Welcome to The Eagle, a monthly newsletter on strategy, risks, and the creation of safe and thriving business environments by Laurence Duarte, founder of Strat & Shield Co.
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Greetings and welcome back. I hope this finds you warm, healthy and safe.
Poisson d’Avril! 🐟
On the first of April, French kids are busy creating colorful paper fishes used for the typical French April fool’s prank. Then, they will discreetly attach these little fishes to the back of their unknowing victims. And, when the prank is revealed, they shout “Poisson d’avril.”
The “Poisson d’Avril” gives a one-day pass to all kinds of pranks, especially fake news.
If the perpetrator finds joy in a cute, silly, harmless joke, the victim will definitely have mixed feelings about his naiveté. No one likes to be fooled (except to hear the lovely giggles of our children).
These days, trust is wearing thin for many of us.
The last year has brought unprecedented disaster, turbulence and disappointment. The pandemic has disconnected us from other human beings. Then there is the economic crisis, and the global outcry over systemic racism and political instability. Finally, we have been assaulted by the rise of fake news in social media and traditional news media, as well as the many corporate scandals. It’s no wonder that both consumers and employees are experiencing record low trust level.
And it is worrying.
The 2021 Edelman Trust Barometer reveals an epidemic of misinformation and widespread mistrust of societal institutions and leaders around the world. In particular, CEOs’ credibility is at all-time lows in several countries, including Japan (18 percent) and France (22 percent), making the challenge for leaders even more acute as they try to address today’s problems.
People feel more empowered to demand change. Indeed, 86 percent of respondents expect CEOs to publicly speak out on societal challenges such as the impact of the pandemic, societal issues, job automation and problems facing local communities.
You can download the complete study here.
These results offer a reminder that, as businesses, we hold a privileged and important role in the lives of our employees and other stakeholders. And our leadership role will be critical to the post-pandemic recovery. It is not an easy task; while business leaders are expected to drive change, the mistrust in what they are saying is very acute. Building and keeping trust will be critical.
Trust — the Fundamental Glue that Holds any Relationship Together
Truth is like the air we breathe — when it’s present, nobody really notices; when it is absent, everybody notices. — Warren Buffet
Trust is the basis for almost everything we do. It’s the foundation on which our laws and contracts are built. It’s the reason we’re willing to exchange our hard-earned wages for goods and services, to pledge our lives to another person in marriage, and to cast a ballot for someone who will represent our interests.
Trust is intimately related to generosity, humility, courage and justice. Justice in contracts. Courage of thoughts and expression. Humility in the face of truth. Generosity towards others.
It’s the input that makes it possible for leaders to create the conditions for employees to fully realize their own capacity and for consumers to buy and be loyal to a product or service that will not harm their well-being, nor their values or the planet.
No one likes to be betrayed. No one likes to be hidden from the truth. No one likes to suffer from lies.
Imagine what it feels like when trust is shattered. We all have suffered from misplaced trust in our personal and professional life. We thought that this person, colleague, or boss had our back; we thought that the company we were buying from was honoring the same rules, sharing the same moral code, and respecting the same beliefs. In any case, we loved, trusted, supported and believed.
That's why risking distrust via deceptive, toxic, unethical, illegal or antisocial behavior is too big a risk to bear for leaders. Trust is the most important element in any commercial relationship — even if it is the hardest to measure. The consequences of loss of trust for leaders and companies are dramatic. A breach of trust disproportionately impacts revenue and damages reputation. Studies show that customer betrayal is more likely to be harmful to both the brand and the brand relationship. The more loyal the customer is, the worse the company's retaliation will be, with a love becomes hate effect. It will be difficult for marketers to deflect, with longer-lasting consequences. Consumers, employees and stakeholders will distrust these organizations and be suspicious of them — of their integrity, their agenda, their capabilities and their track record.
In the post-pandemic context, trust plays a key role in our competitive advantage.
CEOs and leaders are under a weight of expectation to drive social change and should play a key role in restoring trust and responding to social challenges. Furthermore, If we are selling a product or a service, we are selling trust. As leaders, we need to build and reinforce trust inside our companies to preserve good morale, lower attrition, increase productivity and innovation and preserve growth and consumer loyalty.
Building a Sustainable Model of Trust
Trust is an undeniably essential element in finding and sustaining meaningful, authentic and fruitful relationships inside and outside organizations. Building trust is about the quality of our relationships with the people who sustain and are impacted by our business.
To run a respected, happy and agile workplace that inspires trust, we should have a genuine shift in how we operate with honest and authentic communication in three key areas:
Competencies & Customers: What I Do and Why I Do It Well
Making things and providing services are important. Our customers, partners and employees need to know how it is done and why it is done well. Skills, know-how, tradition, provenance, purpose and partnerships are critical. So are data privacy, security and risk management. It is all about cultivating our capabilities and competitive advantages and clearly demonstrating these by offering high-quality and consistent information and showing that we put our customers, their protection and their rights first — without, of course, harming our employees or the planet in order to succeed.
Relationships & Customers: Who I Am
Remembering our human nature and building on emotions. All relationships require honesty to thrive. Honesty is a cornerstone to build and rebuild trust. Honesty creates an environment of freedom and safety. Honesty makes a relationship a place where one can feel safe, inspired and energized rather than controlled and suppressed. It is not about being an oversharing leader, but about disclosing our authentic self by sharing relevant information about our thinking process and creating a shared mental model that facilitates communication, affinity and improves cooperation. As a leader, sharing with honesty, empathy and vulnerability creates connections between our followers and us. These connections increase feelings of trust and intimacy and, in an organizational context, a readiness to work together and share projects with confidence and energy.
Audit & Customers: Check the Outcome of My Actions
Walking the talk and doing what we say we will do. Rooting our strategy and communication in truth and authenticity requires accountability. Speaking our truth involves honoring commitments and keeping promises, following through on commitments, and being willing to go above and beyond what needs to be done.
Clear and demonstrated processes must be put in place to illustrate the unbiased/credible outcome of the company's actions, easily accessible to our customers, employees and stakeholders.
Today, trust is more challenging to convey. And unfortunately, we are not getting the help of hugs and shaking hands. However, it is our only way to keep our community alive and relieve our vulnerability.
Building, retaining or rebuilding trust requires courage as it opens our hearts to deeper levels of what it means to be human. With trust, we are not only a collection of atomized individuals; we are a functioning whole. And it is absolutely essential that we get started. Right now. And I am here for that.
The world we long for has yet to come. We are building it by trusting each other.
Day by day.
If you want to go deeper, in how to avoid being distrusted, I have compiled a resource to get you started — 10 Essential Articles on Criminal Risk. You’ll find information on everything from corruption to COVID-19 crimes — and what you can do to protect yourself and your business from these very real risks.
In the meantime, please remember, I am always here for you. I built Strat & Shield Co. to remove obstacles for my clients and work through their pain points, clearing the way for them to move forward confidently, nurtured by a healthy and safe company culture of their own making. If you have a beautiful vision for what your company can achieve, but something is in the way, I can help.
Thank you for reading,
I will be back in May. Until then, be well,
Laurence