February 11, 2002 An Issue of Trust

One of our friends sent us a very interesting note, citing an article in USA Today on February 5, titled: Employees' New Motto: Trust No One.

The major point was this. Because of all the current scandals and associated fallout from situations like Enron, Polaroid, Andersen Consulting, and the like, employees' will be less trusting of their bosses and companies.

In another recent article, an analyst was quoted as saying, "There's a real credibility issue in the market. Investors are beginning to realize that earnings have been managed or engineered."

Could that mean that the new motto of investors is also Trust No One? So what do you think the new customer motto might be?

Please take a moment and reflect on the massive implications this new motto could have on your relationships. Is it possible that your employees will trust you less? Might they tend to scrutinize your every statement and action more closely? If they do not know all the details on a decision, will they now default to the assumption that you are out for your own selfish interests? (And what if customers and other key stakeholders view you in a similar fashion?)

Never forget just how fragile trust and credibility can be. How unfortunate it is that the actions of others, if emotionally outrageous and public enough, can end up putting a crack in your own normally solid relationships with others. The Enron situation has produced a cancer that extends far beyond its own corporate halls. The cancer is called suspicion, and as it grows, trust withers. And sadly, customers, share owners, suppliers, and especially employees right now have more cause than ever to be suspicious.

Hopefully, the level of trust you have established with your associates has made you immune from the plague of these dreadful examples. Just in case, you should take a few moments and make sure. As you already know, honest, open communications is the starting point, so use the following as helpful reminders.

• I have found that humans spend much more time talking about things, opposed to talking to people. Don't just talk about the Enron saga, talk to all of your constituents about trust and credibility in your relationships. Find out if suspicion is creeping in, so you can eliminate it.
   
• Be open and encouraging of questions. If people are suspicious, they may only be willing to open up with you when they are ready, not just when you are.
   
• When trust is breached, people feel betrayed, feel angry, feel taken advantage of. These are emotional issues, that cannot be resolved by purely logical explanations. You must listen with the intent to truly understand how others feel in order to get to the heart of the matter.
   

Finally, please be reminded how far and wide both the good and bad actions of leaders can carry. Be vigilant about your trustworthiness and credibility, because you are likely being watched and judged by people that you would never suspect, and impacting them in ways you might not imagine.

Questions for Reflection:

What impact have these examples of poor leadership had on you and your willingness to trust others?

What cause might your people have to question your credibility or that of their executives?