Finance Matters

Organizational Trust, Speed of Trust pt. 4: Finance Matters

February 4, 2019

Wave 3 - Organizational Trust:  The principle of alignment


In this pod, we deal with establishing trust with internal stakeholders.  If you don't have the level of trust and high-trust dividends you want in your organization, it's time to look at the principle of alignment.  Join Patty and Brandi for the fourth pod in the Speed of Trust series and learn more about the paradigms affecting cultural trust. 



Resources Mentioned:

The 13 Behaviors of High-Trust Leaders Mini Session, From Franklin Covey  


The Third Wave — Organizational Trust

The Principle of Alignment

All organizations are perfectly aligned to get the results they get. – Arthur W. Jones

Truly, symbols are powerful. They carry disproportionate value. They always override rhetoric. They communicate paradigms far more clearly than words. And they do so with geometric influence. (240)


1. Redundancy

…a redundancy tax is paid in excessive organizational hierarchy, layers of management, and overlapping structures all designed to ensure control. For the most part, it grows out of the paradigm that unless people are tightly supervised, they can’t be trusted. And it is very costly. (250)

2. Bureaucracy

Low trust breeds bureaucracy, and bureaucracy breeds low trust. In low-trust organizations, bureaucracy is everywhere. (251)

3. Politics

…in many ways, “politics” is an antonym for trust. (251)

4. Disengagement

Disengagement is what happens when people continue to work at a company, but have effectively quit (commonly referred to as “quit and stay”). They put in what effort they must to get their paycheck and not get fired, but they’re not giving their talent, creativity, energy, or passion. (251)

5. Turnover

I’m not talking about the desirable turnover of nonperformers, but the undesirable turnover of performers. (251)

On average, it costs companies one and half to two times the annual salary to replace an exiting worker. (252)

6. Churn

Churn is the turnover of stakeholders other than employees. (253)

My sister told me about a restaurant she went to recently where she asked the waiter what he recommended from the menu. The waiter’s response? “I recommend going to another restaurant.” (253)

…employees tend to treat customers the way they’re treated by management. (253)

7. Fraud


1. Increased Value

2. Accelerated Growth

3. Enhanced Innovation

4. Improved Collaboration

Different than the traditional approaches of coordination and cooperation, real collaboration creates the key opportunity model of today’s world. (256)

5. Stronger Partnering

6. Better Execution

It is better to have grade-B strategy and grade-A execution than the other way around. (257)

7. Heightened Loyalty

Nothing is as fast as the speed of trust. Nothing is as profitable as the economics of trust. Nothing is as relevant as the pervasive impact of trust. (258)

The ability to establish, grow, extend, and restore trust truly is the key leadership competency of the new global economy. (258)

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