Wherever you perceive your organization stands in terms of trust, what would happen if there was more? How would it affect customers, employees, and suppliers? How would it increase revenues and bottomline?

Before we talk about what you can do to cultivate this essential element, how do you even know where you stand?

How Trust Works

The level of trust you foster within your organization directly impacts your engagement with employees, relationships with customers, and the quality of work delivered by suppliers. If you believe that the vast majority of your stakeholders are trustworthy, your PROCESSES would reflect that. They would empower employees and customers, fostering a sense of freedom, belonging, and commitment. Conversely, if you doubt their trustworthiness, your processes will likely be filled with superfluous controls, creating a climate of suspicion and short-term transactional relationships.

Measuring Trust Through Processes

To determine the true level of trust within your organization, examine your processes. When asked, many leaders assume their organizations are trust-driven. However, a closer look – and feedback – often reveals restrictive policies, excessive approvals, and micromanagement. These practices indicate a lack of trust. Organizations are not merely sets of numbers or facts. They are stories. The processes and procedures you implement tell a story about the level of trust we expect from stakeholders.

Take, for example, the case of Jennifer Nieva, Director-Product Innovation at Netflix. She loved to work at HP and was awarded a large project on which she had to shortlist an external consulting company for US$ 200,000. While she burned the midnight oil choosing one among eight firms, when she looked at the internal process to obtain a spending approval, there were twenty people who would need to sign-off on that amount. The consulting team was not available indefinitely and Jennifer was ostensibly stressed. Was she going to lose the consultants she had worked so hard to find? Despite diligent follow ups, it took six weeks for procurement to validate her proposal…and the story ended happily.

A few years later she joined Netflix and pieced together a million dollar marketing campaign that she needed to run. She asked her boss about the vendor approval and appointment process…and here was the reply, “You must sign it and fax it back to the vendor.” [This was in 2009]. Jennifer nearly fell off her chair. In three months of joining, she received a mail from the legal team stating that she had the authority to sign contracts and agreements for Netflix in Brazil. Promptly she replied, “Upto what amount?” And their reply? “The limit is your judgment.” She was amazed and scared. And this is what built her up to be the conscientious leader she grew to become!

Overcoming Objections

While some argue that policies and procedures are necessary, it’s important to consider the costs associated with overly restrictive approaches. Excessive approvals and micromanagement can lead to decreased employee morale, reduced productivity, and a negative customer experience. At Nordstrom, for example, employees are empowered to make decisions based on the diktat “always provide outstanding service, no matter what”. This allows them to quickly and effectively resolve customer issues and fosters a deep sense of ownership and accountability.

There is obviously a cost implication – which is more than covered by the increased profitability due to goodwill and loyalty. In Q1 2024 Nordstrom’s banner net sales increased 0.6 percent and comparable sales increased 1.8 percent compared with the same period in fiscal 2023. Anecdotally, one iconic example often cited is the story of a customer who successfully returned a set of tires to a Nordstrom store, despite the fact that Nordstrom doesn’t sell tires!

Ten Steps to Foster Trust

To build a trust-based culture, as outlined by Lior Arussy (Chairman of ImprintCX), there are 10 steps. Be sure to click each link to put theory into practice.

1. Conduct focus groups: Gather feedback from employees to identify trust-busting processes.
2. Review approval processes: Delete every process that doesn’t directly help the customer.
3. Redesign restrictive processes: Create more empowering and efficient procedures.
4. Create an empowerment toolkit: Provide employees with the tools they need to succeed.
5. Identify outliers: Address the few individuals who may abuse trust.
6. Have honest conversations: Discuss trust issues with outliers and take appropriate action.
7. Publicize changes: Communicate the new approach to all stakeholders.
8. Monitor new processes: Ensure they are effective and not overly restrictive.
9. Continue to monitor outliers: Address any recurring issues.
10. Identify new ways to empower employees: Continuously look for opportunities to foster trust.

Conclusion

By implementing these steps, you can create an organizational culture that is strongly glued by trust. By empowering your stakeholders and demonstrating your belief in their integrity, you can foster long-term relationships, improve employee engagement, and drive business success.