The Speed of Trust

1. The Speed of Trust The One Thing That Changes Everything Author: Stephen M. R. Covey With Rebecca R. Merrill Bridgett Smith Change Theory Summer 2007

2. “Leadership” is getting results in a way that inspires trust. • The number one job of a leader is to inspire trust. It’s to release the creativity and capacity of the individuals to give their best and to create a high-trust environment in which they can effectively work with others.

3. See / Speak / Behave The purpose of this book is to enable you to see, speak, and behave in ways that establish and grow trust. See “Paradigm Shift” Behave Speak “Behavior Shift”“Language Shift” These three dimensions are interdependent, and whenever you effect a change in one dimension, you effect a change in all three.

4. A Crisis of Trust Low trust is everywhere. It permeates our global society, our marketplace, our organizations, our relationships, our personal lives. It breeds suspicion and cynicism, which become self-perpetuating, resulting in a costly, downward cycle. “The moment there is suspicion about a person’s motives, everything he does becomes tainted.” -Mahatma Gandhi

5. Crisis cont’dConsider the percentage of students who acknowledged that they cheated in order to improve their odds of getting into graduate school. • Liberal arts students – 43% • Education students – 52% • Medical students – 63% • Law students – 63% • Business students – 75%

6. The Economics of Trust • When trust goes down, speed will also go down and costs will go up. Trust = Speed Cost • When trust goes up, speed will also go up and costs will go down. Trust = Speed Cost Our distrust is very expensive –Ralph Waldo Emerson

7. The Trust Tax Whether it’s high or low, trust is the “hidden variable” in the formula for organizational success. Business formula: (S x E) T = R ([Strategy times Execution] multiplied by Trust equals Results) The low-trust tax discounts the output and the high-trust dividend multiplies the output.

8. How Trust Works Trust is a function of two things: character and competence. Character includes your integrity, your motive, your intent with people. Competence includes your capabilities, your skills, your results, your track record. And both are vital.

9. The 5 Waves of Trust Self Trust Relationship Trust Organizational Trust Market Trust Societal Trust This model derives from the “ripple effect” metaphor that graphically illustrates the interdependent nature of trust and how it flows from the inside out.

10. The First Wave: Self Trust • The first wave deals with the confidence we have in ourselves and also with our ability to inspire trust in others. • The key principle underlying this wave is credibility. • The end result of character and high competence is credibility, judgment, and influence.

11. Good News • We can increase our credibility, and we can increase it fast, if we understand the four cores that are fundamental. • Two of these cores deal with character; two with competence. • What gives trust its harder, more pragmatic edge is recognizing that competence is as vital to trust as character, and that both character and competence are within our ability to create or to change.

12. 4 Cores of Credibility • Core 1: Integrity • Integrity means honesty, telling the truth and leaving the right impression. • Integrity is congruence, there is no gap between intent and behavior – walk the talk. • Integrity also includes humility, recognizing principle and putting it ahead of self. • Integrity also includes the courage to do the right thing – even when it’s hard.

13. How to Increase Your Integrity • Make and keep commitments to yourself. • Stand for something. • Be open. These three accelerators will help you increase your integrity. They will also increase the speed and decrease the cost with which you do the important things in life.

14. Core 2: Intent • Intent is motive, your reason for doing something. The motive that inspires the greatest trust is genuine caring. • Intent includes agenda, what you intend to do or promote because of your motive. The agenda that generally inspires the greatest trust is seeking mutual benefit. • Behavior is the manifestation of motive and agenda. The behavior that best creates credibility and inspires trust is acting in the best interest of others.

15. How to Improve Intent • Examine and refine your motives. • Declare your intent. • Choose abundance. The measure of your life will not be in what you accumulate, but in what you give away. - Dr. Wayne Dyer, Author, The Power of Intention

16. Core 3: Capabilities Capabilities are the talents, skills, knowledge, capacities, and abilities we have that enable us to perform with excellence. Left unattended, knowledge and skill, like all assets, depreciate in value – surprisingly quickly. - David Maister, Business Author and Consultant

17. How to Increase Your Capabilities • Run with your strengths ( and with your purpose). • Keep yourself relevant. • Know where you’re going.

