The Importance of Trust in Leadership

There are many ways to think about leadership. For some, as we have seen, it is about control or power. For others, it is about achievement or recognition. For others, thankfully, it is about people and service, along with higher purpose and positive impact.
 
Since leadership by definition involves a relationship between leaders and followers—and, more precisely, an influence relationship—it begs the question of trust. One may be able to command, control, or deceive at some point or for some time, but for an enduring relationship of constrictive influence, trust must be present.
 
Trust is a firm belief in the reliability or truth of someone. This takes us into the deep and rich territory of character, credibility, ethics, honesty, integrity, morality, and values—all of which are essential underpinnings and necessary prerequisites of good leadership. These virtues are good in and of themselves and should be aspired to by all (and, yes, even in competitive contexts such as business and sports).
 
There is also a “business case” for trust. Without trust in an organization or society, things take longer and cost more, due to the need for checks and reviews and the inevitable holding back that comes in such situations. In his book, The Speed of Trustauthor Stephen M. R. Covey wrote, “Trust always affects outcomes—speed and cost. When trust goes up, speed will also go up, and costs will go down. When trust goes down, speed will also go down, and costs go up.” He and his father, Stephen R. Covey (author of The Seven Habits of Highly Effective People), brilliantly described leadership as “getting results today in a way that, by inspiring trust, increases our ability to get results tomorrow.”
 
Leadership scholars James Kouzes and Barry Posner, authors of the classic book, The Leadership Challenge, have been surveying people around the world for decades on the characteristics of admired leaders. More than 100,000 people worldwide have responded, and the findings are powerful:
 
“Credibility is the foundation of leadership. People must be able, above all else, to believe in their leaders. To willingly follow them, people must believe that the leaders’ word can be trusted…. Trust is the most significant predictor of individuals’ satisfaction within their organizations.” -James Kouzes and Barry Posner, The Leadership Challenge
 
This is not rocket science. Imagine working for a leader or colleague whose behavior has demonstrated that he or she is not worthy of your trust, since he or she has deceived or used you. Imagine living with a family member or having a friend who abuses your trust.
 
Unacceptable. Such a situation requires change, and urgently so.
 
Of course, we all make mistakes and, when we do, thankfully we can redeem and make amends when others are kind and gracious enough to give us a second chance. But patterns of deceit warrant decisive action. Otherwise, we enable abuse and corrosive forces in our organizations and society.
 
Trust is essential in leadership—and in all forms of human relationships and organizations. Chronically failing the trust test is disqualifying for leaders.

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Gregg Vanourek is an award-winning author who trains, teaches, and speaks on leadership and personal development. He runs Gregg Vanourek LLC, a training venture focused on helping you lead yourself, lead others, and lead change. Gregg is co-author of three books, including Triple Crown Leadership: Building Excellent, Ethical, and Enduring Organizations (a winner of the International Book Awards) and LIFE Entrepreneurs (a manifesto for integrating our life and work with purpose and passion). Twitter: @gvanourek

The Importance of Credibility in Leadership

Credibility: the quality of being worthy of belief and trust

Credibility, which flows from character and competence, is one of the most essential aspects of leadership. High credibility is a tremendous asset for leaders seeking to achieve exceptional performance and positive impacts. Low credibility is devastating.

Credible leaders are straight with people, even about hard topics. They walk the talk and practice what they preach. They do what they say they will do and follow through on promises.

Think about what you have wanted from your leaders, parents, teachers, and coaches over the years. Think of the impact that credible leaders have had on your life. Think of the kind of leader you would want your children or best friend to work for.

Leadership scholars James Kouzes and Barry Posner, authors of the best-selling classic, The Leadership Challenge, have been surveying people around the world for decades on the “Characteristics of Admired Leaders.” More than 100,000 people worldwide have responded, and the findings are powerful and surprisingly consistent across nations:

“In every survey we’ve conducted, honesty is selected more often than any other leadership characteristic. Overall, it emerges as the single most important factor in the leader-constituent relationship…. First and foremost, people want a leader who is honest….
“…people want to follow leaders who, more than anything, are credible. Credibility is the foundation of leadership. People must be able, above all else, to believe in their leaders. To willingly follow them, people must believe that the leaders’ word can be trusted.”
-James Kouzes and Barry Posner, The Leadership Challenge

Table 1. Characteristics of Admired Leaders
(% of respondents selecting each characteristic over time periods)

