The Power of Trust

Today I want to write about a social lubricant that makes all aspects of creating a high performing organization easier – trust.

It seems as if we live at a time or at least in a society in which trust has broken down to a great degree. In what or in whom do you place your trust? Opinion polls indicate that we have little trust in government; nor do we place much trust in traditional pillars of our society such as doctors, bankers, attorneys, business leaders, or even in the clergy. With half of all marriages ending in divorce, can we even say that as a society we have trust in our personal relationships?

What is the cost of this lack of trust? Stephen M.R. Covey in his book The Speed of Trust: The One Thing That Changes Everything, wrote about the importance of trust and the cost when it is lacking. He makes the point that trust is more than a “nice to have social virtue, a so-called hygiene factor.” He presents a formula for trust: as trust increases, speed of transactions also increase and costs go down; likewise, as trust decreases, the speed of transactions decrease and costs go up. He says the lack of trust creates an unseen tax on organizations; it increases an organizations cost without any increase in productivity.

This is a good metaphor for the unseen cost of a lack of trust. I also like to use the example of an engine; this is an idea most of us can easily visualize. The engine in our car runs smoothly and efficiently, in no small part due to the oil that circulates through the engine lubricating key parts, reducing friction and thus reducing heat. If we don’t care for the oil properly: we let it run low or we fail to change it as directed, the effectiveness of the oil begins to diminish. As that happens, the benefits provided by the oil are also diminished. Friction increases, the engine begins to run inefficiently, wear and tear on parts increase, and ultimately, if the situation is not corrected, the engine will stop altogether.

Ideally in an organization, things would begin with trust levels high and clean. Honest, open discussion and actions would maintain the state and the engine of the organization would run smoothly and efficiently. Unfortunately, we do not live in an ideal world and there are no ideal organizations. People may come into an organization with mistrust towards others or those who have, or are perceived to have, authority. The trust level of the organization may already be compromised from the beginning. On the other hand, the trust level may have started out high or at least adequate but over time, actions and decisions taken by members of the organization have tainted or reduced the level of trust. The organizational engine begins to run a little rough. Perhaps it keeps running but not efficiently. Perhaps it gets rougher and rougher, begins to knock, and finally seizes up and stops.

What can be done to either clean and restore the level of trust or increase it, if it was not sufficient to begin with? Are we doomed to suffer from a lack of trust on an individual or an organizational basis?

It is possible that the lack of trust is so severe that major personnel changes are required. These are situations in which the level of trust is so low that a transfusion of trust is needed through changing organizational members. This is a relatively quick fix and it may solve the problem. However, unless underlying issues that caused the loss of trust are corrected, it is more likely that the organization will continue to, at a minimum pay, the “low trust tax”.

Often an effective “filter” can restore and maintain at least an operational level of trust. Carrying forward the engine metaphor, as the oil pumps through the engine, in addition to reducing friction and heat, it also carries away bits of debris, dirt, and contaminants. These get cleaned from the oil as it rushes through the filter. Likewise in organizations, bits of doubt, misunderstanding, anger and frustration are bound to arise. If a sufficient level of trust exists, these concerns are usually easily dealt with. However, even in excellent organizations, these bits of interactional debris can build up. The filter that can remove these potential toxins is open honest communication, which has the same effect in relationships and organizations (which can be seen as an extended matrix of relationships) as an oil filter has in an engine.

Honest, open communication through and between all levels of the organization will keep the oil of trust clear and running freely throughout the organization. As the oil filter restores the oil’s capacity to do its job, effective communication can restore trust and enable the organization to run more effectively.

As I said in a previous post, organizational culture develops naturally, even organically, from the actions and decisions of organizational members, especially those perceived as leaders. Trust is an important element of organizational culture and it develops in just the same way. If organizational leaders and members act with integrity, honesty, and openness with each other, with customers and vendors, and with the general public, trust will be high. People in and outside the organization can have confidence in the intent as well as actions of organizational members. However, especially given the low level of trust that exists in our society today, it is easy for an organization to lose the culture of trust. Once lost, repairing the loss will be harder than maintaining it in the first place.

What is the state of trust in your organization? Are you paying a low trust tax? If so, how much is the lack of trust costing in terms of extra staff, cumbersome procedures, missed work, lost opportunities, poor morale, and lack of motivation?