Speed of TrustStephen M. R. Covey

The One Thing That Changes Everything

Trust is the one thing that can build or destroy every human relationship.

Trust means confidence. The opposite of trust—distrust—is suspicion.

Trust is built and a function of two things: character and competence.

The purpose of the book is for us to see, speak and behave in ways that establish trust.

The Economics of Trust

Trust always affects two outcomes:1) Speed: how long it takes to get the

right things done2) Cost: measured in financial, energy

and other resource terms

When trust goes up, speed will also go up and cost will go down.

↑ Trust = ↑ Speed ↓ Cost

When trust goes down, speed will go down and costs will go up.

↓ Trust = ↓ Speed ↑ Cost

The Five Waves of Trust (with their underlying key principles)1) Self-Trust: credibility2) Relationship Trust: consistent

behavior3) Organizational Trust: alignment4) Market Trust: reputation.5) Societal Trust: contribution.

The first and second waves are individual trust, while the third, fourth and fifth waves are the institutional trust.

The First Wave- Self-Trust: The Principle of Credibility Self-trust is derived from your

abilities and your capacity to set and achieve goals and keep commitments.

You walk your talk, and then you feel good about your actions. That inner-sense of contentment and consistency then makes it possible for you to be worthy of the trust of others.

Four cores of building credibility:

1. Integrity: Do you do what you say?Made up of three other virtues.

Congruency is when one acts according to his values.

Humility is the ability to look out for the good of others in addition to what is good for you.

Courage is the ability to do the right thing even when it may be difficult.

2. Intent: Do you have a hidden agenda?The key components of intent are:

Motive is why you do what you do.

Agenda is what you intend to achieve.

Behavior is putting your agenda into practice.

3. Capabilities: Are you relevant? Capabilities are TASKS.Talents- natural gifts and strengthsAttitude- ways of getting things doneSkills- the things you have learned to do wellKnowledge- learning, insights, understanding and awareness levelsStyle- the way you approach challenges combined with your personality traits.

Speed of TrustStephen M. R. Covey

4. Results: What’s your track record?3 key indicators by which people evaluate results:1. Past results: what you have proven you can do.2. Current results: what you are contributing right now.3. Potential results: what people anticipate you will accomplish in the future.

The Second Wave: Relationship Trust Relationship trust is all about

consistent behavior. Building trust accounts. The

quickest way to make a withdrawal from a trust account is to violate a behavior of character; the quickest way to make a deposit is to demonstrate a behavior of competence.

The 13 relationship trust building behaviors:Character-Based Behaviors

1. Talk Straight2. Demonstrate Respect3. Create Transparency4. Right Wrongs5. Show Loyalty

Competence-Based Behaviors6. Deliver Results7. Get Better8. Confront Reality9. Clarify Expectations10.Practice Accountability

Character and Competence Behaviors11.Listen First12.Meet Commitments13.Extend Trust

The Third Wave: Organizational Trust Organizational trust is derived from

alignment – having the

organization’s systems, structures and rewards aligned with one consistent objective.

If people inside your organization don’t feel like they are trusted by the management, all kinds of problems can crop up. These problems in effect become taxes on the performance of the organization.

The 7 Low-Trust Organizational Taxes: High levels of redundancy and

duplication of effort. An extensive bureaucracy with

rules, regulations& procedures. Active internal office politics. People becoming disengaged

and distant. High levels of employee

turnover. Regular turnover of

stakeholders other than employees.

Fraud.

By contrast, when trust is high within an organization, there are significant dividends.

The 7 High-Trust OrganizationalDividends

Shareholder and customer value increases.

Accelerated growth in sales and profits.

Enhanced ability to innovate and be creative.

Improved levels of collaboration and teamwork.

Greater ability to form strong partnerships with others.

Better execution of the company’s strategy.

Heightened loyalty and brand strength.

The Fourth Wave: Market Trust Market Trust is based on the

principle of reputation.

Speed of TrustStephen M. R. Covey

The brand’s value will be based on the amount of trust it has in the market place.

How to Build Your Brand

Apply the 4 cores and the 13 behaviors at the organizational level, and ask the following questions about your organization:

1. Does our brand have integrity – do we have a reputation for being honest and willing to face everything head on?

2. Does our brand demonstrate good intent – are we perceived as being focused on serving our customers or simply as being out to make a profit?

3. Does our brand demonstrate capabilities– do people associate the brand with excellence or irrelevance?

4. Is our brand associated with results – do our customers feel like we deliver what was promised and are they willing to recommend us to their friends?

The Fifth Wave: Societal Trust The essence of the fifth wave of

trust is to make a contribution. Contribution is the intent to create

value instead of destroying it. To create value is to give back instead to take.