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| Vol.
8, No. 2, April 2009 |
To The Editor
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Book Review A
Book for Times of Distrust The
Speed of Trust by Stephen
M. R. Covey, 2006, Free Press, 384 pps. Review by Katie Delahaye Paine I'm always a little skeptical of a book with "Red-hot Relevant!" on the cover. But this one is actually just that relevant. If the collapse of the banking system is a result of failure of trust (and many people think so; see here, and here, and here), then this book is indeed highly relevant to our times. What makes it particularly germane is that it doesn't just talk about the effects of lack of trust, but also gives some pretty good advice on how to rebuild trust. (AIG are you listening?) The premise of the book is that heightened trust makes people and organizations more productive and more efficient. (This, by the way, is supported by lots of research. See, for instance, this paper by Fussell and Hazleton on the connection between social capital and transaction costs.) Covey's "speed of trust" is the idea that if you trust someone, then it is easier to work with them; you are less likely to require complicated contracts, lots of lawyers, and lengthy negotiation. Low levels of trust yield more lawsuits, more politicking, and more negative behaviors. High levels of trust mean people get things done faster and spend less time covering their butts. The most important point he makes is that trust is not some mushy, soft quality that can't be measured. It's a hard number and easily quantifiable. (Needless to say we agree with him there.) The Trust Tax Covey says that lack of trust results in a "trust tax" on organizations. He cites examples of the actual costs and dividends that organizations have experienced. He suggests that organizations with virtually nonexistent trust pay an 80% tax in micromanagement, militant stakeholders, and redundant hierarchies. Organizations with very low trust pay a 60% tax, with costs mounting for unhappy employees, unhealthy work environments, intense politics, and time wasted defending positions and decisions. Even at a fairly common low trust level, characterized by lots of CYA and hidden agendas, organizations pay a 40% tax. Covey suggests that organizations with high levels of trust receive dividends: high levels of collaboration and partnering, effortless communications, and fully aligned systems and structures. Trust and Personal Credibility Covey outlines four core elements of personal credibility that are crucial to improving your trust levels:
He then suggests 13 behaviors that can raise your trust levels. These behaviors can be applied to organizations as well as individuals:
Marketers and organizational types will want to pay particular attention to what he calls the third, fourth, and fifth waves of stakeholder trust. The third wave is organizational trust, the alignment of an organization's actions with its word. The fourth wave is market trust, which is essentially the trust component of your reputation. And finally there is societal trust, the principle of contribution, which manifests itself in good community actions. And,
AIG, if you're listening, there's a great chapter at the end on how
to rebuild trust once it's gone. But this chapter is not
just about AIG and the banks. Our difficult economic times
mean that more and more companies are losing trust by laying
off workers, and disappointing
customers
and stakeholders. As a result, the need to rebuild trust is
becoming a
core competency
for
us all. If you would like to comment on the above article, find it in The Measurement Standard Blog Edition. Articles are usually posted there a week or two after they appear here. |
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New articles in this issue:
Here is the book that gets people hired!
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