According to their research, when people perceive their manager to have high credibility, they are significantly more likely to:

  • Be proud to tell others they’re part of the organization
  • Feel a strong sense of team spirit
  • See their own personal values as consistent with those of the organization
  • Feel attached and committed to the organization
  • Have a sense of ownership of the organization

When they perceive their manager to have low credibility, they are significantly more likely to:

  • Produce only if carefully watched
  • Be motivated primarily by money
  • Say good things about the organization publicly but criticize it privately
  • Consider looking for another job if the organization experiences problems
  • Feel unsupported and unappreciated

That leads them to the Kouzes-Posner 1st Law of Leadership:
“If you don’t believe in the messenger, you won’t believe the message.”

And then to the Kouzes-Posner 2nd Law of Leadership:
DWYSYWD: “Do what you say you will do.”

Today we all face grave challenges, from the pandemic and economic crisis, with all their stresses and pressures, to competitive and technological disruption. Now more than ever we need credible leaders worthy of our belief and trust.

“Credibility is a leader’s currency. With it, he or she is solvent; without it, he or she is bankrupt.”
-John C. Maxwell

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Gregg Vanourek is an award-winning author who trains, teaches, and speaks on leadership and personal development. He runs Gregg Vanourek LLC, a training venture focused on helping you lead yourself, lead others, and lead change. Gregg is co-author of three books, including Triple Crown Leadership: Building Excellent, Ethical, and Enduring Organizations (a winner of the International Book Awards) and LIFE Entrepreneurs (a manifesto for integrating our life and work with purpose and passion). Twitter: @gvanourek

The Root Cause of Ethical Failings (and Our Political Dysfunction)

Scandals. Fraud. Abuse of power. Greed. Corruption. Tax evasion. Coverups.

Once rare occurrences, coming back to haunt us every decade or so, these are now front and center in our daily lives and our daily news cycle. We see them in government, in business, and even in nonprofits and some religious organizations.

It seems as if we are in a race to the bottom.

While these challenges and failings have always been with us, we are not particularly well equipped to deal with them, in part because we fail to understand their root causes—and to hack away at them.

Enter Professor Kenneth Goodpaster and what he calls the “three symptoms of ethical hazard”:*

1. Fixation: obsession with an overarching goal. For example, Enron executives were a group of hyper-ambitious overachievers with something to prove about being number one. Many were ruthless and uninhibited about doing whatever it took to get there. For NASA, it was fixation with set-in-stone space shuttle launch dates, contributing to tragic explosions and loss of life. Some mountain climbers get “summit fever,” where they are so focused on reaching the top that they recklessly risk their own lives and those of their teams.

2. Rationalization: attempting to explain or justify behavior with logical reasons, even when not appropriate. Sometimes values conflict (e.g., truth vs. loyalty). Rationalization entails choosing based on one “privileged feature” (e.g., total loyalty regardless of the truth). This creates “blind spots” in ethical thinking. Examples of rationalization are legion:

  • My boss told me to do it.
  • Everybody else is doing it.
  • It’s just this one time.
  • No one will find out.
  • It’s not my responsibility.
  • It’s not lying. (It’s just not telling the truth.)
  • We really need/deserve this.
  • I didn’t do anything. (I just looked the other way.)
  • You don’t understand the pressure we’re under.
  • “Business is business”: we’re just “maximizing shareholder value.”
  • “Politics is dirty”: we have to do this so we can do X, Y, Z….

“I… rationalized that what I was doing was OK, that it wasn’t going to hurt anybody.” / “I will live with this pain, with this torment, for the rest of my life.”Bernie Madoff, former financier and operator of a Ponzi scheme considered the largest financial fraud in U.S. history

3. Detachment: the sense of not being personally involved in something or of having no interest or stake. On ethical matters, Goodpaster raises the alarm when our actions are detached from our personal values. When detached, people bypass their heart and soul as they privilege only their head, and they anesthetize their humanity in the face of temptations to win or be perceived as successful. Here he draws on psychoanalyst and author Michael Maccoby, who warned that “careerism” was a self-destructive affliction suffered by many successful executives (and politicians, presumably), fueled by an obsession with winning and a “gamesman” view of all actions in terms of whether they will help you succeed in your career or campaign. The person detaches from his or her sense of identity (e.g., as a mother or father, citizen, etc.) and integrity, and one’s sense of self-worth becomes measured by performance in the market, game, or arena. Such detachment corrodes character and degrades mental health, with people leading divided lives between work and home.

