The terrible legacy of the destruction of trust

The story so far

We are reminded again of the devastating impact of the loss of trust, as the repercussions of its loss at PwC continue to reverberate throughout the firm and the entire professional services industry. Over a year since the scandal at PwC came to light, the big four professional services firms have continued to shed staff– recently announced were the loss of 366 positions at PwC, 700 at Deloitte, 100 at E.Y., 200 at KPMG. – almost all were in financial and consulting services, with the majority due to reduction in Government work.

Generations of leaders at PwC had not only built trust interpersonally, but also built trust in the brand. Trust in the firm had become a distinctive asset in their strategic mix, so much so, that it had been embedded in the firm’s stated purpose of “building trust in society”. It was deployed as a business development tool but also a team engagement tool and was a prime lever for talent attraction and retention.

The ultimate betrayal of trust

Trust is a critical factor in all human relationships. It is a powerful, but fragile construct – it takes time to build, but little time to lose. Relationships depend on trust and the deeper the relationship, the greater the trust involved. People in any relationship will never be open more than the level of trust established between them.

This wasn’t a little loss of trust. It was monumental and involved a betrayal of all that had been built. it involved partners from PwC using confidential information gained from work with the government in an attempt to assist multi-national organisations to avoid tax. Small betrayals of trust can with sincerity and humility be remedied and with authenticity and care relationships can be rebuilt and trust replenished.

What we have seen is that a betrayal at this level has profound implications – not simply for those directly involved, nor even for the organization itself, but the ripples extend to the entire industry and can be felt, as was the case here, at global reaches of an industry. The message is that if the players within the industry don’t self-regulate, they will instead be regulated and the subsequent collateral damage may consume all within.

The catastrophic failure of leadership

?I assume that none of the leaders at PwC deliberately set out to destroy the firm’s reputation and undermine an industry that had served them all so well. I presume that devastation was not their intent and destruction was not the legacy they intended to leave. So, what was it that motivated them to elevate profit over purpose? Was it simply greed or collective hubris that blinded them to the nature of trust and its true fragility? Or were they simply blinded by the size of the glittering prize and their own web of self-interest?

What if they had taken seriously their legacy as senior leaders of the firm and considered those at lower levels who looked up to them to create a better future for all. Could they have paused for a moment to consider their obligations to a community which in better times they would have wished to serve and an industry that had provided so much, that they would have wished to preserve?

Your presence in your absence

Legacy is not something you save up for the day you retire, it is more importantly your impact on people over time. It is the example you set and the role model you provide through daily interactions and it is the way people are supported to bring their best to what they do. Ultimately, this is where small things, every day, really matter.

After a long career our most important legacy may well be the example we have left in the hearts and minds of others we have touched and the human spirit that has been nurtured and can never be diminished. Senior leaders can step into their most important role yet, as they ensure that their legacy is one that shines and endures.

Now is the time to reimagine what legacy means, and could mean, in the sustainability story of people, their workplaces and the communities in which they live. Too many senior experienced leaders still drift quietly to retirement; their experience, wisdom and talent wasted. The first principle of legacy is “do no harm”. After that they can bring their best to what they do and leave things in better shape by developing next generation leaders.