Trust is vital for business success and the long-term relationships that power it. It’s what gives organisations a licence to operate, lead and succeed. This is why the ability to build trust is central to being an effective business leader. Yet in today’s world – with economic anxiety, polarisation and misinformation fuelling a decline in faith in societal institutions – trust is in short supply.
When it comes to business, a preparedness to lead is the foundation for any executive wanting to build trust.
This might sound obvious. But what I’m talking about is nuanced: it’s about conviction, a strong sense of what you need to do and the decisions you will need to make to achieve it – things that experience in leadership helps to build.
The importance of transparency
From this base of preparedness to lead, you must construct a plan and then take the time to explain it to the wider organisation. In doing this, you must include the reasons behind your decisions and bring other people’s views on board. Some might call this transparency. For me, in many ways, it’s simply good manners.
Whatever you call it, it’s about being open and clear – sharing important information, even if it’s not all positive, being upfront about challenges as well as successes and following through on promises and commitments.
When stakeholders see you sharing your perspective on the full picture, they are more likely to trust you.
Patagonia is the gold standard when it comes to trust-building: they state their commitments clearly, communicate transparently and follow through with action. Despite being a unique brand, we can all be a little more Patagonia as leaders and businesses.
Using engagement to build trust
Take time to listen to what your stakeholders care about and what concerns them. This shows respect and signals that you value their input, which is critical in forming strong partnerships. It also provides critical feedback, context and access to insights that will undoubtedly make your business and your leadership more impactful.
After listening, take action or provide solutions that are aligned with their specific concerns and interests. This demonstrates you’re responsive and attentive to needs and have an appreciation for what you’re hearing as well as the ability to adapt when it will achieve better outcomes.
Why you need to be consistent
Effective communication – listening as well as sharing information – is key to earning trust over time. It takes concerted, ongoing effort to build trust in any relationship, personal or business-orientated and even small slips can undo a lot of good work.
If you find yourself leading in times of crisis, as we all did during the recent pandemic, then you may find this article by my old Harvard Business School professor, Nancy Koen, helpful. In this piece, she talks about balancing ‘brutal honesty’ with ‘credible hope’ and provides a holistic approach to handling the emotional and the practical. While I’d love to imagine we won’t face another pandemic-like moment of crisis, the lessons Nancy outlines stand up in many less daunting situations.
Demonstrate competence and vision
Confidence grows when stakeholders see that you have the knowledge and ability to deliver results. Back up your actions with data insights, progress updates and clear outcomes to reinforce that you are a capable leader.
Provide a strategic direction that stakeholders can believe in. By articulating a compelling vision for the future and demonstrating that you are working towards it, you align their goals with your leadership, enhancing trust.
Then, to maintain trust once you’ve established it, measure and report progress. Use tangible data to show how the decisions you make are improving things and bringing your business close to achieving its goals. And, if things aren’t working, share that too, including what you intend to do as a result.
At the end of the day “a well done is better than a well said” which means a laser-focus on clarity and delivery, repeated over time.
Sairah Ashman is global CEO of brand consultancy Wolff Olins.
