Trend For 2010 - Trust In Business Running Out
February 5th, 2010
Trust shapes every relationship. It is the foundation of commerce. Eroding trust levels raises the cost of doing business. Management consultants McKinsey points out low trust increases transaction costs, lowers brand values, and creates greater difficulty attracting customers and retaining talent. Internally, the effects of a low trust environment are corrosive for governance and compliance issues.
Businesses need to do what they can to regain the trust of stakeholders and to move to more effectively manage relationships with them. Lack of trust in business is an accelerating trend, and thus one which needs action.
Information is an essential element in building or destroying trust. Trust is built through the congruence of information and expectations. Trust builds when what you think will happen actually does.
Executives who see trust as just a matter of transparency across stakeholder groups will see limited results. However, executives who recognise trust exists in the connection of information, expectation, delivery and consistency know a failure in business trust represents an opportunity for new sources of competitive advantage and growth.
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