In a volatile, uncertain, complex, and ambiguous world (VUCA), leaders are constantly evolving their strategy to ensure they remain competitive and relevant in the long term. With increasing market and customer complexity, organizations need to adapt quickly and execute with velocity to reap the rewards of the first-mover advantage, which can be crucial in having a competitive edge.
This is where it gets complex. Organizations are made up of people and people do not generally like change. If organizations are not nimble enough, they get exchanged in the marketplace. We know and have experienced what happened to Nokia, disruption to the Taxi business by UBER/Lyft, and the impact of online streaming on Blockbuster.
Accelerated results = Strategy x Execution x Trust
For organizations to have accelerated results, it is important that leaders give equal attention to strategy, execution, and fostering trust. The temptation to focus on strategy and execution relative to building trust is understandable, though, it is a big miss. The former is perceived as more tangible and actionable. According to the Edelman Trust Barometer 2017, 63% of employees don’t trust their leaders. Also, 60% of employees say that strategic and operational decisions are not quickly translated into action. Focusing on building trust at all levels within your organization is key to accelerating results. Here is why.
V = x/t (where V = velocity or speed, x = distance, t = time)
From the formula above, we know that an athlete moving faster (speed) will go farther (x) in the same amount of time (t). And, we can agree that the faster athlete (V) will get to the finish line sooner (t). It follows that if an athlete doubles speed, the distance covered would be doubled. Also, doubling speed means the faster athlete gets to the finish line in half of the time. Instead of the athlete, think of an organization that wants to beat the competition. How can leaders increase the velocity of their organizations to release products/services that delight customers, and increase market share, profitability, and technology leadership?
Let's rewrite the equation as Trust = x/ t (where x can be any of the following = Technology leadership, Change initiative, Innovation, Productivity, Profitability, t = time)
Trust has a direct correlation with velocity. Organizations that are not able to adapt, innovate and reinvent themselves become obsolete. If leaders want to move/transition their organizations from point A to point B in the shortest possible time, their limiting factor is the amount of trust within the organization. When there is trust within a system, the time to get things done and the cost of doing business are reduced. Low trust introduces barriers to swift execution in organizations. When trust is low, projects take longer to complete and the cost of doing business increases. According to Bain's co-heads of global strategy, Chris Zook and James Allen, authors of The Founder's Mentality, they found that when companies fail to achieve their growth targets, 90% of the time the root causes are internal, not external--increasing distance from the front lines, loss of accountability, proliferating processes and bureaucracy, etc. Trust ensures that your internal factors do not become organizational derailers or funerals.
Leaders that take their organizations from good to great understand that trust is an accelerant: it multiplies impact and influence. Without trust, resistance increases and influence diminishes. Trust starts with the leader. Reflect on the following questions: Does your team believe you have their back? Do your thoughts and words match your actions? Do you have a track record of delivering results? Are you clear about priorities? Do you foster an environment for honest and difficult conversations? Do you encourage a mutual exchange of ideas? The answers to these questions can provide clues to the results you are seeing within your organization.
Trust, like money, is the currency for doing business and getting things done with velocity. Trust helps translate ideas into words and words into action. If you are not happy with the results you are seeing in your organization or you want to move faster and go farther, it's time to focus on building trust into your leadership team and organization.
For more articles on trust, check out the following:
How to Build That Trust That Lasts
Transparency: Trust is Not Enough
Leaders: If you care, they care
How do you build trust within your organization?
#Trust #Culture #Engagement #Leadership #Management