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Speed of Trust by Stephen Covey and Rebecca Merrill
- 1. Speed of Trust By:Stephen Covey By Stephen M. R. Covey with Rebecca Merrill
- 2. Speed Of Trust •Simply put, trust means confidence. • The opposite of trust — distrust — is suspicion. • The difference between a high- and low-trust relationship is palpable. Take communication. • In a high-trust relationship, you can say the wrong thing and people will still get your meaning. In a low-trust relationship, you can be very measured, even precise, and they’ll still misinterpret you.
- 4. Economics of Trust •Trust always affects two outcomes: speed and cost. • When trust goes down, speed goes down and cost goes up. Consider the time and cost of airport security after 9/11, or costs for Sarbanes-Oxley Act compliance, passed in the U.S. in response to Enron, WorldCom and other corporate scandals. • When trust goes up, speed goes up and cost goes down. Warren Buffett completed the acquisition of McLane Distribution from Wal-Mart on the basis of a two-hour meeting. Because of high trust between the parties, the merger took less than a month and avoided the usual months and millions for due diligence and attorneys.
- 5. The Five Wavesof Trust First Wave Self Trust Key Principle: Credibility Secon d Wave Relationship Trust Key Principle: Consistent Behavior Third Wave Organization Trust Key Principle: Leaders create structures, systems and systems of TRUST Fourth Wave Market Trust Key Principle: Reputation Fifth Wave Societal Trust Key Principle: Contribution
- 6. Four Cores ofSelf Trust Core 1: Integrity Core 2: Intent Core 3: Capabilities Core 4: Results
- 7. Core 1: Integrity •To use the metaphor of the tree, integrity is the root. • Even though it’s underground and not even visible most of the time, it is absolutely vital to the nourishment, strength, stability and growth of the entire tree. • We’ve all seen people with enormous capability, strong results, even sometimes good intent who unfortunately go about what they’re doing in a dishonest or unprincipled way. It’s “the ends justify the means” mentality. • To most people, integrity means honesty — telling the truth and leaving the right impression. But there are at least three additional qualities: congruence, humility and courage. • So how do we go about increasing our integrity? • 1. Make and keep commitments to yourself. • 2. Stand for something. • 3. Be open.
- 8. Core 2: Intent •In the dictionary, intent is defined as “plan” or “purpose.” No discussion of intent would be complete without talking about three things: motive, agenda and behavior. • 1. Motive. Motive is your reason for doing something, and it inspires the greatest trust when it shows genuine concern for people, purposes and society as a whole. • 2. Agenda. Agenda grows out of motive. It’s what you intend to do or promote because of your motive. The intent that inspires the greatest trust is seeking mutual benefit, realizing that life is interdependent and seeking solutions that build trust and benefit for all. • 3. Behavior. Typically, behavior is the manifestation of motive and agenda. The behavior that best creates credibility and inspires trust is acting in the best interest of others. This is where the rubber meets the road. It’s easy to say “I care,” and “I want you to win,” but it is our actual behavior that demonstrates whether or not we mean it.
- 9. Intent • In manyorganizations, the message communicated by behavior is not “we care” it’s “you’re expendable.” • Consider these findings from a study: • Only 29 percent of employees believe that management cares about them developing their skills. • Only 42 percent believe that management cares about them at all. • It’s important to keep in mind that sometimes, unfortunately, poor behavior turns out to be bad execution of good intent. • 1. Examine and redefine your motives. It’s human tendency to assume we have good — or at least justifiable — intent. • 2. Declare your intent. It signals your behavior and lets people know what to look for so they acknowledge it when they see it. • 3. Choose abundance. Abundance means there is enough for everybody. The opposite — scarcity — says that there is only so much to go around, and if you get it, I won’t.
- 10. Core 3: Capabilities •Going back to the metaphor of the tree, capabilities are the branches that produce the fruits or results. Capabilities are particularly essential in today’s changing economy, where technology and globalization are outdating skill sets faster than ever before. One way to think about the various dimensions of capabilities is to use the acronym TASKS (Talents, Attitudes, Skills, Knowledge, Style). • Talents are our natural gifts and strengths. • Attitudes represent our paradigms — our way of seeing — as well as our ways of being. • Skills are our proficiencies, the things we can do well. • Knowledge represents our learning, insight, understanding and awareness. • Style represents our unique approach and personality. • The end in mind here is to develop our TASKS and to create the best possible alignment between our natural gifts, our passions, our skills, knowledge and style and the opportunity to earn, to contribute, to make a difference. 1. Run with your strengths. 2. Keep yourself relevant. 3. Know where you’re going.
