In the new edition of The Carrot Principle:How the Best Managers Use Recognition to Engage Their People, Retain Talent, and Accelerate Performance authors Adrian Gostick and Chester Elton found that 79% of talent that left organizations did so for lack of appreciation and 65% in North America report they were not recognized in the least bit in the last year.  These two statistics alone are worth the price of this book but they have interviewed over 200,000 workers and the results will shock you.  I know it did me. This one is a must read for anyone who manages people regardless of the setting including parents and teachers!  Lack of giving credit is clearly one of the high costs of low trust.

Stephen and I really relate to this as we are not the most tech savvy members of our team.  Thank you Steve Jobs for giving us a fighting chance with our iPhones and MacBooks.

Leading-edge companies are asking one important question in employee evaluations:  Do you trust your boss?  These companies have learned that the answer to this one question is more predictive of team and organizational performance than any other they might ask.  The number one reason for costly employee turnover is the relationship they have with their immediate supervisor.  We are facing a crisis of trust and business ethics.  In the U.S., only 51% of employees have trust and confidence in senior management.

Stephen M. R. Covey: I use a very simple definition of trust. By trust, I mean confidence. Confidence. The opposite of that–distrust–is suspicion.

See, I don’t trust someone if I’m suspicious about his motive or agenda or integrity. I do trust when I feel confident about it. It’s like Jack Welch said–I could give you a dictionary definition of trust, but you know it when you feel it. And what you feel is confidence.

Generation Y—We’re Here, We’re Peers…Get Used to It

Longing for Mentoring Opportunities, Gen Y Engages Senior Management Directly

I’ll never forget what one CEO said about the risk of investing in a focused training initiative for his company. Someone asked him, ‘What if you train everyone and they all leave?’ He responded, ‘What if we don’t train them and they all stay?

“Millenials,” “Echo Boomers,” “Gen Yers”—The demographic bred to take on the world, and raised with the tools to do it, this group is already making waves with their new rules. They are strong, talented, organized, and don’t like the word, “No.” They also know that they don’t have to work for you.

 HR Magazine calls talent retention “the most urgent priority for companies.” Talent is running away from big business and the red tape that goes with it, while organizations teeter on the brink of losing the valuable force of Baby Boomers heading into retirement.

 If you are an eager Gen Y employee, you’re not off the hook. The winds are changing, but you’ve still got a lot to learn. Hold yourself accountable to the same standards you ask for in management. Not only can we all get along, we can build the best organizations the world has ever seen.

 How do we close the gap between these wildly different philosophies, harnessing the power of old and new to create a win-win for all stakeholders?  I think the answers are deceptively simple and will change the structure of business forever:

Boomers & Managers:

1)    Get Better—Embrace the energy, ingenuity, and technology that Gen Y brings to the table.

Bill Gates says, “The complacent company is a dead company. Success today requires the agility and drive to constantly rethink, reinvigorate, react, and reinvent.”

2)    Create Transparency—Foster mentorships between Boomers who are at a stage in their careers where being a mentor is more practical, and Gen Yers who are asking for more responsibility.

3)    Confront Reality—Time served does not trump value added. Don’t be afraid to promote early.

Jack and Suzy Welch say, “Promoting young insiders is a fast way to attract good people to your ranks; indeed, it will help make you a talent magnet. Best of all, it keeps your top performers inside.”

4)    Show Loyalty & Demonstrate Respect—It’s not easy to build loyalty, especially with a demographic known for its short attention span. Give Gen Y what they want—knowledge, respect, a model for personal and professional advancement.

Don’t underestimate the value new blood can bring to the company. Your bottom line will reflect it, your talent retention will grow, and your stakeholders’ extensive knowledge base will expand with new hires. Think of it as leaving a legacy and give it appropriate mindshare.

Gen Yers:

1)    Don’t Sneer at the Small Stuff—You’re young and you’re new here. You are going to get some of the essential busywork. Build trust and confidence in your abilities by Delivering Results.

Henry Wadsworth Longfellow said, “We judge ourselves by what we feel capable of doing, while others judge us by what we have already done.”

2)    Show Loyalty & Demonstrate Respect—As a company Extends Trust to you, return the favor. Keep your eye on the ball, not the job board.

3)    Confront Reality—Advancement is a progression, an investment in your future. Don’t let impatience trump the learning process.

Anne Mulcahy, Chairman and CEO, Xerox, says, “I am still learning. That is an important mark of a good leader…to know you don’t know it all and never will.”

4)    Deliver Results & Practice Accountability—You asked for the keys to the kingdom. When entrusted with them, behave with Integrity.

60th Annual International Conference

June 22-25, 2008 in Chicago, Illinois

Preview our new Speed of Trust DVDs, 

and meet Stephen at booth # 5320.

The May 2008 edition of Chief Learning Officer (CLO) magazine featured The Speed of Trust in an article entitled: Trust is a Competency.   This prestigious magazine is well known by leading executives around the world.  CLO called trust “a critical characteristic that is more essential to business performance than ever.”   The article goes on to say: “Increasingly more and more, leaders today are ‘rediscovering’ trust as they begin to see it with new eyes.  Looking beyond the common view of trust as some soft, intangible, illusive social virtue, they’re learning to see it as a critical, highly relevant, and tangible asset.  They’re discovering that trust affects—and changes—everything within an organization…literally every dimension, every activity, every decision, every relationship.  They’re also beginning to recognize that trust is quite possibly the single most powerful and influential lever for leaders and organizations today.”

Stephen concludes the article with this practical advice for executives: “So what is the role of learning practitioners with respect to trust?  I suggest it’s three-fold, corresponding to the three ways of seeing trust with new eyes:  

First – always seek to frame trust within the organization in economic, not merely social, terms.  By creating a compelling business case for trust, you can engage organizational buy-in and make real improvement sustainable. 

Second – define leadership as ‘getting results in a way that inspires trust.’  In other words, personally model trust through character, competence, and demonstrated trust-building behavior.  By doing this, you become the starting place for increasing trust, and your trusted reputation becomes an additional currency that carries significant value in the new economy.  

Third – recognize and treat trust as a competency—as something you can do and create and measure—and help managers learn and understand how to behave in ways that establish, grow, extend, and (if needed) restore trust with all stakeholders.” 

Many of the top 125 are the usual suspects like Aetna, Wells Fargo, Microsoft, IBM, Marriott, Baptist Health Care, Verizon and others are more surprising like US Naval Undersea Warfare Center and 1-800 Flowers.  Did your organization qualify?

91% of work groups are “taxed” by low trust without knowing it—how about yours?

Low trust can rob your team of results and personally cost you a promotion.  As a boss, it can cost you talent.  The number one reason for talent quitting is low trust in their relationship with their immediate supervisor. 

The Oklahoman newspaper recently asked Stephen, “What makes one company successful while another company flounders?”  “Why are some employees rock stars while others become disgruntled and irrelevant?”  And, why does William G. Parrett, CEO, Deloitte Touche Tohmatsu, state, “The SPEED of Trust is red-hot relevant”?  

High trust companies outperform their low trust competitors by 286% according to Watson Wyatt research.