A past post summarized the importance of trust and trustworthiness within our organization and within our leaders.
A recent Harvard Business Review article, “Begin With Trust” reinforces this concept, and also suggests that building trust requires thinking about leadership from a new perspective.
“The traditional leadership narrative is all about you: your vision and strategy; your ability to make the tough calls and rally the troops,” the article states. “But leadership really isn’t about you. It’s about empowering other people as a result of your presence, and about making sure that the impact of your leadership continues into your absence.”
Unfortunately, as illustrated in the article’s real world example, people are too often put in leadership roles without having had the proper training or mentorship to be effective. This perspective aligns with our observations and experience over many years of helping people at all levels develop leadership skills and applying those skills to bring about change and continuous improvement; and certainly, many have struggled to build or inspire trust.
The Trust Triangle One way to better understand how to become more trustworthy is to understand the three key drivers of trust. Thus, the “trust triangle” illustrated below.
“People tend to trust you when they believe they are interacting with the real you (authenticity), when they have faith in your judgment and competence (logic), and when they feel that you care about them (empathy). When trust is lost, it can almost always be traced back to a breakdown in one of these three drivers.”
Just as the first step in improvement is to identify waste or opportunities, to build trust as a leader you first need to figure out which driver you need to improve and take corrective action.
Based on a recent interview with Aron Ain, author of WorkInspired, How to Build an Organization Where Everyone Loves to Work, and CEO of Kronos, a leading global provider of workforce management cloud solutions, our previous two posts have demonstrated that creating a high-trust culture is worth the investment — just as Covey predicted in The Speed of Trust.
Kronos’ success nicely exemplifies what a culture of trust can yield. But building this culture isn’t easy.
“We’ve worked incredibly hard to instill trust throughout the organization, one manager at a time, starting with me,” Ain said. “First, we give employees atypical degrees of latitude and freedom. Until proven otherwise, we assume their competence, judgement, and good intentions.”
Kronos also deploys tools that support the creation of a high-trust organization, such as Predictive Index, to help people get to know one another, and a performance feedback and rating system that gives substantial weight to an employees’ effectiveness at building trust. They also establish HR policies that demonstrate trust as an organizational philosophy, such as work-at-home options, and unlimited time off.
In addition, the management at Kronos works very hard on three specific management behaviors that support effective deployment of trust:
Communication is key, as trusting your people to just do what they think is best for the organization doesn’t work out nearly as well if internal communication is weak. In fact, communication is so important that Ain devotes the second chapter of his book to overcommunication.
“Don’t just communicate,” he says, “overcommunicate. You really can’t do it enough!” He goes on to note that inquiry and listening are just as important forms of communication as updating and explaining.
The courage to lead is a high-profile concept at Kronos. Patrick Lencioni in The Five Disfunctions of a Team identifies the lack of trust among a management team as the root cause of most poor performance. At Kronos, the concept of courage has an even higher profile, as managers are required to lead with genuine courage. They have developed a Courage to Lead program, which has three major sections: Be Bold & Humble — Challenge & Support — Disrupt & Connect. And the first principle under Be Bold & Humble is: ‘Trust others, both within and outside your functional area.’
Studying results is the third component of the Kronos formula for building a culture of trust. Trust doesn’t mean assuming everything will all work out as planned. Far from it! In fact, Kronos’ approach aligns nicely with Deming’s Plan-Do-Study-Act cycle: they plan carefully, try out an innovation or improvement, then study the results, and act on what they learn.
“We measure everything,” Ain says. This is their commitment to “exposing reality” — seeing how the plans and decisions are actually working without succumbing to wishful thinking.
Our previous post identified the role that trust plays in an organization’s success, and referenced it as “the soft concept producing results that are hard to beat.”
While trust may seem too soft a concept to produce a competitive edge, the facts indicate otherwise.
In fact, a high level of trust is essential to creating an agile, highly competitive organization and here are four reasons why.
1.)No Trust — No Speed In a world where new challenges arise very quickly, it is the failure to act, failure to improve, and failure to innovate that poses the biggest risk to a company — not the risk of making a mistake. However, to an individual in a low-trust environment, by far the biggest risk is making a mistake. For these individuals, trying something new is much riskier than doing what’s been always been done. Innovation or even simple improvement is not going to happen. The whole organization slows down.
Covey, in The Speed of Trust, puts it this way: “When trust is low … it places a hidden ‘tax’ on every communication, every interaction, every strategy, every decision.” People don’t fully hear what their leaders are saying, because they factor in guesses about the leader’s intentions. They wonder how transparent their leader is being. Employees don’t buy-in to decisions that they don’t trust.