- 11. Core 4: Results •Results matter! They matter to your credibility. In the words of Jack Welch, having results is like having “performance chits” on the table. They give you clout. Returning once again to the metaphor of the tree, results are the fruits — the tangible, measurable, end purpose and product of the roots, trunk and branches. • There are three key indicators by which people evaluate results: past performance, present performance and anticipated future performance. • Given the importance of results in establishing credibility and trust both with ourselves and with others, the question is: How can we improve our results? • 1. Take responsibility for results. • 2. Expect to win. • 3. Finish strong.
- 12. Four Cores ofSelf Trust • Run with your strengths • Keep yourself relevant • Know where you’re going • Take responsibility for results • Expect to win • Finish strong • Examine and redefine your motives • Declare your intent • Choose abundance • Make and Keep Commitments to yourself • Stand for something • Be Open Core 1: Integrity Core 2: Intent Core 3: Capabilities Core 4: Results
- 13. The Second Wave:Relationship Trust • The Second Wave — Relationship Trust — is all about behavior ... consistent behavior. • More specifically, it’s about the 13 Behaviours that are common to high trust leaders and people throughout the world.
- 14. 13 Behaviours forRelationship Trust Talk Straight Demonstrate Respect Create Transparency Right Wrongs Show Loyalty Deliver Results Get Better Confront Reality Clarify Expectations Practice Accountability Listen First Keep Commitments Extend Trust Character-Based Behaviors Competence-Based Behaviors Character and Competence- Based Behaviors
- 15. Character-Based Behaviours • Behavior#1: Talk Straight. Communicate clearly so that you cannot be misunderstood. Preface your discussions by declaring your intent, so you leave no doubt about what you are thinking. Counterfeit behaviours include withholding information, flattery and spin. Be honest and call things what they are. Don’t manipulate people, distort facts or leave false impressions.
- 16. Character-Based Behaviours • Behavior#2: Demonstrate Respect. This behavior is based on the principles of respect, fairness, kindness, love and civility. The opposite is commonly experienced as showing disrespect, which is a huge issue, both at work and at home. The counterfeit is to fake respect or concern, or, most insidious of all, to show respect and concern for only those who can do something for you.
- 17. Character-Based Behaviours • Behavior#3: Create Transparency. Be real and genuine and tell the truth in a way that people can verify. The opposite is to obscure, and the counterfeit is illusion or pretending things are different than they are. You can establish trust quickly by being open and authentic, erring on the side of disclosure and not having hidden agendas.
- 18. Character-Based Behaviours • Behavior#4: Right Wrongs. Make restitution instead of just apologizing. The opposite is to deny or justify wrongs because of ego and pride, and the counterfeit is to cover up mistakes. Apologize quickly, take action to make restitution when possible, and demonstrate personal humility to achieve this behavior.
- 19. Character-Based Behaviours • Behavior#5: Show Loyalty. Give credit to others and speak about people as though they are present. The opposite is to take credit or not represent people fairly. The counterfeit is to appear to share credit but then downplay others’ contribution when they are away. To exhibit a trustworthy character, give credit freely, don’t badmouth people behind their backs and don’t disclose others’ private information.
- 20. Competence-Based Behaviours • Behavior#6: Deliver Results. This is a way to convert cynics and establish trust in a new relationship. Because it is often difficult to measure results, take time to define results up front. By establishing a track record, making the right things happen, being on time and on budget, and not making excuses for not delivering, you quickly restore lost trust on the competence side.
- 21. Competence-Based Behaviours • Behavior#7: Get Better. Continuously improve by learning, growing and renewing yourself. Others will develop confidence in your ability to succeed in a rapidly changing environment. The opposite is entropy and deterioration, while the counterfeit is the eternal student — always learning, but never producing. Don’t be afraid to make mistakes but learn from them. Develop formal and informal feedback systems and respond to them.
