At first blush, it may sound a little silly–I mean, how can you compare a “soft issue” like trust to hardcore fiscal policies, new product offerings, and profitability?
However, FranklinCovey provides extensive research, statistics, case studies and anecdotes that prove trust is a key driving force in today’s economy.
FranklinCovey’s book and training workshops on “The Speed of Trust” demonstrate that a lack of trust creates redundancies, bureaucracy, fraud and turnover–and these liabilities result in slowed productivity, diverted resources and missed opportunities. What’s more, a lack of trust among customers chips away at corporate and personal brand reputation.
Alternatively, earning a high level of trust has a “measurable, observable, and relevant effect on an organization’s bottom line.”
What establishes trust
Trust comes from two things: Credibility and Competency. A person can be credible (I trust my husband), but not competent (I’m not going to let him operate on me because he’s not a doctor). Someone can be competent (an actual doctor), but not credible (I don’t believe she listens to me). By combining both competency and trust, you get the magical formula. And when trust (in a person, team, brand or company) is high, things get done faster and at a lower cost.
Here’s an example: In 2009, Warren Buffet’s Berkshire Hathaway doubled its stake in Wal-Mart with an additional 18 million shares. According to FranklinCovey, that deal was negotiated in person and within 2 hours. The deal was signed with a handshake, and it took 29 days to close. Without trust, closing that deal would have taken over six months time and millions of dollars in resources. Imagine the impact of that additional time dedicated to forward movement and profitability over status quo and cost of bureaucracy.
Because of their reputation
You may have experienced something similar on a personal level. Did you ever turn down a job offer for more money because you knew your current employer “had your back?” Or purchase a known product over a new shiny object because you “knew what you were going to get?” How about hiring someone from your past because you knew of their reputation?
Check out “The Speed of Trust” to learn more about four subsets of credibility and competency (character, intent, capabilities, and results) and the 13 behaviors that serve to increase trust, along with the practical how-to’s and definitely-don’t-do’s.
Employee, customer satisfaction and brand loyalty are all predicated on the foundation of trust, and are the single largest factors that determine success in the marketplace today. Increasing customer trust in your personal brand will give you a strategic advantage over the competition.