culture, trust and leadership

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