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Building Trust: How Top Companies Drive Business Results with Trust, Leadership and Collaboration
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The Conference Board’s 2013 and 2014 Top Ten CEO Challenges
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“Trust” 3© Interaction Associates Inc.
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Today’s Presentation 1.Some quick definitions and context 2.Dive into the data 3.A tool to help you/your leaders build trust 4
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Need assistance? Call Member Services (866) 538-1909 or email support@hci.org Survey Context 2009-2011 5© Interaction Associates Inc.
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Survey Snapshot 2013 6© Interaction Associates Inc.
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Building Trust 2013 surveyed nearly 400 leaders at more than 290 global organizations, polling them on behaviors and issues at the intersection of trust, leadership, and collaboration.
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8© Interaction Associates Inc. "High Performing Organizations" are organizations whose net profit grew more than 5% over the last year. High Performing Companies
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9© Interaction Associates Inc. “Low Performing Organizations" are organizations whose net profit shrank or grew less than 5% over the last year. Low Performing Companies
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High vs. Low Performing Companies Up to 5% improvement Unchanged 5-10% improvement More than 10% improvement NET PROFITS: 2013 compared with 2012 HIGH PERFORMING LOW PERFORMING Negative (loss)
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11 Effectiveness at Achieving Business Outcomes Top line/revenue growth (41% gap) Profit growth (39% gap) Competitive market position (26% gap) Exhibiting organizational behavior that is consistent with company values/ethics (24% gap) High Performing vs. Low Performing
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HPOs... Focus more on customer loyalty and retention (10% gap) demonstrate higher levels of trust (30% gap) have more effective leadership (27% gap) and are more likely to have a collaborative environment (27% gap).... than LPOs.
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Trust in Business Survey 2013 13© Interaction Associates Inc.
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1.Dramatic Rebound in Trust and Leadership 2.Employee Involvement and Engagement Skyrocket 3.Leaders Walk the Talk 4.Trust is a Decision, Not an Inherent Trait 5.Top 5 Leadership Actions that Build Trust Five Key Findings © Interaction Associates14
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Rebound in Levels of Trust and Leadership © Interaction Associates15 1
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16 To what degree do the following statements describe your organization? All Respondents: Organizational Culture Leadership and Trust = Significantly Higher than in 2012
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17 Thinking about the level of trust within your organization, to what extent does the following describe your company? % Describes extremely/very well All Respondents 1 Significantly higher than 2012 Leadership is consistent, predictable and transparent in their decisions and actions. 2013 2012 32% 1 23%
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18 High Performing vs. Low Performing To what degree do the following statements describe your organization? (% describes extremely/very well)
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Employee Involvement & Engagement Skyrocket © Interaction Associates19 2
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3x Our employees view their jobs as a means to a paycheck; if another opportunity came along, they would take it. Our employees are satisfied with the company; they see it as a good place to work. Few would be motivated to seek another job. Our employees are highly engaged and are committed to their profession and jobs; employees willingly expend discretionary effort to achieve results. In addition to being highly engaged, our employees are actively involved and share responsibility for the organization’s success; managers provide meaningful opportunities for employees to give input and/or participate in decisions that affect them. Disengaged Passively Engaged EngagedInvolved 24% 7% 0% 20% 40% 60% 80% 100% HPOs LPOs 31% 35%23%11% 27% 42% 24% 7% HPOs vs. LPOs: Engagement and Involvement
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© Interaction Associates21 Engagement/Involvement and Retention Gap: All Respondents – Net Effectiveness at Retaining Key Employees Disengaged Passively Engaged Involved 7% 40% 60% Engaged
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Leaders Walk the Talk © Interaction Associates22 3
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Leaders Walk the Talk © Interaction Associates23
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Trust is a Decision, not an Inherent Trait © Interaction Associates24 4
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© Interaction Associates25 trust (n.) a willingness to put yourself at risk based on another person’s actions Trust Aligned Purpose Expertise Past Experience Safety Certainty Basis of Trust Readiness to Trust Willingness to Trust
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Trust Matters © Interaction Associates26
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More than 80% of Building Trust 2013 respondents say they need to trust their boss or senior leaders in order to be effective in their work. © Interaction Associates27 Trust Matters
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Only 18% of people in general trust business leaders, according to the 2013 Edelman Trust Barometer. © Interaction Associates28 Trust Matters
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“Employees have a high level of trust in management and the organization.” © Interaction Associates29 Trust Matters 38% 26% 56%
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© Interaction Associates30 How can I build trust?
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Take a balanced approach to Driving Success. What YOU Can Do Now.
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Need assistance? Call Member Services (866) 538-1909 or email support@hci.org Transparent Reasonable Predictable 32© Interaction Associates Inc.
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Five top actions Leaders can take to Build Trust Now © Interaction Associates33 5
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1.Set employees up for success by providing tools, resources and learning opportunities (41%) 2.Provide adequate information around decisions (41%) 3.Seek input prior to making decisions (40%) 4.Consistently act in alignment with company values (35%) 5.Give employees an inspiring, shared purpose to work toward (28%) Top 5 Leadership Actions the Build Trust © Interaction Associates34
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Set employees up for success with Stretch Delegation learning opportunities. What YOU Can Do Now.
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Time Performance New Job Stretch Delegation Opportunity Performance Surge Stretch Delegation Opportunity Performance Dip Without Stretch © Interaction Associates, Inc. The Power of Stretch Delegation
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Full Report and Trust Toolkit available online. 37© Interaction Associates Inc. interactionassociates.com/insights
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Thank you!
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