Whenever two organizations are required to work together, how does low trust impact the work to be done? What is communication like? Are there politics or posturing? One notable example is the supply chain process . . . where product is manufactured created, shipped, tracked, and sold. A smoothly operating supply chain is critical to the profitability of any retail, grocery, manufacturing or products company. What are the taxes associated with adversarial, or low trust relationships with your partners? What would they say the ‘trust taxes’ are like in working with your organization?
Improve Partner Relationships
How do you move a partnership from suspicion and self-interest to high trust and mutual benefit? Many partnerships are inherently adversarial – and at what cost? Would your partners characterize their working relationship with your team or organization as fast, transparent, unguarded, easy and efficient?
A Warwick Business School study confirmed that partnering relationships (such as outsourcing deals) that are based on trust experience a high trust dividend of up to 40% of the value of the contract. Those that rely on the contract language, and not on a relationship of trust, fare far worse. The report reads: “We found that contracts with well-managed relationships based on trust—rather than stringent SLAs [Service Level Agreements] and penalties—are more likely to lead to a ‘trust dividend’ for both parties. Real trust is not naive. It…is earned from performance.”
According to a Gallup survey, the best partnerships are almost all characterized by mutual trust, while in poor partnerships, less than 3% strongly agree that they trust each other. In most situations mutual interest is not enough to override mutual distrust.
A Fortune 100 Company was able to work with their external partners to reduce a key cycle time from 16 weeks down to 5 weeks - something that was previously unheard of in their industry (Watch Video Now: "Increasing efficiency. We've done something unheard of in our business."). The company had previously engaged their team in The Speed of Trust Transformation Process™, and then extended that process to their external partners. Collaboration between partners is significantly enhanced through high trust. The Speed of Trust™ methodology is a powerful enabler of results - and when partners learn high trust language and behaviors, they can effectively cut through the politics and bureaucracies that exact a heavy tax on their relationship.
How Does The Speed of Trust™ Work?
Let's get real. Training alone doesn’t work. Rather than just teaching principles in a course, The Speed of Trust Transformation Process™ institutionalizes new language and new behavior in the context of real work. Learn More
The Economic Business Case for Trust
Trust always affects two measurable outcomes – speed and cost. When
trust goes down, speed goes down and cost goes up. This creates a
Trust Tax™. When trust goes up, speed goes up and cost goes down. This
creates a Trust Dividend™. It’s that simple, that predictable. Learn More