Trust in Good Business

First published May 10, 2012

Well, the physiology and social scientists have proved it… trust is good business. The “moral molecule” is a chemical called oxytocin (Wall Street Journal preview of Paul J. Zak’s book, The Moral Molecule). Zak, Director of the Center for Neuroeconomics Studies, demonstrates that a feeling of being trusted makes one more trustworthy, something leaders have intuitively known, but it’s comforting to have the science behind it. Both socially and in business, group activities with familiar and with new people promotes the release of oxytocin and a feeling of connection to others, sustaining happier and healthier rich social lives.

When I lead HCI’s Engagement, Collaboration, and Retention course we cover 12 workforce experiences that rest on a foundation of leadership trust and transparency. You've heard, "keep your friends close, and your enemies closer"-- it helps to understand the enemies of engagement as well, to head off what's deteriorating engagement in the workplace.

Of course there is a direct connection between trust and ethics, and the organizational climate leaders create; the world’s most ethical companies know something about that. Dr. Zachary Horn, leads Climates at Work discussions on LinkedIn and a podcast with Sharon Allen, Chairperson of Deloitte.

What is trust in today’s business world? Interaction Associates (IA) asked that question and found that seven out of ten respondents trust others based on the consistency, predictability, and quality of their work and actions, and believe trust is based on evidence of past accomplishment and demonstrated capability. IA's research on trust in business explains how organizations and leaders become trustworthy in behavioral terms, with the pay-off of customer loyalty/retention, cost reduction, and top line revenue growth. Their research reveals that high trust companies are “highly collaborative” (87 percent vs. 24 percent), have “effective leadership” (91 percent vs. 35 percent), and are three times better able to attract, deploy and develop talent. These organizations are more likely than others to be confident in their organizations’ ability to manage through the current economic crisis (88 percent “extremely or very confident” vs. 60 percent others). Andy Atkins, Chief Innovation Officer at Interaction Associates, with Linda Stewart, their CEO, explains their research in a podcast.

Recently I’ve been discussing with practitioners the impact of values and a moral compass.
My ten take away’s from Interaction Associate’s research on trust:

1. High trust organizations are forward thinking even in this economy of belt-tightening and short-term, survival focus.
2. High-trust companies practice what they preach, and excel in areas of talent and innovation. They embrace flexible organization structures and are very effective with the people and process aspects of collaboration.
3. People within the organization have a sense of shared commitment and responsibility.
4. People feel safe communicating their ideas and opinions with colleagues/peers.
5. People are acknowledged and rewarded for their work.
6. People within the organization have a sense of shared commitment and responsibility.
7. People feel safe communicating their ideas and opinions with colleagues/ peers.
8. ndividuals are not assigned “impossible” tasks that are outside the scope of their knowledge/training.
9. Nearly two thirds of people trust others based on their contribution to a shared commitment and responsibility and feel that trust is based on confidence that others will work diligently to accomplish shared goals.
10. Ninety-three percent of high-trust organizations base their trust level on others’ “contribution to our shared commitment and responsibility.”

Paul Zak asks permission to give a hug to visitors to his lab (he believes in the release of oxytocin!) As leaders we can convey “the equivalent of a hug,” releasing oxytocin, by being intentional about conveying these four behaviors into every conversation and meeting (from IA’s toolkit on trust):

• Transparency- Because people feel more in control when hidden processes become visible.
• Appreciation- Because through sincere appreciation, even those with a pessimistic outlook will derive personal satisfaction and meaning from their work.
• Empathy- Because empathy helps people feel understood; they’ll be more open so that their leader can deal directly with concerns.
• Rapport- Because rapport undermines the obstacles to trust created by status, and enhances trust even when uncertainty is high.

If we know that trust is good business we can trust in good business. What are your thoughts about building trust within virtual teams?

photo courtesy of intersection Consulting