The trust crisis in the workplace

The trust crisis in the workplace

Ray Williams | Feb 25, 2013 5:16 PM ET
Recent polls would seem to indicate that people are becoming increasingly cynical about organizations and leaders.

A DDI International study of 57 organizations on the issue of trust in the workplace indicated respondents trusted their co-workers, but a majority mistrusted their leaders, and particularly senior leaders.  The 2012 Edelman Trust Barometer reported that the majority of people distrusted government, financial institutions and business leaders — particularly CEOs.

The issue of trust in the workplace has been a topic of several management consultants and psychologists of late. Sydney Finkelstein, author of a groundbreaking book, The Five Dysfunctions of Teams, identified the lack of trust as a core reasons teams fail or a seriously dysfunctional.

Research by Finkelstein and others have shown trust can be quickly lost by the following behaviours:

  • Acting and speaking inconsistently and dishonestly;
  • Seeking personal gain over shared gain;
  • Withholding information and resources;
  • Being close-minded;
  • Acting disrespectfully and uncivilly. In his book, The Trust Edge, David Horsager contends we are in a crisis, not because of our economic or environmental problems, but because of a lack of trust in our leaders. he points to eight pillars of trust company leaders need to have: clarity, compassion, character, complacency, commitment, connection, contribution and consistency. Horsager argues that “trust is not a soft skill,” but “ measureable competency that brings dramatic results,” by building it into an organization’s strategy, goals and culture. The bottom line for Horsager is that trust and not money is the currency of both business and life.

In  Psychology Today, Nan Russell argues “a lack of self-trust can be the precursor of distrust of others. In an increasingly complex world, our ability to judge real or not real, scam or opportunity, credible or not credible, trust or no trust, is a 21st century necessity.”

I see this in my work with senior executives and business owners. When the issue of mistrust of others comes up, I invariably examine whether the individual is practicing some form of projection. Often the origin of the lack of trust is mistrust not of others but of themselves and their capacities and abilities.

Whatever the cause of the lack of trust in our organizations and leaders, the problem is significant and one that needs to be addressed to develop more confidence in our future.

Ray Williams is President of Ray Williams Associates, a company based in Vancouver, providing leadership training and executive coaching services. He can be reached at ray@raywilliamsassociates.com

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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