To the three major sources of organizational wealth—Financial Capital, Human Capital and Intellectual Capital, add a fourth: Trust Capital. Trust Capital accrues like money in the bank. It is the confidence stakeholders have that you will live up to your promises and behave in a responsible manner. Trust Capital helps a company or brand bounce back after a crisis.
The CEO must lead the enterprise to accrue Trust Capital aiming to become the most trusted company (brand) in every market in which it competes. This cannot be delegated. The CEO is the Chief Trust Officer and being the CTO is a fundamental, ongoing, leadership responsibility. Trust building begins at the top.
Also, the role of Chief Trust Officer is more than a title: it is an indispensable, Trust Capital-building task of major cultural significance inside and outside the organization. Studies show that increased trust is a critical factor leading to increased preference and loyalty, generating high-quality revenue growth. The point: Trust makes money.
As Chief Trust Officer, the CEO must create and implement a structured Trust Charter. A structured Trust Charter provides immediate direction with a strategic set of priorities for Trust Capital-building actions. It addresses questions such as: How will we build trust across our geographies, our brands, our people, our shareholders, our franchisees, our partners, our suppliers, and our local communities? How will we build trust chains throughout all of our relationships, internal and external? What is our plan for being a good corporate citizen?
Here are 4 guiding principles for building Trust Capital.
1. Create a cross-functional, cross-geography team of which the CEO is the leader. This group ensures that all functions and divisions are represented. Carlos Ghosn, CEO of Nissan used CFTs as the driving force of the Nissan turnaround.
2. When strategy and culture conflict, culture wins. Implement this straightforward internal program:
3. Do what you say you will do. Predictability is critical. It is the foundation upon which trust is built. Quality actions speak louder than words. FedEx has created a strong corporate reputation for its ability to achieve its promises of on-time delivery, and for customer-friendly operations.
4. Generate a plan to boost leadership, credibility, integrity, and responsibility:
In a world suffering from a Trust Deficit Syndrome, being the most trusted company or brand is a big competitive advantage.
A company name is a signature of the promise an organization makes with its stakeholders. Make that signature worthy of people’s trust. Build Trust Capital.
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