Top 3 Rules for Building a Trusting Team Culture Worldwide

Tips to Address the #1 Hurdle Facing Multinational Organizations Today

At a recent CEO roundtable I organized, top executives at multinational companies identified a common issue: the difficulty of building a trustworthy team culture. This challenge arises partly due to the diverse values and backgrounds of team members, especially when expanding to different countries.

For example, in China, there is often a divide between overseas returnees and local talent. Research by psychologist Ron Friedman, published in the Harvard Business Review, also highlights the issue of trust between teammates.

Some leaders may let their team members decide on new hires, thinking it increases unity and trust. However, this can backfire, as it may reduce diversity and stifle creativity.

So, how do you increase team diversity while building a trusting and collaborative culture in your organization?

Based on my 20 years of experience managing and training diverse teams, here are three rules of thumb for building a trusting team culture in multinational companies.

Rule #1: Appoint a Trusted Leader

Leaders at every level are critical to building culture. If you are a trusted leader, your team is more likely to build a culture of trust. When disputes arise, a trusted leader is the one both sides will look to for mediation.

A common pitfall is to appoint a leader who can bring in good client resources or initially earn the trust of the CEO and employees but fails to maintain that trust over time. Such leaders may be good for the organization in the short term, but in the long term, a flawed culture can lead to higher turnover and loss of good talent, resulting in worse outcomes for the organization.

Rule #2: Great Leaders Inspire More Trust in Teams

The ability to build trust is paramount for any top leader, especially in today's world of change and uncertainty. Unreasonable and constant doubt undermines team morale and performance, even more so for remote workers.

Trust does not just happen. Leaders must first demonstrate trust to inspire more trust in people. Patrick Lencioni, in The Five Dysfunctions of a Team, emphasizes that leaders must demonstrate vulnerability and openness to create the kind of trusting culture that allows team members to open up.

Great leaders know how to manage differences with objectivity and maintain a high-trust work environment. This enables the team to work closely together, take more risks, and adapt quickly to change.

Rule #3: Transparency Builds Fairness and Trust

When company rules are followed by everyone, with no hidden exceptions, a fair and trustworthy culture develops. Transparency increases the efficiency of information sharing, which is critical to improving the overall psychological safety of the team. In such an environment, people are more likely to contribute their best to the team's common goal.

Transparency isn't just about company posts, news, or team-building activities. It also includes the decision-making process on key strategies or tactics that affect team members. Avoid only listening to middle managers and include frontline workers who are directly involved in day-to-day execution.

Low transparency breeds hearsay and conspiracy, which are detrimental to the healthy development of any organization.

Conclusion

Building a trusting team culture is not a short-term endeavor. A great leader can inspire people to be open to individual differences, which is key to improving team diversity while fostering trust among team members. Transparency and fairness create a lasting, shared understanding among team members and a higher level of psychological safety, essential for better group performance and the future of any organization.