Trust

The new economy has changed the rules of the game in business, and the speed at which businesses operate and interact. Corporate success has therefore never been more dependent on the contribution of first-rate people, who give more than merely adequate performance at work and in turn, trust has become a topic of considerable importance within organization, as people need to be engaged and motivated by their role in order to go the "extra mile". Low trust is characterised by defensive, protective and legalistic behaviour (with the potential to financially damage a company), whereas high trust can help create real competitive advantage in the marketplace through promoting effective collaboration, involvement and loyalty which in turn generate energy and innovation among employees.

The organisations with a high level of trust have teams of people that are highly motivated and co-operative and command respect and loyalty from their customers. This can lead to the fulfilment of a company's mission and goals, and eventually, financial success. Yet trust is not an easy commodity to achieve and maintain, with employees increasingly demand more, and less obvious, compensations than financial benefits alone, such as job autonomy and ownership, and the market value of their role. Fulfilment of these 'hidden' rewards can lead to employee commitment and passion based on trust, which are valuable assets when employee retention is at a premium -many people are choosing to opt out of the corporate economy to work freelance, or for the new, small and entrepreneurial e-businesses start-ups. This book shows, through practical guidance and examples, how trust can be harnessed to create real competitive advantage within an organisation's strategic aims. Preface.

Introduction: The Value of Trust

PART I.

Trust at Work and the Cost of Low Trust

Trust as an Equity

Releasing Energy: An Investment in Social Capital

Releasing Value: An Investment in Learning and Alignment

PART II.

Enlarging the Scope for Change: ICL/D2D-- Creating a High-trust Firm

Sacrificing Trust: Too Much Change Too Fast at The Service Company

Poor Communication and Uncertain Boundaries Impact on Trust at Autopart

Poor Communication and Low Trust at The Engineering Company

A Culture That Would Not Change at Aerco

The Defence Company: Structured Change in Production but Less Commitment

PART III.

Collaborative Capital and Client Loyalty in Investment Banks

The Trusted Leader and Releasing the Energy to Win

Index "..This is a thoughtful and important book by an experienced manager...vividly demonstrates the effects of low and high trust on company performance." (Director, December 2001) RITA CRUISE O'BRIEN has a background in working to improve the social and economic problems of developing countries. She has consulted for British Telecom, the OECD, the EU, the UK government and the United Nations. She was Managing Director of a start-up company and Publishing Director of Pergamon Infoline. She has previously lectured at University College, London and worked as Research Fellow at the University of Sussex and LSE. She was Research Fellow, Director of the International Executive Masters Programme and Programme Director for company-specific programmes at the Centre for Management Development at the London Business School. Rita has an MA from the University of California, Berkeley and a PhD from the London School of Economics. Corporate success has never before been more dependent on first-rate people ( a vital asset in gaining competitive advantage.

Trust is therefore an issue that should be high priority for all CEOs and senior managers. Many are concerned about the cost of low trust without knowing what to do about it.

In this book, Rita Cruise O'Brien
* defines trust and related concepts, and shows how these impact on business performance
* provides valuable case material of companies with both high and low trust
* forges the link of trust to strategy rather than to HR
If you are a business leader use this book to develop trust and earn authority - your organization will reap the rewards. Today more than ever before, trust is a vital asset for gaining competitive advantage. Corporate success has never before been more dependent on first-rate people. The energy, knowledge and creativity of people as a form of capital have never had higher value for business success. Mining the passion of what people have to offer is a new asset in competition.

Written in a clear and practical way, this book considers how to build trust at work and release social capital for improving performance. It explains why loyalty is not enough, and relates trust to learning and the intrinsic motivation that releases the tacit knowledge of people on the front line.

For an organization to become successful and stay successful, there needs to be greater levels of trust. In this new era of business, a leader is no longer an isolated hero commanding from on high. Future client loyalty may have to be based on building more collaborative capital rather than relying on individual personalities.

Leaders of today are shown how to earn authority without controlling and how to develop trust through openness and excellent communication. The benefits of these lessons are considerable.