Trust in Action | Why Trust Drives Efficiency and Reduces Costs

[Anderson]

Trust: The Foundation of Speed and Efficiency

Trust is a powerful force that drives efficiency and reduces costs in any system. When trust is low, all participants are forced to pay what we might call a "trust tax." This tax manifests as additional time, energy, and resources spent verifying, double-checking, and safeguarding against potential dishonesty or failure. In contrast, environments where trust is high foster mutual understanding and support, allowing participants to reap the dividends of trust - speed, collaboration, and reduced friction.

Trust is not a vague or intangible concept; it’s a tangible asset that can be managed, cultivated, and developed. Just like any skill, you can learn how to build trust by focusing on four foundational elements. The first of these is integrity, which was discussed in a previous session. Integrity can be likened to the root system of a tree - though hidden from view, it is essential for the nourishment and stability of the entire organism.

Clarifying the Misconceptions About Trust

Some viewers have mistakenly equated trust with naivety. This discussion is not about blind trust or being gullible; it’s about understanding the components of trust so you can work with it effectively. The goal is to gain clarity on your own behavior and how it influences others' perceptions of you. This post is about self-awareness, about understanding how trust - or the lack thereof - shapes your relationships and environments.

It's baffling when people claim that trust doesn't work, pointing to their toxic workplaces as evidence. But this actually proves the opposite: trust is indeed working, just negatively. If you're in a toxic environment, especially within a company, changing that culture might be beyond your control. However, what’s stopping you from fostering a culture of trust in your own spheres of influence - your family, your friendships, and perhaps your future team?

Using the principles discussed here, or better yet, diving into the original book (Stephen Covey, the Speed of Trust), you can begin to create environments that accelerate processes and improve outcomes. It’s easy to fall into a cycle of negativity, but such a mindset reveals a gap in the foundational element of integrity, particularly in the component of openness.

Openness: The Key to Building Trust

Being open is crucial. You’ve probably encountered people who seem closed off or arrogant, unwilling to listen because they believe they already know everything. These are people who refuse to consider other perspectives, convinced that their way of thinking is the only correct one. Their unwillingness to accept reality or acknowledge truths they’re unfamiliar with creates an atmosphere where trust cannot thrive.

For some, these ideas might seem naive, especially if they're deeply entrenched in the cynicism of everyday life. But openness is not about being foolishly optimistic; it’s about being willing to listen, learn, and adapt. This is the beginning of building trust. When you interact with others, especially in professional or personal settings, ask yourself: are you being genuinely open? Are you willing to see things from another's perspective? This openness is the first step towards creating an environment where trust can flourish.

The Global Trust Index

To emphasize the global importance of trust, consider the discussions held at the World Economic Forum, where trust was a significant topic of conversation. These discussions aren’t just abstract debates; they reflect real-world research, like the Global Trust Index, which surveys over 33,000 people across 26 countries.

Interestingly, the global perception of non-profit organizations is generally neutral, perhaps because these entities like Greenpeace or the Red Cross are seen as having clear, altruistic intentions. Businesses, on the other hand, are trusted somewhat because their intentions—providing goods or services in exchange for money—are transparent.

However, when it comes to media and government institutions, distrust is rampant worldwide. This distrust is even more pronounced in 3rd world countries, where the culture of trust is exceptionally low. 

Why Intentions Matter

Intentions form the trunk of the trust tree, vital to its growth and strength. Even if someone is skilled and experienced, if their intentions are self-serving or manipulative, people will sense this and withdraw their trust. On the flip side, a person with good intentions but lacking other trust foundations like integrity or competence might be well-meaning but ultimately ineffective.

This is why it’s crucial to align your intentions with actions that genuinely reflect care—whether for your work, your product, or the people around you. Authenticity in your motives is critical because even well-disguised intentions will eventually be uncovered, and trust, once broken, is hard to rebuild.

Competence: The Visible Branches

The next element of trust is competence, which relates to what you can do - your skills, knowledge, and the results you produce. Competence is the visible part of the trust tree, the branches that bear fruit. While everyone has innate talents, these need to be continuously developed and refined. Without constant improvement, even the most talented individuals can become outdated.

Take, for example, Tiger Woods, who, despite being one of the best golfers in the world, took time off to refine his technique. This commitment to continuous improvement allowed him to return even stronger, winning multiple titles and setting new records.

In today’s fast-paced world, staying competent means continually updating your skills and knowledge. Whether through formal education, mentorship, or self-directed learning, your ability to adapt and grow is what keeps you relevant and trustworthy.

Accountability: The Final Piece

Accountability ties everything together. It’s about taking responsibility for your results, not just your actions. When you consistently deliver results, you reinforce the trust others have in you. This applies to personal relationships as well—being accountable in your family or friendships fosters deeper connections and mutual trust.

As the world changes rapidly, traditional markers of competence, like a university degree, are becoming less critical. Companies like Google now prioritize skills and experience over formal education. What matters more is your ability to deliver results, adapt to new challenges, and continuously improve.

My Final Thoughts

Trust is an incredibly valuable asset, both in personal and professional contexts. It’s not something you can demand or manufacture; it’s earned through consistent behavior that aligns with your values and intentions. By focusing on integrity, openness, competence, and accountability, you can build strong, lasting relationships that are both fulfilling and productive.

In a world where distrust is prevalent, especially in certain institutions and environments, fostering trust within your own circles can make a significant difference. It’s about taking small, consistent actions that show others you are reliable and that your word can be trusted. Over time, these actions can create a ripple effect, gradually changing the broader culture of mistrust that may surround you.

