Tuesday, October 21, 2008

The Importance of Trust

November 20, 2008

Trust is a topic that is rarely discussed in organizations yet it is a powerful force that makes organizations work. Trust is like gravity, we feel it's presence, we know it's there, it holds the universe together but it's largely taken for granted and it's invisible. Unlike gravity, however, trust is not constant. It varies from organization to organization, from system to system, from person to person and from situation to situation. Trust is one of the most abused words in the English language. It creates more problems in human relations and organizations than almost any other word. Everyone assumes he or she knows what trust means; and worse, people often take umbrage if they are asked to explain what they mean or demonstrate their trustworthiness.

Appealing to trust is one of the key strategies of con men. Whenever we hear the words,"trust me" our antenna should start to vibrate. We should almost always probe the meaning of trust whenever it is used. Trust you? Trust you to do what? How are we going to ensure that you are trustworthy? What do we do if trust starts to break down?

All of these questions seem negative because we've supported the idea that one should trust people without question. We assume asking questions about trust is insulting and will lower the trust level. But actually just the reverse is true, asking such questions about trust, in my opinion, increases the probability that trust will be maintained but it will result in more honest and creative decision making.

John Jones of the Handbook of Structured Experiences fame used to say that trust is developed by working shoulder to shoulder with each person doing what he or she says he'll do. I like that. It allows people to move forward and remain positive, but at the same time it requires that people demonstrate their trustworthiness. With this attitude, it increases the probablity that trust issues will be corrected when they start to happen and not delayed until everything falls apart.

It's too bad the financial people didn't ask such questions when they were asked to trust the system of packaging and trading derviatives. Perhaps, we wouldn't be in the mess we're in today.

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