Trust is a critical component of organizational success. When team members, clients, and stakeholders trust an organization and its leaders, they are more likely to feel motivated, committed, and engaged, which can lead to higher productivity and better results.

Conversely, a lack of trust within an organization can have serious negative consequences, such as lower morale, high turnover rates, and reduced innovation. Let’s take a closer look at how trust impacts the bottom line:

• Trustworthy companies outperform non-trustworthy companies by 2.5 times, and 88% of customers who highly trust a brand will buy again from that brand.
• People at high-trust companies report 74% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, and 29% more satisfaction with their lives than people at low-trust companies.
• Employees’ trust in their leaders improves job performance, job satisfaction, and commitment to the organization and its mission.
• The best workplaces, characterized by trust between managers and employees, beat the average annualized returns of the S&P 500 by a factor of three.
• The high-trust folks have 11% more empathy for their workmates, depersonalize them 41% less often, and experience 40% less burnout from their work.

Trust Competencies

Stephen Covey, author of “The Speed of Trust,” states that trust is the foundation of any personal or professional successful relationship. But how do you break trust into action? Check out a summary of his work below.

Character

Character is the foundation of trust, comprised of intent and integrity. Intent involves caring, transparent, and open behaviors with team members. It’s crucial to show empathy and listen actively with intent. Integrity is the alignment of actions with honest, fair, and authentic behaviors. It establishes a reputation for ethical behavior and consistency.

Competence

Competence is the second factor in building trust. Do you have the necessary skills, knowledge, and experience to get the job done? Capability involves staying up to date with industry trends and best practices, as well as a commitment to continuous learning and improvement. Results are also crucial; establishing a reputation for credibility and high performance is essential to building trust with external partners.

This tool can serve as a diagnostic to identify the behaviors that are either building or eroding trust. To help illustrate this, meet Emily. Let’s say others don’t trust Emily. We don’t know what’s causing the mistrust, yet we can look at the diagram to identify the root cause.

• The lack of trust in Emily may stem from her insufficient intent to support her team members or the client’s needs.
• It may also come from worries about whether her actions reflect her values and show integrity.
• There may be doubts about her capability to manage the project effectively or deliver high-quality results.

If this is the case, how can Emily build trust?

• To be trusted by her team members, Emily needs to display her capability for caring, transparent, and open behaviors.
• Additionally, it’s crucial for Emily to deliver high-quality results to establish a reputation for superior performance, which will help her succeed in building trust with her colleagues.

By following the guidelines in this diagram, Emily can build strong relationships and achieve success in her organizational goals and objectives.

Building trust is a critical aspect of organizational leadership. By prioritizing both character and competence, you can foster a culture of trust and establish successful relationships with your team members, clients, and stakeholders.

How have you built trust with your team or colleagues in the past, and what were the key factors that contributed to your success? What steps do you plan to take to prioritize trust building in your leadership role, and how do you think this will benefit your team and organization? I would love to hear about it. Let’s share experiences. Leave a comment below, send me an email, or find me on Twitter