I do a fun exercise in my leadership classes called “Stupid or Brilliant.” I go through a number of scenarios and specify an action that, on the surface, appears to be stupid. In each case, the loss of control would appear to be devastating from a risk point of view. I ask the participants to vote if the action was stupid or brilliant.
There are some examples where there is a documented correct answer, but most of the questions can lead to lively debate. Here is an example of a question with a real answer.
A doughnut street vendor at the base of a skyscraper in New York City noticed that the line was too long while people waited for him to make change. He was losing customers. He put out a box with change and small bills and a sign that read “In a hurry? Make your own change: I trust you!” At first glance, putting money out in trust in NYC would be stupid. People could just take the cash and go. Instead, the vendor found the strategy to be brilliant for three reasons:
1. The throughput of his vending operation increased by 50% because the line moved faster.
2. People started talking about his trust throughout the building, and they came out to buy from this honest vendor.
3. Many people would not even take the change. If their total came to $3.75, they would just put in a five dollar bill and walk away.
Other strategies for trusting people leave room for analysis. For example:
One consultant decided to charge only what the customer felt was appropriate after his work was done. He would leave the fee totally at the discretion of the people he was helping. This tactic defies negotiation logic because it ignores what is called the “call girl” principle of negotiation (the value of the service is greatly reduced after the service is rendered). Yet, this consultant generally did very well and often took away larger fees than he would have if he had negotiated a firm price before doing the work.
One organization was forced by market conditions to do some downsizing. They decided to allow the people being let go to continue to use their old office, computers, and cell phones for several months if they wanted while they looked for work elsewhere. Of course, there were a few stated rules about not being disruptive and honoring professional behaviors while on the premises, but other than that, the severed employees were treated the same as the ones retained. There was a risk, but the company found that in all but a few rare exceptions, the benefits far outweighed the risks.
You can carry blind trust to an extreme where a strategy is truly stupid. One example I give in my classes is this: The owner of a bar does not charge patrons per drink but asks each customer to keep track of what was consumed and pay at the end of the night. Obviously, most people vote for this as a “stupid” strategy. On the other hand, it would make an interesting experiment, because it may be possible that customers would pay more than required on average rather than pay less.
The point is that when we really do trust people to do the right thing, they often respond in ways that defy conventional wisdom. That logic is generally derived from a social norm based on a controlling philosophy. When given the chance, most people react with integrity and gratitude when we extend trust to them.
I have developed what I call the “First Law of Trust.” It is: “If you are unhappy with the level of trust others have toward you, the first corrective action is to find ways to extend trust more to them.” Trust is reciprocal in nature, so the best way to receive more trust is to give more. Try this technique with the people in your life, and you will see a dramatic increase in trust. Often what seems like an unwise risk to take will turn out to be rewarded by far greater loyalty than you can imagine.
Posted by trustambassador 
Several managers I know are fond of saying “we have to hold our people accountable.” I think the process of making sure people need to step up to responsibility is a good one, but it really needs to start at the top. Unfortunately, I see many top leaders failing to hold themselves accountable first.
Several decades ago, the now-deceased quality guru, W. Edwards Deming came up with a list of 14 key points for leaders to take that would accomplish what he called “profound knowledge.” Point number 8 on his list was “drive out fear.” I believe this was one of the most powerful concepts on his famous list. The reason is that the absence of fear is a prerequisite for higher trust, and trust is the most important ingredient to higher organizational productivity. In this article, I will share seven tips to help drive out fear.
Greg Smith wrote his scathing letter of resignation from Goldman Sachs, and it appeared as an op-ed in the New York Times on March 14th. He is out of Goldman Sachs for good, but I believe it was the firm that really got “Sach’d.”
I participated in an interesting discussion in an online class on teamwork recently. The students were lamenting that drama in the workplace is common and very disruptive to good teamwork. While drama is just part of the human condition, I am sure you have experienced unwanted drama and wished there were ways to reduce it.
In most organizations, when managers want to know how people are feeling, they do a QWL (Quality of Work Life) survey to find out. I there are more direct ways to identify what people are thinking. By simply discussing the need for a survey, the most insightful data is already spilled all over the table. To mop it up, you need to improve the level of trust in your organization.
The one thing you really can control in life is your attitude, yet most people view their attitude as the result of external things happening to them rather than a conscious decision they make every minute of every day. In this brief article, I would like to explore some ideas that can help make your choice more intentional. These ideas are not new or unique; they have been expressed by numerous authors or scientists, and yet they are easily forgotten by anyone in the heat of the moment.
In our society, it is considered a bad thing to fail. From our earliest memory, we are all taught to succeed at what we try. It does not matter if it is taking a few steps on wobbly legs or negotiating an international merger of two huge organizations, we are conditioned that success is the goal and failure is anathema. Through this conditioning, we are taught to feel great when we have a success and to feel awful when we fail.
If I hear the phrase “think outside the box” one more time, I’m going to blow. That old saw has been around for decades and is so hoary the cardboard has all rotted away. For purposes of trying to make a point, I am going to use the analogy one more time as it applies to people rather than ideas, then try to forget the phrase ever existed.
The study of body language has fascinated me for years. There are over 30,000 known signals in body language and facial expression that we interpret, mostly subconsciously. It is a favorite game at cocktail parties, or in other public venues, to try to uncover the meaning ascribed to certain types of body language.
