2021 TRUST OUTLOOKTM EXECUTIVE EDITION
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CONTENTS This Executive Edition of Trust Outlook™ features thoughts about A New Kind of Trust Outlook TM the future of leadership, as shared T he 2021 Trust Outlook™: Executive Edition is a culmination of quantitative and qualitative data collected and used by the by executives. 3 Leading Well in a Changing Trust Edge Leadership Institute over the last World five years. The data is from interviews with leaders who shared their experiences about 4 The Big Idea the impact of trust in their organizations. 6 The Human Side of Each section in this edition contains a Leadership curated summary with highlights from our data reflecting essential ways executives can 10 Character is Everything intentionally promote growth and leadership. 16 Making Connections in a Disconnected World In this research report, you will find: n Trends in trust 16 A SPECIAL REPORT: Tension in Decision Making n Perspectives from executive leaders n Opportunities for strategic development 17 The Key to Change n Space for notes and reflection 18 Inclusive Leadership n Tactics for building trust in your teams 20 Virtual Leadership Over the last year, Trust Edge Leadership 22 Beyond the Workplace Institute partnered with the Social Research Lab from the University of Northern Colorado 24 Nine Tips for Tough Times to conduct interviews with U.S. based 25 A SPECIAL REPORT: corporate executives. We asked how the Employees Weigh-In Eight Pillars of Trust (Clarity, Compassion, Character, Competency, Commitment, 27 Summary & Takeaways Connection, Contribution, and Consistency) 28 About this Study are reflected in their leadership philosophies, strategies, and environments. Prior to our 30 Trust in Real Life current challenges, these leaders consistently shared a desire to be part of the solution to the larger underlying question: How do we This document is copyright 2021 Trust Edge Leadership Institute. All rights reserved. lead well in a constantly changing The information in this document can be world? The common approach was to referenced in the media, in whole or in part, actively build trust in the workplace. Even as long as this document is cited as the source for the information. In no way does this before 2020, many leaders were already document provide an endorsement of any dealing with ongoing changes in their product, service, company, or individual. organizations. Executives shared how using This document is provided “as is.” Information and views expressed in this document may their past and present experiences helped to change with or without notice. The strategies propel them forward into 2021. and examples depicted herein are provided for illustration purposes only and are not guarantees of specific results. You bear the risk of using this document. 2 | © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed.
LEADING WELL IN A CHANGING WORLD T he transition to 2021 will forever stand out in our minds as one of constant change. In the United States, not only was 2020 a contentious Quickly, the airport leader decided to flip the script. The solution to the rental car problem? Park the extra cars on the unused runways. The presidential election year, but some of our single move to creatively adapt displays how Trust, not money, most serious social issues were brought to the leaders can build trust during crisis. is the currency of forefront, all while we collectively endured a business and life. global pandemic. In spite of the challenges, one People often think trust is built over the course —David Horsager thing remains: We have a daily choice to of many interactions, but we also know that use these hardships and experiences to either trust is built (or destroyed) the fastest propel us forward or to hold us back. during moments of crisis and recovery. Even good leaders and organizations can face a 2021 can be seen as either a year of continuous crisis of trust. Leadership in the year ahead must challenges or a year to continue to learn be rapidly adaptable in some ways, yet steadfast and adapt. This special edition of the 2021 in other ways. With a rise in unemployment Trust Outlook™ utilizes global studies and and companies and small businesses failing, one-on-one interviews with executives to offer it is valuable to take note of the organizations insights for leaders across all industries. People and leaders who are thriving. How have some are watching your response. Here and now, in companies continued to grow even in the midst the midst of unstable times, you have a chance of crisis? to succeed by being a trusted leader. In crisis, leading with empathy and clarity have increased trust for the long term. For example, as the pandemic expanded, numerous chal- lenges arose at airports all around the world. One major issue was with car rental companies. —David Horsager, CEO, Without travelers renting cars, the rental compa- Trust Edge Leadership Institute nies were left with more cars then parking spaces—something that never happens. © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed. | 3
THE BIG IDEA A midst the widespread societal-level upset caused by Covid-19, public protests about racial tension, and an uncertain economy, The Most Effective Leadership Employees and customers are looking to leader- ship for guidance as the workplace and business leaders are expected to adjust rapidly in commerce have evolved into something nearly order to embrace new challenges and lead A lack of trust is your unrecognizable compared to just months ago. their people. It is incredibly stressful when biggest expense. The role of the executive is to lead effectively you are expected to have the answers about —David Horsager during change and ambiguity. While clarity is things you cannot control. Flexible workdays always a pillar of trust, leaders today must also have become essential as employees find guide in the midst of uncertainty. The high call themselves becoming teachers, caregivers, and of trusted leaders is to give as much clarity as sometimes patients all at once. Technology is a possible even during cloudy storms. necessity more than ever before. Understanding employees’ needs and the obstacles they face The core of leadership is not just creating a has become crucial for maintaining operations strategic plan and being kind to employees. and profitability. The most effective leadership takes all 8 Pillars of Trust which are especially Especially now, every decision a leader makes magnified in times of crisis and recovery: will either increase or decrease trust in them- selves, in their team, and in their brand. The 1. Clarity: Leaders who are ambiguous and only way to sustain, or even grow overly complex lose trust. business in this climate is with trust. A 2. Compassion: Leaders who lack empathy are high-trust organization builds an environment just as dangerous as those who are overly where adaptation and innovation are possible. critical. 3. Character: A lack of integrity undermines 36% of employees say they are the ability to grow a culture of trust. not always knowledgeable in 4. Competency: Leaders lose trust who don’t handling unclear situations. (Trust Outlook 2021 ) TM pivot or stay relevant. 5. Commitment: Leaders who selfishly make decisions crumble in adversity. 6. Connection: Isolation and siloing loses trust, and the lack of connection is magni- fied in crisis. 7. Contribution: Leaders who don’t deliver results, lose. 8. Consistency: Leaders lose trust with flip-flopping, indecision, and unpredictability. 4 | © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed.
