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

9 Qualities of the Servant Leader

Photo by Michael W. May on flickr.

Leading With Others in Mind

At first blush, you may think a servant leader literally takes on the role of a servant. Taken to an extreme, that definition would look like this:

As you pull into work, the leader meets you at your car, opens your door, and welcomes you to the office.  Maybe the leader gets you coffee mid-morning and drops by in the afternoon to see if you need anything.  When you need assistance on a project, or maybe just someone to do the grunt work, there your leader is, waiting for you.

No, that isn’t servant leadership.

 

“Servant leaders lead with others in mind.” -Skip Prichard

 

Servant leadership is a blend and balance between leader and servant. You don’t lose leadership qualities when becoming a servant leader.

A servant leader is one who:

1. Values diverse opinions.

A servant leader values everyone’s contributions and regularly seeks out opinions.  If you must parrot back the leader’s opinion, you are not in a servant-led organization.

 

“Servant leaders regularly seek out opinions.” -Skip Prichard

 

2. Cultivates a culture of trust.

People don’t meet at the water cooler to gossip. Pocket vetoes are rejected.

 

“Servant leaders cultivate a culture of trust.” -Skip Prichard

 

3.  Develops other leaders.

 

The replication factor is so important.  It means teaching others to lead, providing opportunities for growth and demonstrating by example.  That means the leader is not always leading, but instead giving up power and deputizing others to lead.

 

“Servant leaders give up power and deputize others to lead.” -Skip Prichard

 

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4.  Helps people with life issues (not just work issues).

It’s important to offer opportunities for personal development beyond the job.  Let’s say you run a company program to lose weight, or lower personal debt, or a class on etiquette.  None of these may help an immediate corporate need, but each may be important.