The Great Wall of Trust | Trust in Business
New research on cognitive and affective trust in Chinese business was released today from Harvard Business School.
“Cognitive trust is trust from the head; it’s a very rational way of assessing ability and reliability,” says Chua. “Affective trust is trust that comes from the ‘heart.’ This type of trust involves considerable emotional investments.”
Business in China, Business Ethics, Guanxi and Trust, Harvard Business, Harvard Business School, The Trust Edge, Trust in China
Pepsi Co.: The Leader that Made Compassionate Cola | Trusted Company of the Month
Growing up in Madras, India, Indra Nooyi had always dreamed of living in the United States. It started when she came to the U.S. to earn her M.B.A. from Yale in 1978. She joined PepsiCo in 1994. In 2006 Nooyi became CEO of PepsiCo and has since led the mega brand that is in nearly 200 countries. Her legacy is that of compassion with an eye on the bottom line. Her motto: Performance with purpose. She shares her vision by saying, “We bring together what is good for business with what is good for the world.” How has she built the Pillar of Compassion that has changed the bottom line?
- When Nooyi was awarded the CEO position in a race with a long-time colleague, she immediately flew out to meet the colleague and asked what she could do to keep him. She nearly matched her salary, among other things, and a great team was born.
- Nooyi made a commitment to move away from unhealthy food and drinks. Examples in the works are high-fiber oatmeal and low-calorie Gatorade. According to Michael Useem, “By 2010, Nooyi has pledged, half of Pepsi’s US revenue will come from healthful foods.”
- Nooyi has championed moves toward renewable energy and has campaigned against obesity.
What has happened because of decisions made by the lady known as the “Caring CEO”? Profits have soared. And so has influence and impact of the $39 billion PepsiCo.
PepsiCo., Indra Nooyi, trusted company, Trust in Business, Consumer Trust, consistency, David Horsager, The Trust Edge
Southwest Airlines | Trusted Company of the Month
As one of America’s most beloved companies, Southwest Airlines (SWA) has posted consistent profits an amazing 35 years in a row in an industry where fuel costs, security concerns, and customer dissatisfaction have forced major competitors into bankruptcy.
While the airline industry, as a whole, has found itself rated below the IRS in customer satisfaction, SWA has consistently been ranked in customer and employee satisfaction and corporate reputation. SWA has been #1 in on-time arrivals, departures, and overall quality. A primary reason for their enduring success has been the trust they’ve established with their employees and their customers.
In the spring of 2008 it came out that SWA missed several mandatory maintenance checks, operating dozens of their planes in violation of several federal laws. Facing a major fine by the FAA, the company’s response was to ground the aircraft and release the personnel they deemed responsible. For most corporations this would spell a public relations nightmare! But for the most part, passengers failed to react at all. Why would they give Southwest a pass on what seems to be an egregious error? The public offered them an extra amount of grace because of the exceptional level of trust Southwest had achieved.
The Trust Edge, Trust company of the month, Trust Impacts the Bottom Line, Trust in Business, Trust in Leadership, David Horsager, Positive Impact, Southwest Airlines
A Quick Trust Reminder | The Trust Edge
Trust, not money, is the currency of business and life. In a climate of trust, people are more creative, motivated, productive, and willing to sacrifice for the team. What happens when a business gains The Trust Edge? Every aspect of business becomes profitable. You must realize the impact of trust and implement the 8 Pillars to gain The Trust Edge.
By earning The Trust Edge, you will gain a significant advantage that extends far beyond the bottom line. Our hope is that this foundation of trust will become a part of who you are. To receive a list of 18 ways to build trust, email us at email@example.com and put “Tips” in the subject line.
The Trust Edge, Trust impacts the bottom line, Trust in Business, As Trust Increases, Increased Productivity, Productive Work, Trust and Money
Earth Security | Trusted Company of the Month
Earth Security takes specific actions to communicate the importance and the expectation of a trust-based environment. It is a major part of the hiring process and the performance management process. The company understands that trust happens when words and commitments are equal with actions and delivery. For them trust is not a nebulous “feeling.” It is quite simply the result of consistent, positive behaviors practiced over time and therefore completely manageable. Trust is the core of their business strategy.