A Changing Environment Interview participants largely agreed that leadership of the future requires taking the In a 2019 INC. Magazine article titled, “8 Ways time to get to know employees, being human, the Workforce Will Change in 2020, According and showing one’s character. According to the to Business Leaders,”1 the Young Entrepreneurs interviewees, an organization’s bottom line and Council anticipated many of the changes we are culture are directly linked to the overall health experiencing today. They predicted a greater and safety of its employees. When an orga- dependence on technology, including imple- nization cares for its employees, a high-trust, menting remote work platforms, focusing on high-performance workplace becomes possible. flexible work options, edging toward diversity, and supporting mental health and better work environments. Leading in Confusing Times We believe that compassion, character, connec- When we spoke to executives prior to the tion, and clear communication are key aspects pandemic, many leaders alluded to the changes of the future of leadership. These ideas are more outlined in this article. Even before these critical now as people adapt through discon- factors became a reality, the groundwork was nection and confusion due to the new virtual being laid to support ever-changing work environment and social distancing practices. environments and the corresponding shift in management and operations. Leaders under- Though we do not know exactly what the stood that technology and work-life changes future workplace landscape will look like, we do were imminent. Themes which emerged from know the shift toward humanizing leadership is our conversations about a leader’s future role in permanent. a productive and modern workplace included: n Practicing mutual compassion and care VUCA, an acronym which stands for Volatility, n Demonstrating character through actions Uncertainty, Complexity, and Ambiguity, was n Connecting with employees to truly know first coined for use by the US Army War College. and appreciate them Pertinent to our world today, a VUCA world sets forth two questions to ask yourself: What n Building an inclusive company culture by can I control? What should I do first? leading with integrity These questions can lead to a fresh approach to n Paying attention to their communication leadership.2 and responses © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed. | 5
THE HUMAN SIDE OF LEADERSHIP T he employee/employer relationship is often complicated. Executives who take the lead to embody the human side of leadership prac- Care and Compassion Organizations are moving away from the top-down structure. Moving forward, leaders tice compassion by focusing on the following are expected to be more than a visionary in elements: order to earn trust from employees. One CEO More care leads to n Care and compassion stated: “Trust is a partnership.” Employees more productivity. n Safety want to be valued, cared for, and —David Horsager n Autonomy known. Many employees feel they cannot ask for that level of engagement from their leaders n Flexibility and Understanding because of the power structure in most orga- n Clarity and Openness nizations. Therefore, it is up to the leader to set the tone and parameters of the relationship. “ Character and compassion are part of the big picture in “ It’s important to make early connection with staff. leadership...there’s a major human element beyond From the beginning, a key job performance. Character piece is connecting with all is how you respond to the levels of the organization. human element and how you Connection makes the ” show it as a priority. leadership of the —Jed, Senior Vice President, private organization organization human. —Chris, CEO, public corporation ” 85% of people believe a high- Frances Frei, a professor at the Harvard Business trust work environment helps School, explains in her TEDTalk called, “How to them perform at their best. Build (and Rebuild) Trust,3 that when a person (Trust Outlook 2020TM) senses authenticity, rigor in logic, and empathy, trust is more likely to occur. She elaborates, “It can be hard to create the time and space that empathy needs. The fix is pretty easy: Identify where, when and to whom you are likely to offer your distraction. That should trace pretty perfectly to when, where and to whom you are likely to withhold your empathy.” 6 | © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed.