Aron Ain, author of WorkInspired, How to Build an Organization Where Everyone Loves to Work, and CEO of Kronos (a leading global provider of workforce management cloud solutions), points out that lack of trust places “a huge overhead burden on a relationship.” He insists that when you employ someone, you should go ahead and trust them! Will you get burned on occasion when trusting people?
“Absolutely!” Ain says, “But almost always my trust in team members has proven well-founded. And the benefits are numerous.”
By building a culture where employees know they are trusted and where they trust their managers and teammates, Kronos has created an organization where it is safe for people to be creative and to aim for the best possible outcomes, continuously getting better and better.
2.) No Trust — No “Exposing Reality” Exposing reality means trying very hard to look at things the way they really are, rather than the way we wish they were. As Ain points out, “the faster you see things as they really are, the faster you can get to work on improving them.”
But in a low-trust environment, people are especially motivated to gloss over uncomfortable truths and to declare victory and move on rather than checking to see if they did or didn’t get the results they expected. Trust enables us to admit what we don’t know, recognize and recover quickly from mistakes, and to put uncomfortable information, questions, and contrary opinions out in the open, where the team can work through them with honesty and passion to arrive together at the best strategies and decisions.
3.) No Trust — Poor Results In a low-trust environment, employees hold back information or ideas that seem risky to share, so leaders make decisions based on incomplete information and without knowing all the potential consequences. And when employees believe their managers are making decisions without all the relevant input and information, they often question or even slow-walk the decisions.
Covey cites polls showing that only 45% of employees have trust and confidence in senior management. Lencioni, in The Five Dysfunctions of a Team, places lack of trust at the foundation of his pyramid of dysfunctions culminating in poor results. Without trust among a team, people keep their cards close to their chests. They are afraid to admit the limits of what they know, afraid to admit any vulnerabilities. Because they don’t trust one another, they fear conflict and withhold uncomfortable information and dissenting views. Without complete information, these teams make poor decisions, and the decisions they do make are poorly executed because they do not arrive at a shared commitment to the decision unless they have aired and resolved dissenting views. Thus, a lack of trust leads to both flawed strategies and poor execution.
4,) Trust Inspires and Engages Covey observes that “trust is one of the most powerful forms of motivation and inspiration. People want to be trusted. They respond to trust. They thrive on trust.”
This is exactly what Ain sees happening at Kronos. “Because we place so much faith in employees,” he explains in WorkInspired, “they return the favor, placing a remarkable degree of trust in us. Their trust in turn leads to far better performance — more innovation, quicker recovery from mistakes, more energy and enthusiasm at work.”
The next step, of course, is identifying the best way to build a “culture of trust,” which will be the subject of our next post.
You might call it a “secret weapon” but, to be honest, it is the exact opposite. Because unlike a weapon, it is constructive rather than destructive; the only harm it could do a competitor is to leave them behind.
And it is anything but secret!
In his recent book, WorkInspired, How to Build an Organization Where Everyone Loves to Work, Aron Ain openly shares the pivotal role it has played in Kronos’s amazing growth story.
This “secret weapon” is trust — the soft concept producing results that are hard to beat.
The role that trust plays in an organization’s success has been written about before by keen observers of human and organizational dynamics.
Patrick Lencioni in The Five Disfunctions of a Team identifies the lack of trust among a management team as the root cause of most poor performance.
Stephen M. R. Covey in The Speed of Trust: The One Thing That Changes Everything passionately echoes this view, citing research indicating high-trust organizations out-perform their low-trust competitors by 300%, because a lack of trust increases costs while simultaneously reducing an organization’s speed and agility.
What’s different about Ain, CEO of Kronos, a leading global provider of workforce management cloud solutions, is that he can tell us how trust is working in action today and about the tools and methods in place to support the practice and enhance the effectiveness of trust.
At Kronos, everyone is expected to give trust both within and outside their functional areas and to practice behaviors that earn the trust of their employees, teammates, and managers. According to Ain, the culture of trust contributes to much more than high engagement and retention, as important as those are, but to amazing business results.
And the results Kronos has achieved are great! Revenue has tripled; Kronos has surpassed 35,000 customers worldwide, innovations are rolling out faster than ever, and employee engagement scores are through the roof. Kronos once again occupies the #1 spot in the Boston Globe’s Top Places to Work list in Massachusetts. It received an award from Fortune Magazine for Best Workplace for Millennials – 2018. It is on both Glassdoor’s and Fortune Magazine’s lists of top 100 places to work and has received numerous other awards for workplace engagement.
Based on a recent newsletter by our associate Sheila Julien, our next post will share four specific reasons why “trust” works and why it is essential to creating an agile, highly competitive organization.
Challenges and best practices associated with continuous improvement