without exposing their interest or initiating direct contact. And the exchange rate between deposits and withdrawals in their Trust Account applies. Take your web site content as an example. 99% may be meticulously correct and Trust building, but an incorrect claim in the other 1% can destroy that Trust instantly and permanently, particularly when exposed and “authenticated” via the internet blogs.
And you probably will not get to defend your marketing claim – even if correct.
Harsh, but that’s today’s reality.
The takeaway from this harsh reality is that a commitment to trustworthy marketing is more important than ever. Minor Trust-eroding issues that in previous times caused little or no bottom line damage, can escalate today into business altering events.
Sunday, August 29, 2010
The Trust effect on business costs
If all progress in the development of a business relationship will stall until an acceptable level of Trust is established, the time and the number of interactions required to establish Trust becomes a major factor in the cost of doing business.
This is particularly true when selling intangible products and services, or targeting mature age consumers, who have experienced more reasons to be cynical of the customer orientation of most sellers.
At one extreme, if the seller in a proposed transaction is a trusted member of the buyer’s family, Trust is instantly established and the transaction will proceed quickly and therefore at minimised cost and enhanced margin.
However, if the seller has been the subject of negative media attention, and operates in an industry considered in need of legislative control, the establishment of an acceptable level of Trust may require an extensive and expensive investment of time and resources.
The Bottom Line: The pace of progress to a mutually beneficial customer relationship is inextricably linked to the pace of establishing mutual Trust.
The best way to receive Trust? You extend it first!
Could you trust someone who doesn’t appear to trust you?
This is particularly true when selling intangible products and services, or targeting mature age consumers, who have experienced more reasons to be cynical of the customer orientation of most sellers.
At one extreme, if the seller in a proposed transaction is a trusted member of the buyer’s family, Trust is instantly established and the transaction will proceed quickly and therefore at minimised cost and enhanced margin.
However, if the seller has been the subject of negative media attention, and operates in an industry considered in need of legislative control, the establishment of an acceptable level of Trust may require an extensive and expensive investment of time and resources.
The Bottom Line: The pace of progress to a mutually beneficial customer relationship is inextricably linked to the pace of establishing mutual Trust.
The best way to receive Trust? You extend it first!
Could you trust someone who doesn’t appear to trust you?
How Trust Accounts work in business relationships.
In addition to the various accounts every business initiates with their stakeholders –
prospects, customers, suppliers, distributors, shareholders and employees – there is also a Trust Account being constantly updated between the business and every individual stakeholder.
This is best envisaged as the T shaped accounts used to illustrate basic accounting principles, with trust building “deposits” being listed down the left hand side of the Trust Account, and trust eroding and trust destroying “withdrawals” listed down the right.
Every time the business interacts with a stakeholder in a way that increases Trust, an appropriate deposit is added to the Trust balance. Conversely, if a communication or activity between the business and stakeholder causes an erosion of Trust, the appropriate withdrawal needs to be processed to the Trust Account and the balance adjusted accordingly.
The most effective way to build Trust and initiate regular deposits into the Trust Accounts with stakeholders, is for the business to consistently act in ways that demonstrate their competence. Conversely the quickest way to destroy Trust and wipe out the Trust Account balance, is to act in a way that violates the character component.
Unlike accounting, where a dollar on the debit side of the T account has the same value as a dollar on the credit side, there is a very unforgiving exchange rate in play with Trust Accounts.
Trust balances established via deposits over many years of a business relationship can be eliminated via one withdrawal, particularly if assessed as being character related.
The reality is that Trust goes up a slow moving escalator, but uses the express lift to come down.
Harsh, but that’s today’s business reality.
The culture of Trust.
Treat your employees the way you want them to treat your prospects and customers.
Particularly in Customer Service and call centre roles, employees who are not trusted by their employer will never be able to create a trusting environment with the employer’s prospects and customers.
The culture of Trust – or mistrust – will rub off.
prospects, customers, suppliers, distributors, shareholders and employees – there is also a Trust Account being constantly updated between the business and every individual stakeholder.
This is best envisaged as the T shaped accounts used to illustrate basic accounting principles, with trust building “deposits” being listed down the left hand side of the Trust Account, and trust eroding and trust destroying “withdrawals” listed down the right.
Every time the business interacts with a stakeholder in a way that increases Trust, an appropriate deposit is added to the Trust balance. Conversely, if a communication or activity between the business and stakeholder causes an erosion of Trust, the appropriate withdrawal needs to be processed to the Trust Account and the balance adjusted accordingly.
The most effective way to build Trust and initiate regular deposits into the Trust Accounts with stakeholders, is for the business to consistently act in ways that demonstrate their competence. Conversely the quickest way to destroy Trust and wipe out the Trust Account balance, is to act in a way that violates the character component.
Unlike accounting, where a dollar on the debit side of the T account has the same value as a dollar on the credit side, there is a very unforgiving exchange rate in play with Trust Accounts.
Trust balances established via deposits over many years of a business relationship can be eliminated via one withdrawal, particularly if assessed as being character related.
The reality is that Trust goes up a slow moving escalator, but uses the express lift to come down.
