“With this economy, I feel there is a growing lack of trust inside our company. There seems to be a growing divide between management and everyone else,” Lindsey described.
“What do you see, that makes you say that?” I asked.
“Sometimes I think it is just grumbling in the hallway, conversations in the breakroom. I think people are withdrawing, looking out for themselves.”
“People are always governed by their own self-interest. What is different now?”
“It’s just an uneasy feeling I have,” Lindsey replied. “I mean, I know we have had to make some adjustments, some layoffs, some of us, including me, have even taken pay cuts. It’s been a tough time.”
“What can we do, intentionally, consistently, to create an environment where trust can have a chance?” -TF
Management should give everyone in the company a common goal: this is where we are going (+why) this is where we don’t want to be (+why). This has to be translated to everyone’s level and *repeated*. Because the more people can spin their own stories, the more vulnerable your ‘unified’ trust is.
If the comfort and the trust are in the common goal, why don’t we just DO this? Probably because defining a common goal and a vision is difficult and – in part – bad news for some. Time to realize we can’t please everyone, certainly not in times of crisis.
Looking fwd to other posts!
Cheers MB
Tom,
this is a post that hits a nerve with many.
I am eagerly waiting to see what the dialog is on how to increase trust.
I am wondering if the person is feeling a lack of trust herself and then projecting it onto the organization. If so that still creates a challenge of developing a culuture of trust within an organization.
Seek first to understand.
Is it distrust or perhaps a high level of stress that’s being misinterpreted?
This isn’t about a ten percent reduction in sales and conventional strategy. Perhaps the economic conditions are hitting this company more than anyone wants to talk about. Maybe they don’t know how to talk about it. I know of no people (including Ivy Leaguers) who have been taught how to smoothly and effectively respond to the unprecedented crisis we face today.
Understanding the Sr. Management animal is imperative in this case… The road to a “C†level position isn’t paved with knowledge alone. A pre-requisite for success in this position is an undying positive vision of today and the future. It’s instinctive for a successful leader to give a speech, presentation or “state of the union†address to the company – and be sickeningly positive! They can’t help themselves; the future holds everything for a visionary leader…
The conflict for the uber C level visionary leader is this. How do you keep positive culture that’s taken years to painstakingly build, and tell your staff that many of them will loose their jobs and its doubtful that they will find a job anywhere; in the rare instance that they do, it will more than likely be at a fraction of what they are currently scraping by on. What inspiration do you bring to your people as you tell them the truth… the truth about a scary, unknown future that looks absolutely frightening?
Let’s make the assumption that the management team accurately sees the current economic reality and worse yet, what’s looming on the horizon. Revenue has dropped to unimaginable levels and there is no sign in sight of any increase. No one on the team has any idea what to do… Prayer is quickly becoming a strategy. The corporate receivables are turning into uncollectible funds quicker that anyone could imagine as others feel the same economic pressures. The value of your inventory has decreased and your bank just pulled your line of credit. You are bleeding cash at an alarming level. There is only so much fat to trim and you have already begun cutting the muscle that took a lifetime to build. The team is now faced with the question – what leg do we cut off to save our life!
Is it a lack of trust or a fear that the worst case scenario (corporate death) can actually happen to them… For now, understanding is the only answer.
It was nice to see AJ use one of Covey’s 7 Habits “Seek first to understand” but his thought on “I know of no people (including Ivy Leaguers) who have been taught how to smoothly and effectively respond to the unprecedented crises we face today” Well who taught Obama and the leaders of all the major companies that have so far made major changes within their ranks? To me part of leadership is being open and honest about all situations not just the good. Yes being positive is important but even more so is the truth. Our owner no matter how it may hurt tells us the truth and his associates and board of directors appreciate and respect that fact.
There will always be fear in any work place and most can be truthfully unfounded by rumor, basic insecurity or whatever. But a leader who is upfront and honest with open communication will have the respect of the peer group within his organization that can also them calm the masses.
Seek first –
I never read the book, although I hear it’s some great work… Understanding the other parties’ position or mindset is used in acting and negotiation teachings and provides incredible results. I could only imagine by the book sales numbers that Steven packaged the message quite well.
Please don’t misinterpret the message; by no means was I suggesting that leaders be dishonest. Honesty and openness is key to long term success within any organization. However it’s a bit naive to think complete honesty rules corporate America or any company for that matter – a quick scan of Google news will clearly put that thought to rest.
Here’s a real business scenario that is current and relevant to our discussion; it certainly questions total honesty… A friend of mine just had his Platinum American Express card canceled – perfect payment history for years and a FICO score to be envied by nearly all. He’s a business owner, a home owner and has consistently used his card for over twenty years. Completely puzzled, he called AMEX and after being transferred to a multitude of people he ultimately discovered that they made a corporate decision to trim their exposure. They couldn’t tell him exactly WHY he was in this group, but he was cut… He went on to ask, “WHY wouldn’t you have called and told me this, I was checking out of a hotel and my card was denied… Their response was this. It would be foolish for us to call and tell people we were planning to cancel their cards at some point in the future because they may run up their debt and not pay us. It seems to me that there is a conflict with “complete honesty†and a sound business decision. A leaders day is filled with conflicts such as this.
Not to get political, but singling out Obama is as a leader is entirely premature since his abilities have yet to be proven; just because he has mastered the ability to speak as a leader doesn’t mean much. Time will tell if he can deliver positive results. Let’s not loose sight of the leader he is compared to – perhaps one of the worst speakers of modern times. Without a doubt, It is comforting to be represented by someone as eloquent as Obama although I worry that some of the most compelling and hypnotic speakers in history turned out to be very bad people.
And just because you’re printing more money and people feel better – doesn’t mean it’s a good thing for our country or you and I personally. I’m pretty certain that they didn’t cover this scenario in any school…
For a company to be successful it needs to have good and clear communication with all of its employees. When everyone is in the same page and they hear the same communication from top management it eliminates the uneasy feelings. Gossip is the main event that destroys the company morale. In order to eliminate gossip top management needs to confront the situation and communicate with everyone. This eliminates gossip and in return it gives reassurance to employees.