WEDNESDAY HIGHLIGHTS: Institutes Luncheon, Stephen M.R. Covey

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By Sheryl S. Jackson

Trust is a value that businesses overlook until it’s gone but the message given to hundreds of attendees at the National Black MBA Association Conference Luncheon was that trust is something that all business leaders should develop, grow and sustain in order to remain successful.

"Trust is an economic driver not merely a social virtue," says Stephen M.R. Covey, author of The Speed of Trust. When trust is low, the speed of business slows down and the cost of business increases, he points out. "If trust is low, it takes longer to make decisions or move forward because people take extra time to check information, review actions and make decisions," he says. Airports after 9-11 are a good example, he says. Low trust results in more security checkpoints, longer lines, more time to move through the airports, and more expense. "

At the same time, high trust improves speed and reduces cost. A donut and coffee vendor who noticed that customers would not wait in line when it took too long for him to serve people and make change decided to put a basket at the end of his cart for people to make their own change. "The man’s business grew because he was able to serve more people and they returned to him more often," says Covey. "He also noticed that not only were people honest about making change, they often left him bigger tips!"

There are people who do deserve our trust, but businesses should design their practices around the 95% of people who can be trusted rather than the 5% who can’t be trusted, says Covey. Extending trust to your employees and customers pays benefits in the form of better performance, loyalty and word-of-mouth referrals.

Trust is the number one competency for all leaders today. "If you get good at trust, you will be better at everything else," says Covey. "Trust turns a group of people into a team and a vendor into a partner."

Trust is a competency that can be learned, says Covey. "Start with credibility, which relies upon character and competence," he says. "Make sure your behavior reflects your credibility and trustworthiness by being honest and by extending trust to others."

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