He is the author of Beyond Winning: The Handbook for the Leadership Revolution and the award-winning A Higher Standard of Leadership: Lessons from the Life of Gandhi.
Trust-A Necessary Foundation for Leadership, by Dr. Keshavan Nair
Whether you are a CEO or a first level supervisor, a parent or a schoolteacher, you cannot be a successful leader unless there is trust between you and the people you lead. But what is trust? Why is it important? What actions can you take to develop trust within your organization? What is Trust?
Trust exists in the context of a relationship. It is that quality in a relationship which enables one party in the relationship to know: How the other party-whether individual or organization-will act under certain circumstances. That the other party will keep their commitments.
This requirement of predictability is necessary but not sufficient. Trust also requires that the other party will not act against your interest. An individual or organization that regularly acts against your interest, though predictable, is not considered trustworthy.
Why is Trust Important?
In a business context trust is important for sound practical reasons. When there is trust, people in the organization are more likely to: Accept and implement decisions which they do not fully understand. Sacrifice immediate rewards for mutually beneficial long-term gains. Share the burden in difficult times. Respond with understanding to work emergencies. Invest in the future through their ideas and suggestions.
In business, or in any relationship, short-term inequities and misunderstandings are inevitable. Trust is essential to overcome these problems and maintain a stable long-term relationship. At the same time, it also increases motivation, productivity and organizational efficiency.
What You Can Do to Increase Trust
Your reputation is a major factor in determining whether people give you their trust. Your past actions are your current reputation. Your present actions will be your future reputation. Keep your commitments. Never promise anything you cannot deliver. People have a long memory for unfulfilled promises; they will remember the commitments you do not keep. Be truthful. Employees understand the need for silence in certain situations. They also understand the need for posturing in negotiations. What creates distrust is a lack of candor on issues that directly affect them. Consider the effect on all employees when you take actions that impact a small group or even a single employee.
Your acknowledgment of value in the relationship will help create trust. People who feel valued by their leaders give them their trust. Act as if the commitment of the people you lead is your competitive advantage. Emphasize the contribution of the individual to the success of the organization. Express your personal appreciation for individual contributions. Recognize the contribution of the average employee; do not concentrate on the outstanding performer.
The greater the power imbalance in a relationship the more difficult it is to develop trust. Corporations and their leaders have power. They must accept a certain level of distrust. But you can take steps to minimize it. Avoid arbitrary and autocratic decisions. These are displays of power and heighten the awareness of the power imbalance. Seek opinions and encourage participation when major decisions need to be made. The objective is not to reach consensus but to take a course of action that is reasonable and that everybody can support. Create opportunities where it is appropriate for you to deal with employees on an equal basis.
Shared goals and values create trust. Your actions will determine if goals and values are shared in the organization. Strive for clarity, consistency and continuity. These are essential to achieving shared goals and values. Repetition is essential. Do not assume that people know the goals and values because there is a published document. Cultural similarity is a proxy for common values. Cultural diversity creates a greater leadership challenge. Seek the underlying human values in the diversity and build on them.
You share information with those you trust. Leaders who share information willingly create an atmosphere of trust. Provide information on progress toward goals. Share relevant facts and data. Do not hide good or bad news. Employees will find out. It is better they hear it from you. Give employees the opportunity to share information, to tell you their side of the story.
Final Remarks
Creating trust in an organization makes practical business sense. Nobel Laureate Kenneth Arrow has stated the case as follows: "Trust and similar values, loyalty or truth telling - they have real practical, economic value; they increase the efficiency of the system, enable you to produce more goods or more of whatever values you hold in high esteem." In a free society, trust is an essential condition for leadership. Without trust, there is fear. Fear creates obedience, not commitment. Commitment is the ultimate competitive advantage.