There is a need to truly listen to people. Safety Build connection by looking up and look at Prior to Covid-19, safety was most often tied the people right in front of you. Presence is to physical jobs and work environments. Now, important. How can this look practically in a we are talking about germs we cannot see virtual world? We can humanize our calls by and a virus that is not fully understood. When showing our video, having the camera at eye employees feel unsafe in their work environ- level, and using real backgrounds. ment, whether physically, psychologically or otherwise, trust is lost, and therefore accep- TRUST TACTIC: Increased connection builds tance to change is more difficult. The 2019 Trust greater trust and faster business results. Ask Outlook™ revealed that one way to eliminate genuine, open-ended questions. Instead of employees feeling unsafe and to regain trust simply asking about the weekend, ask specific during uncertain times is to ask them about questions to build deeper connection. their safety! Take care of your people by taking the time to learn about people’s lives inside and out of the workplace. Value your employees beyond their productivity. Many of our interview participants “Our people feel safe. And I think when you put believe productivity is often the unexpected them in a safe environment, benefit of prioritizing a care model that values they flourish and they’re ” employees as people. able to grow. “ —Daniel, CEO, health organization We really communicate that we value each and every When things are complicated, ambiguous, person. We model that or tenuous, leaders have an opportunity to develop trust quickly and intimately. Crisis is a or articulate it and leader’s window to show care, to prove they are our employees stretch champions to their employees, and to establish themselves because of it... and maintain a safe workplace. It’s building a culture. —Price, Administrator, athletics organization ” (cont'd on next page) © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed. | 7
The Human Side Allowing for Autonomy People thrive with a clear plan, support, and of Leadership, the right amount of freedom. There is a paradox cont’d. Many executives said their employees trust between freedom and feedback. People want them because they demonstrate mutual trust. the freedom to be their best and want to be They allow their employees to do their jobs trusted to make their own decisions, yet they without micro-management or bureaucratic also crave critical feedback. Employees value policies. Give your team space to make knowing where they sit with their leader and if decisions. they are delivering on expectations. Employees want to know how and when they win. A city administrator we spoke with shared that a gesture as simple as NOT tracking their time can show employees trust without surveillance. There is an inverse relationship “I don’t even have time clocks anymore,” he between an employee's amount shared. “The job getting done is how we hold of experience and their need for feedback. them accountable for their work.” —David Horsager Allow people to learn to lead—beginning with how they lead their own day. Several participants believe their employees are more Flexibility and Understanding productive, engaged, and content because Even before Covid-19 forced employees to leaders enable them to take ownership of their take on additional roles at home, there was work while still holding high expectations and a growing trend toward more flexible work being accountable. When people receive trust, conditions. In many cases, this means variable they often return trust. hours, locations, and mediums through which work can be accomplished. According to our TRUST TACTIC: Leaders succeed who extend interview participants, flexible work conditions freedom, encourage the “figure it out” and “Zoom meetings” are here to stay. mentality, yet provide appropriate guidance and accountability. One leader, Jack, described his unconventional “leave” policy: “Our ‘leave policy’ is that they can “ be here when they want to be here and if they When you show people need to leave, they just leave, and it’s okay.” that you trust them, they will give back more, and therefore grow. ” “We’re moving toward more flexible schedules, —Daniel, CEO, health organization allowing for telecommuting and flexing their time... We’ve heard directly from people that it’s one of the reasons they stay. ” —Marley, CEO, health organization 8 | © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed.
Clarity and Openness In uncertain times, leaders can act to provide stability in troubled circumstances: The 2017 Trust Outlook™ found that employees stay longer and work harder when employers q Communicate frequently. In times of communicate openly. People feel increased uncertainty, share often due to rapid security when brought into your confidence changes. through shared knowledge. Stewart, an q Be as transparent as you can be while Executive Vice President in a finance organiza- being as confidential as you ought to be. It tion shares, “People don’t trust you if you don’t is true that certain things are held in confi- Over-communicate give straight answers. They think you don’t trust dence, but high-trust leaders push as much the “Why?” to build them with the truth.” transparency as possible. trust in the midst of q Empathize. Leaders can be insulated from change. “ I believe employees what their people are feeling. (For example, — David Horsager during the pandemic, isolation is magnified trust me because I try to be for a person living and working alone in an as clear as possible while apartment vs with a family in a suburban house.) being consistent with what ” q Make time and space for questions. To I say I’m going to do. increase connection, find practical ways for —Wes, Senior Vice President, employees to ask questions. (For example, technology company hold one-on-one Zoom meetings or town hall forums to have a space where questions Because people trust the clear and mistrust can be asked of leaders.) the ambiguous, clarity is a key to effective leadership. Clarity and openness show YOUR TURN employees trust by alleviating uncertainty. Trust is a proactive, not reactive exercise. Proactive Select one area below. What is one way you could communication makes it easier to address improve it today or tomorrow? future issues when they arise. As one executive q care and compassion for employees told us this year, “You have to be proactive with q employee safety helping people understand why you’re making the decisions you’re doing.” q autonomy – freedom with feedback q flexible work conditions 61% of employees said not q clear, open communication communicating the “Why” for ________________________________________ change is what most hinders leaders from building trust. ________________________________________ (2019 Trust OutlookTM) ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed. | 9
CHARACTER IS EVERYTHING C haracter, simply defined as “doing what is right over what is easy” can either propel or derail your organizational culture. In the 2017 TRUST TACTIC: Focus on developing your own character by speaking honestly, following through on commitments, and Trust OutlookTM, 76% of employees said that apologizing with humility. character greatly affects trust. Would you follow you? High-character people, whether they are Accountability —David Horsager leading or following, do what they say they will One of the highest rated values from our inter- do, even when no one is looking. Leaders show viewees was accountability. Executives revealed high character by practicing: that they hold themselves accountable for their n Accountability mistakes, and remedy them, in order to gain the n Transparency trust of their employees. One business president encouraged: “Don’t hold back. They want to see n Vulnerability that you are human.” n Availability “ The best way to exemplify n Listening One executive explained it this way: "You have integrity is to be openly to demonstrate that you’re making things right through your actions BEFORE the pressure is applied." accountable to mistakes. — Dwayne, City Administrator ” Several of the executives interviewed believe accountability should often be public, in order to set an example for those who follow them, as well as to set a precedent for future mistakes. Clear accountability can be used to create a culture where people are not driven by fear of failure. People more than double their chances of accomplishing goals with accountability from someone who cares about them. (Trust OutlookTM 2020) 10 | © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed.
