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

Why To Value People Over Profit

Valuing People Over Profit

Dale Partridge is a serial entrepreneur, best known for founding Sevenly. Sevenly donates $7 of every purchase to charity. With over $25 million in sales, the company is known for giving to others. Dale’s story of Sevenly is covered in his new book, People Over Profit: Break the System, Live with Purpose, Be More Successful. In it, he also includes the story of his firing from the company he founded. Dale’s passion is about building sustainable businesses that also hold up the principles of honesty, transparency, and authenticity.

I recently had the opportunity to ask Dale about his experiences and how he upends common wisdom.

 

“When morality comes up against profit, it is seldom that profit loses.” -Shirley Chisholm

 

Everyone Deserves Respect and Kindness 

The concept “people over profit” sounds so simple, but most leaders struggle with it.  How do leaders make this a reality in their organizations?Dale Partridge (683x1024)

First off, let’s remember that the book isn’t called People Instead of Profit: the bottom line still matters. BUT, valuing People Over Profit is a top-down philosophy. It starts with leaders recognizing the intrinsic value of their fellow humans and that everyone deserves honesty, respect, care, kindness. Inside of that simple yet difficult discipline, we will find our companies becoming more profitable. The idea is that when people feel valued, they work harder, they work with more integrity, they work with more intentionality, and they work with more passion than ever before. On the flip side, when customers feel the same way, they share, they talk and they increase their loyalties.

 

“In a time of universal deceit, telling the truth becomes a revolutionary act.” -George Orwell

 

Tell us about Sevenly—the business model, the values, a little about the story behind it all.

It was ultimately a mission to raise awareness and funding for the world’s most important causes. While we only imagined we would make a small dent in a big issue, we never would’ve thought we’d end up raising over $4 million in $7 increments for these causes. Looking back, it was some of the greatest and most rewarding work I’ve ever done.

 

“Rather than love, than money, than fame, give me truth.” -Henry David Thoreau

 

Homesick for a World That Cares

For the first time in history, people are paying more to do business with companies that are following higher ethical standards and pursuing social goals.  What is behind this? 

We’re homesick for a world that cares. Consumers are searching for a more truthful existence. We want to believe the world is honest and cares and loves, and at the core we believe that by doing so we might understand it. The characteristics of integrity have reigned true and have won since the beginning of time. While they are simple, we still find ourselves as adults struggling with these virtues. Valuing people over profit as an economy is simply a better model, and people are finally beginning to realize that.

 

“Generosity must be built in, not packed on.” -Dale Partridge

 

What’s your definition of authenticity? Of transparency? 

Authenticity means not denying the cost of being who you are. We are who we are and we stand for what we stand for, but authenticity is when you don’t change in the face of a cost that challenges the very core of your identity.

Transparency is logic and emotion. Logically, it’s vulnerability plus acceptability equals transparency. Emotionally, it’s the courage to allow your heart to be fully seen by others.

POP_Cover_Gold_R1You cannot manufacture authenticity, a point you make in the book. Have any examples to share of companies making this mistake? 

Companies all around us are packing on generosity to their business models in hopes that consumers will believe they actually care. But authenticity requires history, and there is a price to be paid to prove that you care. At the core, we want to see companies whose leaders’ hearts are fully behind their beliefs, rather than just their marketability. Any one of the hundreds of retailers that ask you to round up to donate to charity at checkout typically fall into this category. It’s not a bad thing as long as the heart is authentically behind it. Unfortunately, in most cases, that’s not the case. Generosity must be built in, not packed on.

 

“Fear kills more dreams than failure ever will.” -Dale Partridge

 

Insane Courage

39 Traits of a Bad Boss

The Officially Bad Boss

All of us have some negative qualities, make mistakes, and mess up. After all, “We’re only human.”

But bad managers seem to collect these traits faster than a hoarder fills a house.  If you are working for someone and find yourself nodding vigorously as you read this list, you officially have a bad boss.

What traits would you add to the list?

  1. Self-centered

Everything is about him. Not the organizational goals, but his bonus. Not about the team, but about his individual performance. “How I look” is more important than anything else.

 

“Leaders enjoy giving credit to others.” -Skip Prichard

 

  1. Steals credit

You work all night to get it done. Instead of praising you, you find your name removed and her name prominently at the top. She basks in the light of your success and barely acknowledges your contribution.

 

“Leaders create results by letting others shine.” -Skip Prichard

 

  1. Bullies

Threats and intimidation mark the way he manages. You are not asked; you are bullied.

  1. Poor self-awareness

What seems obvious to everyone else, she misses. Her effect on people is something that she completely misses. She never comes back and apologizes or corrects a misunderstanding because she is just not aware of her impact.

  1. Manages up

Sure, everyone needs to manage up. But, he does it exclusively. His boss loves him. Everyone else sees that he sucks up so much that he has little time for anything else.

  1. Always right

You are frequently wrong, but she never is. She can never admit a mistake because it would threaten her self-esteem.

 

“Freely admitting mistakes is a sign of leadership.” -Skip Prichard

 

  1. Poor communicator

Information is withheld. Few understand what he means. More time is spent trying to decode the little communication that happens than actually listening to the message.

