The Speed of Trust.pdf

Concentrated Knowledge™ for the Busy Executive • www.summary.com

Vol. 28, No. 11 (3 parts), Part 1, November 2006 • Order # 28-26

The One Thing That Changes Everything

THE SPEED

OF TRUST

THE SUMMARY IN BRIEF

There is one thing that is common to every individual, relationship,

team, family, organization, nation, economy and civilization throughout the

world — one thing which, if removed, will destroy the most powerful gov-

ernment, the most successful business, the most thriving economy, the most

influential leadership, the greatest friendship, the strongest character, the

deepest love.

On the other hand, if developed and leveraged, that one thing has the

potential to create unparalleled success and prosperity in every dimension

of life.

That one thing is trust.

The Five Waves of Trust model serves as a metaphor for how trust

operates in our lives. This summary will cover these forms as the structure

for understanding and making trust actionable, including a look at the

Four Cores of credibility and the 13 Behaviors of high-trust leaders.

The summary concludes with a section on restoring lost trust on the

societal, market, organizational, relationship and personal level.

In all cases, the Four Cores and 13 Behaviors provide powerful

restoration models.

What you will learn in this summary:

By Stephen M. R. Covey with

Rebecca Merrill

CONTENTS

Nothing Is as Fast as the

Speed of Trust

Pages 2, 3

Myth vs. Reality

Page 2

You Can Do Something

About This!

Page 3

The First Wave: Self-Trust

Pages 3, 4

The Second Wave:

Relationship Trust

Pages 5, 6

Stakeholder Trust: The

Third, Fourth and Fifth

Waves

Pages 6, 7

eBay Creates Transparency

Page 6

Inspiring Trust

Pages 7, 8

Smart Trust™ Matrix

Page 7

✓

The economics of trust and its effects on speed and cost in relation-

ships and organizations.

✓

How you can assess your credibility based on character and

competence.

✓

The 13 Behaviors common in people with high-trust relationships.

✓

The taxes and dividends that flow from organizational trust.

✓

How micro trust issues in the self and in relationships flow outward

to affect market reputation and societal contribution.

✓

How to be an effective leader by inspiring and extending trust.

✓

How to restore lost trust.

Published by Soundview Executive Book Summaries, P.O. Box 1053, Concordville, PA 19331 USA

THE SPEED OF TRUST

By Stephen M.R. Covey with Rebecca Merrill

— THE COMPLETE SUMMARY

Nothing Is as Fast as the

Speed of Trust

Simply put, trust means confidence . The opposite of

trust — distrust — is suspicion .

The difference between a high- and low-trust relation-

ship is palpable. Take communication. In a high-trust

relationship, you can say the wrong thing and people

will still get your meaning. In a low-trust relationship,

you can be very measured, even precise, and they’ll still

misinterpret you.

You don’t need to look far to realize that, as a global

society, we have a crisis of trust on our hands. On the

organizational level, trust within companies has sharply

declined. But relationships of all kinds are built on and

sustained by trust. They can also be broken down and

destroyed by a lack of trust.

Society, organizations and relationships aside, there’s

an even more fundamental and powerful dimension to

self-trust. If we can’t trust ourselves, we’ll have a hard

time trusting others. Personal incongruence is often the

source of our suspicions of others.

Truly, we are in a crisis of trust. It affects us on all

levels — societal, institutional, organizational, relational

and personal.

Economics of Trust

Trust always affects two outcomes: speed and cost .

When trust goes down, speed goes down and cost goes

up. Consider the time and cost of airport security after

9/11, or costs for Sarbanes-Oxley Act compliance,

passed in the U.S. in response to Enron, WorldCom and

other corporate scandals.

When trust goes up, speed goes up and cost goes

down. Warren Buffett completed the acquisition of

McLane Distribution from Wal-Mart on the basis of a

two-hour meeting. Because of high trust between the

parties, the merger took less than a month and avoided

the usual months and millions for due diligence and

attorneys.

Myth vs. Reality

Myth

Reality

Trust is soft.

Trust is hard, real and

quantifiable. It

measurably affects

both speed and cost.

Trust is slow.

Nothing is as fast as

the speed of trust.

(continued on page 3)

Trust is built solely

Trust is a function of

The authors: Stephen M. R. Covey is co-founder and

CEO of CoveyLink Worldwide. A sought-after and com-

pelling keynote speaker, author and advisor, Covey

addresses audiences around the world on issues such as

trust, leadership, ethics and high-performance.