Two related dangers here are “ethical fading” and “moral disengagement”:

  • Ethical fading: “when the ethical aspects of a decision disappear from view,” such as when people focus so much on things like profitability or winning that they do not register unethical and illegal behavior (and the related aspects of harm, pain, conflict).
  • Moral disengagement: restructuring reality to make our actions seem less harmful than they are, convincing ourselves that ethical standards do not apply to us in a certain context, such as a political campaign. We mentally reframe destructive behavior as acceptable, and our brains are masterful at this misdirection.

Each one of these three symptoms is dangerous, but the real problem is that they converge into a single, terrible pattern. Goodpaster calls this “teleopathy”: the unbalanced pursuit of purpose. The word “teleopathy” combines two Greek roots: “teleo”: goal, target, or purpose; and “pathos”: disease or sickness.

We can think of it as a goal sickness—as being so focused on a goal that we pursue it destructively:

We must win.
We must be the best.
We must rule.

Thankfully, Goodpaster notes that there are “antidotes” for the three symptoms of ethical hazard:

1. From fixation to perspective. We must see that our goals are part of a larger mission, the common good. We need to transcend our perpetual busyness and reactivity and build in reflection time, renewal rituals, and sanctuary. Without a larger and longer term perspective of community, duty, stewardship, and sustainability, we will spiral down in self-destructive patterns.

2. From rationalization to frankness. Since our rationalizations tend to be subconscious, coming from the older and faster parts of our brain that do not engage our most advanced reasoning capacities in our prefrontal cortex, we need radical honesty and candor through searching and piercing dialogue and healthy conflict with colleagues who recognize the tremendous value of vetting and pressure-testing our ideas and decisions and inviting conversations about whether we are upholding our shared values. We need people who are willing to “speak truth to power,” even when they are a voice of one. Ideally, our organizational culture fosters such questioning and conflict, all in service of making wise decisions and proper actions.

3. From detachment to engagement. This requires engaging our heart as well as our head. A powerful way to do that is to be clear about the higher purpose of the work you are doing (beyond winning a campaign or maximizing profits:

  • What will you do once elected?
  • What value can you create for all stakeholders through the profits you generate?
  • What positive impact can you have via serving others, and are you doing your part for the common good?

Now more than ever we need to identify and hack away at the root causes of our ethical failings and political dysfunction. We need to stop our senseless race to the bottom—in business with our myopic pursuit of profit and growth regardless of the consequences on people and planet, and in politics with our zero-sum game mentality of “I must win and you must lose” with all its attendant cynicism and disdain for fellow citizens who happen to disagree with us on some issues. We need to look for shared values and mutual interests instead of stoking mistrust, anger, and resentment. This race to the bottom is so dangerous because it threatens to destroy the very foundations of our communities and society. With perspective, frankness, engagement, and a healthy pursuit of shared purpose, we can redirect the race upward.


* Source: Kenneth Goodpaster, “Ethics or Excellence? Conscience as a Check on the Unbalanced Pursuit of Organizational Goals,”Ivey Business Journal, March/April 2004.

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Gregg Vanourek is an award-winning author who trains, teaches, and speaks on leadership and personal development. He runs Gregg Vanourek LLC, a training venture focused on helping you lead yourself, lead others, and lead change. Gregg is co-author of three books, including Triple Crown Leadership: Building Excellent, Ethical, and Enduring Organizations (a winner of the International Book Awards) and LIFE Entrepreneurs (a manifesto for integrating our life and work with purpose and passion). To get Gregg’s manifesto on how to avoid the Common Traps of Living and free book chapters from Gregg’s books, check out his Free Guide.

The Most Important Questions for Leaders

Leading others well can be a great challenge. It requires courage, judgment, wisdom, emotional intelligence, integrity, and much more. Leadership excellence comes with experience, but it begins with intentionality and commitment.
 
Here are the most important (four) questions to help ground your leadership in a powerful foundation, whether you are a new leader learning the ropes or a seasoned leader looking to upgrade or renew.
 
1. Why are you leading? Is it for prestige? The title? Money? Power? Perquisites? Is it to prove something, or impress others? In truth, several of these may be drivers for you, but the key issue is whether you have found a deeper why. Being a leader does not require being a saint absent normal human influences and motivations, but leading well requires clarity of purpose and a motivation beyond the self. Great leadership has been described as motivating people to accomplish great things together. In our “triple crown leadership” model, we address the kind of leadership that can build an organization that is excellent, ethical, and enduring—with exceptional, positive, and sustainable impacts.
 