ACCOUNTABILITY FRAMEWORK 1. Clear Goal: Determine the specific goal to be accomplished. Prepare a detailed expectation of the goal to share with those carrying it out. ASK: How can they realistically hit a target goal? Do they have the resources? Training? 2. Clear Ability: Decide under whose job description/role will a goal most clearly align. ASK: Who currently has the capacity to add this goal as a push-forward priority in addition to their existing role? 3. Clear Metric: Decide the best metric of progress and success for this goal. ASK: Do they have daily and weekly metrics? 4. Clear Check-In: Determine with whom and when check-ins are needed for this goal. ASK: How often are check-ins needed for this goal to start, progress and be completed? 5. Clear Results: Have a meaningful conversation about seeing results: Reward, Redo, Repercussion, or release. ASK: Discuss rewards or consequences for the success or failure of this goal. 6. Clear Commitment: Share expectations on the commitment level needed for this goal. ASK: Is there anything else I can do to support your success? “ Communication needs to be transparent and balanced. Transparency According to our interviews, transparency reinforces the importance of openness and Both parties need to have clarity with employees. Transparent leaders power and be able to strive for open lines of communication while avoiding unnecessary secrecy. Executives cite acknowledge good ” transparency as a top value also because it is and bad. highly valued by employees as an ongoing — Marley, CEO, health organization way to gain (and keep) trust. As one executive warned, “Communication should not have a hidden agenda.” (cont'd on next page) © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed. | 11
Character is Leaders attempt transparency by openly In comparison to this transparency, another Everything, inviting and including the voices of others. One organization immediately lost trust when cont’d. participant says that just gathering the voices they posted 800 names on the wall, listing the of others is not enough. He also demonstrates employees who were let go. This experience follow-through on others’ ideas by asking how caused a distrust of management and increased to use them in a specific context. fear for those left behind. “ We do relational, interdepartmental meetings Vulnerability Vulnerability and transparency are closely aligned. When a leader is guarded, they appear to get better collaboration disingenuous and suspicious. Vulnerability is and trust. It’s an opportunity not weakness but shows sincerity. Employees to share all voices and show value a leader who appears to be affected by ” things that matter. It is particularly challenging what is being done. in difficult situations, but it can be a great — Don, Administrator, education opportunity to build a trusted culture. As Wes, a Senior VP in a tech company reminded us, “It is harder to be vulnerable when people are One recent example of transparency is a CEO hurt, but that is the most important time to be who intentionally maintained trust even though vulnerable.” he had to lay off 2,000 people in his organiza- tion. From day one he was transparent about “Vulnerability from the impact, the budget, and his plan to furlough with a genuine hope to rehire. This leader’s transparent pre-communication allowed him leadership creates safety to remain trusted by the employees. Eventually, he was able to rehire some but not all of the employees. Trust was maintained by the leader for others. ” — Daniel, CEO, health organization because he shared about the process and the weight he was feeling over the unfortunate situation. He won by being open about the Availability difficulty of the situation for everyone. This An accessible leader closes the gap between leader’s genuine care and agony was authentic strategy and integration. and continued to build trust even during this challenging time. Visibility + Approachability = Accessibility Leadership is not a private affair. Visibility 92% of people would trust their means being present and available. Our senior leader more if they would be transparent about their interview participants agree it is not enough to mistakes. stay behind your closed office door. (2020 Trust Outlook™) 12 | © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed.
