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.