The role of trust in leadership performance Using a selected model of leadership (eg Transformational, servant, situational or contingency theory of leadership), discuss the role that trust plays (or may play) in this: Definitions of trust:  The firm belief in the reliability, truth or ability of someone or something - Oxford English Dictionary  The expectation of ethically justifiable behaviour - Hosmer L.T. (1995)  Is this how you perceive trust?  Is trust an explicit or implicit component of the model?  How significant a role does trust play in your selected model?  What behaviours would you associate with the model that are likely to be significant in building or sustaining trust?

How did ILM measure leadership trust? DOING BEING KNOWING 6 dimensions of trust: Leaders’ ability to do their job Leaders’ understanding of their employees’ roles and responsibilities Leaders’ fairness and concern for the welfare of employees Leaders’ openness to employees’ ideas and opinions Leaders’ integrity – their values, honesty and fairness in decision making Leaders’ consistency – the reliability and consistency of their behaviour

How important are the six dimensions of trust? For CEOs, Ability and Integrity dominate – even more so in 2010 than 2009 For line managers, all six are quite similar in importance, although ability is still first - if you are judged to be not very good at your job, your team won’t trust you CEOs Line Managers Integrity Integrity 70 Ability Ability Fairness Fairness 62 Consistency Consistency 65 Openness Openness 66 Understanding Understanding 72 Overall Overall 69 Trust Index Score Trust Index Score Key Key

Calculating the Index of Leadership Trust (Line Managers) Weight Raw Scores Weighted Scores Ability Understanding Fairness Openness Integrity Consistency Total /6=69.15

The results – 2009 and survey established the benchmark for leadership trust, at the height of the recession: Line managers 69 CEOs 59 One year on, with the economy slowly recovering: Line managers’ trust is unchanged 69 CEOs’ trust has improved 63

<1010–4950–249250–1000>1000 How has trust changed?  Larger organisations see a consistent drop in CEO scores across all measures  CEO trust is up with strongest increases in mid-sized organisations  Size also matters for line manager scores, but the drop is less pronounced CEO 2009CEO 2010Line Manager 2010Line Manager 2009

The results: How well do you trust your CEO?  How big is your organisation? How visible and accessible is your CEO?  How long have your CEO and your Line Manager been in post?  Reflect on your answers and what impact that has on your own level of trust in your CEO and Line Manager.

Male CEOsFemale CEOs Female What do female CEOs do so well?  Female CEOs score two or three points higher than male CEOs on most dimensions  Ability and integrity are still the most important characteristics for driving trust for both male and female CEOs  Key difference for female CEOs is their superior understanding of employees’ roles (a score of 59 compared to 52, a seven point differential) Male

As the scale of the impact that the recession had on jobs increased, so CEO trust levels declined No change Tight control on spending Recruitment freeze Flexible working or reduced hours Departmental/team restructure Voluntary redundancies Involuntary redundancies Closure of offices/factories/sites Surviving the recession

Warning signs for public sector CEOs  Line managers in the public sector score two points higher than private sector counterparts – 70 compared to 68  For 2 years running public sector CEOs have had a small trust deficit compared to the private sector – 62 compared to 64  Significant job cuts have caused many private sector CEOs to lose trust – the public sector can learn from this  Creative approaches to employment – can save jobs and build trust

Sectoral patterns have changed slightly  Charities are one of the highest trust sectors for both line managers and CEOs, for the second year running  Public sector organisations in Health and Local/National Government rank amongst lowest for CEO trust HIGHESTLOWEST Line Managers 1.Education (72) 2.Charity (71) 2.Media, PR & Marketing (71) CEOs 1.Charity (67) 2.Military/defence (66) 2.Professional services (66) Line Managers 12. Leisure (66) 12.Utilities, post & telecoms (66) 14.Wholesale, dist., travel & trans. (64) CEOs 12.Health (60) 12.Utilities, post & telecoms (60) 14.Local/Nat Gov’t (57)

How can you ensure that people trust you, as their Line Manager? In your groups, review the six dimensions that determine trust: 1.Ability 2.Understanding 3.Integrity 4.Fairness 5.Openness 6.Consistency What aspects of your behaviour do you think most influences team members in deciding if you are able, understand them, show integrity, are fair, open and consistent? Draw up a list of best practice behaviour to help create trust in you.

Trust: The firm belief in the reliability, truth or ability of someone or something