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

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

How to Actualize Your Leadership Potential with a Life Coach

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?

Leadership Lessons from Downton Abbey

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.

Lessons from Downton Abbey

After six seasons, the popular PBS series Downton Abbey has ended. As the series unfolded, we watched the characters evolve through many changes in their society and personal lives. As the characters changed and matured, there were numerous lessons and wisdom for life demonstrated in the show.

 

“Leadership through visible action is always effective.” -Bruce Rhoades

 

Each of these characters also demonstrated leadership attributes that can be learned from watching them deal with the various situations that confronted them.

Here are a few of the leadership lessons exhibited by the characters:

 

Lesson from Lord Grantham: Often the ‘best man for the job’ is a woman.

 

Robert Crawley, Lord Grantham

  • No strategy will work forever. Watch for environmental and market changes and adapt.
  • Learn to delegate to those who are more suited to new endeavors. Take their advice, trust them and start small.
  • For long-term viability, a leader needs to groom successors and allow others to exercise their talent.
  • A successful leader needs to attract those with complementary skills to his/her own, then allow them to take action.
  • Often the “best man for the job” is a woman.

 

“A successful leader needs to attract those with complementary skills, then allow them to take action.” –Bruce Rhoades

 

 

Cora Crawley, Countess of Grantham

  • Communication, patience and being non-judgmental are necessary to allow others to adapt to change.
  • Sometimes it is most effective to act quietly and consistently in small ways to effect change. Open confrontation elicits defensiveness in others.
  • Open acceptance and acknowledgement of others builds trust and opens communication.
  • Sometimes keeping the peace in the short term provides opportunities for change in the long term.

 

“Keep the peace in the short term to allow change in the long term.” –Bruce Rhoades

 

Mr. Carson, the Butler

  • Giving orders works in the short term but does not create lasting change or personal growth in others.
  • Be respectful of those in your charge, you may need them later to move forward.
  • Failure to acknowledge change weakens your leadership.
  • Expecting perfection limits and stifles the efforts of those around you.
  • Management by intimidation does not create loyalty.

 

“Expecting perfection limits and stifles the efforts of those around you.” –Bruce Rhoades

 

“Management by intimidation does not create loyalty.” –Bruce Rhoades

 

“Failure to acknowledge change weakens your leadership.” –Bruce Rhoades

 

Lady Mary Crawley

  • Wisdom can come from any level in the organization.
  • Arrogance does not foster collaboration, trust or effective leadership.
  • Putting others down does not build you up.
  • For continued success, a leader must acknowledge change and act accordingly.

 

“Wisdom can come from any level in the organization.” –Bruce Rhoades

 

“Putting others down does not build you up.” –Bruce Rhoades

 

Lady Edith Crawley

  • Truthfulness will always yield the best, lasting results.
  • Do not overcomplicate the situation and delay action.
  • Measured risk-taking and action builds confidence.
  • Don’t let the future be dictated by the past.

 

“Measured risk-taking and action builds confidence.” –Bruce Rhoades

 

Violet Crawley, Dowager Countess

  • Deal with the situation, not the person. Acceptance of the person creates trust.
  • Ignoring a changing environment does not solve anything.
  • Know when to let others take the lead.
  • Sometimes a leader needs to give stern, unpopular advice.
  • Humor can reduce tension and create a more open atmosphere.

Why It Is a Big Thing To Take Action On Small Things

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.

 

Take Action On The Small Things

Culture is established by both communication and action. People will listen to what you say, but they will closely watch and emulate what you do. Action on large, highly visible initiatives will certainly make priorities and culture clear in a big way. However, it takes time to formulate and communicate large initiatives, plus it often takes time for the results to be achieved and visible. Action on small initiatives while larger actions are in progress can be very effective.

 

“Culture is established by communication and action.” -Bruce Rhoades

 

Good leaders interact with the organization at all levels and with cross-functional teams. Many times during these interactions, opportunities to take action on smaller issues will present themselves. These small opportunities are issues, changes, or decisions that can be addressed by a few of those directly involved without much involvement from the leader. They can solve small customer irritations, eliminate frustrations and inefficiencies in a process or a department, drive a decision or make a localized change. I am a big proponent of taking proper action on selected small opportunities. One of my favorite sayings is, “Never underestimate the effect of taking action on small things.”

Here is why:

 

“Never underestimate the effect of taking action on small things.”

