The Power of Trust Q&A


4th November 2022

Experts in trust and business culture were guest speakers at an Investing in Success webinar hosted by Blake Morgan Partner Jennifer Williamson on Wednesday 2 November.

We were lucky enough to hear from Geoff Hudson-Searle, Douglas Lines and Mark Herbert on the power of trust. During the webinar, attendees had the opportunity to ask questions and our speakers answered some of the during them session. Below Mark Herbert has fully answered all of the questions posted.

What extent do you think the wide mix of generations in the workplace may influence attitudes to trust and the presence of psychological safety in organisations?

The fact that we have four (4) generations in the workplace and operate in a global economy definitely bring issues like trust and psychological safety into much sharper focus. We also have generations who watched their parents betrayed by the old Social Contract and they see their relationship with employers very differently than previous generations. I personally don’t believe that they are wrong. Clear expectations, appropriate work/life balance, respect for individuals, balanced meaningful feedback and an environment that is physically, emotionally, and psychologically safe along with equitable compensation should be employment entitlements. I don’t see that as codependency or socialism, I see it as embracing a stakeholder mindset and the evidence is clear that it represents a win-win scenario when it is appropriately executed. The day has arrived. The new generations make up the majority of the workforce and they aren’t interested in going back to the “good old days”.

I totally agree with comments on command and control. Do the panel have any thoughts or views on bringing others at the same level (and above) on board to align approach to getting the most from engagement? Or is that just an instance to ‘silently quit’ and move on?!

Although this can be challenging, I think very few organisations are operating at a level where they can’t improve. Unless the organisation isn’t experiencing any turnover, is financially outperforming their peers in every KPI, etc. there is opportunity. Inertia and complacency are the biggest barriers. One way to start is to do an assessment, but only if the C level and Board are willing to hear the feedback and make changes. It can be hard to recognise that you (Board or C level) are part of the issue and accept that responsibility. We are also talking about culture change, it doesn’t happen overnight and it can’t be just a survey or delegated to HR. In candor, my experience is facilitating the change is much easier when the organisation is underperforming or there is someone at a senior level who is willing to champion it.

Engagement within an organisation, especially where there is distrust that ideas will be heard from previous experience has occurred, can be a challenge. Have the panel got any positive examples or actions that can help to address this?

I find that successful culture changes have some things in common with romance 😊, one of them is timing and commitment to do the work. Being willing to do an analysis of what was tried before and what did or didn’t work is important. I find many organisations also underestimate the time and the work and they quit right before a breakthrough is achieved. Being candid about past “mistakes” is also important.

Do you feel that the media reporting half truths to ensure sound bites makes trust in systems and systems leaders worse?

Yes. Of the four major players in the Edelman Trust barometer media comes in dead last in terms of credibility. Alternatively, the vast majority of employees want to hear from their Senior leadership and see them take a more engaged role in addressing key issues.

A wealth of information is readily available on the issues helpfully raised by each of you – why does this still elude those who are in senior positions?

Changing culture and building trust is hard work. The first step is acknowledging that trust is earned and not an entitlement that comes with a position or extensive CV. It is also often dealt with serially rather than systemically. If people don’t feel appropriately compensated or “safe” to express their issues and concerns, you will likely hear about them in exit interviews. If you ignore the feedback or reject it you can undermine the effort. Also, engagement can be created in the Board room, but it lives at the front line level. One toxic manager can pollute the whole environment. We also need to assure that everyone in the leadership hierarchy has the tools and the commitment to do the work every day.

You can’t just have an intellectual discussion; you have to do the work. You also must have a zero tolerance for anyone who can’t or won’t get on board. I tell people “We will tolerate compliance in the short term, but if you can’t or won’t get on board with our organisational values and mission this is not the place for you.” Be flexible about process, but ruthless about culture and values.

I think it was Peter Drucker who said culture eats strategy for breakfast – that was a long time ago and yet it still doesn’t get the profile it needs so great to see it being promoted here – what would you say is the one thing that leaders can do to improve culture and trust in organisations?

The first step in my opinion is to acknowledge where you are and where you aspire to be. For many years organisations could hide behind the lack of “data”. That is no longer the case. The evidence is available and compelling. Culture is also something you build with people not to them, real leaders inspire and support, they don’t just focus on mechanical steps and processes.

Eighty-five per cent of Boards feel they don’t have the right leadership teams. Just wondering how many leadership teams think they’ve got the right Boards?

Excellent point. In many cases the pool they fish from for the two groups are interchangeable. We like to talk about DEI [diversity, equity and inclusion], but most Boards are still made up of middle-aged white men. There also needs to be real meaningful discussion that culture IS part of the Board’s responsibility and that the success metrics for the organisation need to include the care and feeding of the culture.

What is the opposite of ‘Design Thinking’?

Design thinking is a human centered approach to solving problems. I would think that in the absence of a systematic and proven tool/approach you are relying on pot luck.

Is the lack of trust in business leaders one of the factors in low productivity in the UK?

The short answer is yes, but as evidenced by Edelman who draw participation from 28 countries it is not unique to the UK. The US is also experiencing huge productivity losses. The leadership models taught in most of our universities are outdated and outmoded. They are mechanical, not interpersonal. Leadership skills are not “soft” skills. They can be taught and reinforced. When I look at the world stage, I see very few outstanding leaders in any sector. There is a huge opportunity for social entrepreneurism, you can do well and do good. We need to change what we value and reward.

Can you recommend how you ‘sell’ culture to the board?

In this day and time if you must “sell” the importance of culture to the Board you need to make significant changes to the composition and the charter of the Board. While Boards should not be intruding into operations their role as stewards of the culture should be clear to them. The primary functions of a Board, in my opinion are to set the strategic direction of the organisation, hire and manage the CEO/Managing Director, and monitor the organisation’s total performance. Anything less is a failure to fulfill their fiduciary responsibility.

 

We hope you enjoyed listening to the webinar and the above Q&A has helped understand trust in business and how to achieve change.

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