The link between trust and financial performance in organisations….

by | May 10, 2017

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A fascinating article in the January/February 2017 issue of Harvard Business Review, which highlights the work being done on trust within organisations.

Consider the following points that this article highlights.

Compared with people at low-trust companies, people at high-trust companies report 74% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives and 40% less burnout.

Those are impressive numbers and all of them are business critical in that they ultimately have an impact on any organisations competitive advantage and thus the bottom line.

So why is it that in its 2016 global CEO survey, PwC reported that 55% of CEO’s think that a lack of trust is a threat to their organisation’s growth.

Whilst not being overly simplistic about the issue, I cannot help but be reminded of a quote from Einstein, who argued that “Problems cannot be solved with the same mind set that created them.” 

In other words, to solve the problem of low trust in organisations maybe we need to start by changing our experience of trust.

On that basis then, what if we start with the reality, that quite simply, trust is a feeling…

Herein lies the simplicity of the problem…