Anthony Diekemper, the CEO of Earth Security said, “Trust is what we call ‘the sweet grease.’ It is our number one priority in all aspects of our business. You think trust does not affect the bottom line? Leaders who think their only job is to make money are just missing the bigger picture. As executives, we have an obligation to manage with fiscal responsibility, but the way you optimize the financial performance of the company is to have highly engaged employees. They work harder, give more of their discretionary energy, and are happier to be in your company. The foundation of engagement is always trust.”
8 pillars, Earth Security, The Trust Edge, Trust, Trust Impacts the Bottom Line, Commitment, David Horsager, Leadership, Performance Management, Trusted Company
Peyton Manning Demands Less Money | Trust in Sports
How do you think the Colts organization feels about their star after he turned down a highest-paid NFL player offer and demanded being paid less?
“It was like watching a man walk into the IRS office and insist on a tax increase,” said Mike Lopresti of USA Today.
How can you sacrifice today for the betterment of your organization, team, or family?
Indianapolis Colts, Peyton Manning, Quarterback, Salary, Trust in Sports, Trust in Leadership, Trust in Media, Trust in Government
ebay | Trusted Company of the Month
EBay is one of the purest icons of trust. The legendary website for home-based buyers and sellers was founded on the very simple idea: people who want to auction their goods could list and sell them to other individuals who want to buy. A trip to any flea market would show that this concept is not revolutionary. But the thing that makes eBay unique and relevant to our discussion is its foundation of trust, even online.
Their business would fall apart without cooperation between buyers and sellers. While a system is in place to deal with cases of fraud, the community is largely self-governing. When bidders win, they send their money and expect sellers to ship their items promptly. And with over 212 million registered users and more than 1.5 billion items sold each year, it seems to be working out well! If the public had not trusted eBay, if fraud were prevalent enough or disagreements frequent enough, buyers would have chosen to look elsewhere for their electronics and household goods. But because of their confidence in each other, as well as eBay’s fraud-recovery procedures, the total worth of goods sold on eBay in 2010 was $62 billion — more than $2,000 every second.
Dave, David, Ebay, Horsager, Trust in Business, Trust in Leadership, Trusted Company of the Month
The Trust of Cirque du Soleil | The Trust Edge
On a recent trip to NYC, Lisa and I had the opportunity to see a Cirque performance –Zakarna—at the legendary Radio City Music Hall. Cirque shows are known for being amazingly creative—but what makes the show? Real people delivering precisely the same movement, dance, flip, trapeze, or rolling jump and catch every single show. Consistent timing builds trust. Every time one person jumps into the air or balances on top of a ladder while another catches or holds what seems impossibility—all to the audience’s wide eyes and gaping mouths. All of the trust pillars were reflected in the show, but consistency and competency shown most brightly. To be a trusted brand, performer or person; be like Cirque.
- Consider your timing:
- Are you catching your customer every time?
- Are you following up quickly or waiting until customers have flipped by?
- Are you quick to respond to interest, questions or market changes?
- Consider competency:
- Are you staying fit as a performer? One study I just read revealed that people trust the knowledge of a salesperson or lead more that looks healthy and fit.
- Are you staying fresh and competent in your field to be an expert on your product and how it affects the changing world?
- Are you staying mentally fit by reading good things, having a mentor, or listening to good books or podcasts.
Cirque du Soleil, Dave, David, Horsager, Timing, Trust in Business, Trust in Leadership, Competency, Fresh and Competent, Mentally Fit, Reading
How to be Happier | The Trust Edge
“When you do meaningful work with your hands, a kind of neurochemical feedback floods your brain with dopamine and serotonin,” says writer Catherine Newman in the July 2011 edition of Ladies’ Home Journal.
David Horsager, Trust in Business, Trust in Leadership, Ladies Home Journal, Neurochemical Feedback, Productive Work, Tangible Work