“ I think it’s important that I’m the face behind the Listening Listening is key. One important step is setting and establishing patterns to allow employees messages that people get. to feel they have an engaged audience. Several I need to be out in front of the executives in our study share they often of folks on a very regular show up in places where employees will be ” gathered, just to be present and accessible. basis. Some host group lunches, open office hours, — Chris, CEO, public corporation and/or company forums. Doing, not saying, builds trust. A few listening rules for meetings include: — David Horsager Approachability means people know they have access to your time and are not afraid to q Stay off your phones. address you when they need it most. Leaders q Do not stay behind your desk. have to be willing to be approached and q Do not have a computer between the two employees have to be willing to approach people meeting. leaders. Linda, an educational leader, suggested fostering ways for people to get to know Voices need to be heard, listened to, and each other without fear. “You really can’t trust applied as necessary. Leaders cannot do someone you don’t know,” she explained. everything everyone wants, but they can listen and respond. Everyone can agree that approachability does not mean people have access to you at all times. Open door policies can be detrimental to YOUR TURN productivity and relationships if not managed Name a person of character you greatly respect. appropriately. One example of a helpful practice What is one thing you could do this week to is posting an open time on your calendar in emulate them? which you are available for brief, one-on-one, check-in meetings. ________________________________________ ________________________________________ “As a leader, your heart ________________________________________ ________________________________________ should be open, but your ________________________________________ door doesn’t ALWAYS need to be. Approachability does not mean open access. ” — Marley, CEO, health organization Our interview participants have various versions of approachability, but all agreed that employees should not be afraid to address lead- ership. Leaders are responsible for setting the tone and cultivating an atmosphere of genuine openness in their organization’s culture. © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed. | 13
MAKING CONNECTIONS IN A DISCONNECTED WORLD E ven in a changing world, leaders can employ simple strategies to create connections. Our interview participants value simple gestures and Building Connections Sharing some or all of these aspects, extracted from the Trust Shield exercise, can be significant know regardless of the format, the intention in connecting with your team: Life is better as matters most. One participant shares about a small, extremely effective and meaningful 1. Background–impactful, memorable, a team sport. action: “I send a handwritten note to the emotional, or shaping events —David Horsager spouses of my lead department heads every so 2. Values–underlying, guiding principles often to thank them for their contribution to 3. Life Priorities–important aspects of life the organization,” suggests city administrator Dwayne. Other participants echo the same 4. Mission–your driving purpose sentiment. Several host non-work-related 5. Strengths–characteristics, abilities, talents, meetings just to get to know people. and other unique qualities 6. Improvements–areas where you would like “ Knowing things about to grow 7. Life Goals–key things you want to accom- their family or their interests plish in the short and long term really can help build trust 8. Legacy–what you want said about you when because it shows that I value you are gone their humanity. — Janelle, Director, Education ” Trust Shield Background Intentionality with virtual connections is Values Priorities essential. One company takes the time to go Mission “around the room” virtually with one quick question to humanize the conversation. This can be a positive attempt towards the missing water Strengths cooler or lunch conversations. Improvements Life Goals Another hospital took a step towards connec- tion with patients. The nurses were noticing that Legacy children were fearful of the masked workers. They came up with a simple solution: wearing buttons that showed a picture of their entire face. This allowed patients to connect with the real person, smile and all. 14 | © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed.
Appreciation Even during the best of times, employees will leave an organization if they do not feel appre- “ Go to each one of your staff and show them ciated. In fact, the 2020 Trust Outlook™, found appreciation. It’s got to that a lack of appreciation is the #1 be one-on-one. It can’t be reason people decide to leave their job. Genuine appreciation and compassion something that comes increase retention and engagement. Genuine appreciation can be expressed in from just HR. ” —Stewart, Executive Vice President, finance organization a variety of ways. One organization started giving appreciation awards during the Covid-19 Appreciation goes beyond knowing who shutdown. Leaders set up an online platform to people are and showing positive reinforcement. give accolades to people who were showing an Critical feedback must also be delivered in a effort towards their companies’ values. Being constructive and supportive way. Many leaders noticed made a difference. avoid critical feedback, especially when they are trying to build trust, but the 2020 Trust Another way to show appreciation is by Outlook™ research found nearly 60% of our equipping people with what they need to do global respondents said they’d rather know their jobs. For example, in hospitals there was what they are doing wrong so they can improve a correlation between employees feeling safe their work. Ron, an executive at an automotive during Covid and how appreciated they felt. corporation shares, “I try and set their expecta- People require to have basic needs met in order tions, give feedback formally and informally to to do well emotionally. help them do what they need to and to show that I’m looking out for their best interests.” The late Don Soderquist of Walmart explained how appreciation was important in building their company. Soderquist said they initiated YOUR TURN 7:00AM meetings at all locations to share Who did you notice doing something well this highlights and notice best practices of ideas and week? people. ________________________________________ 36% of employees would leave ________________________________________ an organization if they did not Write them a thank you note with specific ways feel appreciated. they've made an impact. (2018 Trust Outlook™) © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed. | 15
TENSION IN DECISION MAKING L eaders who have done well in crisis have learned to make good decisions Another example is hearing about exec- utives who have lost or gained enormous SPECIAL REPORT in the midst of competing options which trust when furloughing their people simply creates tension. It is like the strings of a based on the way they did it. How leaders violin; when they are too tight or too loose, make decisions in the midst of seemingly it sounds terrible. When the strings have true contradictions or tensions can propel the right tension, it sounds great. There are them forward or make them obsolete. many types of tensions in decision-making. For example, we have been taught that the Here are a few tips for dealing with tensions: early bird gets the worm, but also to be q be aware of them patient. Asking “What should I do q learn to ask the right questions now?” is key. q consider the current environment and Possible tensions leaders may need to context for buy-in consider include: q get advice from others. n persevere vs. pivot n take risk vs. stay safe n be patient vs. act now n generalize vs. specialize n seek diversity vs. maintain homogeneity n show value vs. discount n give vs. get n be transparent vs. stay confidential Leaders often work with consultants who teach that there is only one way. But it is how we apply our situation or contextu- alize the tensions that is important. What are some of the tensions you face? For instance, should you pivot or should you persevere? Leaders have won and lost taking either option. Some leaders will not last because they do not persevere or did not persevere long enough. Asking the question: “Which one should I do right now?” is important. 16 | © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed.
