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

Top Reasons for Leadership Fails

This is a guest post by Alison Brattle. Alison is a marketing manager with AchieveGlobal (UK) Limited. Feel free to connect with her on LinkedIn.

Reducing the Risk of Leadership Failure

The world’s greatest leaders know that success is fleeting and that no amount of success in the present can prevent a future failure. It’s so easy to fall into the trap of thinking that it can’t happen to you, but the truth is, it’s much easier to fail than you think. An essential part of leadership development is understanding the warning signs that indicate potential problems; learn what they are and how to combat them to reduce the risk of a leadership failure.

 

Leadership Question: Are you able to write down your focus area in just a few words?

 

Your Focus Shifts

A focus shift can happen in many ways. Some leaders lose sight of what’s important; they get caught up by the pressure that leadership brings, and they lose the focus that they had on the job. In some cases, leaders start to focus too much on the finer details of the job, they start micromanaging, and they end up taking over tasks that are better carried out by other people.

What’s your primary focus in terms of your leadership role? If you can’t write it down succinctly in just a few words, you may be losing focus. Remember that you should be concentrating on leading, not on micromanaging.

 

You’re Communicating Poorly

If you’ve lost focus as a leader, you’re going to have a very hard time communicating your vision and intent to other people. Don’t fall into the trap of thinking that your team will automatically know what you’re talking about or know what you want without being told.

 

Leadership Trap: thinking your team automatically knows what you are talking about.

 

You’re Afraid of Failure

A good leader is driven by a desire to succeed, but sometimes, doubt and uncertainty creep in, and that desire for success turns into a fear of failure. Past success starts to feel less like achievement and more like pressure, and for some leaders that translates into a fear of taking reasonable risks and a fear of innovating.

Are you still comfortable with risk? Good leaders aren’t reckless, but equally so, they’re not afraid of taking on a reasonable level of risk.

 

Leadership Question: Are you taking the appropriate amount of risk?

 

Your Personal Integrity is Slipping