Have you matured and evolved such that you are able to rise beyond your ego and focus on the bigger picture? Followers will recognize selfish motives, especially if they become dominant, and such motives can make your leadership toxic if left unchecked. But followers will respond positively if they see a leader committed to a worthy higher purpose and aspirational vision.
 
2. Who are you serving? As Robert Greenleaf noted, the best leaders serve. With his “servant leadership” framework, he challenged traditional thinking about leadership as a top-down phenomenon. Greenleaf wrote, “The servant-leader is servant first. It begins with the natural feeling that one wants to serve. Then conscious choice brings one to aspire to lead. That person is sharply different from one who is leader first, perhaps because of the need to assuage an unusual power drive or to acquire material possessions.”
 
People sense that call to serve. They respect and admire it, and willingly follow. Greenleaf even developed a conceptual “test” we can use for determining whether someone is a servant leader: “The best test is: do those served grow as persons; do they, while being served, become healthier, wiser, freer, more autonomous, more likely themselves to become servants?”
 
At best, leaders serve their followers, and the organization serves all of its stakeholders: customers, employees, vendors and partners, the community, and its owners. The days of any organization serving only shareholders, often at the expense of other stakeholders, are numbered.
 
3. Are you upholding your values? Your values are the things that are most important to you. Think about what you believe and stand for, and your convictions about what is most important in life. While many organizations have statements of their values, many people don’t take the time to discover their own values. There is great power in making your values explicit and sharing them with others—and in demonstrating them through your choices and behaviors. Values matter because they guide your behavior in congruence with your authentic self and deepest convictions. Many people run into trouble when they behave in ways that conflict with their values.
 
Great leaders know their own values and collaboratively elicit a set of shared values to guide the behavior and decisions of people in the organization. They key is not having values. The key is upholding them and infusing them in the organization so they are actualized.
 
“You cannot deliver value unless you anchor the company’s values. Values make an unsinkable ship.” Indra Nooyi, former Chair and CEO, PepsiCo
 
4. What are you doing to develop yourself and others? Learning to lead well is a lifelong endeavor, and the best leaders are incredibly intentional about developing their own leadership through experience, stretch assignments, challenges, crises, active solicitation of feedback, coaching, mentoring, training, courses, reading, peer groups, self-reflection, and more.
 
The best leaders also focus on developing others. According to Jim Kouzes and Barry Posner in The Leadership Challenge, “Leaders develop in others the competence, as well as the confidence, to act and to excel.” They go on to say, “The most lasting test of your leadership effectiveness is the extent to which you bring forth and develop the leadership abilities in others, not just in yourself.”
 
Unfortunately, most organizations do not invest nearly enough in effective training and development (or on vetting people during hiring). According to a Hewitt Associates study of 700 senior leaders, most organizations hold their executives and managers accountable for achieving business results, but only 10% hold executives accountable for developing their direct reports, and only 5% indicate that their managers consistently demonstrate the ability to develop employees. In their book, The Talent MastersRam Charan and Bill Conaty write, “If businesses managed their money as carelessly as they manage their people, most would be bankrupt. The great majority of companies that control their finances don’t have any comparable processes for developing leaders or even pinpointing which ones to develop.”
 
Organizations that are great at learning and development improve systematically over time in ways that allow them to excel and outperform others, leveraging the power of compounding and the engagement and motivation that come from learning, development, and growth.
 
So, four key questions for leaders:
1. Why are you leading?
2. Who are you serving?
3. Are you upholding your values?
4. What are you doing to develop yourself and others?
 
How do you answer these questions, and which questions need better answers?

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Gregg Vanourek is an award-winning author who trains, teaches, and speaks on leadership and personal development. He runs Gregg Vanourek LLC, a training venture focused on helping you lead yourself, lead others, and lead change. Gregg is co-author of three books, including Triple Crown Leadership: Building Excellent, Ethical, and Enduring Organizations (a winner of the International Book Awards) and LIFE Entrepreneurs (a manifesto for integrating our life and work with purpose and passion). To get Gregg’s manifesto on how to avoid the Common Traps of Living and free book chapters from Gregg’s books, check out his Free Guide.