The Great Wall of Trust

New research on cognitive and affective trust in Chinese business was released today from Harvard Business School.

"Cognitive trust is trust from the head; it's a very rational way of assessing ability and reliability," says Chua. "Affective trust is trust that comes from the 'heart.' This type of trust involves considerable emotional investments."

http://hbswk.hbs.edu/item/6866.html

Trust, Morality and Oxytocin

Southwest Airlines | Trusted Company of the Month

As one of America's most beloved companies, Southwest Airlines (SWA) has posted consistent profits an amazing 35 years in a row in an industry where fuel costs, security concerns, and customer dissatisfaction have forced major competitors into bankruptcy.

While the airline industry, as a whole, has found itself rated below the IRS in customer satisfaction, SWA has consistently been ranked in customer and employee satisfaction and corporate reputation. SWA has been #1 in on-time arrivals, departures, and overall quality. A primary reason for their enduring success has been the trust they've established with their employees and their customers.

In the spring of 2008 it came out that SWA missed several mandatory maintenance checks, operating dozens of their planes in violation of several federal laws. Facing a major fine by the FAA, the company's response was to ground the aircraft and release the personnel they deemed responsible. For most corporations this would spell a public relations nightmare! But for the most part, passengers failed to react at all. Why would they give Southwest a pass on what seems to be an egregious error? The public offered them an extra amount of grace because of the exceptional level of trust Southwest had achieved.

A Quick Trust Reminder

Trust, not money, is the currency of business and life. In a climate of trust, people are more creative, motivated, productive, and willing to sacrifice for the team. What happens when a business gains The Trust Edge? Every aspect of business becomes profitable. You must realize the impact of trust and implement the 8 Pillars to gain The Trust Edge. 

By earning The Trust Edge, you will gain a significant advantage that extends far beyond the bottom line. Our hope is that this foundation of trust will become a part of who you are. To receive a list of 18 ways to build trust, email us at info@davidhorsager.com and put "Tips" in the subject line.

Earth Security | Trusted Company of the Month

Earth Security takes specific actions to communicate the importance and the expectation of a trust-based environment. It is a major part of the hiring process and the performance management process. The company understands that trust happens when words and commitments are equal with actions and delivery. For them trust is not a nebulous "feeling." It is quite simply the result of consistent, positive behaviors practiced over time and therefore completely manageable. Trust is the core of their business strategy.

 Anthony Diekemper, the CEO of Earth Security said, "Trust is what we call 'the sweet grease.' It is our number one priority in all aspects of our business. You think trust does not affect the bottom line? Leaders who think their only job is to make money are just missing the bigger picture. As executives, we have an obligation to manage with fiscal responsibility, but the way you optimize the financial performance of the company is to have highly engaged employees. They work harder, give more of their discretionary energy, and are happier to be in your company. The foundation of engagement is always trust."