FranklinCovey Consultant Blogs | Todd Wangsgard | Global Economy
Leadership and Trust – Keyword: “Confidence”
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This is the first part of a three-part series on trust by Dr. Todd Wangsgard, to be featured in the Texas/Oklahoma FranklinCovey blog.
Author of The Speed of Trust, Stephen M.R. Covey, defines trust as “confidence born of the character and competence of an individual or organization.” This simple yet complete definition of an otherwise squishy subject takes into account both the feel-good side of trust in character as well as the practical side of one’s reliability in competence. Both character and competence lend confidence to those who would consider following any leader. And more than ever before, trust (or confidence) is sought after by an increasingly globally savvy audience of human beings who see the impact that geo-political activities are having on their individual well-being.
SMRC (as we affectionately call the author at FranklinCovey) also boldly asserts that, “trust is the key competency of the new global economy.” Again, as you replace “trust” in that sentence with “confidence,” one can see how the currency of trust is not just a “nice-to-have,” but rather an absolute imperative for leadership effectiveness under any circumstances. It is key, because without it, business plans, corporate promises, financial metrics and reports all come under the scrutiny of one question: “Yes, but what should we believe?”
The Speed of Trust book and classroom experience offer several models of thinking to better understand and define trust that break the subject down into understandable water cooler discussions. The Four Cores of Self Trust that subdivide Character into one’s integrity and intent and Competence into capabilities and results. The Five Waves of Trust that any leader must assess and develop within, including Self Trust, Relationship Trust, Organizational (or team) Trust, Market Trust, and Societal Trust. The 13 Behaviors of High Trust, including Talk Straight, Create Transparency, Right Wrongs, Get Better and nine others.
I recently worked with a successful CEO in the manufacturing and fulfillment business who has truly lived out the kind of trustworthy behavior described by SMRC. He has worked side-by-side (while the CEO) with frontline employees on the manufacturing line to learn what they do and to help keep costs down during a recent recession (Show Loyalty, Deliver Results, Confront Reality, Practice Accountability). He has made an effort to get to know every single employee in the company and remembers to send them a hand-written birthday greeting each year (Demonstrate Respect, Show Loyalty). While announcing a 15% pay cut for himself, he asked all exempt associates to accept a 7½% pay cut to help off-set their losses or agree to termination with a 3-months’ salary severance package (at their higher rate of pay). No one left and all were subsequently rewarded with “back-pay” on their lost wages after a couple successful intervening years and given a sizeable bonus (Talk Straight, Create Transparency, Show Loyalty, Get Better, Keep Commitments).
The confidence that Stephen writes about and that I’ve witnessed in industry over the past 25+ years starts with a leader who has genuine confidence in himself or herself and in the associates who choose to follow. Give them a leader they can trust (the Self Trust wave) and you have a foundation upon which you will build lasting relationships, enormously successful organizations, and a brand that generates intense loyalty and growth.
Trust: The key leadership competency of the new global economy
Recent events have not ceased to teach us profound lessons in trust. I may also be hyper-sensitive to the hard-edged, bottom-line impact of trust because of recent engagements and wins with trust-focused clients.
Regardless of where blame is to be found, the epic and ever-growing tragedy of the gulf oil spill, the abrupt replacement of decorated military leaders, confessions of infidelity by sports icons (and on and on and on) all remind us of the foundational need for “confidence in the character and competence of individuals and organizations.” The aforementioned quote may look familiar to many of you. It’s FranklinCovey’s textbook definition of trust. Confidence.
When confidence is high, managers readily delegate important work to employees who know their stuff and do it with the utmost integrity. Organizations merge in record time, while due diligence takes a back seat to solid brand reputation and good old fashioned transparency. Businesses launch new products, install complicated I.T. solutions, and rebrand themselves with renewed speed by trusting both loyal employees and loyal consumers. That trust breeds even more loyalty, and thus greater productivity and profits.
How do I know this? I’ve seen it happen over and over again – first hand.
Take a look for yourself at the transformative business relationships and processes that resulted from a cultural examination of and renewed commitment to trust at Frito Lay. Their stunning results have inspired suppliers and customers alike to more closely investigate for themselves exactly what increased individual and organization credibility can do for their bottom line.
WARNING: Don’t watch this video case study, unless you’re prepared to launch a transformation of your own!


