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The Truth About Trust and Betrayal
ASSOCIATIONS NOW, April 2006

Trust and betrayal in the workplace are more complicated and emotional than leaders might recognize or admit. Needing time to develop and sometimes only seconds to destroy, strong relationships involve three types of what the authors define as transactional trust--contractual, communication, and competence.
By: Michelle and Dennis Reina

We all know that trust in the workplace is essential to an organization's success--so why is it so difficult to develop and maintain? According to researchers Michelle and Dennis Reina, leaders must recognize and foster the three types of trust--contractual, communication, and competence--that comprise the transactional trust needed to ensure strong working relationships.


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Few people have a hard time recalling a situation at work in which a colleague, boss, or volunteer broke their trust and caused anger, upset, or disappointment. Indeed, the list of examples might be very long. Still, trust and that provocative word--betrayal--are rarely discussed openly in staff meetings, although you might hear angry whispers in the lunchroom.

 

But an association's mission is fulfilled through relationships, and trust is the foundation of effective relationships. Until leaders consciously and publicly talk it and walk it, though, they will struggle in their efforts to build trust throughout their organizations. Today's climate of mergers, restructurings, staff turnover, leadership transitions, troubling team dynamics, and shifting operational strategies strongly contribute to the challenges of trust building in the workplace.

 

We have been researching trust for 15 years with thousands of people and have developed surveys that actually measure it. We conclude that while leaders may value trust, only one thing truly builds it: the way they behave. Achieving sustainable trust requires leaders to become aware of what trust actually is and what behaviors create it. Trust-building behaviors will strengthen all types of association relationships: among staff members, between teams, between the CEO and board of directors, and with members and industry leaders. Here, we examine the leader's role in building trust.

 

What Is Trust?

 

We use the term transactional trust because it is reciprocal in nature--you have to give it to get it. It is created incrementally, step by step. Three types of transactional trust exist--contractual trust, communication trust, and competence trust--and certain behaviors build each type.

 

Contractual trust. Contractual trust anchors an association's needs and objectives and is the starting point for trust in workplace relationships. If contractual trust is not established, people cannot move forward. Contractual trust is built when expectations, roles, and responsibilities are clarified repeatedly and when people practice mutually serving intentions and strive to honor or renegotiate agreements.

 

Contractual trust implies that people have a mutual understanding that they will do what they say they individually will do. Managing expectations, encouraging mutually serving intentions, and keeping agreements are examples of behaviors that build contractual trust. When practiced, people understand what is expected of them; their roles and responsibilities are clear; and they keep promises or renegotiate. Employees collaborate freely, share responsibility, and depend on each other.

 

Particularly during times of change and transition, people have a strong need to understand what their leader expects and what they can expect in return. Frustration and insecurity grow when purpose, goals, or duties are foggy or vague. Creativity and job ownership flourish with clarity.

 

As one of our clients illustrated, "I thought I was aligned with my boss' expectations, but I was criticized for being off course during my performance review. Why did he wait so long to tell me what he was looking for, and why did he wait until performance-review time? I feel blindsided and wonder if this is the job for me."

 

Trust shatters when employees pour their energy and commitment into doing what they believe is expected, only to learn that they are wrong. Employees may feel a range of emotions, from disappointment to anger.

 

Expectations are a reflection of our needs. Reflect on your own needs and those of your board, leadership team, and employees. Where are your expectations being met? Where are they deficient? The answers reveal the discussions you need to have with others. Clarifying expectations not only builds trust; it also is a leadership responsibility.

 

Expectations are met most successfully when they are mutually serving. We behave with mutually serving intentions when we are as interested in what others need as we are in our own needs and when we respect that trust is a two-way street. We support each other's successes and follow no hidden agendas. Trust is nurtured.

 

Unfortunately, hidden agendas are often part of an association's culture. They occur primarily when people are fearful or anxious. When agendas are unspoken, individuals work to meet their needs covertly. They may withhold information, thinking that will help them maintain power. Rather than share their views during a meeting, they may feed their thoughts later to a select few in an attempt to jockey for position or to make themselves look good. Generally, though, hidden agendas arise only when trust is insufficient in the first place.

 

Keeping agreements, another essential element of contractual trust, speaks to the reliability of an individual or organization to carry out commitments (e.g., do what we say we are going to do). When we keep agreements, we empower our relationships; we build the trust between ourselves and others.

 

"When I repeatedly meet my agreements, I enhance the readiness for trust between us," explains Mary Erving, CEO of a nursing association. [Editor's Note: Because of confidentiality agreements during the research process, individual names used here are pseudonyms, although the actual title, quote, and nature of the organization cited are real.]

 

Keeping agreements contributes to a leader's perceived trustworthiness. It means that a leader is willing to be accountable for his or her actions. It also models behaviors important for employees to emulate.

 

"I'm really frustrated," complained a client. "Phil said he was going to get that report to me, and I have been counting on him. I still don't have it. It's my neck on the chopping block if I don't get that report to my CEO by the end of the day. She needs it for the board meeting."

 

From time to time, we all drop the ball and fail to keep an agreement. If we assume responsibility and renegotiate, trust will be maintained. If we fail to do so, trust will degrade or break completely.

 

Communication trust. Trust influences communication, and communication influences trust. The two are closely related. Generally, leaders and their supporters want to communicate openly. They want to ask questions, honestly speak their minds, challenge assumptions, raise issues, give and receive feedback, or simply admit confusion and request help. Communication trust creates an environment in which people feel safe to relate in this way. Sharing information, telling the truth, and speaking with good purpose by going directly to someone with whom we have an issue or concern--these are examples of behaviors that build communication trust.

