Successful Business Leadership: What Does Trust Have To Do With It?



Trust is the most underrated aspect of the relationship between a business leader and subordinates. The presence of trust in a business relationship makes almost any objective possible. The absence of trust corrodes any business affiliation and erodes the power of the leader until nothing is possible.

Trust in a business relationship is different than trust in a marriage or the trust we place in a pilot when we board an airline. I would even differentiate the concept of business trust from the idea of ethics. Not that trust can be built without being ethical, but in the context here trust has a different nuance.

Creating an Environment of Trust

Trust in a business relationship is about many things, but mostly it is about being consistent with those with whom we deal with. The secret to building business trust is to be the same today as you were yesterday and will be tomorrow. Trust is engendered when others can count on what the leader says as being the same as what the leader does.

It does not breed much trust in an organization when management is famous for saying one thing and then doing another. Unfortunately, many companies and corporate executives do not put a high degree of importance on establishing trust with employees because they don’t believe it to be necessary. It’s an attitude of “Why do we need trust when we have the power?” This way of thinking misses the point.

Trust Enhances the Power to Lead

Trust can be like a “get out of jail free” card to be played when needed. An employee may not fully understand the decisions of the leader, but if trust is present in the relationship, then the “trust card” can be used to get a buy-in from followers. When a leader has built a high level of trust it is much more likely the followers will accept the leader’s direction and decisions. This happens even if followers don’t understand the leader’s reasoning, because experience tells them it is ok to follow – even blindly.

The Absence of Trust Corrodes the Power to Lead

Conversely, without trust any venture will suffer in ways unimagined. Lack of trust will breed suspicion. Those who don’t know who to trust in an organization trust no one. Productivity suffers. Employee morale implodes. Turnover is high and the ability to attract qualified replacements is restricted. When trust of an organization or a leader is lost, the employees tend to adapt a self-preservation attitude that turns their efforts and interests from an organizational focus to purely personal survival. When this happens, failure is not far behind.

Those in positions of business leadership need to keep reminding themselves that if they fail to gain or lose the trust of others, then no matter what the objective is, it will be unlikely others will follow. Attempting to lead without simultaneously building trust from constituent followers is the prescription for a difficult time. 

Building Trust

The first step to building trust in business relationships is to recognize that it is a process not a procedure. Trust cannot be mandated. True deep-seated trust does not come overnight, it comes over time.

It cannot be stressed enough that trust is engendered through openness, integrity, clarity of expression, and constancy of actions. It’s a product of saying what you’re going to do, and then doing it, without changing course. There is no faster or better way for a leader to build trust than to take actions that emits signals that they are, in fact, concerned about the best interests of  followers.   

Never discount the value of trust. The presence of trust can be a powerful force that enables individuals and organizations to unite in a coordinated effort to accomplish great things. The absence of trust eats away at the very soul of an organization and paralyzes all effort.

For those who seek to achieve success as a leader, the process starts by understanding and respecting the value and power of trust. And this is accomplished by becoming a consistent dedicated trust builder.

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Bob MacDonald – Former CEO of ITT Life, founder of LifeUSA, retired chairman and CEO of Allianz Life of North America, author of numerous books on business, management and leadership. Bobmac5201@gmail.com

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