Rebecca R. Merrill is an accomplished writer. She is

co-author with Stephen R. Covey and Roger Merrill of

The New York Times bestseller First Things First and co-

author with Roger Merrill of Life Matters and

Connections .

The Speed of Trust by Stephen M.R. Covey with

Schuster, Inc. Summarized by permission of the publish-

er, 384 pages, $26.00. ISBN 0-7432-9730-1.

Book Summaries. www.summary.com, 1-800-SUMMA-

RY,1-610-558-9495.

on integrity.

both character and

competence.

You either have trust

Trust can be both

or you don’t.

created and destroyed.

Once lost, trust

Though difficult, in

cannot be restored.

most cases lost trust

can be restored.

You can’t teach trust.

Trust can be effectively

taught and learned, and

it can become a

leverageable, strategic

advantage.

Trusting people

Not trusting people is

is too risky.

a greater risk.

You establish trust

Establishing trust

one person at a time.

with the one establishes

trust with the many.

For additional information on the author,

go to: http://my.summary.com

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G REER M C P HADEN – Contributing Editor

D EBRA A. D E P RINZIO – Senior Graphic Designer

L INDA G ROSS – Editor in Chief

R EBECCA S. C LEMENT – Publisher

Soundview Executive Book Summaries ®

The Speed of Trust — SUMMARY

Nothing Is as Fast as the Speed of Trust

(continued from page 2)

reduce the words to their essence, what emerges is a

balancing of character and competence.

The Five Waves of Trust

Your boss, division leader, CEO, board of directors,

spouse, children, friends and associates may all have

problems as far as trust (or anything else) is concerned.

But that does not mean that you are powerless! In

fact, you probably have no idea how powerful you can

be in changing the level of trust in any relationship if

you know how to work “from the inside out.”

The key is in understanding and learning how to navi-

gate “The Five Waves of Trust.” This model derives

from the “ripple effect” metaphor that graphically illus-

trates the interdependent nature of trust and how it flows

from the inside out.

It defines the five levels, or contexts, in which we

establish trust. It also forms the structure for under-

standing and making trust actionable.

First Wave: Self Trust. The key principle underlying

this wave is credibility.

Second Wave: Relationship Trust. The key principle

underlying this wave is consistent behavior.

Third Wave: Organizational Trust. The key princi-

ple underlying this wave, alignment, helps leaders create

structures, systems and symbols of organizational trust.

Fourth Wave: Market Trust. The underlying princi-

ple behind this wave is reputation.

Fifth Wave: Societal Trust. The principle underlying

this wave is contribution.

Understanding these waves will enable you to see,

speak and behave in ways that establish trust, allowing

you to become a leader who gets results by inspiring

trust in others.

The serious practical impact of the economics of trust

is that we are paying a hidden low-trust tax right off the

top — and we don’t even know it!

You’ve undoubtedly seen this tax in action many

times — perhaps in a conversation where you can tell

that someone is automatically discounting everything

you say by 20 percent, 30 percent or even more. In

some situations, you may have paid an “inheritance tax”

when you’ve stepped into a role that was occupied by

someone who created distrust before you.

Just as the tax created by low trust is real, measurable

and extremely high, so the dividends of high trust are

also real, quantifiable and incredibly high.

Whether it’s high or low, trust is the “hidden variable”

in the formula for organizational success. The tradition-

al business formula is:

(Strategy x Execution = Results) .

But there is a hidden variable:

(Strategy x Execution) x Trust = Results .

A company can have an excellent strategy and a

strong ability to execute; but the net result can be torpe-

doed by a low-trust tax or multiplied by a high-trust div-

idend. This makes a powerful business case for trust,

assuring that it is not a soft, “nice to have” quality.

One of the reasons this hidden variable is so signifi-

cant in today’s world is that we have entered a global,

knowledge worker economy that revolves around part-

nering and relationships. The ability to establish, grow,

extend and restore trust with all stakeholders — cus-

tomers, suppliers and co-workers — is the key leader-

ship competency of the new, global economy.

■

You Can Do Something

About This!

Who do you trust? A friend? A work associate? Your

boss? Why do you trust this person? What is it that

inspires confidence in this particular relationship?

Now consider an even more provocative question:

Who trusts you?

With the increasing focus on ethics in our society, the

character side of trust is fast becoming the price of entry

in the new, global economy. However, the differentiat-

ing and often ignored side of trust — competence — is

equally essential.

Once you become aware that both character and com-

petence are vital to trust, you can see how the combina-

tion of these two dimensions is reflected in the approach

of effective leaders and observers everywhere. People

might use different words to express the idea, but if you

The First Wave: Self-Trust

The good news is that we can increase our credibility,

and we can increase it fast, particularly if we understand

the four key elements, or four “cores” that are funda-

mental. Two of these cores deal with character; two

with competence.

