10 Laws of Trust: Build the Bonds That Make A Business Great

10 Laws of Trust

Building the Bonds that Make a Business Great

Trust is vitally important to creating sustainable results.

If you’re a leader, you know how important it is to create and maintain a culture of trust. But knowing it and doing it are different. How do leaders at all levels of an organization make this a reality?

 

“Trust is the operating system for a life well-lived.” –Joel Peterson

 

JetBlue Chairman Joel Peterson’s career has provided him a window into the importance of trust. In addition to his role at JetBlue, Joel is a consulting professor at the Stanford Graduate School of Business and chairman of an investment firm. His new book,The 10 Laws of Trust: Building the Bonds that Make a Business Great, is an exceptionally great read.

I recently had the opportunity to talk with Joel about all things “trust.”

 

“To be trusted is a greater compliment than to be loved.” –George MacDonald

 

Increase Your Trust

What’s the Joel Peterson definition of trust?

Empowering and turning over control to another person. It takes the same leap of faith as when we trust a pilot to fly a plane or a surgeon to operate on us. We give trust in increments, measure results, assess risks and grant more trust until we find we’ve extended our reach, expanded our horizons and found greater joy in our interactions with others.

 

“Accountability is the requisite companion to empowerment.” –Joel Peterson

 

You’ve seen the inside of many organizations and leadership teams from your vantage point as Chairman, as professor, as an investor, as a CFO, etc. When you first walk into an organization, what signs do you see that would lead you to say, “This is an organization with a high degree of trust?”

Surprisingly, high trust organizations are ones with conflict – with respectful disagreements that are ventilated, addressed and put to bed so they don’t fester underground. The best ideas win, not the most powerful or senior people. And they’re typically places where there’s humor, self-deprecation, stories, traditions and people who genuinely like each other.

 

“A man who trusts nobody is apt to be a man nobody trusts.” –Harold Macmillan

 

Cultivate a Culture of Trust

What’s a leader’s role in cultivating a culture of trust? How have you seen this go wrong?

The leader’s role is vital. An EVP at Cisco once told me that she found she couldn’t be happier than her unhappiest child. In like manner, an organization’s boundary of trust is set by its leader. It’ll never expand beyond the leader’s trustworthiness. If he or she has a big “say-do gap,” the contagion will spread. If leaders compartmentalize their lives and file violations of trust under the “private label,” they’ll be mistrusted. People are smart. They’ll figure it out, and it’s not long before their wariness infects everyone and everything. As fear takes over, people become less likely to innovate, to take risks, to trust. This can either explode in trust-destroying outcomes such as the recent VW scandal or end up in bureaucratic inaction, caution and failure to perform such as at the Veterans’ Administration.

 

“In difficult times, trust is a leader’s most potent currency.” –Joel Peterson

 

How is respect linked to trust? How do you show respect?      

Respect is the medium of exchange between parties that are building trust. A failure to show respect is a trust show-stopper – even if you’re not the person who is being treated disrespectfully. This extends from teammates to suppliers to lenders to shareholders to customer. Nothing shows greater respect for another than listening to them. It’s at the heart of customer service and team-building. I think of it as listening without agenda, listening to understand, not to respond, to agree or disagree, not until there’s a break so I can respond.

 

“In a trust-driven culture, respect is prized at every level.” –Joel Peterson

The Power of Admitting A Mistake

Admit Mistakes
This is a guest post by friend and mentor Bruce Rhoades, who retired after having run several companies. He often helps me with strategy. I am delighted that he is a regular contributor.

The Power of Admitting A Mistake

Confucius said, “If you make a mistake and do not correct it, this is called a mistake.” Yet, many times when a mistake is made, people try to pretend that it did not happen. They attempt to justify the wrong position or try to cover it up, which leads to additional mistakes. This situation reminds me of another quote — “When you find yourself in a hole, stop digging.”

 

“If you make a mistake and do not correct it, this is called a mistake.” -Confucius

 

Quite often, more damage is done to credibility, relationships, trust and integrity by the actions taken after the original mistake. This is true in personal relationships and especially true when a leader makes a mistake. How many times have we seen high-profile people get prosecuted, not for the original crime, but for the attempt to cover it up by lying?

Of course there is another choice when a mistake is made—admit it, learn from it, correct it and apologize to those that were adversely affected. There is power in properly admitting a mistake.

 

“Anyone who has never made a mistake has never tried anything new.” -Albert Einstein

 

Why Admit a Mistake?

Rather than try to ignore or cover up a mistake, there can be many personal and organizational advantages to properly admitting a mistake.

 

“When you find yourself in a hole, stop digging.”


Personal Advantages:

  • Averts the need to continue to defend a difficult or incorrect position.
  • Increases leadership credibility.
  • Avoids additional mistakes trying to cover up or “adjust” for the original mistake.
  • Reduces personal stress and tension.
  • Provides a “reset” from others in both personal and professional relationships.
  • If you take responsibility for a mistake on-behalf of others who participated, it builds loyalty.

 

“Admitting and correcting mistakes does not make you look weak; it actually makes you look stronger.” –Bruce Rhoades

 

Organizational Advantages:

  • Provides a learning situation for you and others.
  • Builds trust—others see that you are human, honest and truthful.
  • Allows quick correction, which saves time and resources.
  • Gives others a chance to express views and provide new information.
  • Shows others that they are valued and that their input counts, which builds collaboration.
  • Increases the organization’s ability to try new things then quickly stop those that do not work, which helps establish an innovative culture.
  • Sets the tone for risk-taking, open communication and makes you more approachable.
  • Provides concrete examples to reinforce critical aspects of culture: decisiveness, truthfulness, openness, integrity and quick correction.
  • Removes the “elephant-in-the-room” situation where everyone knows about the mistake, but no one talks about it.
  • Helps offset the bad feelings for those that may have wasted their time.
  • Decreases “pocket-vetoes” when others see the mistake, do not confront it, but simply do not implement.

