I had to write this based on the recent news of Goldman Sachs and the pending law suit with the SEC regarding the allegations that they defrauded customers in selling investments designed to fail. Investments selected by a non disclosed hedge fund trader. The three investors lost over a billion dollars that was ultimately paid for by taxpayers due to government bailouts and guarantees.
I am not sure Goldman violated securities laws but they certainly violated the level of trust people had in their institution. Their reputation and Wall Street is tarnished again.
As consumers, employees, and tax payers we are a distrustful group today. According to the 10th annual Edelman Trust Barometer Survey(www.edelman.com), CEOs still rank at the bottom of the list of trusted sources. In addition, a recent Blessing White employee engagement survey asked participants ” I trust the senior leaders of the organization,” only 24% answered strongly agree. Not surprising based on recent news that is reinforced daily detailing cover ups, failures and actions of leaders (or the lack there of) in corporate America.
Leadership credibility is on the line as it should be. Leaders need to constantly asked themselves what can I be doing everyday to reinforce trust.
1. Be real and show it! People follow only when they trust you. They trust those that demonstrate actions consistent with their values. What are your personal and organizational values? What have you done to communicate your values. How are you demonstrating that your values matter every moment of every day. No compromising. If your living behind a mask people will see it because your actions will demonstrate something very differently. There goes your reputation, trust and MOJO! Who are you? Start revealing your true self right now.
2. Start trusting others! If you want to be trusted, show that you trust your others. Stop micro-managing. Make sure everyone knows the ground rules for decision making in this environment,communicate clearly parameters, constraints, and expectations and the allow your employees to apply their skills, creativity and initiative. There is far to much to do as a leader than constantly checking everyone else’s work.
3. Be Visible! Get out of the office more. Leaders need to be accessible to their clients (staff, customers, suppliers, others). Bring your message to them. Visibility reassures people. Be candid, be transparent, be honest with everyone you connect with.
Trust is hard to earn and easy to destroy. One misstep can cause your personal and firms reputation to go into the gutter. Think twice before you act. Ask yourself is what I am doing consistent with my values? If so, do it and do it again.
What are you doing to build trust today?