THE KEY TO CHANGE C hange is here. It is no surprise that your organization has needed to change and adapt quickly. In many cases gradual change is Leaders should be communicating during change more often than previously thought. While some leaders may feel like they were no longer an option. overdoing it, the feedback is clear: employees respond well and feel included when communi- A clear vision unifies Trust is the key to making change successful. cation is ongoing and frequent. and motivates. Clarity in communication is key to — David Horsager “ sustaining trust during change efforts, whether emergent or gradual. Employees need We over-communicate to understand the reasons they are being asked to people to try and bring to make changes. Consistent, clear communi- cation creates a culture of trust, even amidst people together. It takes change. work to get everybody on “ We do frequent huddles where we get together and the same page. ” — Linda, Regional Administration, education talk about what’s changed, Communication must change to be relevant to the times. Instead of sharing a yearly vision, what’s different, and what’s start by sharing a vision for the week. This inten- coming down the pipeline. ” tional close-range planning helps employees see a realistic approach and further gain trust in — Jack, President, the leadership during times of change. local business organization Jack explains how he established trust by YOUR TURN building communication patterns to allow How can I share the vision more clearly this week? his organization to be nimble. To him, trust ________________________________________ allows him to change rapidly without risking his credibility. His methods establish clear and ________________________________________ consistent lines of communication in order to ________________________________________ reassure people how the changes will benefit ________________________________________ everyone—not just the organization. ________________________________________ 61% of people said not commu- ________________________________________ nicating why change is being made is what most hinders leaders from building trust. (2019 Trust Outlook™) © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed. | 17
INCLUSIVE LEADERSHIP T rust allows inclusive leadership to be successful. Without trust, inclusion is an inauthentic requirement for workplaces which The path toward inclusivity demands an integrity-based mindset. Choosing what is right over what is easy is required to can actually contribute to a lower trust environ- foster inclusive workplaces. As people ment. People can sense insincerity a mile away. with power, leaders must demonstrate that In every interaction, In this challenging year, executives who lead helping others feel a sense of belonging is a we increase or their decision-making and culture efforts with high value to them. A leader’s character sets the decrease trust. humility (character) and with empathy (compas- tone for the organization’s culture. —David Horsager sion), will propel forward. One executive explained how he saw inclusive leadership linked to integrity. He stated, Integrity “We have a diversity course in our internal In the 2020 Trust Outlook™, we shared that professional development programs that helps a diverse perspective leads to higher level develop the kind of people that we think exude thinking and decision making. Adopting an integrity in the work they do.” inclusive mindset may mean making difficult decisions and implementing changes in your organizational culture for the good of It’s Complicated all employees. Leaders need to have strong True inclusive leadership means developing integrity to usher in a better era of diversity and a culture in which people are chosen and inclusion in the workplace. Inclusive leadership valued for their differences and not just as an means sometimes making a more difficult immediate or single response to social unrest. choice, so you lead with integrity. For example, Diversity on its own can be complicated to making the choice to focus more on inclusion to foster and sustain if you have not first created a create clarity and unity will bring gains towards culture of trust. a high trust environment. Many leaders create an “inclusion policy” “ as a response to a lack of diversity in their Integrity is what you organizations. Historically, this has looked like do when you hold all the the creation of non-discrimination policies and hiring quotas. This surface-level approach cards and you still make to diversity does not foster building a trusted the decision that benefits organizational culture. everyone and not just you. —Stewart, Executive Vice President, finance organization ” 85% of people surveyed said diversity is important to a high- performing team. (Trust Outlook™ 2020) 18 | © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed.
In 2020, 85% of people said diversity is Linda knows creating a culture of inclusion is important to a high-performing team (Trust not optional. She shares the following about Outlook™), but over half want to work with the pillar of Competence, “We hold professional people who are similar to them. These numbers development pretty high with regard to are slightly down from the previous two inclusion and diversity because we’re going to years, but this contradiction leads to a deep cease to exist if we don’t stay competent and complexity when striving for equitable work relevant.” environments. As several years of the Trust Outlook™ indicate, YOUR TURN increasing diversity in the workplace can create How can you build trust with people who are tension, despite employees believing diversity different from you? is important. Diversity is generally preferable ________________________________________ in theory, but when it comes to practice, employees do not always know how to value it. ________________________________________ ________________________________________ The workplace is making strides towards inclu- ________________________________________ sive diversity, but this research demonstrates leadership is often struggling with a system that builds trust in the midst of diversity. How can your company ensure that every voice is heard? ________________________________________ Creating an Inclusive Culture Many of the interview participants shared they ________________________________________ have developed an approach to creating a ________________________________________ culture of inclusion. One step in this direction is ________________________________________ to create a common unifying language. ________________________________________ “ ________________________________________ We’re trying to get creative and integrative with our culture programming around diversity and inclusion. —Alaine, director, health organization ” © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed. | 19
VIRTUAL LEADERSHIP I “ You have to be developing t’s inevitable. The future of work will include virtual environments. Some workers love this and some absolutely hate it. To propel forward, your people. Technology leadership must seriously consider adapting moves so fast and there is ” to a new virtual workplace. In 2019, the Trust If you respect people, they will Outlook™ featured a special report about trust no alternative. step up. in technology. In the data from the study, — Andy, CEO, engineering organization —David Horsager respondents shared they do not believe tech- nology increases trust or builds organizations faster, but rather it’s the value of people Help Employees Adapt leading well that builds trust. Despite the benefits of technology, employees are often resistant to the changes tied with Employees may want freedom to work from these advances. The key to help employees home while leaders may believe communi- adapt is for leaders to prioritize clarity and cation, accountability, connection and other consistency. Also, providing resources for efficiencies will get lost. But if you want to hire employees shows commitment to these the right talent, you may need to consider changes. virtual. After moving to virtual, some leaders reported they got more output from employees. The tips we shared in the 2019 Trust Outlook™ Personalities and personal situations come into still hold true in this current cultural shift. As play, just like before, but it is good to keep an with any change effort, the Pillars of clarity, open mind as to how this could fit into your compassion, commitment, and consistency company’s future. A new way of thinking about build a cushion of trust that helps soften the accountability, for example, is to focus on impact of change. specific results as opposed to time in office. This allows employees autonomy but still promotes Clarity clear expectations and results. Instead of focusing on the ambiguity that you cannot control, focus on where you can add TRUST TACTIC: Consider the cost benefit of clarity. The higher the clarity, the lower the virtual work vs. office space. levels of confusion and fear. “ More than ever before leaders are focused on leading with technology rather than allowing To have a healthy culture, technology to lead them. Participants know staying current with technology is essential to you’ve got to be very candid serving clients and to keeping their organiza- with people...and answer tough questions. ” tions relevant. — Dean, Executive, health organization 20 | © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed.
