—TACHI KIUCHI, FORMER MANAGING DIRECTOR, MITSUBISHI ELECTRONICS
The Mercer Investment Consulting Group in the UK suggests that organizations may initially participate in global citizenship mostly because they want to avoid the consequences—and taxes—of being branded as socially irresponsible. When Orin Smith was president and CEO of Starbucks, he said, “Only a small proportion of customers buy a company’s products because it is socially responsible. But if they think for a moment that you aren’t responsible, a much larger percentage will have a negative response.”
[C]ustomers get impressions about products from hundreds of sources, but when they believe a company is a good citizen, they feel more positively about a brand.
—SHELLEY LAZARUS, CHAIRMAN EMERITUS, OGILVY & MATHER
Though fear of pain might initially motivate global citizenship, I am persuaded that, over time, the dividends and abundance created by contribution will become primary drivers for both individuals and organizations.
I am also personally convinced that ultimately global citizenship will be demanded as good business. Over time, it will become a price of entry. Even today, more and more consumers are voting with their wallets to support companies that demonstrate Integrity and Intent as well as Capabilities and Results. And I believe this inspiring trend will eventually become an economic necessity.
In the early days of the Covey Leadership Center, we developed what we described as the “universal mission statement,” because it applies to every individual and every organization simply because all are a part of society. It consisted of only 12 words: To increase the economic well-being and quality of life of all stakeholders.
I like to think that this universal mission statement was an early attempt to describe global citizenship (and a balanced scorecard) in at least two key respects: first, in recognizing the importance of all stakeholders (not just owners); and second, in understanding the importance of quality of life (not just financial profit). Trust has always been the universal currency, and ultimate catalyst, for this universal mission statement to take root.
GLOBAL CITIZENSHIP: AN INDIVIDUAL CHOICE
At the heart of organizational global citizenship is individual global citizenship. It’s you and me making the conscious decision to value and invest in the well-being of others. It’s you and me carrying out that decision in every dimension of our lives.
As Gandhi said, “One man cannot do right in one department of life whilst he is occupied in doing wrong in another department. Life is one indivisible whole.” So we don’t urge our employees to give incredible service to our “paying” customers, toss a few corporate dollars to charity, and ignore an “unpaying” neighbor in need. When we do that, we compartmentalize our lives. And the message that comes across to employees and family members alike is that contribution is token or for show and if the time comes that they don’t have what we want or need, they—like our neighbor—can become irrelevant. In addition, our inconsistent behavior—acting one way in one situation and a different way in another—comes across as hypocrisy and creates a huge tax.
Instead, we focus on developing true global citizenship in all dimensions of our lives from the inside out. We come back to the 4 Cores, and we start with self: Am I credible? Do I have Intent to do good, to contribute, to give back? Do I give to society a person they can trust?
Then we move to family. We ask: Do I exercise the leadership in my family that inspires and helps family members to become good global citizens? Do I set the example? Am I a good citizen within my own family as well as in the world? Do I align family structures and systems in a way that supports citizenship in the family and in the world? I am personally convinced that our opportunity to model citizenship in our families and to teach our children to be global citizens is one of the greatest opportunities we have to build societal trust.
Then we move to our organizations. We ask: Is our organization credible? Do we have integrity, and do we model it in our behavior? Do we demonstrate Intent to do good, to contribute, to give back? Do we have the Capabilities to make a difference? Do we produce Results, not only for shareholders but for all stakeholders? Do we give to society an organization they can trust? We also ask: Do I exercise the leadership that inspires the people in my organization to become good global citizens? Have I aligned the structures and systems of the organization, or my team, in a way that promotes citizenship within the organization and also in the world?
A company is granted a license to operate from society and therefore owes society a duty of care. Pursuit of short-term performance is not enough. That performance needs to be allied to a purpose; otherwise, the performance disappears too . . . . companies can do well, long term, only if the societies in which they operate also do well.
—INDRA NOOYI, CHAIRMAN AND CEO, PEPSICO
We look at the 13 Behaviors. We ask: Do I (or does my organization or my family):
• Talk Straight?
• Demonstrate Respect?
• Create Transparency?
• Right Wrongs?
• Show Loyalty?
• Deliver Results?
• Get Better?
• Confront Reality?
• Clarify Expectations?
• Practice Accountability?
• Listen First?
• Keep Commitments?
• Extend Trust?
If we have on our glasses to see, we realize that it is at this societal level that the words of psychologist Carl Rogers become clear: “That which is most personal is most general.” We see that trust at the Fifth Wave is a direct result of trustworthiness that begins in the First Wave and flows outward in our relationships, in our organizations, and in the marketplace to fill society as a whole.
Truly, global citizenship is an individual choice and a whole-life choice. And as we make that choice in our own lives, we influence those with whom we work and live to make a similar positive choice in theirs. Together, we build organizations and families that contribute to the well-being of the world.
The true and solid peace of nations consists not in equality of arms, but in mutual trust alone.