- 22. Competence-Based Behaviours • Behavior#8: Confront Reality. Take the tough issues head-on. This affects speed and cost by facilitating open interaction and fast achievement, and also allowing you to engage the creativity, capability and synergy of others in solving problems. When leaders use the opposite behavior by ignoring problems, they pay a huge tax when people feel they are being dishonest. It is far better to address the real issues and lead courageously in discussions of uncomfortable topics.
- 23. Competence-Based Behaviours • Behavior#9: Clarify Expectations. Create shared vision and agreement up front. The opposite is to leave undefined expectations and the counterfeit is to be vague about specifics. Consider that most circumstances encompass three variables — quality, speed and cost — but you can only have two. Always discuss and reveal expectations, and never assume they are clear or shared. Renegotiate if necessary, but don’t violate expectations once they have been validated.
- 24. Competence-Based Behaviours • Behavior#10: Practice Accountability. Hold yourself and others accountable. Leaders who generate trust do both. The opposite is not to take responsibility, and the counterfeit is to point fingers. Other people respond to accountability — particularly performers. They want to be held accountable. Don’t avoid or shirk responsibility, and be clear on how you’ll communicate progress.
- 25. Character & Competence Behaviours •Behavior #11: Listen First. Genuinely understand another person’s thoughts and feelings, before trying to diagnose or advise. The opposite and counterfeit are to speak first and listen last, or not at all, and to pretend to listen while waiting for your own chance to speak. Listening teaches you which behaviours create dividends. Use your eyes and your gut to listen as well as your ears, and don’t presume you know what matters to others.
- 26. Character & Competence Behaviours •Behavior #12: Keep Commitments. It is the quickest way to build trust in any relationship. The opposite is to break commitments and the counterfeit is to make vague, unreliable commitments, or never make them in the first place. Some cultures view commitments differently, and understanding the difference is key to getting dividends and avoiding trust taxes. People tend to see family commitments as more flexible than work commitments, but they are just as important. Make keeping all commitments the symbol of your honor.
- 27. Character & Competence Behaviours •Behavior #13: Extend Trust. Shift trust from a noun to a verb. While the other Behaviours help you become a more trusted person or manager, this 13th Behavior helps you become a more trusting leader. Extending trust leverages it to create reciprocity. The opposite is withholding trust. The counterfeit is extending false trust by giving people responsibility, but no authority or resources to complete a task. There is also fake trust that seems like trust until you follow-up behind people and micromanage. Based on the situation, extend conditionally to those who are earning your trust, but extend it abundantly to those who have earned it.
- 28. Stakeholder Trust • TheFour Cores and the 13 Behaviours of the First and Second Waves are all trust-building tools. • Stakeholder trust focuses on the context in which you can use these tools to increase speed, lower cost, create value, establish trust, and maximize your influence and the influence of your organization. • An organization can be a company, a department or your family, but the Third Wave deals with internal stakeholders. • The Fourth and Fifth Waves deal with external stakeholders.
- 29. The Five Wavesof Trust First Wave Self Trust Key Principle: Credibility Secon d Wave Relationship Trust Key Principle: Consistent Behavior Third Wave Organization Trust Key Principle: Leaders create structures, systems and systems of TRUST Fourth Wave Market Trust Key Principle: Reputation Fifth Wave Societal Trust Key Principle: Contribution Trust-Building Tools Internal Stakeholders External Stakeholders
- 30. Third Wave: OrganizationalTrust • Most people find that their organization has symptoms of low trust — people manipulating facts, withholding information, resisting new ideas and covering up mistakes. • A lucky few find that people in their organization share information openly, tolerate and encourage mistakes, are innovative and creative, and share credit abundantly. • The low trust environment is a result of violating principles — not only individually, but organizationally. • Leaders are missing the solution because they are not looking at the systems, structures, processes and polices that affect day-to- day behaviours. • They are focused on the symptoms instead of the principles that promote trust.
- 31. Fourth Wave: MarketTrust • Market Trust is all about brand or reputation. It’s all about the feeling you have that makes you want to buy products or services or invest your money or time — and/or recommend such actions to others. • This is the level where most people clearly see the relationship between trust, speed and cost. • On a micro level, every individual has a brand or reputation that affects trust, speed and cost. It comes across in your resume in comments from your references and it translates into how people interact with you in social situations.