 

When leaders consistently practice communication-trust behaviors, it not only affects the trust in their relationships but also contributes to the association's productivity and results. People need to know what is happening if they are to perform and enjoy their work.

 

During change and transition, such as mergers or leadership shifts, the need for consistent information sharing is at its highest. People want both updates on the state of the organization and access to how-does-this-affect-me information. Sharing information eases the anxiety that may otherwise consume people. Good information frees them up to concentrate on the job at hand.

 

"[My colleague] Sue likes to withhold information from us, thinking it gives her power and control," laments Tom Dyer, director of marketing for a purchasing association. "What she doesn't realize is that when she doesn't share information, she breaks trust. We withhold information from her in return and avoid working with her."

 

This problem is not uncommon. When a team member withholds information, that behavior is perceived as self-serving, and the person's commitment to the team is questioned. Performance and team trust suffer. In the above case, Sue's colleague's distrust cost her a promotion; her CEO was unable to rely on her ability to guide and direct others.

 

Conversely, shared information is powerful because it contributes to individual and organizational learning. An important element is telling the truth.

 

"Telling the truth takes courage," says the director of communications to the president of a well-known university. "This means telling the 'real' truth rather than a convenient variation of or spinning of the truth. When spinning happens, I have learned people notice."

 

Trustworthy leaders model the behavior they expect from others. If they want truth telling, they first must tell the truth. Yes, sometimes the full truth may not be told; however, trust is practiced when leaders disclose that they are not at liberty to tell the whole truth but that they will share the information they can. Employees understand that some pieces must remain confidential and can appreciate a leader's responsibility.

 

When people are collectively not forthright and won't tell the truth, collusion--a form of betrayal--occurs. People close themselves off and can't handle the truth well. The cost? Truth goes underground, trust in relationships plummets, and the organizational rumor mill becomes overactive.

 

Speaking with good purpose is critical to communication trust. When leaders and people around them speak with good purpose, they talk directly to one another regarding their issues and concerns. Our research in more than 100 organizations using our trust-measuring surveys has found that gossip is the number-one killer of communication trust. The damage of this persuasive breach of trust is too great to be ignored.

 

Relationships can be challenging--which is natural, considering that trust is complex. Leaders and employees alike will experience periods of disappointment, frustration, and annoyance with one another. When we choose to address our concerns directly with a person, share information honestly, and tell the truth to the best of our ability, we honor relationships, help people grow, and develop and build trust.

 

Competence trust. Competence trust--the ability to rely on someone to perform job responsibilities--is an absolute requirement for work to get done effectively. Narrowly speaking, it means being able to rely on someone to complete a specific task.

 

As Sylvia Hernandez, executive director of a national sales association, comments, "When I trust the skills and abilities of my team, it allows them to trust in their potential competence. It actually provides them with a remarkable gift. When I trust in them, it opens the door for them to trust in themselves. I have learned that in order to trust in the competence of others, I have to trust in my own competence."

 

People generally want to do a good job. They want to use their skills and abilities. However, during change, they may wonder, "Do I have what it takes? Will I be able to learn the new skills required of me?" When people don't trust their abilities, they hesitate to take risks and act creatively. When competence trust is not present, micromanagement and the failure to delegate take its place. People do not feel free to use their skills and knowledge. They may feel discounted, left out of decision making, or robbed of growth opportunities. Involving others, seeking input, and helping people learn new skills are behaviors that build competence trust.

 

When high trust exists in CEO-board relationships, teams, and cross-department collaboration, individuals involve one another and seek input to achieve their objectives. They share information, exchange ideas, and brainstorm solutions. By actively involving one another, they share responsibility for results. This builds confidence and competence trust within each individual and the team as a whole.

 

Notes Lee Chang, CEO of a large food-service association, "When I help my employees learn new skills, I am investing in their competence and the capacity of my team. Likewise, I encourage the employees to teach one another and share knowledge. This creates a positive-feedback learning loop within my team. Everyone benefits, and the team's competence increases."

 

One indication of a low-trust environment is the "not-invented-here" syndrome. For example, people ignore or discount others' suggestions simply because they didn't think of them first, or they may not support implementing solutions because "that is not my job." Overall performance suffers when people don't leverage each other's competencies.

 

Trust is the foundation of an association's effectiveness. Without it, a team will not do more than go through the motions of teamwork. Transactional trust anchors relationships in the association's purpose and creates shared responsibility and accountability among the staff. Contractual trust sets the tone and direction; it establishes the playing field and the rules for engagement. Communication trust establishes information flow and how people will talk with one another. Competence trust allows individuals to leverage and further develop skills and knowledge.

 

Can relationships and teams have one type of trust and not another? Yes, but not for long. We have learned through our research, consulting experience, and use of trust-measuring instruments that it is possible for a team to have a high level of one type of trust and a low level of another at some points in its functioning. However, if low levels of trust are not rebuilt, the unresolved distrust or betrayal will erode the pockets of high trust.

 

High-trust organizations strive to be aware of their behaviors. They value relationships and link trust-building behaviors to their strategy. These organizations reap the rewards of their conscientious discussions and behavioral choices through joy, satisfaction, growth, results, and effective relationships.

 

Michelle Reina and Dennis Reina both hold doctorates in human and organizational systems. They are founders of The Reina Trust Building Institute (www.trustinworkplace.com), coauthors of Trust & Betrayal in the Workplace: Building Effective Relationships In Your Organization (Berrett-Koehler, 2006; 2nd ed.), and recognized trust experts. They also do consulting, executive coaching, and keynote addresses. © 2006 Dennis S. Reina, Ph.D.; Michelle L. Reina, Ph.D. All rights reserved. E-mail: info@trustinworkplace.com

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