Post on 19-Nov-2014
description
Culture, trust and leadership
Lunch & LearnM&G
Facts about trust in business
• 50% of employees don’t trust their executives (leadership teams)Blessing White (2010)
• 48% of people looking for a new job cite loss of trust in their organisation
as the key reason for wanting to leave. • 46% specifically identify lack of transparency as a key issue
• 40% being treated unfairly or unethically
• 36% of employees feel trust has decreased since beginning of downturnDeloitte workplace survey (2010)
Trust destroyers vs. builders
• Self-interest• Inconsistency• Spin• Injustice• Incompetence• Unethical acts
• Interest of others• Do as you say• Tell the truth• Same rules apply• Deliver• Moral compass
VS
Why should we care?
Impact on business…
Engagement:• Trust is directly related to engagement, the more trust, the more engaged
Blessing White (2010)
Absenteeism:• Employees who distrust their leaders are 7 times more likely to report they
are physically or mentally unwell and four times more likely to leaveKenexa work trends report (2012)
Trust and bottom line results:• Tracking 100 Best Companies over 10 year period, those companies
outperformed the stock index, posting annual returns of 11% vs. 4.5% Amy Lyman (2003/2012)
External…
Customers:• 75% of consumers will actively avoid buying from an
organisation they distrust and 85% will go out of their way and pay more to buy from a company they trust- Edelman trust barometer 2012
Low & high trust
Low:• Secrecy, defensiveness, territorial behaviour, fear of speaking out• Unfair performance management/remuneration, failure to deal with
key issues or concerns
High:• Clarity: Strong sense of shared purpose and customer focus • Commitments: High levels of engagement and team work to support
that purpose• Collaboration: Tolerance and cooperation are highly valued • Coach: Leaders coach rather than simply manage• Connection: Stronger relationships between management and team
members
Expensive cars
Greater status (real or imagined) & greater wealth trigger sense of
entitlement and reduce compassion
Why?
• Elevated status = less dependent = less connected = less empathic = less compassionate
• Majority – not just a few• Instrumental in ‘moral & trustworthy’ behaviour• Reluctance in leaders to engage = goes unchecked• Perpetuating and detrimental consequences
What can we do about it?
Placing trust, integrity and sustainability firmly on the agenda
Lady Susan Rice, MD Lloyds Banking GroupThe future of financial servicesRecapturing trust and integrity
Away from:Capital – competition – compensation - controls
Towards:Customers – colleagues – community – conscience - care
Customers, employees, social media
Clients taking conscious action
Examples