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Why Trust is the Killer App

Posted by Whitney on Mar 26, 2010 in Uncategorized

I’ve been listening to NPR in the morning, following the news about international politics, and these points keep being made over and over:

  • In (international) relationships, trust is important and vital to getting anything done.
  • The kind of reception leaders get make all the difference in what they are willing to do or not do for the other Country.
  • The view of the relationship from the outside- the (media) perception- does not always reflect what’s going on behind closed doors.
  • What other people see, through the media or with their own eyes effects their perception of a whole Country and their citizens.

Does any of this sound familiar?  (Let me take a moment now and tell you if this “trust” thing doesn’t resonate with you, please go out an purchase “Trust Agents” by my friends, Chris Brogan and Julien Smith immediately.)

The talk about trust, building strong relationships, and what happens when that trust equation fails is a thread that seems to be running through more and more news reports, or I’m finally paying attention and have a new filter through which to view this news.  So if you thought Chris and Julien’s book about the importance of trust and relationships was important for business, what could the same perspective do for relationships not only between individuals, but between nations?

Before you write this off as silly, think what the lack of trust does.  When a Country doesn’t follow through on it’s promises, relationships suffer.  When Israel and the Palestinians seem to go out of their way to provoke each other, it starts to sound like the fourth grade boys teasing each other on the playground, begging for a fight.  Unfortunately, this fight involves serious weapons and the loss of life, not a bloody nose and being sent to the principal’s office.  (I guess the US gets to play Principal in trying to get these kids to place nicely with each other and respect each other’s boundaries, but we call it Peace Talks and unfortunately, you can’t call their parents at home to make them behave.)

And just like in your relationships with friends and family, helping others goes a long way to building trust and constructive relationships.  In a news report this morning on the BBC, a reporter spoke to a Pakistani official who said that when the people saw Americans and American helicopters coming to help them after the devastating earthquake, moving concrete and rescuing people, their perception of the US and Americans in general started to change.  Treating people in other countries like neighbors, instead of as “the other”, as “foreign”, but instead as just people goes a long way to changing hearts and minds about what an “American” is or stands for.

The coverage of international politics sounds more and more like a middle school playground, or a daytime soap opera, where trust and drama and small provocations have similar effects as they do on an actual playground, just painted with a much broader brush.  And just like on the playground, trust is a currency that facilitates relationships, and a lack of trust makes relationships way more complicated.

Trust, I tell my kids, is the one thing that can’t be easily fixed or replaced when it’s broken.  It’s fragile.  When you have it, it can create value- people will do you favors, cut you deals, and treat you well, whether we’re talking neighbors, businesses, or Countries.  When trust is in short supply, people start acting suspiciously.  They look out for themselves first, and others second.  There’s less emphasis on what’s mutually beneficial, but on a competitive advantage- winning rather than compromise.  The dynamics of the relationship totally change, and friction builds up- there’s more checkpoints, more regulation, more checking the score- and all of this friction slows up the process of actually getting things done.

As I look for fundamental concepts that are universally important at every level of human interaction, Trust ranks up there as one of the most important fundamentals we need in order to make progress of any sort.  A lack of trust signals problems that are hard to resolve, since trust requires faith and taking risks that others are worthy of that investment.  Fear that others will not follow through, that they will lie and break our fundamental trust keeps us frozen in time and place, and keeps us from acting.

Rick LaVoie talks about disappointment as being one of the most powerful emotions- the emotional nuclear weapon, we should use only rarely, if ever, with people in our lives.  It makes us feel shame and injures us to the core.  Our fear that trust will be broken is our defense against that disappointment, and the anticipation of disappointment, of having invested trust unwisely causes people to do irrational things, even aggressive, provocative things to strike first and to avoid getting hurt.

If we can remember these things for our personal relationships, if we can apply Chris and Julien’s advice in our business relationships, there’s a chance we can even make things better on a bigger scale as well.

What do you think?  Is this crazy? Or is trust the fundamental currency we all trade in, even when we think it’s all about dollars and cents?

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New Year’s Resolutions….Mutual Success and Interconnectedness

Posted by Whitney on Dec 31, 2007 in Uncategorized

The New Year tends to provide us with an excuse to make promises to ourselves, or start something new.  Every day actually provides us with this opportunity, but somehow, the New Year seems to be a point where a new start seems more important or portentous.  While small, measurable goals are easier to accomplish, this past year, setting a “theme” worked well for me, so I am doing the same for 2008.

The Theme for 2007- Let Go of Fear 

Last year, my resolution and promise to myself was based on getting rid of fear as an obstacle in my life.  I had found that for a long time, I would choose to avoid doing things or take chances based on fear of failure or fear of success, and what might happen as a result.  By making an active choice to remove fear from the equation, and start making choices based on strengths and opportunity, truly amazing things have happened.  It’s been a year of wonderful changes and opportunities, many of which I can chalk up to this decision.  Once you stop being afraid, you can really start living.

What does giving up fear sound like or look like? Mostly, when someone says “You can’t do that!” – you respond with looking at their concerns, and often responding, “Well, I can- watch me!”  If there’s an obstacle in your path, you can give up, or the non-fear way is to look for any other way around this obstacle.  Som people let obstacles or difficulties stop their forward progress.  Successful people use these obstacles and learning opportunities and places to push off, change direction slightly, but never stopping the forward progress towards their goal.

The Theme for 2008-Mutual Success / Interconnectedness

This coming year, my theme or big idea in to find the win/win in as many situations as possible.

I spoke with a close friend the other day, who does significant business in China. He spoke about how the Chinese respond to American negotiation tactics.  While capitalism, for some people, is based on a win/lose paradigm- I can only win if you lose.  This often means people treating the other side of a deal as less worthy, or simply trying to take advantage of them- neither position does much to build long term, positive working relationships.   And in China, the relationship and respect is a cornerstone to how they see the world- a “deal” is not a one time thing, but a start of a long term process, that means much more than any one transaction.

In a world that is ever more connected, working on long-term business relationships is not a luxury- it is a necessity.  This means having respect for the other side of any negotiation or transaction.  It means trying to structure deals in a way that results in a win-win.  The “beating the other side into submission” Machiavellian tactics aren’t going to work for very much longer.  If you are too difficult to do business with, there are plenty of other players in a global marketplace who don’t see blood on the walls as success.  Trust and respect are becoming fundamental in this new era of globalization- there will be little long-term success for those who see humiliation as a goal in negotiations.

This is ultimately what transparency is about.  Both sides of any issue understand the other side as well as their own.  They know what a reasonable profit is, and what arrangement would suit both parties.  (With the internet and Google, there are far fewer secrets that we want to acknowledge, anyway).  Sometimes, you will need to take your business elsewhere, but respectful negotiations with the other side won’t foreclose future opportunities, where blood-lust based ones will leave a very bad taste in the mouth of both sides, making future business unlikely.

We have to change our attitude away from “I win, you lose” to “How can we work together?  How can we both get what we want?”  This makes all the difference in dealing with people, and building up long term trust, long term equity in relationships.

What do you think?  Isn’t all (successful) business really based on friendship and liking the other side, not feeling subjugated to someone else?  How can we make this happen in every day interactions?

What are your themes for 2008?

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