Building Trust and Influence

Trust has become a scarce commodity. Yet, it remains the bedrock of effective leadership. Without trust, your influence as a leader dwindles, no matter how competent or experienced you may be. This stark reality is underscored by a concerning statistic from Edelman: 61% of business leaders are perceived as intentionally misleading people. This erosion of trust has far-reaching implications, not just for individual leaders but for the organisations.

The Erosion of Trust in Leadership

The Edelman statistic paints a worrying picture. When the majority of people believe that business leaders are not truthful, it signals a significant breakdown in the trust that should underpin all stakeholder relationships. This erosion of trust can lead to disengagement among employees, scepticism among customers, and even reluctance among investors. In short, it can cripple the very foundation upon which successful businesses are built.

Trust is not just a "nice-to-have" in leadership; it is essential. Leaders who are trusted are more likely to inspire loyalty, foster collaboration, and drive innovation. Without trust, a leader's influence is severely limited. People might follow orders, but they won't go above and beyond, nor will they feel a deep commitment to the organisation's goals.

The Trusted Adviser Trust Formula

How can leaders build and maintain trust in such a challenging environment? Enter the Trusted Adviser Trust Formula:

• Credibility: This is about the words we speak. Are we knowledgeable? Do we have the expertise and credentials that others can rely on? Credibility is built over time through consistent and accurate communication.
• Reliability: This reflects the actions we take. Do we deliver on our promises? Can others count on us to be dependable? Reliability is demonstrated through consistency in our actions.
• Intimacy: This is the safety or security that others feel when entrusting us with their thoughts and concerns. It’s about building personal connections and showing empathy.
• Self-Orientation: This is the degree to which we focus on ourselves versus others. High self-orientation means we're perceived as self-serving, which diminishes trust. The more we focus on the needs and interests of others, the more trust we build.

I believe Ethics is missing:

Ethical: Ethics refers to the principles that guide our understanding of right and wrong, shaping our decisions and actions. It involves acting with integrity, fairness, and responsibility, considering the impact on others and society.

By applying this formula, leaders can assess and improve their trustworthiness. For example, if a leader finds they are highly credible and reliable but lack intimacy with their team, they may need to focus on building stronger personal connections and showing more empathy. Similarly, if a leader is perceived as self-oriented, they may need to shift their focus to the needs of their stakeholders.

Building Trust and Influence

To build trust and influence, leaders must embody these principles in every interaction. Here are some actionable steps:

1. Be Transparent: Honesty is the foundation of trust. Even when the news is not good, being transparent with your team and stakeholders fosters trust. People appreciate knowing the truth, even if it's difficult to hear.
2. Deliver on Promises: Reliability is key to building trust. Make commitments carefully and always follow through. This consistency builds your reputation as a leader who can be counted on.
3. Show Empathy: Take the time to understand the concerns and aspirations of your stakeholders. Show that you care about them as individuals, not just as means to an end. This intimacy strengthens the bonds of trust.
4. Focus on Others: Shift your focus from your own agenda to the needs and goals of your team and stakeholders. By prioritising others, you reduce self-orientation and enhance trust.

In a world where trust is increasingly hard to come by, leaders who can build and maintain trust hold a significant advantage. By understanding the components of the Trusted Adviser Trust Formula—credibility, reliability, intimacy, and self-orientation—leaders can actively work to enhance their trustworthiness. This, in turn, strengthens their influence and ability to lead effectively.

As a leader, ask yourself: Are you building trust with every interaction, or are you inadvertently contributing to the erosion of trust in your organisation? The answer could be the key to your success or your downfall.

Contact me for a free 30-minute coaching consultation and take the first step towards a more balanced and strategic leadership approach.