Core 1: Integrity

To use the metaphor of the tree, integrity is the root.

Even though it’s underground and not even visible most

of the time, it is absolutely vital to the nourishment,

strength, stability and growth of the entire tree.

We’ve all seen people with enormous capability,

strong results, even sometimes good intent who unfortu-

nately go about what they’re doing in a dishonest or

unprincipled way. It’s “the ends justify the means” men-

tality.

(continued on page 4)

Soundview Executive Book Summaries ®

The Speed of Trust — SUMMARY

enough for everybody. The opposite — scarcity —

says that there is only so much to go around, and if

you get it, I won’t.

Role models, insightful thought leaders and practi-

tioners serve as powerful reminders that we can do

something about even the very deep, personal, charac-

ter-based issues that impact our credibility, which is the

prerequisite for trust.

Core 3: Capabilities

Going back to the metaphor of the tree, capabilities

are the branches that produce the fruits or results.

Capabilities are particularly essential in today’s chang-

ing economy, where technology and globalization are

outdating skill sets faster than ever before.

One way to think about the various dimensions of

capabilities is to use the acronym TASKS (Talents,

Attitudes, Skills, Knowledge, Style).

Talents are our natural gifts and strengths. Attitudes

represent our paradigms — our way of seeing — as

well as our ways of being. Skills are our proficiencies,

the things we can do well. Knowledge represents our

learning, insight, understanding and awareness. Style

represents our unique approach and personality.

The end in mind here is to develop our TASKS and to

create the best possible alignment between our natural

gifts, our passions, our skills, knowledge and style and

the opportunity to earn, to contribute, to make a differ-

ence.

To enhance credibility by increasing capabilities:

1. Run with your strengths.

2. Keep yourself relevant.

3. Know where you’re going.

Core 4: Results

Results matter! They matter to your credibility. In the

words of Jack Welch, having results is like having “per-

formance chits” on the table. They give you clout.

Returning once again to the metaphor of the tree,

results are the fruits — the tangible, measurable, end

purpose and product of the roots, trunk and branches.

There are three key indicators by which people evalu-

ate results: past performance, present performance and

anticipated future performance.

Given the importance of results in establishing credi-

bility and trust both with ourselves and with others, the

question is: How can we improve our results?

1. Take responsibility for results.

2. Expect to win.

3. Finish strong.

The First Wave: Self-Trust

(continued from page 3)

On the other hand, to have integrity only — and not the

other three Cores — is to be a “nice guy,” maybe even a

thoroughly honest person, who is basically useless.

To most people, integrity means honesty — telling the

truth and leaving the right impression. But there are at

least three additional qualities: congruence, humility

and courage.

So how do we go about increasing our integrity?

1. Make and keep commitments to yourself.

2. Stand for something.

3. Be open.

Core 2: Intent

In the dictionary, intent is defined as “plan” or “pur-

pose.” No discussion of intent would be complete with-

out talking about three things: motive, agenda and

behavior.

1. Motive. Motive is your reason for doing something,

and it inspires the greatest trust when it shows genuine

concern for people, purposes and society as a whole.

2. Agenda. Agenda grows out of motive. It’s what you

intend to do or promote because of your motive. The

intent that inspires the greatest trust is seeking mutual

benefit, realizing that life is interdependent and seeking

solutions that build trust and benefit for all.

3. Behavior. Typically, behavior is the manifestation

of motive and agenda. The behavior that best creates

credibility and inspires trust is acting in the best interest

of others. This is where the rubber meets the road. It’s

easy to say “I care,” and “I want you to win,” but it is

our actual behavior that demonstrates whether or not we

mean it.

In many organizations, the message communicated by

behavior is not “we care;” it’s “you’re expendable.”

Consider these findings from a study:

● Only 29 percent of employees believe that manage-

ment cares about them developing their skills.

● Only 42 percent believe that management cares

about them at all.

It’s important to keep in mind that sometimes, unfor-

tunately, poor behavior turns out to be bad execution of

good intent.

1. Examine and redefine your motives. It’s human

tendency to assume we have good — or at least jus-

tifiable — intent.

2. Declare your intent. It signals your behavior and

lets people know what to look for so they acknowl-

edge it when they see it.

