Welcome to the Loyalty Factor Information Exchange, a bi-weekly service providing summaries of major publications and books on various management and customer relationship topics.
Loyalty Factor has been instrumental in helping companies:
- Increase Customer Satisfaction by 20 – 33%
- Increase Revenues by 50% in 18 months
- Increase Manufacturing Production by 200% in 18 months
- Simplifying mergers and acquisitions
Our information exchange this week highlights the book, “Smart Trust: Creating Prosperity, Energy, and Joy in a Low-Trust World” by Stephen M. R. Covey.
In Smart Trust, Stephen M. R. Covey and long-time business partner Greg Link share principles and anecdotes of people and organizations that are not only achieving unprecedented prosperity from high-trust relationships and cultures, but also attaining elevated levels of energy and joy. They show why trust is fast becoming the most consequential life and leadership skill of our time – a career-critical competency required to navigate and compete in this perilous 21st-century, interdependent, global economy.
Smart Trust shares findings that verify how enduring success, vitality and happiness are directly related to the level of trust in our relationships – whether in our professional or personal lives.
Trust Changes Prosperity
A company’s reputation, and its ability to:
- Partner and collaborate with others,
- its capacity to innovate,
- engage its people,
- to retain great people,
are powerfully affected by trust. Trust has become the new currency of the global economy.
The reason there is such a direct connection between trust and prosperity is that trust always affects two key inputs to prosperity: speed and cost. When trust goes down in a relationship, on a team, in an organization, or in a country, speed goes down and cost goes up. Why? Everything takes more time, and miscommunication, redundancy and rework create costly delays.
People are able to communicate faster, collaborate better, innovate more, and do business faster and more efficiently. High trust is a performance multiplier – a multiplier that translates directly into greater prosperity: increased revenues, profits, economic outcomes, and results.
Trust Changes Energy
Although there are numerous drivers of engagement, the two biggest drivers are:
1. The relationship of trust employees have with their supervisor.
2. The trust employees have for the organization at large.
When we extend trust, we generate trust; when we withhold trust, we generate distrust. Our actions lead either toward a virtuous upward cycle of prosperity, energy and joy; or toward a vicious downward cycle that eventually results in the destruction of these outcomes.
A few trust-building behaviors:
- Talk Straight – Be honest. Tell the truth. Let people know where you stand. Use simple language. Call things what they are.
- Create Transparency – Tell the truth in a way people can verify. Get real and genuine. Be open and authentic. Err on the side of disclosure.
- Clarify Expectations – Disclose and reveal expectations. Discuss them. Validate them. Don’t assume that expectations are clear or shared.
- Keep Commitments – Make commitments carefully and keep them at almost all costs – or communicate and renegotiate if you absolutely can’t. Don’t break confidences.
To learn more about how to build an organization based on trust, contact Loyalty Factor at 603.334.3401, who offer specialized workshops in building trusting relationships that will last the test of time.