LAW

10

PROCEED WITH CARE

ALL THREE KINDS OF relationships to which we apply the word trust can result in betrayal. Reciprocal trust can end in divorce or the breakup of an interdependent partnership. Representative trust can suffer breaches of fiduciary duty in which a trusted professional takes advantage of superior knowledge or training. And by the nature of pseudo-trust, betrayal lies in wait when circumstances change, rendering it only a convenient substitute for real trust.

So there are ample reasons to be aware of the pitfalls of trust. But if one grants trust only after carefully evaluating Character, Competence, and Authority, betrayal is less likely. This evaluation results in knowing whom to trust—or, stated differently, trust that’s smart.

In difficult times, trust is a leader’s most potent currency. When we work alongside a leader whose integrity and vision we believe in and who in turn respects and empowers those around him—that’s when the separation between high- and low-trust leaders is the starkest.

Instead of reliance on the laws of trust, low-trust leaders must fall back on the use of raw power in time of crisis. When you work under such people, you’ll soon see the telltale signs of low-trust leaders as they spend their energy manipulating the levers of power. Niccolò Machiavelli famously wrote, “It is much more secure to be feared than to be loved.” That approach works—until it doesn’t. Machiavelli wouldn’t have been running a company of knowledge workers very successfully for very long.

When a CEO can’t reverse a firm’s cratering stock price, or when a congressman’s approval rating flatlines, the power they used to get things done doesn’t seem so potent anymore. Since they never cared enough (or paid the price) to create genuine trust among those with whom they work, when things go bad they discover they have nothing left to offer—and no one left to lead.

Indeed, in turnarounds and crises, the best asset any leader has is character, inspiring people to take leaps of faith with him. The best leaders work to build trust over the long term, by thoughtfully and cautiously empowering others consistent with the 10 Laws of Trust. Leaders determined to build cultures in which trust is more than just a feel-good notion know that it’s hard work. “Earning trust is not easy, nor is it cheap, nor does it happen quickly,” wrote Max De Pree, in Leadership Without Power. “Trust comes only with genuine effort, never with a lick and a promise.”

It is not only organizations that are damaged in crises; careers are destroyed, and people fall short of their own potential. Leaders who think that by the exercise of dominion over others they are maximizing their own success find that no one follows them when they’re without the tools of fear and reward. Perhaps worst of all, they miss the opportunity to develop lasting relationships, build enduring organizations, and create opportunities for growth and meaning, even as they fail to enjoy the satisfaction and peace that flow from being trusted—and trustworthy.

So, fully aware of the downsides of betrayal, one can successfully embrace the 10 Laws of Trust in order to build a lasting, effective organization. The trick is to do so with care. When figuring out whom to trust and under what circumstances, here are five mindsets to consider:

1. In the moments of calm before any crisis, imagine yourself as duty bound to lead. The firefighters who entered the World Trade Center on September 11 had already made the decision to lead long before the crisis was upon them. They were bound to a decision they didn’t have to make in the moment. Trustworthy leaders likewise are committed to lead when the chips are down. If trust has been nurtured, the commitment of team members will be reciprocated. Having worked, for example, through a few turnarounds, I can say that they’re not fun; I can also say that the bonds of trust that are forged in foxholes are unusually durable.

2. Think of yourself as a fiduciary. This means being a special guardian of others’ interests. Having a duty to others makes it more compelling to take on the hard tasks you might be reluctant to do if it were only about you. Indeed, living life by looking through a fiduciary lens is the best way to secure relationships rooted in trust.

3. Expect that you’ll have to keep running toward fires. It takes time to build trust at a level that inspires people to run to the fires (see Law #7). There are no shortcuts. And if you’re not careful, everything you’ve built can be forfeited in a minute. If you choose to lead by investing in trust, expect that you’ll have to keep earning it by the consistent application of the laws of trust. The payoff—binding people together in powerful ways—will be worth it.

4. Be mindful of the long term. When tensions inexorably surface in your organization, take a break. Pick things up later. But be specific, so no one is left hanging: “Let’s revisit this again tomorrow after we’ve all had time to think about it.” That means tomorrow, not some indeterminate future.

5. Fear not. Rushing headlong into a management blaze can mean you miscalculate. Hold back too long and the chance to resolve the conflict and to learn from it vanishes. Choosing the moment takes judgment. Diffidence and doubt are not features of high-trust organizations. If you’re faint-hearted, consider that fear is the tear in the trust fabric that creates the greatest risks during potential moments of truth. Since the deferral of problems usually means dealing with a bigger problem in an even less certain future, figure out why you’re reluctant to run toward the fire and address it openly. Then focus on action. Despite my admonition to proceed with care, don’t confuse caution with timidity.

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HONORING THESE PRINCIPLES CAN make all the difference—to productivity, innovation, retaining knowledge workers, and above all to one’s own sense of well-being and happiness. But creating the bonds of trust that increase cooperation takes a lifelong commitment. If you embark on this journey and prudently observe its principles, you can be confident that the view will be worth the climb.

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