3. Choose abundance. Abundance means there is

■

For additional information on your credibility,

go to: http://my.summary.com

Soundview Executive Book Summaries ®

The Speed of Trust — SUMMARY

The Second Wave:

Relationship Trust

The Second Wave — Relationship Trust — is all

about behavior ... consistent behavior. More specifically,

it’s about the 13 Behaviors that are common to high-

trust leaders and people throughout the world. As you

work on behaving in ways that build trust, one helpful

way to visualize and quantify your efforts is by thinking

in terms of “Trust Accounts.” Remember that each trust

account is unique; all deposits and withdrawals are not

created equal; and what constitutes a deposit to one per-

son may not to another.

All 13 Behaviors require a combination of both charac-

ter and competence. The first five flow initially from char-

acter, the second five from competence, and the last three

from an almost equal mix of character and competence.

Taken to the extreme, however, these Behaviors do

not build trust, and the “opposite” or “counterfeit” of

each Behavior creates the biggest withdrawals.

Character-Based Behaviors

Behavior #1: Talk Straight. Communicate clearly so

that you cannot be misunderstood. Preface your discus-

sions by declaring your intent, so you leave no doubt

about what you are thinking. Counterfeit behaviors

include withholding information, flattery and spin. Be

honest and call things what they are. Don’t manipulate

people, distort facts or leave false impressions.

Behavior #2: Demonstrate Respect. This behavior is

based on the principles of respect, fairness, kindness,

love and civility. The opposite is commonly experienced

as showing disrespect, which is a huge issue, both at

work and at home. The counterfeit is to fake respect or

concern, or, most insidious of all, to show respect and

concern for only those who can do something for you.

Behavior #3: Create Transparency. Be real and gen-

uine and tell the truth in a way that people can verify.

The opposite is to obscure, and the counterfeit is illu-

sion or pretending things are different than they are. You

can establish trust quickly by being open and authentic,

erring on the side of disclosure and not having hidden

agendas.

Behavior #4: Right Wrongs. Make restitution instead

of just apologizing. The opposite is to deny or justify

wrongs because of ego and pride, and the counterfeit is

to cover up mistakes. Apologize quickly, take action to

make restitution when possible, and demonstrate per-

sonal humility to achieve this behavior.

Behavior #5: Show Loyalty. Give credit to others

and speak about people as though they are present. The

opposite is to take credit or not represent people fairly.

The counterfeit is to appear to share credit but then

downplay others’ contribution when they are away. To

exhibit a trustworthy character, give credit freely, don’t

badmouth people behind their backs and don’t disclose

others’ private information.

Competence-Based Behaviors

Behavior #6: Deliver Results. This is a way to con-

vert cynics and establish trust in a new relationship.

Because it is often difficult to measure results, take time

to define results up front. By establishing a track record,

making the right things happen, being on time and on

budget, and not making excuses for not delivering, you

quickly restore lost trust on the competence side.

Behavior #7: Get Better. Continuously improve by

learning, growing and renewing yourself. Others will

develop confidence in your ability to succeed in a rapid-

ly changing environment. The opposite is entropy and

deterioration, while the counterfeit is the eternal student

— always learning, but never producing. Don’t be afraid

to make mistakes but learn from them. Develop formal

and informal feedback systems and respond to them.

Behavior #8: Confront Reality. Take the tough

issues head-on. This affects speed and cost by facilitat-

ing open interaction and fast achievement, and also

allowing you to engage the creativity, capability and

synergy of others in solving problems. When leaders

use the opposite behavior by ignoring problems, they

pay a huge tax when people feel they are being dishon-

est. It is far better to address the real issues and lead

courageously in discussions of uncomfortable topics.

Behavior #9: Clarify Expectations. Create shared

vision and agreement up front. The opposite is to leave

undefined expectations and the counterfeit is to be

vague about specifics. Consider that most circumstances

encompass three variables — quality, speed and cost —

but you can only have two. Always discuss and reveal

expectations, and never assume they are clear or shared.

Renegotiate if necessary, but don’t violate expectations

once they have been validated.

Behavior #10: Practice Accountability. Hold your-

self and others accountable. Leaders who generate trust

do both. The opposite is not to take responsibility, and

the counterfeit is to point fingers. Other people respond

to accountability — particularly performers. They want

to be held accountable. Don’t avoid or shirk responsibil-

ity, and be clear on how you’ll communicate progress.

Character & Competence Behaviors

Behavior #11: Listen First. Genuinely understand

another person’s thoughts and feelings, before trying to

diagnose or advise. The opposite and counterfeit are to

speak first and listen last, or not at all, and to pretend to

listen while waiting for your own chance to speak.

(continued on page 6)

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