Is Your Organization Built On Trust? Is It Really?
Do you believe that 95 percent of your customers, employees and suppliers are trustworthy?
The answer to this question will determine everything in your organization. It will establish the engagement platform you have with your employees. It will determine the relationships you have with your customers. And it will dictate the quality of work you will do with your suppliers.
If the answer to the question is yes, then your processes and procedures should indicate it. They should assume that customers are not liars and employees are not cheaters. Those processes should focus on empowering the vast majority of your customers and employees and making them feel that they are part of a respectful, trustworthy, and therefore long-term relationship. They will act accordingly and demonstrate a long-term commitment.
If the answer is no, then you processes will reflect that as well. They will be full of exceptions and warnings indicating to your employees and customers your inherent suspicion. They will reciprocate with short term transactional relationships focusing on prices and refusing to be invested in the longevity of the relationship.
Most leaders do not dedicate the time to reflect on this question. They never seriously consider it and its implications.
How do you know the answer to the above question? It’s simple: review your processes.
When challenging organizations with this question, senior executives usually cannot answer this question definitely. They assume they are trust driven. But when you ask employees on the front line, they are full examples. The employees will point out restrictive policies, excessive need for approvals by higher management and lower approval levels. Travel expense reports will be a notable example. How much do they have to itemize and to what amount do you trust them?
As I discuss in my book Dare to Author!, organizations are not a set of numbers or facts. They are stories. The processes and procedures of an organization tell the story of what productivity and performance you are seeking. Those stories indicate to customers and employees that type of relations you are seeking to establish with them.
But policies and procedures are necessary. This is the typical pushback I receive. Sure, they are required to set guidelines. Let us examine an expense that requires approval by a higher-level manager. What percentage of those requests are approved without changes? If the answer is 95 percent or above, then clearly the employees requesting the approval were responsible enough to ask for reasonable expense. Then, what is the need for a higher, time-delaying approval?
But what about the abusers? Great question. There are always some abusers. If they are less than five percent, let us not penalize all employees for the abusers. Treat the abusers as outliers and manage them separately. Just because one employee decided to expense spa treatments as part of his business trip, does not merit treat all employees and cheaters.
The cost of trustworthy processes in the organization is immense. Aside from the actual time it takes to create and enforce them (reviewing detailed expense reports takes longer and more people to complete) the actual cost is employees commitment and productivity. Employees who are subject to rigorous, non-trustworthy processes “check out” their initiatives and just hide behind the processes. They feel that the company is out to “get them” and avoid any deviation from the rules.
Customers who are subject to rigorous, “gotcha” procedures respond accordingly. They will reduce the relationship to a series of transactions and will not be willing to invest in a long-term profitable relationship. Instead, they will focus on price and will be far less forgiving on social media.
No organization starts with the wish not to trust their employees or customers. At least not one I know. Because otherwise, why be in business? Over the years, bad experiences are shaping the trust perception, and a few bad apples are causing organizations to treat everyone with more suspicion. It is a common mistake that is easily understandable but should not be acceptable. This erosion of trust comes with a heavy price of reciprocal cynicism and lack of trust which easily is translated to lower productivity, high attrition and low customer retention. No one wants to do business with organizations that do not trust them and treat them as liars unless proven otherwise.
So here is a ten step approach to start building trust in your organization.
Outliers are simply not representative of the majority of your customers, employees or suppliers. If the majority of your customers and employees are cheating you, there is something foundationally wrong with your business. But if they are not, as I suspect, you want to harness the power of trust to reach higher levels of performance and profitability It will only come when you design your business relationships for trust building not for trust busting.
As for the outliers, shape them up or shape them out. Find a way to get them on board with a trustworthy relationship or show them the door. They are better off than your competitors.
It is tempting to design restrictive processes and assume you solve the problem. But the price you pay is a long-term trust-busting relationship. It is a price you do not want to pay. Trust is the foundation of business. Harness it with the right people and do not let the few bad apples rotten all your relationships.
Trust is not an opaque concept that you only know when you see it. It manifests itself in organizational processes, procedures, approval paths and pretty much the way the organization makes and executes decisions. It is real and it drives your business in more ways than you have realized. Trust works both ways. If you are not willing to give some, do not expect to get some in response. If you establish trust with your customers and employees, you are more likely to see it paying back. The choice is yours.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