18. Core 4: Results Results refer to our track record, our performance, our getting the right things done. When we achieve the results we promised, we establish a positive reputation of performing, of being a producer and our reputation precedes us. A good leader is probably no different in any culture in the sense that a good leader must have credibility. That is something one establishes… based on the way one handles himself and by his established track record. -Dr. Victor K. Fung, Group Chairman, Li & Fung

19. How to Improve Your Results • Take responsibility for results. • Expect to win. • Finish strong.

20. The Second Wave: Relationship Trust • The second wave is about how to establish and increase the “trust accounts” we have with others. • The key principle underlying this wave is consistent behavior. • The net result is a significantly increased ability to generate trust with all involved in order to enhance relationships and achieve better results.

21. 13 Key Behaviors to High-trust Leaders • Talk straight – Be honest. Let people know where you stand. Use simple language. Don’t spin the truth. Don’t leave false impressions. • Demonstrate respect – Genuinely care for others. Respect the dignity of every person and every role. Treat everyone with respect, especially those who can’t do anything for you. • Create transparency – Tell the truth in a way people can verify. Don’t have hidden agendas. • Right wrongs – Make things right when you’re wrong. Apologize quickly. Don’t cover things up.

22. Show Loyalty – Give credit freely. Represent others who aren’t there to speak for themselves. Don’t disclose other’s private information. • Deliver results – Establish a track record of results. Accomplish what you’re hired to do. Don’t make excuses for not delivering. • Get better – Continuously improve. Develop feedback systems-both formal and informal. Don’t assume today’s knowledge and skills will be sufficient for tomorrow’s challenges. • Confront reality – Address the tough stuff directly. Acknowledge the unsaid. • Clarify expectations – Disclose and reveal expectations. Don’t assume that expectations are clear or shared.

23. Practice accountability – Hold yourself and others accountable. Take responsibility for results. Don’t blame others or point fingers when things go wrong. • Listen first – Listen before you speak. Understand. Don’t assume you know what matters most to others. Don’t presume you have all the answers- or all the questions. • Keep commitments – Make keeping commitments the symbol of your honor. Don’t attempt to “PR” your way out of a commitment you’ve broken. • Extend trust – Demonstrate a propensity to trust. Don’t withhold trust because there is risk involved.

24. Character Talk Straight Demonstrate Respect Create Transparency Right Wrongs Show Loyalty Competence Deliver Results Get Better Confront Reality Clarify Expectations Practice Accountability The quickest way to make a withdrawal from a trust account I to violate a behavior of character; the quickest way to make a deposit is to demonstrate a behavior of competence.

25. y Now that we have the trust-building tools - the 4 Cores of Credibility and the 13 Behaviors, the next waves will focus on the context in which you can use these tools to increase speed, lower cost, create value, establish trust, and maximize your influence and the influence of your organization

26. The Third Wave: Organizational Trust • The third wave deals with how leaders can generate trust in all kinds of organizations as well as in teams and other micro-units within organizations. • The key principle underlying this wave is alignment. • Alignment helps leaders create structures, systems, and symbols of organizational trust that decrease or eliminate trust taxes and create trust dividends.

27. 4 Core Applications for Organizational Trust • Integrity – create and improve your organizational mission or values statement, engaging everyone; create a culture of making and keeping commitments within the organization. • Intent – ensure that your mission and values reflect motives and principles that build trust; set an example of caring. • Capabilities – take steps to ensure that the structures and systems in your organization (including recruiting/hiring and compensation systems) are designed to attract and retain the talent you need to be competitive in today’s market. • Results – help people create shared vision concerning desired results.

28. The 7 Low-trust Organizational Taxes • Redundancy • Bureaucracy • Politics • Disengagement • Turnover • Churn • Fraud

29. The 7 High-trust Organizational Taxes • Increased value • Accelerated growth • Enhanced innovation • Improved collaboration • Stronger partnering • Better execution • Heightened loyalty

30. The Fourth Wave: Market Trust • The fourth wave is the level at which everyone understands the impact of trust. • The key principle underlying this wave is reputation. • It’s about your company brand (as well as your personal brand), which reflects the trust customers, investors, and others in the marketplace have in you. In the end, all you have is your reputation. - Oprah Winfrey

31. The Fifth Wave: Societal Trust • The fifth wave is about creating value for others and for society at large. • The principle underlying this wave is contribution. • By contributing or “giving back,” we counteract the suspicion, cynicism, and low-trust inheritance taxes within our society.

32. Trust • We can establish trust. • We can grow trust. • We can extend trust. • We can restore trust. • We can become personally and organizationally credible. • We can behave in ways that inspire trust. • We can increase speed and lower cost in every dimension of our lives.