- 32. Building your INDIVIDUALBRAND Go back to the FOUR CORES if you still do not have the desired brand • Integrity? • Intent? • Capability? • Results Use the 13 Behaviours to Build Trustworthy Relationships with your External Stakeholders
- 33. The Five Wavesof Trust First Wave Self Trust Key Principle: Credibility Secon d Wave Relationship Trust Key Principle: Consistent Behavior Third Wave Organization Trust Key Principle: Leaders create structures, systems and systems of TRUST Fourth Wave Market Trust Key Principle: Reputation Fifth Wave Societal Trust Key Principle: Contribution Trust-Building Tools Internal Stakeholders External Stakeholders
- 34. Fifth Wave: SocietalTrust • The overriding principle of high societal trust is contribution. It’s the intent to create value instead of destroy it; to give back instead of take. • Microsoft guru Bill Gates, his wife Melinda, U2 lead singer Bono and Oprah Winfrey are all high profile contributors, but society is full of individuals contributing time, energy and money in communities throughout the world. • Doing GOOD is no longer an addition to business, it is a part of business itself. • Global citizenship will be demanded as customers support companies that demonstrate the Four Cores.
- 35. Inspiring Trust • Trustis a whole life choice, and until you are actually in a front-line situation, you will not even see the full power of the Cores and Behaviours on speed, cost and trust. • Look immediately for ways to apply them and find opportunities to teach them to others. • You will see how the speed of trust; the profits of the economics of trust; the relevance of the pervasive impact of trust; and the dividends of trust can significantly enhance the quality of every relationship on every level of your life.
- 36. Leaders who TRUST •You may still be hesitant or fearful when it comes to actually extending trust, but leaders who extend trust become mentors, models and heroes. • Inspiring trust is the prime differentiator between a manager and a leader, and the prime motivator of successful enterprises and relationships. • Companies that choose to extend trust to their employees become great places to work. • Most people respond well to trust and do not abuse it. We are born with a propensity to trust and choosing to retain or restore that propensity is key to our ability to forgive. • We have countless opportunities to extend and inspire trust to others, but it also makes a difference in our own lives. • Trust is reciprocal.
- 37. Smart Trust Matrix •Zone 1: Blind Trust zone of gullibility. The suckers sure to fall for scams. • Zone 2: Smart Trust zone of judgment. Good business judgment and good people judgment combine to enhance instinct and intuition. • Zone 3: No Trust zone of indecision. Those who don’t even trust themselves and are immobilized by insecurity and protectiveness. • Zone 4: Distrust zone of suspicion. Those who rarely extend trust beyond themselves.
- 38. Zone 1 Vs.Zone 4 • Zone 1: Definitely High Risk • Zone 4: Also High Risk because HIGH SUSPICION will lead you to validate and analyse everything to death, decreasing SPEED and increasing COST • Zone 4 Managing – no collaboration, no partnership, politics and disengagement
- 39. Zone 2: SmartTrust • Lowest Risk, Highest Return • Risk is wisely moderated and managed • Careful evaluation and consideration of issues • Trust releases, encourages and generates SYNERGY
- 40. Zone 2: SmartTrust • Managers who do not become leaders do not know how to extend SMART TRUST • They operate on Zone 4 • They don not entrust people with stewardships that engages GENUINE OWNERSHIP and ACCOUNTABILITY
- 41. What WE CANDO • Inspire trust by starting with yourself and your own credibility, and then consistently behave in trust-building ways with other people. • You should also think about the way your style is perceived, so people do not misunderstand you.
- 42. Restoring Lost Trust •Even in difficult situations in close, personal relationships, trust can be restored. And the very effort of restoring it can make it even stronger than before. • Self Trust: Often, the most difficult trust to restore is trust in ourselves. When we violate a promise we’ve made to ourselves, our self trust can really take a dive. Restoring self trust gives another dimension — a powerful dimension — to the Cores and behaviors. • Broken Trust — A Beginning: If you’ve broken trust with someone else, it’s an opportunity to get your own act together, to improve your character and competence, to behave in ways that inspire trust. Hopefully, this will influence the offended party to restore trust in you. • If someone has broken trust with you, it’s an opportunity for you to grow in your ability to forgive, to learn how to extend Smart Trust, and to maximize whatever dividends are possible in the relationship.