—POPE JOHN XXIII
A SUMMARY AND A CHALLENGE
Now that we’ve gone through this section on Stakeholder Trust, I’d like to recap the essential messages:
1. The 4 Cores and the 13 Behaviors are the tools that establish or restore trust in every context—in organizations (including the family), in the marketplace, and in society.
2. The main principle of establishing Organizational Trust is alignment—ensuring that all structures and systems within the organization are in harmony with the cores and behaviors. This is what builds trust with internal stakeholders.
3. The main principle of establishing Market Trust is reputation or brand. It’s using the cores and behaviors to create the credibility and behavior that inspires the trust of external stakeholders to the extent that they will buy, invest in, and/or recommend your products and services to others.
4. The main principle of establishing Societal Trust is contribution. It’s demonstrating the intent to give back, to be a responsible global citizen, and it is becoming both a social and an economic necessity in our knowledge worker age.
Having said that, I would also like to say that until you are actually in a frontline situation where you are dealing with these cores and behaviors in the context of your organization, your market, and your society, you will not even begin to see the full power of these things on speed, cost, and trust. (In other words, I hope you’ve gotten some idea of the power of the cores and behaviors through this book, but “baby, you ain’t seen nothin’ yet!”)
For this reason, in our workshops we often have participants work through a variety of scenarios.
We give each person at a table a set of cards—4 Cores cards and 13 Behavior cards—to navigate these scenarios.
For example, if you were playing, you might draw a card that says:
Y
ou’re in a corporate culture. You’re following a corporate script you’ve been told to follow, but it’s coming across as spinning the truth and is creating distrust. What do you do?
You would always play one or more 4 Cores cards (the “Start with Self” cards) first. You might say, “If I’m going to have a confronting talk with my boss, I need to first ask: What’s my credibility? If I’m not credible, she’s going to care less about what I say. She won’t see my input as helpful constructive criticism; she’ll see it as whining. But if I’m producing results, if I’m hitting my numbers, she’ll probably be much more likely to listen.” So you would play your “Core 4: Results” card.
Then the person next to you might play a Behavior card, such as “Confront Reality” or “Talk Straight.” It quickly becomes apparent that the Behaviors cards will only work well when you’ve played one or more of your 4 Cores cards first.
There are no right or wrong answers in these role plays; the object is to create awareness and choice around how to solve the problems in these scenarios in the best possible way. In fulfilling this objective, the game not only inspires stimulating, thought-provoking discussion, it also brings people up short when they realize that understanding on a conceptual level and understanding on an experiential level—where you’re actually on the front lines making decisions with consequence—are two entirely different things. By working the scenario, participants relearn the content on a deeper level and gain good preparation for real-life application.
So I encourage you, as a reader, to get into this material on an experiential level as quickly as possible. Look for ways to immediately apply it. Find opportunities to teach it to others. As you do, I believe you will literally be astonished at the results. Not only will you better understand and realize the power of the cores and behaviors; you will also be amazed how quickly great things can happen with all stakeholders when you operate at the speed of trust.
INSPIRING TRUST
By now I hope you’re convinced that, as I’ve said, nothing is as fast as the speed of trust. Nothing is as profitable as the economics of trust. Nothing is as relevant as the pervasive impact of trust. And the dividends of trust can significantly enhance the quality of every relationship on every level of your life.
BUT . . . you may still be hesitant or fearful when it comes to actually extending trust to others. Maybe, deep down, you really feel that other people can’t be trusted. Maybe you grew up in a low-trust environment. Maybe you’ve been burned in the past. Maybe no one has ever extended trust meaningfully to you.
In this final section, I want to show you that, whatever your situation, you can learn how to extend “Smart Trust.” You can develop the competence to extend trust in ways that avoid the pitfalls and ensure the greatest dividends for all concerned. You can also learn how to restore trust when it has been lost, and how to develop the propensity to trust that is absolutely vital to effective leadership and life.
Aside from being personally worthy of trust and knowing how to build trusting relationships on all levels, your ability to appropriately extend trust to others is the single most impactful factor in creating a high-trust environment, both at work and at home. In fact, you may recall that “Extend Trust” was included as the last of the 13 Behaviors because of its impact in building trust. In this section, we’ll explore it in much greater depth.
The first job of a leader is to inspire trust. The ability to do so, in fact, is a prime differentiator between a manager and a leader. To inspire trust is to create the foundation upon which all truly successful enterprises—and relationships—stand.
EXTENDING “SMART TRUST”
It is equally an error to trust all men or no man.
—LATIN PROVERB
Have you ever failed to trust someone and missed significant opportunities—either personally or professionally—as a result? How did that make you feel?
When you get right down to it, the practical issues with regard to extending trust are these: How do you know when to trust somebody? And how can you extend trust to people in ways that create rich, high-trust dividends without taking inordinate risk?
