Creating a High-Trust Culture for High Performance

Trust

 

How to Increase Trust

 

Why is culture so difficult to change?

Why are so many employees disengaged?

What should a leader do when she arrives at a company that is struggling?

 

The founding director of the Center for Neuroeconomics Studies recently wrote a book, Trust Factor: The Science of Creating High-Performance Companies to answer these and other questions. Paul J. Zak, PhD, is also a professor at Claremont Graduate University. He recently answered some of my questions about his extensive research into trust. His book is fascinating and contributes to the body of work on trust and organizational culture.

 

Survey of 200,000 employees: 71% of companies have mediocre to poor cultures.

 

Spot the Signs of a Low-Trust Culture

In one part of the book, you tell a story of walking into an office full of cobwebs, old furniture, and a struggling culture. What are some of the signs of a low-trust culture?

Distrust drains employees’ energy, so people move slow, think slow, and lack a passion for their jobs.  Organizations with low trust also have lower profits, so offices often look out-of-date, even while new employees show up as turnover tends to be high.  We have also shown that people take more sick days when they work at low-trust companies, so one sees empty desks.  All these factors are signs of a low-trust syndrome and a downward cycle of productivity, innovation, and profits.

 

“High-trust companies invest in employee health and productivity.” –Paul J. Zak

 

Why Healthy Cultures are Based on Trust

trust factorWhy is a healthy culture based on trust so vitally important to its success?

Companies are, first and foremost, people. As social creatures, we naturally form teams to accomplish goals together.  Extensive research shows that teams are more effective when they have a clear objective and when team members are trustworthy. Trust reduces the frictions that can arise in teams so getting things done takes less effort and as a result more and better work is done.  By measuring brain activity while people work, we’ve shown that people are more relaxed when they trust their colleagues. They innovate more and shed the stress from work faster than those in low-trust companies.  Creating a culture of trust provides powerful leverage on performance because it harnesses what our brains are designed to do: cooperate with others in teams.  And the neuroscience I’ve done shows how to create a culture of trust in a system so it has the maximum effect on brain and behavior.

 

Workers in high trust organizations are paid an average of $6,450 more.

 

I love the biological explanation of the Golden Rule. Explain the connection between oxytocin and trust.

Are You Broadcasting Happiness?

Broadcast Happiness

Disrupt Negative Thinking and Revamp Your Broadcast

 

Do you know someone who is always negative?

Is it possible to inspire happiness in others?

 

Michelle Gielan, former national CBS News anchor turned positive psychology researcher, is the best-selling author of Broadcasting Happiness: The Science of Igniting and Sustaining Positive Change. She is the Founder of the Institute for Applied Positive Research.

I recently had the opportunity to ask speak with her about her fascinating research into happiness, positivity, and our impact on others.

 

How positive you are on social media depends on your news feed so choose your friends wisely.

 

Create Positive Change

You’ve been a successful broadcaster at CBS News. But your work now is about a different type of broadcasting. You say we broadcast happiness and that creates positive change in those around us. How did this realization come to you?

People talk about how negative the news can be—and they are right. As the anchor of two national news programs at CBS, I saw how not only were the stories largely negative but also told in a disempowering way. We rarely talked about potential solutions.

At the height of the recession, we started broadcasting solutions for every problem we featured. We called it Happy Week. Drawing on positive psychology, the series centered on actions taken to foster happiness (and quite frankly peace of mind!) during some of our biggest financial challenges.

We received the greatest viewer response of the year, but more importantly, this was a powerful example of research in action. I wanted to know more about creating empowerment in others—so I quit to study positive psychology at the University of Pennsylvania.

Now as a positive psychology researcher, I see the toxic effects of a constant stream of negative news on the brain. In a study I conducted with researcher Shawn Achor and Arianna Huffington, we found that watching just three minutes of negative news in the morning can lead to a 27% increased chance of you having a bad day as reported 6-8 hours later. The negative mindset we adopt first thing sticks with us all day.

 

Study: Watching 3 minutes of negative news in the morning increases the likelihood of a bad day.

 

But CBS News also showed me a better way—which is something I now share at talks at companies and organizations—specifically how to talk about the negative in a way that leaves people feeling empowered and ready to act. In our follow-up study published in Harvard Business Review, we found that by pairing a discussion of problems with solutions, you can fuel creative problem solving in someone else by 20%. For managers, this means you can talk about the negative without decimating your team.

