Trust; what role does it play?

“In God We Trust” are the words printed on the back of an American dollar bill. It is also the national motto of the USA. But how does this declaration of collective faith apply in the business world? What does trust mean in the rough and tumble of deal making and running a successful business?

It is clear that trust is essential for the wheels of commerce to turn. Without trust, every single business interaction of transaction would require contractual arrangements almost on a daily basis. Proof of the vital importance of trust in the business world can be seen in the vast amounts of time and money brands invest in positioning themselves as trusted brands with customers significantly more likely to buy from or recommend a brand that they trust.

Nevertheless, trust is a concept which is hard to define and is also an absolute concept: you either have trust in someone or an organisation or you don’t. Most people understand what happens when trust between people breaks down: people are no longer believed, they are no longer given important tasks or they are simply no longer employed.

What role does trust truly play in business and specifically between people? A finance director is trusted to produce accurate and true accounts for a company but it still requires an external agency, in this case auditors, to vouch that his or her accounts are accurate. It does not mean that the finance director is not trusted; instead it means that investors know that the Finance Director’s work is verified.

How do you define and then build trust in a business context? At AI PS, we believe that The Trust Equation from the Trusted Advisor accurately explains how to effectively build trust:

Trust = (Credibility + Reliability + Intimacy)/Self-Orientation.  See it here: https://trustedadvisor.com/why-trust-matters/understanding-trust/understanding-the-trust-equation.

What this means is that I, as a senior executive, need to show that I know my stuff (Credibility); I can deliver (Reliability); I am open - about myself and to others, and I ask questions (Intimacy), and I am not selfish, or self-preoccupied (Self-orientation).

However, our own research at the senior levels of management, has revealed a trust paradox at the top of a number of organisations. Several chairman and board directors believe that mutual trust is vital at board level to ensure board effectiveness. But they also feel that they cannot share any personal concerns or dilemmas with fellow directors without appearing weak, making themselves appear vulnerable or that they might not be up for the job.

This is where we find that many clients want us as qualified and experienced coaches to provide that safe space within the context of their role. We have years of experience of providing senior executives with a sounding board and actionable advice for them to overcome that dilemma of trust and consequently effectively tackle the challenges they are facing.

Executives do not necessarily have to take a leap of faith with others: they can also understand and build trust with our help.

https://www.linkedin.com/pulse/importance-trust-giles-vardey-msc-ma-oxon-fcsi/