Harsh, but that’s today’s business reality.
The culture of Trust.
Treat your employees the way you want them to treat your prospects and customers.
Particularly in Customer Service and call centre roles, employees who are not trusted by their employer will never be able to create a trusting environment with the employer’s prospects and customers.
The culture of Trust – or mistrust – will rub off.
The Question of Trust – How much business is done without it? – None!
Trust is defined as the willingness to rely on others under conditions of risk.
Before any business activity will commence, whether an everyday uncomplicated task or initiating a complex ground-breaking relationship, nothing will happen unless there is an acceptable level of Trust in the outcome.
Consider the need to attend a face-to-face meeting interstate with a major client. Without an acceptable level of Trust in the outcome, for starters who will you allow to make your travel bookings? What airline will you choose? Will you even get on the plane, or use the lift in the client's high-rise head office?
Without Trust in the outcome, nothing will proceed.
Just as you wouldn't trust confidential information to email, or use internet banking, or talk on your mobile phone, if you had an unacceptable level of Trust in the security in place to protect the outcome.
Therefore, in all communications and relationships with business stakeholders, whether current or proposed, an acceptable level of Trust is a non-negotiable.
No Trust means no progress – no exceptions!
The DNA of Trust.
Before discussing the Trust-building How To's, it is imperative to understand the components of Trust – the DNA of Trust – as it relates to every relationship, business and personal.
At the primary level, Trust is dissected into two distinct components , character and competence.
Within character, lie elements of integrity and intent. Competence covers elements of capabilities and results.
Surrounding the central core of the character and competence components, and their 4 elements, are 16 practised behaviours eg. listen first, talk straight, keep commitments, clarify expectations, provide transparency, show loyalty and extend trust, and an outer circle of values and principles.
The first reason it is imperative to understand the two distinct components of Trust, ie character and competence, is that people in all facets of life assess the trustworthiness of themselves, and the business they represent, by their intentions, part of their Character component. But they assess the trustworthiness of others by their actions, and even more harshly by their results, part of their competence component.
So the one activity is being evaluated on the Trust-worthiness scale from distinctly different perspectives.
As an example, a Financial Services organisation cannot comprehend why their clients rate them so lowly on the Trust scale – " Our intentions were totally honourable. We have always had our clients' best interests as our top priority". Simultaneously, their clients are becoming increasingly discontent – " All I'm interested in is how the advice I received has caused my investments balance to deteriorate over the last 12 months".
What is the lesson to learn from the two differing perspectives involved in the assessment of Trust-worthiness?
All businesses need to refine their ability to appropriately communicate the results they have achieved for all stakeholders. It is vital they are seen to take responsibility for their results – not their intentions, and not just their actions.
Taking responsibility for results will build Trust with stakeholders – even if the results were not what was planned or hoped for.
Before any business activity will commence, whether an everyday uncomplicated task or initiating a complex ground-breaking relationship, nothing will happen unless there is an acceptable level of Trust in the outcome.
Consider the need to attend a face-to-face meeting interstate with a major client. Without an acceptable level of Trust in the outcome, for starters who will you allow to make your travel bookings? What airline will you choose? Will you even get on the plane, or use the lift in the client's high-rise head office?
Without Trust in the outcome, nothing will proceed.
Just as you wouldn't trust confidential information to email, or use internet banking, or talk on your mobile phone, if you had an unacceptable level of Trust in the security in place to protect the outcome.
Therefore, in all communications and relationships with business stakeholders, whether current or proposed, an acceptable level of Trust is a non-negotiable.
No Trust means no progress – no exceptions!
The DNA of Trust.
Before discussing the Trust-building How To's, it is imperative to understand the components of Trust – the DNA of Trust – as it relates to every relationship, business and personal.
At the primary level, Trust is dissected into two distinct components , character and competence.
Within character, lie elements of integrity and intent. Competence covers elements of capabilities and results.
Surrounding the central core of the character and competence components, and their 4 elements, are 16 practised behaviours eg. listen first, talk straight, keep commitments, clarify expectations, provide transparency, show loyalty and extend trust, and an outer circle of values and principles.
The first reason it is imperative to understand the two distinct components of Trust, ie character and competence, is that people in all facets of life assess the trustworthiness of themselves, and the business they represent, by their intentions, part of their Character component. But they assess the trustworthiness of others by their actions, and even more harshly by their results, part of their competence component.
So the one activity is being evaluated on the Trust-worthiness scale from distinctly different perspectives.
As an example, a Financial Services organisation cannot comprehend why their clients rate them so lowly on the Trust scale – " Our intentions were totally honourable. We have always had our clients' best interests as our top priority". Simultaneously, their clients are becoming increasingly discontent – " All I'm interested in is how the advice I received has caused my investments balance to deteriorate over the last 12 months".
What is the lesson to learn from the two differing perspectives involved in the assessment of Trust-worthiness?
All businesses need to refine their ability to appropriately communicate the results they have achieved for all stakeholders. It is vital they are seen to take responsibility for their results – not their intentions, and not just their actions.
Taking responsibility for results will build Trust with stakeholders – even if the results were not what was planned or hoped for.
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