Stephen Covey: trust is the new currency, here's how to build it or restore it

Longtime business educator, author and speaker Stephen M.R. Covey can pack many lessons and inspiration in an hour at lunchtime. He spoke today about concepts from his book, "The Speed of Trust -- the One Thing that Changes Everything", at a program sponsored by Execunet.

For individuals and organizations, he said, building trust is critical. "Trust makes markets work, trust makes relationships work, and trust makes the world go round in a global economy," he said in his introduction. "Trust is indispensable; we're operating in a reputation economy, and trust is going down."

In his rapid delivery, Covey described five waves of trust with a ripple effect that starts with 1) ourselves, then 2) our relationships, 3) organizational trust or culture, 3) market trust or reputation, and 5) societal trust based on your individual or organization's contribution. "We have to give to get, it begins with our behaviors, then how are we aligned in the organization with others," he said.

He outlined three "big ideas":

1. Trust is an economic driver that is quantifiable and measurable. Trust is a common attribute for those on Fortune's "Best Companies to Work For" list, and high trust companies outperform low trust organizations by 3x. Trust is essential in personal and business relationships.
2. Since leaders have the ability to create trust, trust is the number one leadership competency and impacts all other competencies.Trust leverages our differences and encourages risk taking and fosters a culture of learning. Low trust acts like a tax, slowing an organization's productivity and increasing its costs, while high trust pays dividends . "The speed of trust is extraordinary," he said. "Trust brings energy, fun and passion."
3. Trust is a skill we can learn, outlining 13 behaviors of successful leaders who build effective teams. Behaviors require character and competence, and he said, character and competence combined inspire confidence and trust. "We build trust from the inside out on purpose. Trust builds groups into high-performing teams that are agile, collaborative, innovative and engaged," he said. "Trust flows from credibility and behaviors."

Covey defined "four cores of credibility" -- integrity, intent, capabilities and a track record of results -- and encouraged participants to focus on one or two to make an impact. Using a tree analogy, he said integrity makes up the roots, your intent is the trunk, capabilities are the branches that grow, and results become the fruit.

Leaders demonstrate integrity when they communicate openly, stand for something, and keep their commitments. Covey described intent as showing genuine care and concern for others and working toward mutual benefit. He challenged leaders to ask hard questions, examine their motives and declare their intent. Using the acronym TASKS, he said capabilities comprise a person's talents, attitudes, skills, knowledge and style, or personality. Finally, the leader plays a role in supporting others to achieve results and discussed the importance of owning and communicating results (good or bad) to sustain performance.

Among the 13 behaviors to build trust, Covey highlighted honesty as first and foremost ("talk straight and be understood"), treat everyone with respect; make things right when they're wrong, show loyalty, deliver results, and constantly learn and get better.

When trust exists, information is shared freely, mistakes are learning opportunities, and people confront real issues, share credit and celebrate successes. There's a high degree of accountability and a culture of innovation and growth

In conclusion, he said leaders must take risks, extend trust and inspire trust to make a difference. "Start with yourself and then focus on others," he said. "Trust can be created, built and restored when broken. You must have a propensity to trust and others will respond."

Not to be confused, Stephen R. Covey, shown below, the father and author of the The Seven Habits of Effective People that sold 25+ million copies in 40 languages around the world, died in 2012.

Execunet provides career coaching and professional development. Learn more at www.speedoftrust.com or www.franklincovey.com.