 

10 Major Benefits of Taking Action On Small Things

  • Accelerates Empowerment and Learning: Action on small issues will build organizational confidence, get quick results and allow people to learn from mistakes that have smaller consequences and reduced visibility. It helps people cultivate their leadership.
  • Teaches Delegation: When done correctly, implementing action on small changes teaches others how to delegate, how to decide who needs to be involved in developing action and approval, how to form a collaborative team and how to involve and grow others.
  • Improves Accountability and Decisiveness: When a small team is empowered to take action on smaller decisions, they become more comfortable with accountability and find it easier to make decisions. Using smaller initiatives also provides decision-making experience for more people at many levels in the organization.
  • Boosts Career Satisfaction: Since many small actions are localized to specific processes or departments, they can help remove daily irritations that hinder department or operational processes. At the same time, people learn that they can assume more responsibility and make a difference for the organization.
  • Enhances Collaboration and Team Building: With more small actions, a larger number of people are able to participate in collaborative problem solving and work together with a variety of defined roles to implement change. The benefit is that more people in the organization can gain experience, grow and achieve results.

 

“Taking action on small things rapidly creates an empowered workplace.” -Bruce Rhoades

 

  • Improves Communication: When a leader is able to initiate many small actions at different levels of the organization, or with various teams, it helps to “flatten” the organization, cut through bureaucracy and allow a larger population to see the leader in action. People become more comfortable communicating with the leader and each other. Additionally, small initiatives to implement change can get more people communicating who normally would not do so.

How to Improve Your Communication by Leaps and Bounds

No Cape Needed

Do you know the most common communication mistakes leaders make?

What practical steps can you take right now to be a more effective communicator?

What is the most common mistake we make when using email?

 

“True communication comes from a shared understanding of meaning.” -David Grossman

 

David Grossman is a communications expert. Both David and the firm he founded in 2000, The Grossman Group, have received numerous awards. Prior to founding the firm, he was director of communications for McDonald’s, and he teaches the only graduate course on internal communications in the U.S. at Columbia University.

What you notice when you pick up David’s latest book, No Cape Needed: The Simplest, Smartest, Fastest Steps to Improve How You Communicate by Leaps and Bounds, is that it’s stunning as a physical book. Full of colorful graphics, gorgeous photography, and digestible information, it is one of the reasons I still enjoy the physical book. Not only is it a gorgeous book, but it is full of immediately actionable, useful information. I recently asked David to share some of the wisdom from his book and his consulting practice.

 

“Communication really is a superpower.” -David Grossman

 

Communication is a Superpower

Question: As a kid, you wanted to have superpowers. As an adult you say, “Communication really is a superpower.” Explain why you elevate communication to that status.

I wholeheartedly believe that effective communication is really a way to make a difference.David Grossman

You can use communication to make others feel good about their jobs, to be engaged and excited, to help someone who’s having a hard time get through a rough patch, or to inspire a team. And in essence, you can use communication to make substantial changes that aren’t just about helping a company or team go from ‘good to great’ but instead create a lasting legacy through a new strategic direction.

A lot of people don’t think they can communicate well or don’t think they can develop the skill. But the truth is that it just takes practice. If leaders at all levels of their organizations come to realize that, then great things can happen for their companies. And they can become heroes of their own.

 

Cut-Through-Clutter-No-Cape-Needed-David-Grossman

3 Steps to Improve Your Communication

In your new book, No Cape Needed, what are the top three steps you recommend for improving communication?  

1. Understand your audience.

To truly move employees to action, we have to know what they care about and get into their mindset. As leaders we spend much of our time and effort setting business goals and developing plans to achieve them. Yet the most important element behind everything is your team. If they don’t understand where they fit in, all of our lofty goals will go nowhere.

2. Plan, and then communicate regularly.

Leaders often mistakenly assume that as long as they have ideas, a vision, and a sense of purpose, that will be enough to lead the way forward. If only it were that easy. In truth, good leaders know the importance of planning and clearly spelling out the path ahead. You can wing your communications and take a chance on the results or be planful and purposeful to increase your chances of success ten-fold.

3. Listen and create dialogue.

True communication comes from a shared understanding of meaning. Ask open-ended questions. Listen. Listen some more. Check for understanding.

 

“Leaders become great not because of their power, but because of their ability to empower others.” -John Maxwell

 

3 Common Communication Mistakes

What are some of the common mistakes leaders make when they communicate?

1. They don’t set the context.