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Abstract: This article discusses research-backed strategies for leaders to authentically generate and maintain organizational trust. It explores how trust is defined as the willingness to ascribe good intentions to others and have confidence in their words and actions. Studies show trust in leadership positively correlates with important work outcomes like job satisfaction, commitment, and performance. The article outlines approaches leaders can take to build trust, including demonstrating competence through expertise and reliability, communicating openly and honestly while sharing both positive and negative information, displaying care and concern for employees, distributing appropriate authority and decision-making, and rewarding risk-taking and accepting failures. When leaders employ these trust-building behaviors consistently, it empowers employees to contribute at higher levels. In turn, organizations benefit from increased motivation, innovation and resilience among intrinsically aligned teams.
Trust is the foundation of effective leadership. When employees have confidence in their leader’s integrity, honesty, and commitment to their well-being, they are more likely to stay motivated, innovative, and productive even during difficult times. However, developing true trust takes sincere effort over the long-term.
Today we will explore research-backed strategies for leaders to authentically generate and maintain organizational trust. Overall, leaders who prioritize trust-building will inspire higher performance through genuine human connections.
Defining Trust and its Significance
Research confirms that trust is vital for organizational success. McKnight et al. (1998) define trust as “the extent to which one is willing to ascribe good intentions to and have confidence in the words and actions of other people.” Podsakoff et al. (1990) found trust in leadership positively correlates with extra-role behaviors like organizational citizenship. Dirks and Ferrin’s (2002) meta-analysis showed a strong link between trust in managers and job satisfaction, organizational commitment, and role performance. When employees feel confident their leaders have good intentions and competence, they are more motivated to go above and beyond.
Demonstrating Competence and Reliability
To establish initial trustworthiness, leaders must prove they are capable and dependable. Healthcare CEOs like Dr. Amy Compton-Phillips of Providence St. Joseph Health emphasize gaining credentials and displaying expertise (Providence, 2022). She shares accomplishments to validate her experience improving care quality. Technological competence also inspires confidence in tech startup founders. Ensuring promises are kept and deadlines met without exceptions further builds reliability over time (Mayer et al., 1995). Leaders must “practice what they preach” through consistent actions aligned with communicated values.
Communicating Openly and Honestly
Transparency strengthens trust more than any other factor. Leaders who share both positive and negative information candidly help employees feel “in the know” (Slovic, 1993). The CEO of Anthropic, a leading AI safety startup, Dario Amodei (2022), hosts regular transparent update emails detailing technical challenges to provide full context. Employees appreciate knowing obstacles to set realistic expectations together. Providing truthful justification for hard decisions, even unpopular ones, maintains credibility (Whitener et al., 1998). Over-explaining shows respect for others’ perspectives.
Demonstrating Care and Concern for Followers
Beyond competence, people trust leaders who display sincere empathy and prioritize their well-being. Starbucks CEO Kevin Johnson meets employees where they are through videos, town halls and store visits to listen actively (Askin, 2022). Showing care on an individual level fosters emotional trust that motivates dedication. Microsoft CEO Satya Nadella hosts informal “Ask Me Anything” sessions with any worker to address concerns personally (Nadella, 2021). Publicly advocating for diversity, equity and inclusion also conveys valuing all people equally (Cook et al., 2019). Leaders who authentically support followers enable higher risks and responsibilities to be shared.
Sharing Control and Decision-Making
Distributing appropriate authority and transparency in strategic planning fosters trust and commitment to collective goals. At the clothing retailer Patagonia, leaders share financial data and invite feedback through online tools and in-person forums (Henion, 2015). This encourages grassroots contributions and ownership over direction. Google likewise involves rank-and-file staff in choosing annually which new projects receive funding (Singh, 2022). Distributed control shows confidence in others’ intelligence while satisfying basic human needs for autonomy and participation (Deci et al., 2017). Autocratic decisions undermine trust unless fully justified.
Rewarding Risk-Taking and Failure
Leaders who accept failures and reward experimentation build trusting cultures where people feel safe trying innovative solutions. Amazon CEO Andy Jassy encourages “acceptable risks” to speed learning and progress (Jassy, 2022). He reminds that failures may come from intelligent attempts, not just mistakes. At Anthropic, Dario Amodei celebrates both successes and thoughtful risks to learn from towards tackling complex problems (Amodei, 2022). Normalizing imperfection and learning from errors prevents people hiding issues and recreating silos (Edmondson, 2018). Rewards should encourage courage over just outcomes to inspire future initiative.
Conclusion
Research shows that cultivating authentic trust is vital but requires consistent long-term effort from leaders. By demonstrating competence and reliability, sharing honestly and openly, displaying care and concern for followers, distributing appropriate control and rewarding risks and failures, leaders empower people to contribute at higher levels. When employees feel secure through transparent connections with integrity and empathy, they reciprocate with increased motivation, innovation and resilience to face difficulties together as an aligned team. Overall, organizations benefit most when leaders authentically prioritize trust-building through genuine care, competence and fairness towards all people.
References
Amodei, D. (2022, January 12). Ai safety update: Q4 2021 in review. Anthropic. https://www.anthropic.com/blog/ai-safety-update-q4-2021-in-review
Askin, S. (2022, February 25). At Starbucks, human connection is key to the post-pandemic customer experience. Forbes. https://www.forbes.com/sites/sarahaslan/2022/02/25/at-starbucks-human-connection-is-key-to-the-post-pandemic-customer-experience/?sh=3f8fac0c483f
Cook, A., Li, Y., Newell, S., & Zhang, X. (2019). When words speak louder than actions: How external stakeholder concerns influence corporate social responsibility initiatives. Journal of International Business Studies, 50(8), 1173–1194. https://doi.org/10.1057/s41267-018-0178-9
Deci, E. L., Olafsen, A. H., & Ryan, R. M. (2017). Self-determination theory in work organizations: The state of a science. Annual Review of Organizational Psychology and Organizational Behavior, 4, 19–43. https://doi.org/10.1146/annurev-orgpsych-032516-113108
Dirks, K. T., & Ferrin, D. L. (2002). Trust in leadership: Meta-analytic findings and implications for research and practice. Journal of Applied Psychology, 87(4), 611–628. https://doi.org/10.1037/0021-9010.87.4.611
Edmondson, A. (2018, November-December). The fearless organization: Creating psychological safety in the workplace for learning, innovation, and growth. Harvard Business Review. https://hbr.org/2018/11/the-fearless-organization
Henion, R. (2015, December 8). How Patagonia builds trust and transparency into its supply chain. Forbes. https://www.forbes.com/sites/rebeccahension/2015/12/08/how-patagonia-builds-trust-and-transparency-into-its-supply-chain/?sh=33d3e2a45a0b
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). Leading with Trust: Strategies for Cultivating Authentic Connections that Last. Human Capital Leadership Review, 13(2). doi.org/10.70175/hclreview.2020.13.4.13
