Trust

A while back, Eric asked what I thought the role of trust is in a dynamic organization. And can trust scale?

I believe that trust is an important part of an organization culture. With real trust:

• employees have great job satisfaction
• they can focus on doing their job well, confident that others are doing theirs well
• they can ask questions and make suggestions to help the product or the business, without being considered overly critical (i.e. they are free to speak their mind without recrimination)
• they can innovate and pursue freely in their area of responsibility

• organizations are streamlined
• there is very little overhead needed for management at any level
• no need for policing functions (as HR can sometimes grow to become in an organization)

I have worked in organizations where there has been real trust:

1. As a student, I worked for a Telecom company who was rolling in money. Our management was young, enthusiastic, and had the ability to decide what our team would do without any interference from upper management. The team was smart, the work was interesting and we made great progress. We were confident and no one questioned what we were doing. It was invigorating. But then the company's resources began to dry up and as cuts began, trust began to erode.  Although our work may have furthered the company's goals, the path to success was not clear and there was another group attacking the same problem in a different way. Instead of cooperating together, we were essentially competing, using  at least twice the necessary resources to achieve the results. Throughout the company there were many projects that were duplications, dead ends, or seemingly unrelated to the goals of the company. Groups were cut, budgets slashed, command and control replaced trust. The company did survive but it was a completely different type of company after that.  
2. Early in my career, I worked for a consulting company which gave me well defined constraints: the scope of work, the delivery schedule, and the resources. Once I was given a project, they fully trusted me and my team with completing the work, as long as we reported good progress each month. However, it was pretty easy to trust everyone, since there was so little room for any variation or any innovation. 
3. I also worked for company that had been stripped to the bare bones with cutbacks and all we had left were the people who wanted to make the company a success, a leader who we believed in, and a plan that we thought would work. We had no choice but to trust each other to do their part of the plan as we were under resourced in all areas. Everyone was motivated and criticism was all taken as constructive. After we turned around the company, trust continued for a short while, but then we started to grow quite rapidly, we hired more haphazardly, we brought in executives who were micro managers and the trust that we had evaporated. Trust had not been a core value of the company but more of a side effect of the position we had found ourselves in.

Although I have seen organizations with real trust, I have not seen it scale for any length of time. For trust to scale I believe that

• everyone needs to have clear direction and needs to be working toward the goals of the company
• it should not be as restrictive as my consulting company example, but it should not be a "free for all" like my Telecom company example
• trust must be a core value of the culture
• and you must work to ensure it stays that way; even though there may be trust at some point, if it is not key to the company culture, it can erode as in my comeback story
•  you must have a great hiring process
• you need to make sure that you hire talented people that fit in and share your values

Leaders are readers

Good leaders are always learning. They are avid readers. 

Needs some ideas on what to read?

Here are some ideas from HBR Blogger, John Coleman, on what leaders should read. 

I checked out the the curriculum and reading list from David Gergen's leadership course and thought it looked excellent. (Side note: I am a big David Gergen fan. I can even tolerate CNN political coverage if David Gergen is there, as I find him to be thoughtful, sensible, and balanced)

But reading does not need to be just about leadership. Below is a consensus cloud visualization of several top 100 books lists on the interweb (put together by David McCandless of Information is Beautiful - for the full data set check here). 

I have often thought of picking a top 100 book list and reading it as a New Year's Resolution. I probably will never do that but reviewing these book lists has inspired me to read To Kill a Mockingbird (hard to believe I have not read that) and True North: Discover your Authentic Leadership. 

Don't ask if you are not ready for the answer

When I was a young teenager, I remember asking my Dad to make a decision for me although the decision really could have been all mine. He chose an answer that I detested and I proceeded to throw a fit. When he saw my reaction he told me "Never ask a question if you are not prepared for the answer". I have long forgotten the question I asked but I have always remembered his great advice.

If you are a leader or manager this is very important. If you are not prepared to accept the answer to a question you have asked your team, then you should never have asked. Asking and then dismissing can be quite demoralizing.

Recently, my daughter was asked by the leader of her division if she would like the opportunity to take on a new expanded role in the company. He asked her to do some research and paint a picture of what the role and responsibilities would be. Two levels of management above her had left in the course of the previous 9 months, and she had taken on many of their responsibilities but there were more to take on. Her interim performance reviews had been stellar. She took him at his word, went and defined the role, picked a title and found out what the competition paid for a comparable job. She reviewed her findings with me and it all seemed very reasonable. Since she was new to the position, she was going to ask for a a lower than average salary until she could prove that she could handle all aspects of the job. The promotion would result in a $15k increase in salary (yet still $15k below the average salary for the work).

As requested, she sent her findings to the division head in advance of their scheduled meeting. He called her after seeing what she sent, said he was shocked, and there was no way she could possibly expect that she could get that big a raise. He said she should just be grateful for the opportunity he had given her. The meeting did happen but he pretty much said the same thing to her in person as he had said on the phone. Eventually, she got a token raise along with no title change yet he was more than willing to give her all the responsibilities of the job she had defined.  She was also told if she increased profits she could possibly get a raise (but profit sharing bonuses were not available to someone at her level). My daughter told me "well, it was better than a kick in the pants".

Why then had she been asked to "paint a picture"? The only reason that I can come up with is that the division head needed a job description and this was a way to get it. The net result is that although the opportunity is good, it has clearly taught her that he doesn't care and cannot be fully trusted; and she is now somewhat demotivated although still putting in a good effort. My take on what we learned about her division head and her company is pretty colourful in tone and not appropriate for this blog (I have also recommended a resume update). Clearly he never should have asked the question, because he was not prepared for the answer. The result was that a young enthusiastic employee feels under appreciated and overworked. She lost something in the experience; her division head lost something in the experience; and the business lost as well. All because of a question that never should have been asked.

Decision Making

Found this short blog post from Seth Godin on decision and thought it had some very good points. Check it out.

http://sethgodin.typepad.com/seths_blog/2012/10/waiting-for-all-the-facts.html