When you’re dealing with trust, it seems there are two extremes. On one end of the spectrum, people don’t trust enough. They’re suspicious. They hold things close to the vest. Often the only people they really trust are themselves. On the other end, people are too trusting. They’re totally gullible. They believe anyone, trust everyone. They have a simplistic, naïve view of the world, and they don’t even really think (except superficially) about the need to protect their interests.
Extending trust can bring great dividends. It also creates the possibility of significant risk. So how do you hit the “sweet spot”? How do you extend “Smart Trust” in a way that maximizes the dividends and minimizes the risk?
I’m aware of a situation in one company in which there had been an apparently high-trust relationship between the chairman and the president. However, one day the chairman learned that the president had, in effect, organized a mini “coup” in the organization. He had rallied a number of the company leaders in an effort to take the company in a different direction than what the chairman (who was also the founder) and the board had desired. As a result, trust was totally destroyed. This was particularly painful to this chairman because he felt he had been betrayed. The president was let go, and the company was restructured. Professionally, the president and the chairman parted ways.
However, because of the friendship these two men had developed in prior years, they made efforts to restore trust in their personal relationship. There were months of discussions, sincere apologies, even tears. Finally, there was forgiveness, and these men reached a point where they were able to feel good about their relationship once again.
One day, the former president approached the chairman with another business proposition. Before any serious discussion took place, the chairman said thoughtfully, “I appreciate your interest. I would work with you on a personal or family endeavor. I would serve with you on a civic committee. I would be a chairman if you were a committee member; I would be a committee member if you were the chairman. However, I choose not to go into business with you.”
In the end, this chairman exercised “Smart Trust.” He wasn’t reactive. He didn’t continue to harbor ill feelings. He forgave and did all he could do to restore what trust it was possible to restore with his former business associate and friend. But he didn’t ignore the lessons of his experience. At the point at which he felt he could not fully trust, he drew the line.
THE “SMART TRUST” MATRIX
Life is filled with risk. However, as noted historian and law professor Stephen Carter has observed: “Civility has two parts: generosity when it is costly, and trust, even when there is risk.”
The objective, then, is not to avoid risk. In the first place, you can’t; and in the second place, you wouldn’t want to because risk-taking is an essential part of life. Instead, the objective is to manage risk wisely—to extend trust in a way that will avoid the taxes and create the greatest dividends over time.
Learning how to extend “Smart Trust” is a function of two factors—propensity to trust and analysis—which are juxtaposed on the matrix on page 304.
“Propensity to Trust” is primarily a matter of the heart. It’s the tendency, inclination, or predisposition to believe that people are worthy of trust and a desire to extend it to them freely. The degree to which you have this tendency may be due to your inherent personality, to the way important people in your life have (or have not) trusted you, or to your own experience (good or bad) in trusting others—or, most likely, to a combination of these factors.
“Analysis” is primarily a matter of the mind. It’s the ability to analyze, evaluate, theorize, consider implications and possibilities, and come up with logical decisions and solutions. Again, the degree to which you have “strong analysis” may be due to a variety or combination of factors, including your natural gifts or ab
ilities, your education and the way you think, your style, and/or your life experience.
An experience with my sons, Christian and Britain, clearly demonstrates both of these factors. One day I took them fishing. We had a great time, and afterward we went to get something to eat. Britain (who was five and had a high propensity to trust at the time) thanked me profusely. He said, “Dad, thank you. Thank you SO MUCH! You’re the BEST dad in the WHOLE WORLD!” Christian (who, at nine, had become more analytical) said, “Britain, you can’t just say that he is the best dad in the world. You don’t know that, and there are a lot of nice dads out there.” Then, suddenly realizing he didn’t want to offend me, he added, “I’ll bet he’s the . . . ninth best dad in the world!”
As you think about these two factors—propensity to trust and analysis—how would you rate yourself on each? Do you typically tend to trust people easily, or do you tend to be suspicious and hold things close? Do you tend to analyze, theorize, and ponder over things—or do you give problems your cursory attention and then move on?
To what degree do you think your present tendencies add to or reduce your ability to extend “Smart Trust?” Take a look at the matrix. You may be surprised!
Zone 1 (High Propensity to Trust; Low Analysis) is the “Blind Trust” zone of gullibility. It’s the Pollyanna approach where people blissfully trust everyone. This is where we find those “suckers who are born every minute”—those people who are a sure bet to fall for Internet, marketing, investment, and other scams.
Zone 2 (High Propensity to Trust; High Analysis) is the “Smart Trust” zone of judgment. This is where you combine the propensity to trust with the analysis to manage risk wisely. This is where you get both good business judgment and good people judgment—including enhanced instinct and intuition. If you have a propensity to not trust, instinct and intuition will disproportionately tell you to not extend trust to others. On the other hand, without analysis, you might well mistake a propensity to trust alone for instinct and intuition. Thus, a significant dimension of combining high analysis with high propensity to trust is the synergy that elevates instinct and intuition to the realm of good judgment.
The SPEED of Trust: The One Thing that Changes Everything Page 35