So, where do you stand on the trust spectrum? Are you actively working to build and maintain trust in your relationships and endeavors? It’s worth reflecting on because, in the end, trust is the foundation of all successful and meaningful interactions.

[Peter]

Integrity has always been the basement of how I build trust. I’ve found that when people consistently align their actions with their values, it naturally deepens the trust others have in them. This became clear to me when I experienced it firsthand in a previous role. A project I was leading hit a snag due to an oversight on my part. Instead of shifting blame or hiding the mistake, I chose to admit it openly. This honesty wasn’t easy, but it earned me respect and solidified the trust within my team. By confronting the issue head-on, we not only fixed the problem but also strengthened our collaboration.

How has integrity influenced the trust you place in others or that others place in you? Can you share a time when maintaining integrity was challenging but crucial?

[Anderson]

Thanks for your experience and questions Peter. Integrity has always been my compass in building trust, both in my professional and personal life. I vividly recall working alongside a colleague who never hesitated to give honest feedback, even when it was uncomfortable for others to hear. This consistency in her behavior built a solid foundation of trust between us, as I knew I could always count on her to be straightforward, no matter how tough the situation was.

On the other hand, there was a pivotal moment in my career where my own integrity was put to the test. I was leading a high-profile project, and due to unforeseen complications, we were running into significant delays. The easiest path would have been to downplay the issues or shift the blame. But instead, I chose to take full responsibility. I openly discussed the setbacks with my team and stakeholders, detailing what went wrong and how we planned to move forward. Admitting these challenges wasn't easy, and it exposed me to potential criticism. However, this transparency ultimately strengthened the trust my team and clients had in me. They appreciated the honesty and the fact that I wasn’t hiding behind excuses, which deepened our mutual respect and collaboration.

Answering the Questions:
How has integrity influenced the trust you place in others or that others place in you?
For me, integrity is the foundation upon which trust is built. When someone consistently acts with integrity, it shows that their actions are reliable and their words trustworthy. This makes it easier for me to place my trust in them. Conversely, I’ve seen how my own integrity—whether through honesty, transparency, or accountability—has reinforced the trust others have in me. They know they can count on me to uphold my values, especially in challenging situations.

Are there situations where maintaining integrity was particularly challenging but crucial?
Absolutely. One situation that stands out was when a project I was leading faced significant delays. The temptation to shift blame or minimize the issue was strong, but I knew that the only way to maintain trust was to be upfront about the challenges we were facing. I communicated openly with all stakeholders, explaining the reasons behind the delays and the steps we were taking to address them. This decision was tough and opened me up to potential backlash, but it was crucial for preserving trust in the long run. The honesty was appreciated, and it ultimately strengthened the relationship with both my team and clients, proving that integrity, even when difficult, is essential for sustaining trust.

 

[Anderson]

One more thing I would like to add about balancing Trust and Skepticism based on my own experience.

During a project to develop an electric vehicle battery, I encountered a situation that highlighted the need to balance trust with skepticism. We relied on a key supplier who confidently assured us they could meet an aggressive deadline for a crucial battery component. Given their strong track record, it was easy to trust their promise, even though there were subtle signs they might be overextended.

As the deadline approached, it became clear they couldn’t deliver as promised, leading to significant delays. Reflecting on this, I realized that while more skepticism could have helped us catch potential issues earlier, there was another critical aspect we missed—getting a deeper understanding of the entire process and the tiny details involved in delivering the result. Had we spent more time digging into the specifics, such as the steps required, potential bottlenecks, and the supplier’s current workload, we might have identified red flags sooner.

This experience taught me that while trust is important, it’s equally crucial to stay involved in the details and maintain a clear picture of the entire process. We are all humans and make mistakes, and supporting the team in finding them as early as possible helps to maintain not only trust, but also the timelines and the final result..This approach helps catch potential mistakes before they escalate. But even with all the precautions, mistakes can still happen - after all, we’re all human. When they do, what matters most is how the team responds. Instead of assigning blame, our team rallied together to find solutions and get the project back on track.

Trust isn’t just about assuming everything will go smoothly; it’s about understanding the complexities, asking the right questions, and supporting each other when things don’t go as planned. This experience reinforced that trust, combined with attention to detail and teamwork, is key to overcoming challenges.

[Olga]

I once led a high-stakes project to develop an ultra-fast charging system for luxury electric vehicles. The pressure was immense - tight deadlines, high expectations, and no room for error. Sound familiar? As the stress mounted, communication within the team began to suffer. People were so focused on their own tasks that they started to work in silos, which led to mistakes and growing frustration.

Micromanagement, in my point of view, is the worst thing you can do in these situations. We didn’t have formal check-ins; instead, we encouraged honest conversations, even if it meant admitting we were struggling. Open communication sounds simple, but in reality, it’s bloody difficult, especially when everyone’s under pressure. It took a conscious effort to create an environment where people felt safe enough to speak up - about challenges, delays, or just needing help. This shift wasn’t easy, but it was crucial. By getting things out in the open, we could address problems before they escalated, and trust began to rebuild.

But communication wasn’t enough. The relentless pace was wearing us down, so we made it a point to support each other. Sometimes that meant stepping in to help a colleague who was swamped, other times it was just about recognizing when someone needed a break. These small acts of support helped keep morale from collapsing and showed that we were in this together. Trust isn’t just about talking; it’s about showing up for each other when it counts.