culture, trust and leadership

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Oxytocin, biscuits and expensive cars.Culture, Trust and Leadership Workshop

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  • 1. Culture, trust and leadership Lunch & Learn M&G

2. Facts about trust in business 50% of employees dont trust their executives (leadership teams)Blessing White (2010) 48% of people looking for a new job cite loss of trust in theirorganisationas 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 ofdownturnDeloitte workplace survey (2010) 3. Trust destroyers vs. builders Self-interest Interest of others Inconsistency Do as you say Spin VS Tell the truth Injustice Same rules apply Incompetence Deliver Unethical acts Moral compass 4. Why should we care?Impact on businessEngagement: Trust is directly related to engagement, the more trust, the more engagedBlessing 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) 5. ExternalCustomers: 75% of consumers will actively avoid buying from anorganisation they distrust and 85% will go out of their way andpay more to buy from a company they trust- Edelman trust barometer 2012 6. Low & high trustLow: Secrecy, defensiveness, territorial behaviour, fear of speaking out Unfair performance management/remuneration, failure to deal withkey issues or concernsHigh: Clarity: Strong sense of shared purpose and customer focus Commitments: High levels of engagement and team work to support that purpose Collaboration: Tolerance and cooperationarehighly valued Coach: Leaders coach rather than simply manage Connection: Stronger relationships between management and team members 7. Expensive carsGreater status (real or imagined) & greater wealthtrigger sense of entitlement and reduce compassion 8. Why? Elevated status = less dependent = less connected = lessempathic = less compassionate Majority not just a few Instrumental in moral & trustworthy behaviour Reluctance in leaders to engage = goes unchecked Perpetuating and detrimental consequences 9. What can we do about it?Placing trust, integrity and sustainability firmly on the agendaLady Susan Rice, MD Lloyds Banking GroupThe future of financial servicesRecapturing trust and integrityAway from:Capital competition compensation - controlsTowards:Customers colleagues community conscience - careCustomers, employees, social mediaClients taking conscious action 10. Examples Leadership levelManagement level Employee level