Continuing the theme of trust, here are some reflections on international best-seller "The Speed of Trust" by Stephen M.R. Covey (2006).

Trust is our Most Valuable Asset

Covey introduces a couple of concepts around the value of trust but I think the ones most important to grasp are:

1. Trust helps you achieve outcomes more efficiently (hence the title The Speed of Trust). I make a similar point in a previous post so I won't spend time explaining here.

2. Trust improves the results of your efforts. Covey represents this idea by modifying the classic business equation Results = Strategy x Execution and adding trust as a multiplier:

Results = Trust (Strategy x Execution)

Just as the Speed of Trust isn't a number you can google (believe me, I tried), I don't think this equation is meant to be measurable either. Covey's point is, all things being equal, someone executing who has already built trust with their audience will get significantly better results than someone who is starting from zero.

For example, a business person who has a large network that trusts her is going to be more successful than someone who doesn't. This is both true for individuals and brands, which is one reason I'm such a large advocate for investing heavily in brand reputation. It is also one reason why they say your network is your networth.

Aside from the fact people generally prefer to support people they like, you can flip this and understand it from the customer perspective as a risk/reward equation. Any buyer is going to reduce the risk and effort in getting the expected results. Trust and reputation achieves this.

Defining Trustworthiness

According to Covey, trust comes from credibility, which has four components: principles, motives, skills, and track record. You can think of these as the building blocks of trust.

Principles and Motives

Covey believes these are a function of your character, rather than your personality. Your principles shape how you interpret and respond to your circumstances. Your principles inform your motives, which in turn, drive your actions.

This is very related to the concept of Integrity which I believe is about acting in accordance with your principles. I think Covey misses a trick here by not pointing out that, as falliable humans, it is not a given that our principles and motives will always lead to consistent action. The key here is for people to know that there will be consistent behaviour irrespective of context. It's why people don't tend to look for lawyers or accountants who are wild and impulsive.

Skills and Track Record

These are a function of your abilities, which are situational. Covey argues that you need to have the appropriate skill for a given situation for people to trust you. By consistently producing results, you generate a track record, which builds trust.

This is an important point and often overlooked. Results matter! However, this framing doesn't work well for highly challenging and innovative environments where results are never guaranteed - such as startups. It would be unfair to claim the scientists working on nuclear fusion have eroded the public's trust in their skills because they haven't commercialised a reactor yet. It's a hard problem!

To maintain trust in a highly uncertain environment you need to consistently demonstrate good judgement as well as take complete responsibility for both your actions and inaction. In this context, an individual that is clearly out of their depth can maintain trust by communicating this. Which comes back to the importance of integrity.