” . . . something important was destroyed in the last few months. It is an asset crucial to production, even if it is not made of bricks and mortar. This asset is TRUST. While trust is fundamental to all trade and investment, it is particularly important in financial markets, where people depart with their money in exchange for promises. To study how recent events have undermined Americans’ trust in the stock markets and institutions in general, we have launched the Chicago Booth/Kellogg School Financial Trust Index.”

The Kellogg Financial Trust Index called trust:

The Missing Link 

“Something important was destroyed in the last few months. It is an asset crucial to production, even if it is not made of bricks and mortar. While this asset does not enter standard national account statistics or standard economic models, it is so crucial to development that its absence — according to Nobel laureate Kenneth Arrow — is the cause of much of the economic backwardness in the world. This asset is TRUST. As stressed by Arrow: “Virtually every commercial transaction has within itself an element of trust, certainly any transaction conducted over a period of time.” Without trust, cooperation breaks down, financing breaks down and investment stops. One can bomb a country back to the Stone Age, destroy much of its human capital, and eliminate its political institution. But, if trust persists, the country may be able to right itself in just a few years, as in Germany and Japan after World War II. Conversely, you can endow a country with all the greatest natural resources but, if there is no trust, there is no progress.”

We could not agree more.  We must all step up and behave in ways that inspire trust if we are to hope to turn the tide any time soon.  The tide will turn and this dramatic correction will shock us into taking trust more seriously much like 9/11 sparked a national sense of patriotism.  Let’s hope our paradigm shift of awareness sparks a behavior shift that is sustainable.

What equivalent gesture might you make to restore trust in your team, organization or relationship?

I will resist the almost overwhelming temptation to quote Jeff further and will instead, again, strongly urge you to read this book right away.  In times of trouble we need to challenge ourselves to get better and to reframe our thinking.  Jeff provokes new thinking that I believe, regardless of your profession or industry, will either excite you about the possibilities of the future or scare you enough to confront reality and change your expectations.  You know I read a lot of business books so I have a somewhat informed judgement.  I predict that this is another Tipping Point  and as such will top the business lists for years to come.

Blaine was a beloved friend and mentor of 26 years to me and countless customers and associates of FranklinCovey.  His big heart and tremendous passion endeared him to all who worked with him.  His ability to bring executives to the real issues of their personal responsibility, first surprised and then delighted them.  But it certainly endeared him to them for life.  I was with Blaine when we taught the 7 Habits to Oprah and the executives at Harpo. I remember O asking me how Blaine expected her to write a mission statement when she “did not know what was around the corner”.    Watching Blaine challenge and engage Oprah was a sight to behold and he definitely influenced her with honor.  

Blaine was a co founder of Covey Leadership Center which became FranklinCovey and he was instrumental in our success.  Blaine inspired countless people to influence with honor and use their legitimate power rather than resort to coercive authority.

Blaine was the author of The Power Principle: Influence With Honor which Kenny Blanchard called “profound” and Stephen R. Covey called “life changing”.  Yes it was both to me and thousands of people around the world.  Blaine Lee was one of the most influential business thinkers and influencers of his generation. 

I was moved by the reminder by Joseph Grenny, co-author of Crucial Conversations as we wept together at Blaine’s funeral that one of the core teachings of the 7 Habits is imagining you were at your own funeral and thinking about what you would want to be said about you.  The idea is to live your life accordingly.  Well there we sat at Blaine’s funeral and realized he did just that.  Judging from the remarkable tributes to Blaine from his brother and sons and our own direct experience of him, Blaine lived up to that challenge. He left this world a better place than he found it and took with him the only thing that accompanies us out of this life, his indomitable spirit and a significantly informed intelligence.

We are confident Blaine will continue his influence beyond this world. It’s certain his influence will continue to touch our world. My dear Blaine you will be sorely missed and always remembered.   As his son Ben said: ” See you in the morning Dad!”

Today in his inaugural address President Obama emphasized trust: “Those of us who manage the public’s dollars will be held to account—to spend wisely, reform bad habits, and do our business in the light of day—because only then can we restore the vital trust between a people and their government.”  Let’s hope that he can live up to that ideal.  To overcome decades of a control based culture in the US Federal government is going to take intense effort.  Restoring trust is mission critical to the entire global economy on many levels right now.  We are fighting to fuel a global renaissance of trust or as Obama stated to “do our business in the light of day.”  

In his first global interview since being elected, President Elect Obama told 60 minutes Sunday night: “We actually have a consensus among conservative leaning economists and liberal left leaning economists and  the consensus is this that we have to do whatever it takes to get this economy 
moving again.”

I was encouraged to hear his recognition of trust as a core element to 
restore our global economy.  Obama said:

“A top priority we have to restore a sense of Trust, transparency and openness 
in our financial system.  Keep in mind the deregulation process, it wasn’t 
just one party I think there is a lot of blame to spread around.”

(You will remember a post last month where I quoted British Prime Minister Gordon Brown’s comments on CNN: “The most precious asset of all is something that if lost, can only be restored not by words, but by actions, that is the asset of Trust and confidence “ ) Glad Obama and Brown both seem to get it.