Looking at all this research, I had an epiphany: we are all broadcasters. What’s your broadcast? As you move throughout your day talking to your colleagues, family and friends, where do you focus their attention? Some facts and stories fuel success; others don’t. In my book Broadcasting Happiness: The Science of Igniting and Sustaining Positive Change, I share the science and tools to disrupt negative thinking and revamp our broadcast to fuel success at work and beyond.

Using the science, our clients have been able to increase sales by 37%, productivity by 31%, and revenues by hundreds of millions of dollars. Personally, I’m so happy I now get to broadcast these kinds of stories about individuals and organizations creating positive change. This is so much more inspiring.

 

Study: Optimists at work are 5x less likely to burn out than the pessimist.

 

The Work Optimist, you point out, is five times less likely to burn out and three times more engaged than the pessimist. Is it possible to move up the continuum and be more positive? What techniques work to do this?

Michelle GielanYes! The most inspiring thing about the results of our research is that many of the elements of our mindset that predict success, like Work Optimism, are malleable. Work optimism is the belief that good things can happen, especially in the face of challenges, and that our behavior matters. We created a validated assessment that tests people on their levels of Work Optimism and two other predictors of long-term success at work. (Test yourself here.)

If you find you’re scoring lower than you wish on Work Optimism, you can adopt a simple 30 second habit: Use the Power Lead. Make sure your lead sentence in conversations or meetings at work is positive. If you start conversations with how tired, sick, or stressed you feel, your body follows, as does the rest of the conversation.

We are taught to mimic the social patterns of others, so if someone starts a sales call with, “I’ve been swamped lately,” then both individuals start to feel more stressed and overwhelmed, which can oftentimes kill the sale. In our fast-paced world, you might have time to relay only one piece of social information at work. If you make it negative, then you get stuck in that pattern. Power leads can be simple, such as answering “How are you?” with some good news, such as, “Doing great! Had an awesome weekend with the family. My daughter scored a goal at lacrosse!”

 

“Cultivate happiness and you’re cultivating success at the same time.” –Michelle Gielan

 

What are a few ways to become a better broadcaster, able to motivate and communicate with power and results?

How to Turn a Bad Day Around

We all have them.

The bad day.

When you’re in the middle of one, what do you do? Here are some ways to turn your bad day around before it’s over.

 

Study: a positive mindset makes you 31% more productive.

 

You can take a bad day and turn it into a productive, positive day to remember.

 

Fact: you can improve your mood by changing your routine.

 

 

How-to-turn-a-bad-day-around

Infographic provided by Headway Capital.

 

Study: a positive mindset increases your chance of promotion by 40%.

 

Are you READY have better, more POSITIVE days? By signing up for FREE to Leadership Insights, you will be on your way!

Already on my list? Enter your email above and you'll get instructions on how to download your copy of the ebook.

Do Your Customers Get a Standing Ovation?

Customer Standing Ovation
This is a guest post by Chip R. Bell. Chip is a keynote speaker and author of several national best-selling books. His newest book is Kaleidoscope:  Delivering Innovative Service That Sparkles.

Give Your Customers a Standing Ovation

I smile every time I think of one of my favorite clients from a number of years ago. What made it fun was a visionary, high energy CEO. The company’s sales came through a retail catalog mailed to customers who then placed orders largely via a call center. It was also a time the company elevated its emphasis on their customers’ experiences, not just the merchandise their customers purchased.

One component of the “voice of the customer” initiative was to hold a focus group session with a group of customers who were chosen because they had recently bought and/or returned merchandise. The first focus group was attended by all of senior leadership, including the CEO. At the end of the session customers were given a gift, and while they got a tour of the large distribution facility, the executives who watched the focus group worked on ways to translate insights gained into actions or, in some cases, a wakeup call to get more customer intelligence.

 

“Neglect is more dangerous than strife; apathy costlier than error.” -Chip Bell

 

The highlight of the focus group session was inviting the customers at the end of their tour to have lunch in the employee cafeteria. Prior to their arrival, word was quickly passed that a group of customers were en route to the cafeteria. As they entered the large cafeteria, the entire room erupted into a lengthy standing ovation. It was powerful and affirming!  And, in the words of one employee in the room, “This makes my challenging work worth it.”

In the following weeks, my conversations with the CEO revealed a fascinating discovery.  The standing ovation became a metaphor for the sprit conveyed by the call center employees. Instead of, “Smile more on the phone,” or “Listen more to your customers,” it became, “Give your customers a standing ovation experience.”  It was code for unmistakable valuing and obvious affirmation.

 

“Great relationships are fueled by affirmation.” -Chip Bell

 

The Power of Appreciation