“Watch your thoughts, they become words;

Watch your words, they become actions;

Watch your actions, they become habits;

Watch your habits, they become character;

Watch your character, for it becomes your destiny.”

—Lao Tzu

A growth mindset is rooted in credibility. Great leaders are credible and work hard to stay credible. Credibility is how leaders gain the confidence, trust, hearts, and minds of all the stakeholders—clients, advisors, partners, and colleagues. Credibility is the foundation of leadership, no matter how large or small your team. If people don't believe in the messenger, they won't believe in the message—it's that simple. Credible people under‐promise and over‐deliver. My friend, John Decker, a manager at UBS, wrote a terrific book titled Success Is Not a Secret. When talking about recruiting and retention, John clearly stands out. He writes in his book that “trust is the most important factor in retention. More than anything, trust comes from being truthful. Telling the truth is not always fun, but it's always the right thing to do. Any circumstance can be used to build trust. Even when an advisor asks for something you can't give them, or behaves inappropriately and must be corrected, it is an opportunity to build trust. By being combative, you'll lose them. By being honest, straightforward, and consistent, you'll continue to build that trust.” I have known John for a long time, and he is not afraid to say no and he is fair and consistent.

Elements of trust:

1. Trust is a function of doing what you said you would do.
2. Credibility is demonstrated by your ability to ask compelling and thought‐provoking questions.
3. We trust people who respect our point of view and values.
4. We trust people who are competent.
5. We trust people who have a strong conviction of their recommendations.
6. We trust people who can empathize.
7. Credible people focus more on deeds than words.
8. Credible leaders are fully transparent at all times.
9. Those with a growth mindset look for opportunities to lead from the front.

Consider this:

• Leadership is personal. It's about you, not the brand or your firm.

Leadership is about:

• What you believe in
• Your worldview
• Your values
• Your principles
• Your character

Simply, leadership is about your credibility. And the best way to gain credibility is to under‐promise and over‐deliver.

“We conclude from our interviews and case analyses that credibility, respect and loyalty are earned primarily when leaders demonstrate by their actions that they believe in the inherent self‐worth of others.”

—James M. Kouzes and Barry Z. Posner, Credibility: How Leaders Gain It and Lose It, Why People Demand It

Credible leaders put the client before profits and people ahead of politics or self‐interest. We know that the financial markets and the workplace environment will continue to be volatile, and uncertainty is something we as leaders need to turn to our advantage. We can use uncertainty to create a competitive edge for ourselves, and we need credibility to lead our people through uncertain times.

Credibility Must Be Earned

Great leaders don't take their credibility for granted: they earn it, cultivate it, and nurture it. Competence and trust are the foundation of credibility. Being completely transparent with both your team and your clients will also help you establish credibility.

In their book, Credibility: How Leaders Gain It and Lose It, Why People Demand It, James Kouzes and Barry Posner identify the six disciplines of credibility as:

1. Discovering yourself
2. Appreciating constituents
3. Affirming shared values
4. Developing capacity
5. Serving a purpose
6. Sustaining hope

We know that leadership is a contact sport—leadership is always a relationship between leaders and their teams. Since strong relationships are built on understanding, leadership demands a dialogue, not a monologue. Dialogue only occurs when leaders get out of their offices and “ivory tower” equivalents and genuinely interact with the people they lead.  When leaders are accessible, they are actively creating an environment in which it is safe for people to discuss whatever is on their minds.

I believe that I overcame many of my shortfalls as a young leader through significant and persistent interaction with people, through which I was able to communicate to them that I always had their best interests at heart. My actions not my words helped me become more and more credible over time. People will also be more forgiving when you make a mistake and you quickly admit it, if you're credible to begin with.

Consider this:

• Get out of your office! Practice management by walking around.
• Management by wandering around is practiced by such great leaders as Lee Iacocca and was enshrined in Tom Peters and Bob Waterman's first book, In Search of Excellence. It works.

Diversity

Credible leaders honor the diversity of their partners, teams, and clients. They find common ground on which everyone can build. They bring people together; they are bridge builders and they enjoy uniting people.  They build a strong sense of community that fosters collaboration and trust.