 

“As a leader it is a mistake to think that you need to have all the right answers all the time.” – Bruce Rhoades

 

When Admitting Mistakes Does Not Have Power

How to Actualize Your Leadership Potential with a Life Coach

Coach and Coaching
This is a guest post by Tom Casano, founder of Life Coach Spotter, who helps people to find their purpose in life. He believes that life coaching can truly help you to radically transform your life.

Is A Leadership Coach What You Need?

Finding the leader in a crowd is not difficult, but sometimes being one is. Leadership is not a skill you are born with; it is one that you acquire. And not everyone is a leader today, but that is not because we aren’t born with the ability to lead, but rather because we need to learn how to use our personality, communication skills, and core strengths to empower and inspire others. To lead in the workplace, you must be confident, know where you are going, and support your team to be at their best.

 

“A good mentor knows how to share the truth with love.” -Andy Andrews

 

But even if you don’t feel like a leader today, you still are one. Everyone has the potential to create a vision and help others get there. You just need to unlock your leadership skills, and a coach can help you become a great leader. A leadership or life coach is a person who can teach you the artistry of leadership and give you the skills to enable those around you to get to the top.

Whether you are someone who is trying to take your organization to the next level, or secure a managerial or corporate position within a company, a life coach can show you how to achieve your goals and become a great leader. The confidence that you display in your communication is what makes people want to follow you. Great communication is one of the keys to being a great leader. If you can’t clearly express yourself to those around you, being a leader is nearly impossible. A life coach can help you become a better leader by helping you to improve your self-confidence, your personal and professional relationships, and communicate your ideas to your team better.

 

“A coach is someone who can give correction without causing resentment.” -John Wooden

 

The key to sales is having a product you believe in and are excited about. And leadership is the ultimate sale. If you don’t believe in yourself, how do you expect others to? A life coach helps you to believe in yourself and to sell yourself as a person who has the knowledge, proficiency and integrity to lead everyone to be successful.

Leadership is not something that you just wake up with one morning. You have to develop your skill set, set realistic goals, and learn to read people in order to be a better leader. A life coach can be the catalyst for change that you need to unleash your inner-leader, whether it’s for your professional or personal life. Making you your own salesperson, they can help you to define a goal, break down a plan to get there, and most importantly, communicate those set of steps and goals with enthusiasm to those around you. The truth is that we all have leadership qualities inside; we just need to learn how to channel them from the inside out. An effective life coach can take those things that make you unique and turn them into making you a spectacular leader to those in any business environment.

Does Life Coaching Really Work?

37 Quotes to Become a Better Listener

Listen Up!

Listen Up!

Listen up,” she said in a voice that was obviously coming from a strong mother, “You had your choice.”

I don’t know what the argument was about, but I noticed her kneeling down, talking to a boy who was about four or five years old. This kid may have been insistent, but my bet was on the mom. She was having none of it.

But, what she said next got my attention, “You are going to learn to listen. That’s a skill you will thank me for later.”

Wow. Not what I expected.

I walked away, thinking how lucky that little guy was to have a mom so intent on teaching him how to be a better listener. One day, he may owe his success to it.

It’s something I have been working on. We all need to listen more. It is one thing to listen, and another to be a listener.

 

Quotes to Help Us Listen Well

Here are some quotes on listening well that may inspire you to become a better listener:

 

“The word LISTEN contains the same letters as the word SILENT.” –Alfred Brendel

 

“When people talk, listen completely. Most people never listen.” –Ernest Hemingway

 

“If speaking is silver, then listening is gold.” -Turkish Proverb

 

“Be careful how you are talking to yourself because you are listening.”  -Lisa M. Hayes

 

“Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.” -Winston Churchill

 

“Sometimes the most influential thing we can do is listen.” –Bob Burg

 

“The first duty of love is to listen.” –Paul Tillich

 

“There is a voice that doesn’t use words. Listen.” –Rumi

 

“Wisdom is the reward you get for a lifetime of listening when you’d have preferred to talk.” –Doug Larson

 

“You never really understand a person until you consider things from his point of view.” –Harper Lee

 

“Knowledge speaks, but wisdom listens.” -Jimi Hendrix

 

“It takes a great man to be a good listener.” –Calvin Coolidge

 

“Listening is being able to be changed by the other person.” –Alan Alda

 

“Whoever answers before listening is both foolish and shameful.” -Proverbs 18:13

 

“One of the greatest skills any leader can master is becoming comfortable with silence.” -David Grossman

 

“The art of conversation lies in listening.” -Malcom Forbes

 

“You cannot truly listen to anyone and do anything else at the same time.” -M. Scott Peck

 

“Listen like every sentence matters; talk like every word counts.” –Geoffrey Tumlin

 

“One friend, one person who is truly understanding, who takes the trouble to listen to us as we consider a problem, can change our whole outlook on the world.” -E. H. Mayo

 

“God speaks to us every day only we don’t know how to listen.” -Mahatma Gandhi

 

“Big egos have little ears.” -Robert Schuller

 

“A leader must be a good listener. He must be willing to take counsel. He must show a genuine concern and love for those under his stewardship.” –James Faust

 

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“The single most important key to success is to be a good listener.” –Kelly Wearstler

 

“Be a good listener. Your ears will never get you in trouble.” –Frank Tyger