Over the years, the concept of trust and how crucial it is for business success has evolved in my mind and grown in importance. The mental model I’ve chosen to use is that there are two types of trust that matter: (1) trust that someone is competent, and (2) trust that someone will do the right thing. I realize these are somewhat vague and certainly subjective qualities. But their importance cannot be underestimated. If you feel that your employee or business partner is strong in both areas, it makes all the difference in the world. If you feel otherwise, you are best off finding someone else.
More generally speaking, a high degree of trust in a company or in a society is incredibly valuable. Our culture is built on an assumption that most people are trustworthy. When that is the case, everything moves more quickly and costs less. There is less “friction” in the economy. When trust is lacking, a company or individual is forced to spend more money on protecting themselves – through lawyers, technology, physical security, contingency plans, etc.
What are you doing to foster a greater degree of trust?