Commitment Consistency Commit to staying true to your mission, The more your company can stay consistent vision, and values despite the changes. When amidst change, the more you will retain and commitments are made and kept, they can grow trust. Alaine, director of a health organi- be one of the greatest catalysts for increasing zation reminds, “Predictability, even in the face and rebuilding trust. Wes, Senior Vice President of disruption shows that we follow through on of a technology company shares,“I always things. We do what we say we’re going to do.” assure employees that they are safe and stable, assuming that we’re all on the same side and going in the same direction.” YOUR TURN What is one tool you could use to make virtual Compassion teams more effective AND connected? Express empathy with those who are fearful ________________________________________ or skeptical of your organization’s evolution. ________________________________________ Start conversations with care, compassion and personal connection. ________________________________________ ________________________________________ “ I think that trust exists between the company and ________________________________________ ________________________________________ employees here based on a ________________________________________ willingness on both sides to admit that we’re not all perfect. We’re humble about it...and we don’t dwell on mistakes. — Matthew, Vice President, engineering organization ” © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed. | 21
BEYOND THE WORKPLACE C haracter is shown in leadership by having an awareness of what employees might be facing outside work, even if unspoken. Building Trust at Home When the study for the 2020 Trust Outlook™ was conducted, families connected a lack of quality Compassion comes from understanding. time to a lack of trust. Connection grows with a whole-person It’s the little things perspective on your employees. done consistently Technology is a leading factor contributing that make the to this breakdown in quality time. However, a biggest difference. Employees are also parents, partners, teachers, recent article from the Pew Research Center in caretakers, and innovators, but in these times, —David Horsager June of 2020 stated that changes of our overall perhaps they might also be feeling isolated. usage of technology is neither degrading nor Home might be the place where trust is most generating social order, but rather is simply a challenged under our current circumstances. tool.4 Technology is a major factor in our lives, Employees who are in less secure environments but it can be helpful or harmful. For example, may face challenges receiving and giving trust. technology can increase focus and efficiency, A start to building trust with employees could but it can also create distractions and wasted be to simply ask, “What is your environment time. Trust increases faster meeting face to face. like?” If they have a family, “How is your family?” However, when in-person meetings aren’t an The key to this communication is context. option, technology offers a way to still connect. Leaders show care by asking about personal situations in a way that helps the One key factor from the 2020 Trust Outlook™ employee. still holds true for trust in the home: quality time together only happens when the quantity “ We had one-on-ones of time increases. The difference today is although the quantity of time people share in where we laced the business their homes has increased, they are often facing and personal stuff so that we different adversities than they were only a year ago. These new challenges can make the quality can see where their priorities component of this formula more complex. were together. If I ask them, what’s your top priority, and 47% of Americans said a lack of quality time is what inhibits trust they don’t answer family first, ” in families. (2020 Trust OutlookTM) I think it’s a real problem. — Wes, Senior Vice President, technology company 22 | © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed.
