The decision to trust.

Harv Bus Rev

Fordham University, New York, USA.

Published: September 2006

AI Article Synopsis

  • Surveys reveal a significant trust gap, with 80% of Americans distrusting corporate executives and half of managers lacking trust in their leaders, heightened by the pressures of mergers and globalization.
  • The author introduces a model based on social psychology research that helps leaders assess and enhance trust in organizations by analyzing various factors influencing decision-making.
  • An example is provided where a new VP of sales, Sue, successfully built trust with an apprehensive employee, Joe, by using transparent communication and showing genuine concern, which ultimately improved the overall trust level in her department.

Article Abstract

Surveys have shown that 80% of Americans don't trust corporate executives and--worse--that roughly half of all managers don't trust their own leaders. Mergers, downsizing, and globalization have accelerated the pace of change in organizations, creating a crisis of trust that didn't exist a generation ago. Leaders who understand how trust is built can actively influence its development, resulting in a more supportive and productive work environment and, not incidentally, a competitive advantage in the war for talent. Building on research in social psychology, and on his 15 years of experience consulting on trust, the author has developed a model for predicting whether trust or distrust will be chosen in a given situation. It helps managers analyze ten factors at play in the decision-making process. Hundreds of top executives have used it to diagnose and address the root causes of distrust in their work relationships. Some of the factors in the model relate to the decision maker: How tolerant of risk, how well-adjusted, and how relatively powerful is he or she? Others relate to the specific situation: How closely aligned are the interests of the parties concerned? Does the person who is asking to be trusted demonstrate competence? Predictability and integrity? Frequent and honest communication? Sue, a relatively new VP of sales, used the trust model to manage her relationship with Joe, an employee nearing retirement who was not performing well in a new sales role. Fearing for his job, Joe wasn't initially inclined to trust her. Sue took concrete steps to communicate openly with Joe, explore other options for him, and show concern for his well-being. When joe was transferred, he let his former colleagues know how pleased he was with Sue's handling of the situation. As a result, the level of trust increased in Sue's department, even though it was experiencing major change.

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