High Trust Organizations: Product of Trustworthy Leaders

It's as clear as the mathematical equation 2+2=4. High-trust organizations are the product of trustworthy leaders and low-trust organizations are the product of low-trust leaders.

High-Trust Leaders = High-Trust Organizations

Low-Trust Leaders = Low-Trust Organizations

In his book Expand the Circle, Matt Poepsel, PhD highlights the significant impact of trust:

"Workers in high-trust companies were found to have 75 percent less stress and 50 percent higher productivity than those in low-trust organizations. High-trust workers also had ore energy, fewer sick days, higher levels of engagement, and more life satisfaction overall. High-trust companies were also found to outperform their competitors by 186 percent as compared to low-trust laggards. When embraced by leaders, trust can become a significant competitive differentiator."

The increased productivity and success of an organization hinges on earning the trust of its workforce. Everything a business owner wants from their business can only be achieved by earning the trust of their employees. Conversely, the frustrations experienced by business owners often stem from their employees' lack of trust in them or their appointed leaders.

Organizational Trust is the Product of Trustworthy Leaders

Every leader, regardless of their position – whether they're the business owner, operator, general manager, executive, director, manager, or team lead – has the power to take specific actions to earn and uphold the trust of their employees or teams. I strongly advise you to to be intentional about earning trust. Earning the trust of your team will have a greater return on investment than nearly any other initiative or endeavor you pursue.

Below are some mindsets and actions you can adopt to earn and maintain trust:

1. View your employees or team members as humans. Viewing your employees or team members as humans may seem like a simplistic mindset statement, but it poses a challenge to high-producing leaders, analytical thinkers, and profit-driven owners or executives. It's easy for employees to become mere cogs in the machinery of productivity, metrics, or profits. In such cases, and often without even realizing the shift in mindset, employees are reduced to labor hours or percentages, stripped of their humanity in decision-making processes. Leaders must be deliberate in prioritizing the humanity of their employees, keeping it at the forefront of their minds and decisions. Every decision made impacts real people with bills to pay and families to support. They are not just numbers on a labor report or resources to be optimized; they are individuals who have entrusted their well-being to you as their leader. By remembering the humanity of your employees, you will naturally make decisions that earn their trust. Conversely, forgetting this fundamental aspect risks eroding their trust in you as a leader. This mindset is exemplified by actions such as The Container Store CEO Satish Malhotra's decision to take a 10% pay cut to cover staff salaries during a revenue downturn in September 2023. Likewise, during the COVID-19 crisis, CEOs of major corporations like Marriott, Best Buy, and Under Armour demonstrated their commitment to their employees by taking significant pay cuts: Marriott's CEO took a 100% pay cut, Best Buy's CEO took a 50% pay cut, and Under Armour's CEO took a 25% pay cut. When you remember the humanity of your employees, you will make decisions that earn their trust. When you earn their trust you will gain their loyalty and productivity. These actions not only foster a culture of trust and mutual respect but also strengthen the bond between leaders and their employees, leading to greater collaboration and success for the organization as a whole.
2. Open and clear communication is foundational to building trust within an organization. In fact, the absence of communication or even poor communication will always breed distrust. I've used the absolute term "always" deliberately, if leaders fail to communicate, they can be certain their employees will not trust them. Consider the following examples drawn from real conversations I've had with employees and leaders. Names and locations have been changed to protect the innocent (though a little embarrassment for the guilty might help - I'm joking - kinda). Jasmine, from San Antonio, walked into work one morning to discover a new process for serving certain customers was now being used. She was provided with minimal guidance and feeling confused and uninformed throughout her shift. Consequently, Jasmine found herself in the difficult position of explaining unfamiliar processes to frustrated customers, leading to her own anger, frustration, and contemplation of resignation. The leaders and the organization lost her trust. Similarly, Joey, an operations executive in Washington, D.C., returned from a day off to discover significant changes. As he walked into the building he immediately noticed resources had been relocated and a process was completely different. Rather than admitting his lack of awareness to his team, Joey attempted to adapt to the changes independently. He was struggling to learn how to work within his own operation. It wasn't until the end of the day that he learned senior leaders had imposed these changes without any prior communication. The lack of communication left him feeling betrayed and disrespected, Joey's trust in the organization was gone. While communication may seem straightforward, it's often overlooked in the fast-paced world of business. Unfortunately, many business leaders are excusing their poor communication using the immediacy of business needs as their excuse. However, in doing so, they are not only loosing the trust of the employees but they are also sabotaging their ability to meet business needs. To enhance communication, leaders should adopt the following principles: Over-communication: Leaders should strive to communicate until they feel they are over-communicating, ensuring that information is communicated clearly and comprehensively. Communication Strategy for Changes: Implement a structured communication strategy for organizational changes, outlining expectations, rationale, time frame, and key performance indicators. Transparency: Avoid blindsiding employees by providing advance notice of system changes, scheduling, operational goals, etc... This prevents employees from feeling unprepared, insecure, and frustrated.
3. Request Feedback. Requesting feedback from your employees puts you on a fast-track to earning their trust. When you ask for feedback, you validate their experiences, perspectives, and work, signaling that you value their input and trust their judgment. This creates a reciprocal trust that strengthens the bond between you and your team members, fostering an organizational culture of trust. When you request feedback from your employees you are communicating your trust in them. Conversely, not requesting feedback from your employees communicates your failure to trust them. Trust your employees in order for them to trust you. As an Executive within a Chick-fil-A franchise, I've found that strategic and intentional feedback requests have been instrumental in earning the trust of my team. Here are some effective feedback request strategies I've implemented: One-on-one conversations: I regularly have informal conversations asking the employees how they are doing, if there is an area they need clarity, and if there is something they have noticed we can do better. Monthly Post-Shift Surveys: Each month, I personally reach out to every employee, expressing my genuine interest in their experiences and inviting them to complete a brief survey. These templated messages can be scheduled in advance, ensuring consistent communication. New Hire Experience: On the day of their new hire orientation, I send a personalized message to each new team member, extending a warm welcome and emphasizing the importance of their feedback in shaping our organization's culture and processes. My purpose is to welcome them and quickly establish a culture a feedback culture as I seek their thoughts about our hiring and orientation process. Semi-Annual Feedback Request: Twice a year I request the feedback of our entire organization. This serves as an opportunity to communicate their experience and any improvement suggestions about our processes, systems, or procedures.

I hope you will put focused attention on these three mindsets and actions. Doing so will have a tremendous impact on your leadership and the organization itself. When you earn trust you can lead. Without trust you are not actually leading. You may be managing or bossing - but you are not leading.

The impact within the organization will be felt fairly quickly. Productivity, attendance, retention, passion, ownership, engagement, alignment, and customer service will elevate.

I leave you with the organizational trust equation:

High-Trust Leaders = High-Trust Organizations

Low-Trust Leaders = Low-Trust Organizations

Peter Lopez III | Elevated Leadership Blog | Published at ElevatedLeadership.com