It is not your job as a leader to solve the riddle One leader shared he felt like attendance of what quality time means in your employees’ policies dehumanize the employee/employer homes. However, it is your job to be aware relationship. He believes, “You’re going to be in a their homes might not look like they situation where you’re going to miss some work once did, which may be disruptive and or you’re going to have a bad attitude because possibly affect their work. something happened at home, and it’s really got you upset.” He emphasized the importance “ of understanding and acknowledging the How does our employees’ impact of employees’ emotions and situations. time with us impact their family life, their home life, you YOUR TURN know, things outside of work? How can we systematize regularly and genuinely We really want to make sure checking in on employees' wellbeing? that they feel better about ________________________________________ ________________________________________ themselves at the end of ________________________________________ the day than when they ” ________________________________________ came in. ________________________________________ — Corrine, Vice President, retail corporation There may be generational differences in what “home” looks like as well. For example, millennials are much less likely to live with a family of their own than previous generations. Pew Research Center stated that only three out of ten Millennials live with a spouse and child of their own. With the fresh and innovative way Millennials are doing life, some of our old policies and expectations seem antiquated to them. © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed. | 23
EMPLOYEES WEIGH-IN E mployees also shared their perspec- tives on how trust is impacted by What Matters to Employees The following questions were asked of SPECIAL REPORT certain factors during this uncertain employees to determine the importance time. In early August 2020, we surveyed of various factors when establishing trust over 1,000 employees from several with their leadership. As you can see, major industries. We asked them about throughout all of the change and uncer- what matters to them as they establish tainty, the principles behind The 8 Pillars of and maintain trust with their leadership Trust™ remain consistent and reliable. and how they know they can trust their leaders in unstable times. How important are the following for Here are some of the highlights: trusting your organization’s leadership? n 82% of employees believe that work- They own and fix mistakes if they 88% life has changed forever, but only 69% make them. (Commitment Pillar) believe that it has changed for the They handle conflict with 87% better. patience. (Compassion Pillar) n 36% of employees say they are not They believe in supporting the 86% always able to handle situations well-being of their employees. that are unclear. About the same (Compassion Pillar) percentage are not enthusiastic about They manage difficult times with 86% new ways of doing things. Essentially, positivity. (Character Pillar) this means over a third of your employees may be feeling unstable They create a safe and inclusive 86% and removed because of the ongoing environment for all people. uncertainty. (Compassion Pillar) They allow me the space to do 86% n The majority (52%) of survey respon- what I need to do without micro- dents say leadership should be aware managing. (Competency Pillar) of employee morale and workplace culture. They do what they say they’re 85% going to do. (Commitment Pillar) n 42% say the biggest reason that They are open with me and share 85% leaders in their organization misunder- what’s going on in the organiza- stand problems is because they do not tion. (Clarity Pillar) listen to employees’ concerns. They encourage me to be flexible 77% with my time and location for work. (Compassion Pillar) They clearly take an interest in me 77% as a person. (Connection Pillar) 24 | © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed.
NINE TIPS FOR TOUGH TIMES T here are effective ways to build trust during a conflicted and difficult time of change. The following list of behaviors from the Trust Edge 7. Seek wisdom. You are not alone. People have gone before you and have likely faced crisis and chal- Leadership Institute are musts during times of lenge. Seek them out and learn what you crisis: can. If you're doing 1. Take an active approach. 8. Think long and short term. leadership alone, Be present and make decisions before they Be present with what is happening and you're doing it need to be made. wrong. make efforts to address those things, but also be aware of the future ramifications of —David Horsager 2. Deal with tension. your actions. Don’t make a policy or practice Treat tension like an opportunity to address you will have to undo later when conditions things that may be underlying in your have changed again. organization’s culture. 9. Cultivate SEEDS. 3. Lead with compassion. Sleep, Eat right, Exercise, Drink water, Seek a Lead with an open heart and a human Source of Strength beyond yourself. presence. Make an effort to understand where people are coming from. 4. Define one priority. When everything feels like the most important thing, choose one to focus on in Readers of The Trust Outlook 2021TM order to alleviate overwhelming conditions. receive FREE access to watch the 5. Over-communicate. “Building Trust In Crisis” webinar! When you’ve said it 100 times, say it again. Simply go to www.youtube.com/ Leaders need to communicate the next thing watch?v=PiqYnAX34eM more than they think they do. 6. Over-connect. It may seem invasive, but trust comes from a true connection with people. Be with them, not just near them. © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed. | 25
THE 8 PILLARS OF TRUST CLARITY: People trust the clear and mistrust the ambiguous. Clarity unifies, motivates, increases morale, and inspires trust. Clear communication leads to trusted colleagues, happy employees, and satisfied customers. COMPASSION: People put faith in those who care beyond themselves. Caring leads to trust. Think beyond yourself and put people before things to improve relationships. CHARACTER: People notice those who do what is right over what is easy. Building integrity takes work but gives the biggest reward. Always ask yourself, “Is this the right thing?” COMPETENCY: People have confidence in those who stay fresh, relevant, and capable. Stretch your mind with new ideas, fresh thoughts, and different perspectives. Find a circle of professionals with whom you can grow and find a mentor who is successful or wise in the same ways you would like to be. COMMITMENT: People believe in those who stand through adversity. In this instance, actions definitely speak louder than words. So if you say something matters to you, be prepared to show it to the people whose trust you want. It can mean demonstrating tenacity and stubbornness and making it clear you will see things through to the end. CONNECTION: People want to follow, buy from, and be around friends. Engage your staff and collaborate. Ask questions, not only of your employees but your customers, and be sure to listen to and deliberate over their answers. CONTRIBUTION: People immediately respond to results. Give your attention, resources, time, opportunity, and talent. Ultimately, you must deliver results in order to be trusted. CONSISTENCY: People love to see the little things done consistently. The track record of trust is built over time; there is no other way to lasting success. Deliver the same quality of results every time, and you will maintain trust. 26 | © MMXXI Trust Edge Leadership Institute. All rights reserved. Media usage allowed.
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