For those of us that appreciate the value of the human element of business success, but are skeptical of ‘touchy-feely’ solutions, I’d like to re-introduce¹ a formula for understanding the components of trust. By understanding these components, one can make a rapid diagnosis and plan action steps to help get to the necessary level of trust.

T = (I * C) / R

With T = Trust, I = Intimacy, C = Credibility, and R = Risk

The first and most obvious correlation here is the inverse relationship between risk and trust - the higher the risk the greater the trust required.  Intimacy is how well you are known and Credibility is the believability of you doing what you say that you will do.

When we are looking to rebuild trust in a business context, the above formula provides a good framework for how to go about it.  First, take something where the Risk to the other party is low.  If you do not know the other party very well then trying to get to know them a little better, if possible, will raise the level of Intimacy.  Discuss with the other party what small, rapid action(s) you can take that will begin to have them believe that you will do what you say.  If you can gain agreement to a plan, then by completing the action(s) you will begin to build (re-build) Credibility.

By analyzing the situation through the lens of the Trust Formula, you can choose which action or actions to take to begin the process of building the trust necessary.

¹ - "The Trusted Advisor" by Maister, Green, and Galford

Filed under: Articles - Updates by Keith
Tags: « Communications - Leadership - Relationships - Trust »