The Trust Economy and Why It Matters More Than Ever in Business (2024)

Think about the last time you led a meeting that ran long when you were already overscheduled. Did you say, "I'll circle back with you by EOD," knowing that you couldn't manage any such thing until at least the next morning? I'm not judging, because I'm sure I've done it, too. But if you do that often enough, your colleagues learn that you don't put much stock in your own words.

It's not a big issue when it happens once, but it can come to signify something more important: that there is a disparity between what you often say and what you do. Over time, that reflects on our integrity — whether we, and the organizations we represent, are worthy of trust.

Rebuilding a Foundation of Trust

Everything that has happened in our social-political world in the last couple of years has people trusting businesses less, and the problem continues to grow. Consumers and employees don't trust businesses. Worse, leaders no longer trust each other internally. A recent PWC survey found that:

• 90% of executives believe consumers highly trust their businesses, but only about 30% of customers agree

• 86% of business leaders believe their employees trust them, but only about 67% of employees actually do

• Only 44% of C-suite leaders strongly trust each other

Changing these numbers, and the culture at large, starts at an individual level. After all, being an effective executive requires trust from peers, boards, and leadership teams. As an executive coach, this is the number one message I find myself communicating to various clients: Rebuilding trust among consumers and employees must start close to home, with efforts to develop and demonstrate behavioral integrity within ourselves and the individuals we interact with.

Regardless of our position, we all have three circles of professional influence: Our immediate circle (peers we interact with directly and routinely), our intermediate circle (anyone that's more than a step removed from us on the organizational chart), and our extended circles (individuals who fall outside the organization). So, as a career HR executive, my circles of influence were as follows: Senior leadership, board members, and other peers; my employees and their managers; and consumers and other stakeholders.

Unfortunately, it's not as simple as saying, "I'm trustworthy, I swear." I've found that it's far more effective to build trust with actions, not words. In my last four executive roles, I developed a shortcut to the burden of proof conundrum. During my new leader/team onboarding process — when I was getting to know everyone and they were getting to know me — I'd fly a few of my previous direct reports out to my new office. Then, my new team, my old team, and I would take some time to discuss best practices and talk about our shared industry. What I found was that the people who knew me were able to say so much more than I (or my organization) could, because trust starts at the individual level.

The Actionable Solution

Like many teachers before me, I think that the only solution is practice. And, yes, class — that does mean there will be homework. Ask yourself:

• Do I trust me? In what areas? I know myself well enough to avoid committing to things that I won't achieve. I'm likelier to sprout wings and fly than I am to hit the gym five times a week. Building trust within myself involves setting an achievable target — something that enables me to improve instead of admitting defeat before I start, like going to the gym three days a week and watching what I eat.

• How can I overcompensate for what I lack? I make active efforts to support myself by taking responsibility for the areas I feel vulnerable in. If you know your plate is full, it's okay to email a colleague at midnight and say, "Hey, I know we're talking tomorrow, but I wanted to shoot you these three things before I forget."

• Why should others see me as trustworthy? We all like to believe that we're trustworthy, but being trustworthy is a series of consistent, daily choices. Sure, you were confidential with that last client, but maintaining their confidentiality will stretch to every future client. Try a little thought experiment and ask yourself things like, "Would I trust me with this task, and why?" and, "What is it like to experience me? How do I show up?"

• How have I dropped the ball? As much as it's true that trust is hard to build and easy to lose, it's equally true that accountability is always the answer. An apology and acknowledgment can go a long way toward retaining the trust you've built or jumpstarting trust that has been compromised. We all say, "I'll call you back later," and think we're being slick when we don't actually call back. The truth is, we're not slick, and the person on the other end likely stopped expecting us to call back a long time ago. When these things happen occasionally, they're no big deal. But, over time, they can work to prove that others can't trust us to do what we say we're going to do.

And remember: This is an individualized process, not a fixed guideline to establishing trust that we can impose on each other.

The Path Forward

I applaud the highly visible efforts organizations are making to improve the current trust crisis — expensive PR campaigns, revamped ESG initiatives, and enhanced employee benefits packages. But much of this is cosmetic; it doesn't rebuild the eroded trust.

That challenge is something we need to approach every day, in everything we do, as individuals. No matter who we are, we have to manage the optics of whether and why people should trust us. It doesn't matter how brilliant you are or what organization you come from, the benefit of the doubt needs to be earned.