Understanding Shipping | Trust in Global Business

In this fascinating speech by Rose George, she gives some statistics and stories that connect all of us to the unkown world of shipping. The public’s unfamiliarty (which experts call “Sea Blindness”) with this vast world, many trust issues exist.

http://www.ted.com/talks/rose_george_inside_the_secret_shipping_industry.html

 

Here are some highlights:

  • 90% of world trade is through shipping
  • It has quadrupled in size since 1970
  • Harvard Business recently named some Somali Piracy as a top business model – more on high piracy waters.
  • 544 seafarers are being held hostage off the Somali coast by pirates
  • 15 of the largest ships carbon emissions = all of that from the world’s cars
  • There are 100,000 ships at sea
  • Little known Maersk has an annual revenue of $60.2 bn – on par to Microsoft
  • Container ships sail around 20 people vs. Navy ships commonly have 1,000+
  • Incredibly multi-cultural crews with ability to fly most nation’s flag

Trust in Aviation | Trust in Business

 

Growing up on a farm in north-central Minnesota, my family put a lot of trust in agricultural aircraft. We relied on a crop duster to spray fertilizer and pesticide and keep our kidney beans healthy and growing.  Now, as a speaker and consultant, my company relies on the aviation industry to fly me back and forth across the country to keep our promises. Many weeks, I’m in an airplane every day, and it’s easy to take for granted all of the moving parts that make it happen.

Like any business activity or relationship, the aviation industry is built on trust. But, there are few industries where the value of trust is so taken for granted when things are going well and so magnified when danger is felt. We drive up to our local hub, as a plane shoots over our roof at 200 miles per hour, type our most important personal information into a machine, hand our bags over to someone we’ve never met, routinely pass our belongings through security where we hope all passengers potential weapons are confiscated, find the gate that was printed on our ticket, sit down on our flotation device, blast off into the sky in a metal cylinder, float through lightning storms, and hurl back at the ground. Our business travel or vacation trip sounds absurd when stated like this.

We take it all for granted when everything goes smoothly, thanks to the laws of physics and trust. But, the minute our stomachs rise and fall during turbulence, we remember how much trust we have in our pilots, the airplane’s safety designs, air traffic control’s technology to communicate from the ground, and a thousand other components. Perhaps the greatest proof is the 30% demand reduction after the 9/11 attacks. Consumers responded to the breach of trust with fear and decided to drive or stay home as alternatives to their next trip.

Any industry, business, or person will experience a shock period after a major breach of trust, but it was dramatic to aviation because of the magnitude of trust’s importance for success. The industry relies heavily on steadying their consumer’s emotions, and it goes great lengths to make that happen. Just think of one repercussion of 9/11 to understand – heightened security. Aviation had to respond to the breach of trust by increasing security personnel, procedures, and technology, and now more hassle is spread out to the entire industry, including us, as passengers. Air transit is the pinnacle of the industry, but it sits on an extensive foundation of moving parts and trust relationships. Many, like me, rely on them to run their businesses, and we all entrust the stability of our economy to them.

US Government Default = Global Trust Catastrophe | Trust Tip Tuesday

The world is 10 days from what could be the most catastrophic trust breach of the century. Just like the Lehman Brothers bankruptcy, a US financial meltdown would harm the entire global economy, devastating the US lower class and developing world economies. One difference is that the current US debt dwarfs what Lehman Brothers had by 23x.

Trust Tip: Trusted leaders ought to take Warren Buffet’s advice about using the debt ceiling as a weapon for political debates.

‘“It should be like nuclear bombs, basically too horrible to use,” Buffett, 83, said in an interview published by Fortune magazine last week.’

For more, read this.

Apple, Google, Coca-Cola | Most Trusted Global Brands

 

Apple & Google surpassed Coca-Cola on Monday as the best global brands. Interbrand’s annual findings showed 28% and 34% brand changes for the two tech giants. Coca-Cola’s minor 2% growth was  just enough to keep them in the top 3, after holding the #1 position for 13 straight years.

As the world’s most valuable global brands, consumer votes prove them to be the most trusted as well. How do they do it?

Here are a few tips they’ve used that you can apply right now:

1.) Develop a genuine and attractive mission statement, vision, and values.

2.) Integrate this strategy into what you deliver.

3.) Assure consistency.

4.) Listen to and allow your followers to become part of your brand, while maintaining your core.

 

Starbucks: Trust and Success One-in-the-Same | Trust in Business

 

 

Starbucks is the No. 1 coffee shop in the world. Wherever you go, whether it be Des Moines, Iowa or the aiport in Beijing, China, you can find a Starbucks. What brought such great global success? Consumers trust that Starbucks will remain consistent in their promise. Starbucks has remained true to their mission and vision and in return customers remain loyal. 

-MV

Building Trust, Trust in Business, Marketing and trust, Consumer Trust, customer loyalty, organizational success, consistency

 

The Single Secret To Growing Revenue and Lowering Cost | The Trust Edge

But what’s so unique about this vegetable stand is that they leave it unattended.
Together, they’ve built a small business where conscience matters more than cash, and where trust is as good as the tomato it buys.
“We can go out on the weekend and when we get home, open the door and get the money out,” Garland said.
“In all the years we’ve been doing this, we can count on one hand the money we’ve lost,” Eleanor said.

Read More

Wikipedia: The Free Encyclopedia | The Trust Edge

When trust is lost, there is little time to lose. Discern the situation, and then quickly make a plan to rebuild it. Wikipedia thrives today because the company made haste to rebuild lost trust after the John Seigenthaler incident. In November 2005, it came out that an untrue and potentially libelous statement in the biography of John Seigenthaler, a famous journalist, had gone unnoticed for months on Wikipedia. Seigenthaler wrote a fairly scathing editorial in the New York Times criticizing Wikipedia as a “flawed and irresponsible research tool.”2 Since Wikipedia is open-source, deriving its value from the trust people have in it, as the public at large can edit it, this loss of trust was potentially devastating. The Wikipedia Foundation knew that it would need to do more than issue an apology to John Seigenthaler. Its actions were as follows:

 

1. It made a special section called “biography of living persons,” which would be more difficult to edit and would be monitored more frequently.

2. It stopped allowing anonymous users to create articles.

3. It spent time showing the relative validity of data in Wikipedia, especially as compared with well-respected encyclopedias.

 

The preventive and reactive measures taken by Wikipedia in this situation regained its public trust. Further boosting its reputation, Nature magazine compared the accuracy of Wikipedia with that of Encyclopaedia Britannica, and found them to have roughly an equal number of flaws!

 

Wikipedia, trusted company, Trust in Education, Building Trust, community of trust

McDonalds | Trusted Company of the Month

McDonald’s is trusted because of their consistency. They deliver the same product everywhere, everyday. Regardless of whether we love the French fries of the Golden Arches, or protest their nutritional content, we know who they are and what to expect. They give us the same thing every time. Consistency is the only way to build a brand or reputation. A brilliant marketing idea is interesting, but the product is not trusted unless it is consistent. Predictability and reliability are the cornerstones of this pillar.  

 

 

McDonald’s, Trusted Company of the month, consistency, deliver, Consumer Trust, Building Trust

 

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