Winning back trust to navigate disruption

I recently co-hosted a panel discussion at the UK Institute of Directors with some forward-thinking business leaders on how, against a backdrop of growing disruption, companies can regain the public’s trust. We had a wide-ranging debate, discussing how businesses can dare to change the rules, building trust over the long term, and letting trust flow from good decision-making underpinned by integrity. I was especially struck by how strongly the business leaders sitting around the table all agreed that disruption is a reality and it is here today.

Disruption is already here

One of the most disruptive products I’ve seen in recent years is the driverless car. Many of these cars aren’t produced by traditional automotive manufacturers; they’re created by the companies that brought us internet search engines, by technology heavyweights and energy businesses, and they’re out there now. When I was driving to a client meeting in San Francisco in November, I counted four satellite-controlled cars during a 30-minute journey.

The traditional automotive industry is being challenged by competitors that weren’t on their radar even five years ago. New mobility solutions are redefining what it means to drive, what a car is and what it can be used for. Previously it was a means of getting from A to B. Now a car can also be a mobile office, an entertainment centre, a data hub – pretty much whatever you want it to be. It took technology and someone with the vision to change the rules. The point is, it could be you, it could be your competitor or it could be someone with no current links to your industry at all. Disruption is with us now and is only going to grow.

Trust: the long-term result of good business decisions?

During the roundtable I was also struck by how strongly the concept of trust resonated – its links to reputation, opportunities to build it during crises, the need for it to underpin business growth over the long haul.

I believe that trusted companies whose business model balances the needs of the financial against other stakeholders will be best positioned to take advantage of disruption. Short-termism and a blinkered pursuit for profits above all else benefits no one. Businesses that earn the trust of stakeholders – not just investors but consumers, staff, suppliers, the communities and even the governments of the countries and regions in which they operate – will be the winners in the revolution that disruption is bringing.

How can diversity help?

At EY, we believe that accelerating women’s development is an economic imperative. It creates higher growth, increased prosperity and stronger communities. Even companies with only one female board director perform better than those with none.

We all know that businesses should reflect the communities in which they operate. Diversity of gender, ethnicity, sexual orientation, backgrounds, experiences and age – it is all indispensable in driving innovation and improving decision-making. We need to make it a priority if we are to seize the opportunities of disruption. Our research shows that business leaders agree: diversity of thought and experience is key to navigating disruption.

If companies can capture the variety of experience and insight that true diversity brings, they can make decisions that reflect the needs of all stakeholders. This will lead to better business decisions and new directions, which will lead to greater trust and sources of competitive advantage.

Harnessing the power of trust to navigate disruption

All revolutions produce winners and losers. Trust will be key in determining who the winners are.

Share your thoughts: Talk to me here or find me on Twitter @AlisonKayEY

Read the full report of the debate in this month’s Director magazine here.