I also resonate with his statement of bipartisan responsibility for the 
problem.  Obama continued:

“Our basic principle that this is a free market system and that it has 
worked for us that it creates innovation and risk taking is a principle we 
need to hold to as well.  But what I don’t want to do is get bottled up in a 
lot of ideology, is this conservative or liberal,  my interest is finding 
something that works and whether its coming from FDR or from Ronald Reagan 
if the idea is right for the times we are going to apply it.”

I applaud his assertion that the best idea wins.  This alone can transform 
our leadership. As an American It has been embarrassing to watch our 
Congress and Senate under Bush and Clinton, bicker instead of influence and 
lead.  The world is losing respect for our democratic free market system 
because of our poor example.

As Obama went on:

“I want to make sure that I can recreate a bond of trust between the 
Presidency and the public that I think has been lost.”

Finally he again appealed for synergy:

“There were a number of reasons that someone would not have voted for me, 
but what was absolutely clear was whether people voted for me or against me 
they were making the judgment based on, is this guy gonna lead us well.  Is 
this guy going to be a good president.”

We all must behave our way out of the problems we have created in the 
economy by behaving with each other in ways that inspire trust.  Our leaders 
can only be as good as the people they lead. Now that the election is over we must sustain our leaders.   Let’s all take responsibility 
to rise to the occasion to be credible and act to inspire others in moments 
of trust to fuel a ripple effect for a global renaissance of 
trust.

I resonate with the possibilities President Elect Obama represents and congratulate him on his historic victory.  We challenge all to sustain our new leader and rise to the occasion to restore trust in ourselves and each other.  This new Presidency offers us all a microcosm to observe the workings of a change of leadership.  The same principles and challenges face new leaders in schools, companies and even the corner store.  Let us all have a propensity to trust in our leadership. 

Obama said it best: “If there is anyone out there who still doubts that America is a place where all things are possible, who still wonders if the dream of our founders is alive in our time, who still questions the power of our democracy, tonight is your answer,” he added. 

“A new dawn of American leadership is at hand,” Obama said. 

He pledged:

“Let us resist the temptation to fall back on the same partisanship and pettiness and immaturity that has poisoned our politics for so long. Let us remember that it was a man from this state (Lincoln) who first carried the banner of the Republican Party to the White House – a party founded on the values of self-reliance, individual liberty, and national unity. Those are values we all share, and while the Democratic Party has won a great victory tonight, we do so with a measure of humility and determination to heal the divides that have held back our progress. As Lincoln said to a nation far more divided than ours, “We are not enemies, but friends…though passion may have strained it must not break our bonds of affection.” And to those Americans whose support I have yet to earn – I may not have won your vote, but I hear your voices, I need your help, and I will be your President too.”

 Today’s USA TODAY Thursday November 13th 

In an section call THE FORUM

Cal Thomas a conservative columnist and Bob Beckel a liberal democratic strategist as longtime friends often can find common ground on issues that lawmakers in Washington cannot. Today’s biweekly series they entitled:  

 Words vs. Action

Bob: “He talks a good game but what’s he look like on the court? That’s essentially what the commentariat are asking when it comes to President Elect Barak Obama.  He’s been the poster [child] for common ground, yet there is much hand-wringing about whether he’ll veer left.  Anyone who thinks he’ll do so while ignoring the Republicans hasn’t been paying attention.  Even the week before the election, Obama campaigned almost completely on the common ground theme with which he began his run for the White House.  His eloquent speech in Grant Park in Chicago on election night was vintage bridge-building.”

Cal: ” As an American first, I sincerely hope you are right. It isn’t often I agree with Senate Majority Leader Harry Reid–in fact, I can’t think of a single time–but I wholeheartedly endorse his summation of the main message from this election. “This is a mandate to get along, to get something done in a bipartisan way. This is not a mandate for a political party or ideology.”

I am having trouble finding a link to the rest of the article but for our purposes suffice it to say that any new leader will be trusted to the degree he or she walks his or her talk.  We hope President Obama does better on walking his bipartisan talk than did President Bush.  We hope he restores trust. 

We all hope President Elect Obama will earn our trust by behaving consistent with his talk.   At the core of influence is giving people a professional they can trust—someone credible, or in other words believable.  This credibility is based on your track record of behavior.   Remember, people judge us by observing our behavior.  They don’t merely listen to what we say—they watch our feet.

This issue transcends the National discussion in the U.S. and is a principle of effective leadership in every country and every industry around the globe.  Politics is as much or more a source of friction in business as it is in government.  Positional politics kills trust.  Trust on the other hand, we strongly believe,  neutralizes politics as it does gender and ethnicity.  We trust those that get results in ways that inspire trust based on observable behavior–regardless of politics, gender or ethnicity.

Klaus Schwab, Chairman and Founder, World Economic Forum had this to say  “The Speed of Trust… is even more relevant in the world we have seen evolving over the last months. Congratulations and thank you!” 

Mellisa Long & Stephen M. R. Covey

Stephen M.R. Covey talks about what role trust plays in business and relationships.  Stephen was interviewed by Mellissa Long on CNN about trust in themarketplace.