The Silent Threat: Lack of Trust in Business

When was the last time you considered how trust impacts your business?

As we get caught up in the daily grind of metrics, stats, and deadlines, we often miss the simple truth: business relies on people, and people rely on trust.

Entire business models are built on the intangible assumption of trust—trust we expect customers to have. Just look at Airbnb or Uber. We let complete strangers into our homes and cars because we assume trust is a given.

But what happens when that trust falters? The whole system slows down, or worse, collapses.

"Trust always affects two outcomes - speed and cost. When trust goes down, speed will also go down and costs will go up. When trust goes up, speed will also go up and costs will go down. It's that simple, that real, that predictable. Once you really understand the hard, measurable economics of trust, it's like putting on a new pair of glasses. Everywhere you look, you can see the impact - at work, at home, in every relationship, in every effort. You can begin to see the incredible difference high-trust relationships can make in every dimension of life." -Stephen. M. R. Covey

This is the central idea in the book, The Speed of Trust, by Stephen. M. R. Covey (that's Stephen M. Covey's son for anyone confused).

When there's trust, things move faster, decisions are easier, and people are more willing to take calculated risks.

Without it, you're stuck navigating the lengthy, costly, and mind-numbing bureaucratic process of our world.

Trust is the Sum of Two Key Elements: Character + Competence

"We judge ourselves by our intentions and others by their behavior." - Stephen. M. R. Covey

When we look at how trust is built and maintained we have to start at the core: Our Self Trust.

When you cultivate Self-Trust, it naturally extends outward, creating a powerful ripple effect in your relationships and business.

Confidence = Trust

Suspicious = No trust

Trust is built on two pillars:

Character is all about integrity, credibility, and doing what you say you're going to do. Without character, nothing else matters. You could be the most skilled person in the room, but if people can't trust your word, they'll never fully buy into your vision.

Competence is about capability and results. It’s the proof that you can deliver. Competence reassures people that not only do you have good intentions, but you also have the skills and experience to back them up.

Take, for example, the merger between Berkshire Hathaway and Walmart.

A deal of that magnitude usually takes months, even years, of negotiations and due diligence.

But because of the immense trust between the parties—built on years of credible, consistent actions—the deal was done within weeks.

The time they saved through mutual trust could now be spent on making their shared vision a reality. Fun, right?

The Power of Trust in Leadership

Let’s bring this closer to home. I’ve seen people willing to run through walls for PBD in all of his companies, and there’s a reason for that.

It’s not just because of his charisma or leadership style, although those are factors. It's because they trust him.

They trust his character. PBD is a family man, a husband, a father, and someone who always does what he says he will do. He’s honest and straightforward, and his values are clear to everyone around him.

But they also trust his competence. His track record speaks for itself. He has built, scaled, and led successful businesses, and his reputation for delivering results is rock solid.

This combination of character and competence creates an environment where trust is a given, not a question.

So, if you want to accelerate your business, focus on building trust. Start with yourself.

Grade yourself 1-10 in each category.

Are you a person of character?

Do you deliver on your promises?

And do you have the competence to back it up?

Thank you for reading!

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