Tuesday, 21 August 2012

Smart Trust - Stephen M. R. Covey, Greg Link

Smart Trust - Stephen M. R. Covey, Greg Link
Creating Prosperity, Energy, and Joy in a Low-Trust World

The Great Paradox

-There is a crisis of trust in the world

-Trust changes prosperity
-Trust affects speed and cost of business:
-Trust ↓  =  Speed ↓  +  Cost ↑
-Trust ↑  =  Speed ↑  +  Cost ↓

-Trust changes energy
-Trust increases the engagement and innovation of an organization

-Trust changes joy
-Trust quantitatively changes prosperity; trust qualitatively changes energy and joy

↓ Trust  =  ↓ Prosperity  +  ↓ Energy  +  ↓ Joy
↑ Trust  =  ↑ Prosperity  +  ↑ Energy  +  ↑ Joy

-Trust is a principle of power
-We need a renaissance of trust in the midst of this crisis.

Blind Trust or Distrust

-It all depends on how you were conditioned to see things.
-Do you blindly trust others? You can get burned!
-Do you distrust others? You are missing out on the great benefits of trusting!
-We are often familiar with trusting another and then getting burned. As a result of this, we often turn to distrust to avoid the pain.
-We often forget the great benefits of trusting another (in family, business, marriage, etc...)

The Third Alternative: "Smart Trust"

Smart trust analysis involves analyzing 3 important variables
1. Opportunity - What you are trusting someone else with
2. Risk - The level of risk involved
3. Credibility - The character and competence of the people involved


Propensity to Trust increases as you move upward
Analysis increases as you move to the right


5 Actions to Smart Trust

1. Choose to believe in trust

-Create the foundational paradigm out of which all other trust-building behaviours flow.
     a. Believe that people are worthy of trust
     b. Believe that most people can be trusted
     c. Believe that extending trust is a better way to lead

Trust as Management philosophy:
"Youth + freedom + transparency + new model + the general public's benefit + belief in trust = the Miracle of Google" (Dr. Kai-Fu Lee)

You must decide to believe in trust!

2. Start with Self

-Focus first on developing the character and competence -- the credibility -- that enable them to trust themselves and to also give others a person -- or a team, organization, or country -- they can trust.

-Credibility is a function of character and competence: it is easier for people to trust you if you are a person of character and you are competent in your area .

-Do I trust myself?
-Do I give others a person they can trust?
-Give employees a leader they can trust
-Give players and fans a coach they could trust
-Give patients a doctor they can trust
-Give a community a leader it can trust
-Give society a business.thought leader they can trust
-Give the world a non-profit leader it can trust
-Give children a parent they can trust
-Start with self to create trust
-You can't talk yourself out of a problem you behaved yourself into. The only way out is to behave your way out.

3. Declare your intent... and assume positive intent in others

-Signal goals and intended actions -- both what and why -- clearly in advance and generally assume that others also have good intent and want to be worthy of trust.

-Declaring intent has two sides: What and Why. Declare your intent and tell why you declare it.
-Declaring intent accelerates the building of trust and trust multiplies performance
-The motive that best builds trust is caring; the motive that destroys trust is self-interest
-The agenda that best builds trust is mutual benefit; the agenda that destroys trust is "win at all costs"
-Declare intent through purpose, mission, vision, and values.
-Make the creation of trust an explicit objective

4. Do what you say you are going to do

-Follow through and act to carry out your declared intent; walk your talk!

Say/Do Combinations:
1. Low Say/Low Do = Underpromise & Underdeliver
2. High Say/Low Do = Overpromise & Underdeliver
3. Low Say/High Do = Underpromise & Overdeliver
4. High Say/High Do = Promise & Deliver/Overdeliver

-"SayDoCo" = "Say what you'll do; Do what you say; Communicate if you find you can't" (Alan Fine)
-We judge ourselves by our intent; others judge us by our actions

5. Lead out in extending trust to others

-Be the first to extend trust and initiate the upward virtuous cycle that leads to prosperity, energy, and joy.

Extending Smart Trust is smart because:
     a. Extending Smart Trust produces results
     b. Extending Smart Trust increases trust
     c. Extending Smart Trust generates reciprocity
-Extend Smart Trust to others (use the Smart Trust Matrix)
-Create a Smart Trust Culture

You can implement all the 5 actions to Smart Trust in your daily life with others. Start now and create a renaissance of trust in society, at home, at work.

Smart Trust: Creating Prosperity, Energy, and Joy in a Low-Trust World

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