Hope

Credible people are optimistic and foster hope in those around them. They talk of the future in a way that is upbeat, energetic, and inspirational. When things get difficult, they make themselves available to support the situation and do whatever it takes to make it better. They communicate often and they never stop talking about what the future will look and feel like.

Humanity and Humility

Credibility does not equal infallibility. It's important to be human with the people you lead; in fact, they will appreciate it. You are not Mr. or Mrs. Google—you are not expected to know everything. Credible people are also humble people. Humility attracts people and fosters trust (and thus credibility!). Humility creates a clearing for your own growth and creates space for others to relate to you. If you are quick to judge, people are less likely to bring you a challenge or seek advice. Help people self‐discover the best answer that will serve their needs.

Honesty

Finally, credible people tell the truth even when the truth is difficult. They keep their word, and if and when circumstances change, they let others know as soon as possible. They are never spin doctors. When I was a regional director for one of the Big Four wealth management firms in the country, I reported to a CEO who loved to spend days crafting a story to explain new compensation plans for the advisors (modifying compensation plans seemed to be an annual occurrence). He believed that we should find a way to explain the new compensation to make it seem attractive. Typically, a new compensation plan was simply a pay cut. Everyone always knew it. The end result of his exercise was losing credibility with his team. You simply can't lie, or tell 90 percent of the truth, because people will know you're leaving out a piece of the puzzle. Again, never underestimate the advisor or client. Tell it like it is; it's clean and it's refreshing. With honesty comes the ability to say, “I don't know.” If you don't know the answer, say so. People can tell when someone makes up an answer.

In the past, wealth management was about selling complexity or having access to products that others with less net worth didn't have. Today, it is about full transparency and simplicity. Your team, peers, and clients demand transparency. Employees want to know how and why decisions are made. They can handle the truth. Clients want to get into the weeds about cost, including how people are compensated. Tell them. They can handle the truth.

Consider this:

• If you don't know the answer, admit it by saying “I don't know.”
• Tell it like it is, without trying to create something that sounds good but isn't the full truth.
• Trust your team, colleagues, and clients to be able to handle the truth.
• Keep your commitments.
• Under‐promise and over‐deliver.
• Ask yourself this question: How good is my word?

When I think of a manager who had instant credibility among his peers, superiors, and clients, Bill comes to mind. He was a person of few words. When dealing with the issues the company faced, he never made it about himself—he always made it about the stakeholders. While working with Bill at UBS, he never called to check on or critique my performance; he could see if my $5 billion in assets was plus or minus for the month. He saved any discussion of my performance for our quarterly reviews. When he did call, he focused on me and my personal and professional needs and challenges. After listening to me, no matter the issues, Bill always offered to help. Bill was a master of interpersonal skills. More than his personal skills, Bill's ability to challenge the status quo, to question, and to push back if something didn't make sense or could be done better is what made him credible. He was not living in a world of self‐preservation; he was using himself to improve the client conditions and people on his team. He was always quick to stand up and admit his mistakes and in any situation he unfailingly did what was right. I see a pattern with credible people: they are not talkers. They are people of action and they do what they say. They don't dig in their heels when someone disagrees. Confidence seems to jump out and hit whomever they're talking to right between the eyes. They also despise bullies. They are the first to stand up for the person that needs a voice or a helping hand.

With clients, the same rule applies. If you don't agree with the client or the client is dominating the conversation or the relationship, your value is diminished. Having competency and confidence allows you to be your true self. Being the authentic you and being vulnerable makes you more credible than hiding behind one mask after another. Not allowing the other person to see who you really are leaves them questioning whether they can trust you. Never underestimate someone you're speaking to or working with, thinking they can't see through you. At the end, the essence of who you are will eventually reveal itself.

Lisa Carnoy is the U.S. Trust Division Executive for the Northeast. She also serves as Bank of America's market president for New York City. Prior to joining U.S. Trust, Lisa served as head of Global Capital Markets for Bank of America Merrill Lynch. Lisa graduated from Columbia and went on to Harvard Business School.

What immediately struck me about Lisa was her energy, confidence, and transparency. It doesn't take long to see that she has a growth mindset. I sat down with Lisa in the executive dining room at the U.S. Trust office in New York City.