The High Cost of Low Trust

Trust is hard to come by today. In the United States the two people who will compete for the Presidency this fall are the least trusted candidates ever to run for that high office. 

Laws are put in place basically to combat lack of trust. U.S. Federal regulations cost businesses the equivalent of a little more than 10% of the gross domestic product. Lack of trust is truly expensive.

When trust is low within an organization then every communication, every interaction, every strategy, every decision is doubted, slowing things down and increasing costs. Some research shows that a lack of trust can as much as triple the time it takes to accomplish anything worthwhile.

Building trust and credibility should be a daily activity for all leaders. Just because you have trust today doesn’t mean you always will. Trust must be constantly nurtured. Assuming that you are trusted simply because you consider yourself trustworthy is an all too common mistake for leaders. 

There are many actions that a leader can take to build trust on a daily basis, here are just a few.

Be a straight talker. Use tact, be polite, and show compassion. But when something needs to be said then say it. Say it in a way that won’t be misunderstood. Ask a question or two to verify that the message you intended to convey is the message that was heard. Assume 100% responsibility for the effectiveness of your communications, after all, you have the audacity to call yourself a leader. So don’t make someone else responsible for understanding something you said.

Admit when you’re wrong. Leaders can be wrong, just like every other human being on earth. Dale Carnegie said, “when you’re wrong admit it quickly and emphatically.” That is an important principle for leaders to keep in mind. Trying to hide a mistake is often a bigger mistake than the mistake you’re trying to hide.

Be trusting. If you want other people to trust you then you need to trust other people as well. I recently had a conversation with someone who told me that they would never “just trust” someone. They said that trust had to be earned. They said that they “tested” people by asking them to do little things, the kind of things that it didn’t really matter if they were done or not. The people were not told they were being tested with meaningless tasks. 

When I said it seemed to me that they might be deceiving people to determine if they were trustworthy I was told that “you can’t be honest with people you don’t trust.” That my friends is some messed up thinking and the kind of thinking that will certainly kill trust. 

The only honest way I know of to find out if someone is trustworthy is to trust them, really trust them. If you’re a leader and you want people to trust you then you must trust them first. It is called leading for a reason, you need to trust first.

Those are but a few of the many actions a leader must take daily to build trust. Clearly one of the biggest mistakes a leader can make is to assume they are trusted just because of their title or position. 

Actually, in today’s environment the opposite is more often true.

2 thoughts on “The High Cost of Low Trust

  1. Nancy Olcese says:

    Awesome, inspiring , honest & Ahhha
    Moments reflecting situations that I now more clearly understand. Another great blessing I have gained thru this reading is realizing we can be leaders in any situation & time in our lives… personal, business, etc… a leader leads where ever & when ever … even in the quiet times…wish I had reviewed years ago but am truly glad I did today!

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