 

“A bad boss withholds information in an effort to manipuate.” -Skip Prichard

 

  1. Unable to get the best from people

People may stay in the job, but they are not motivated. No one tries to do more than the minimum.

  1. Micromanages

She dictates every last detail. There is no room for creativity or deviation from the plan. You are to execute orders and report back. Constantly.

  1. Missing in action

He is never around when you need him to make a decision or weigh in.

  1. Never praises or encourages

If you read a positive word on your performance review, your heart would stop so long you would need a doctor. You never hear a single positive word.

 

“A bad boss wallows in the negative. A leader seeks the positive.” -Skip Prichard

 

  1. Wants only praise and good news

You have a problem, but he will not listen. You lost an account, but you cannot bring it up. Problems must be hidden. Only good news is shared because he cannot seem to handle anything more.

  1. Disingenuous

He may praise you, but he doesn’t mean it. His body language betrays his real emotion.

How Belief Writes Your Leadership Story

This is a guest post by Bill Blankschaen, author of A Story Worth Telling just released from Abingdon Press. A writer, speaker, and content strategist, he blogs at Patheos and Faithwalkers where he helps people live an authentic life. Follow him on Twitter.

Belief is the Key Ingredient

Every day you lead, you are writing a story. You don’t have to be a writer or even put pen to paper to make it a good one. But you do need one key ingredient: belief.

Regardless of your beliefs about spiritual matters, your leadership legacy will be determined by your faith. By faith I don’t mean going to church or engaging in religious rituals, as important as those practices may or may not be to us. I simply mean doing what we believe to be true, often in spite of what we see, sense, or feel.

????????????????????????????????????What we believe to be true determines what we do. And what we do is what gets results. Our motion reveals our devotion to what we believe to be true.

The entrepreneur who launches a new business believes in the product or service the new venture will provide. The CEO who initiates change believes she knows where the market is headed and how the company can best prepare to capitalize on it. The individual who steps away from a comfortable career to tackle a new challenge does so because he believes a better story is possible.

If we want lasting results from our leadership — results that get talked about long after we’re gone — we must start with understanding how what we believe to be true writes our leadership story.

 

“Your leadership legacy will be determined by your faith.” -Bill Blankschaen

 

6 Critical Things Belief Does for Our Leadership

1. Belief gives clarity to our mission.

My new book, A Story Worth Telling: Your Field Guide to Living an Authentic Life, shares several stories of ordinary people who stepped out to fulfill their dreams because they believed it was the right thing to do. They believed their story could have value, so they began a quest to achieve a specific end. When we know what we value, we find our way toward it. Roy Disney, a man who knew a thing or two about making tough decisions, said, “It’s not hard to make decisions when you know what your values are.”

“It’s not hard to make decisions when you know what your values are.” -Roy Disney

 

2. Belief gives direction to our team.

The direction derived from belief doesn’t only help us as individuals, it also guides everyone we influence. As Jack Trout said, “At the end of the day, people follow those who know where they’re going.” If you don’t know what you believe to be true, you’ll tend to drift wherever other forces take you. Drifting never inspired anyone to do anything but walk away. However, what you believe to be true will have consequences for your team — so choose wisely.

“At the end of the day, people follow those who know where they’re going.” -Jack Trout

 

3. Belief inspires us to act courageously.

7 Steps to Improve Your Character Habit

Not too long ago, I had the opportunity to talk with Fred Kiel, the author of Return on Character: The Real Reasons Leaders and Their Companies Win.  His extensive research provides data that proves that character matters.  That same research also indicated that much of the character habits of the world’s best, virtuous leaders are formed in childhood.  Fred offers seven steps to improve your character habits.

Improving Character

It absolutely is possible to improve Return on Character (“ROC”) and raise your character reputation scores.  Your character habits are just that – habits.  And as such, they can be changed.  We all have some personal experience in changing our habits.  Sometimes it’s quite difficult, but it can be done.

We’ve isolated seven steps that work to improve your character habits:

1. Pop the Bubble

The first step you need to take to strengthen your character habits is to get real!  We all live in our own “bubble” – our version of ourselves.  Unfortunately, our view of ourselves is often wrong – we tend to believe our own press.  Everyone rates themselves as having a strong character – we see ourselves as principled people.

“Real knowledge is to know the extent of one’s ignorance.” -Confucius

 

2. Conduct a Cost-Benefit Analysis

Be brutally honest with yourself.  You have acquired your character habits because at some point in your life, they were very beneficial. But in all likelihood, some of the habits learned long ago are now more costly than beneficial.


“Being entirely honest with oneself is a good exercise.” –Sigmund Freud

 

3. Find the Fuel

The only way you’ll go the next step in changing your character is if you believe that the cost of your current habit outweighs the benefit.  You must find the “fuel rod” that will energize you enough to acquire a new habit.

“What keeps me going is goals.” -Muhammad Ali

 

4. Now, Write it Down

The important thing now is to write down what you’ve decided from your cost-benefit analysis.  If you can’t write it down and provide a convincing argument about why you should change, you’re just living in la-la land.  You won’t change anything about your character habits.

“If you do not write it down, you have a wish, not a goal.” -Steve Maraboli

 

5. Focus Your Attention