Building Trust in Business 2012: How Top Companies Leverage Trust, Leadership, and Collaboration
Brooklyn, NY – June 11, 2012 – the Human Capital Institute (HCI), in association with Interaction Associates, has Building Trust in Business 2012, an annual research on leadership detailing the critical do’s and don’ts for driving strong business results by building trust in leaders at all levels. HCI and Interaction Associates surveyed 440 leaders at more than 300 companies globally – polling them on specific issues at the intersection of trust, leadership, and collaboration – to gather the data included in this research. The findings offer both a cautionary tale for companies that do not specifically focus on building trust, as well as good news for those that do.
Huge Decline in Trust
For the fourth straight year, the Building Trust 2012 survey points to big declines in leadership and trust across the business spectrum – with trust at its lowest level since Interaction Associates began surveying the issue in 2009.
For 2012, trust takes the biggest hit on the question of whether leaders are consistent, predictable, and transparent in decisions and actions. In 2012, only 23% of respondents said that their companies' leadership is consistent, predictable and transparent, compared with nearly 40% in 2009.
Trust Impacts Results
Despite the dramatic decline in trust, there is good news in Building Trust 2012 – with important data tracking to an economy struggling to grow stronger.
The 2012 results show a clear, explicit connection between companies that achieve strong business results and high ratings in trust, leadership, and collaboration. Additionally, leaders of high performing companies are more focused on employee involvement – including the notion of shared responsibility for success as a key driver of business results.
Comparing High Performing & Low Performing Companies
Building Trust in Business 2012 distinguishes between high performing and low performing companies. Survey respondents who stated their company’s net profit grew more than 5% over the previous year were classified as working for High Performing Organizations (HPO’s). Companies with profit growth below 5% were classified as Low Performing Organizations (LPO’s). Respondents’ self-reporting along those definitions were verified independently by analyzing public information on each company.
Leaders Build More Trust at High Performing Companies
High Performing Organizations are more successful at building trust, their leaders are seen as more collaborative, and they’re much better at retaining key employees. Compared with LPO’s,14% more survey respondents from HPO’s agreed that employees have high trust in management and 15% more see their leaders as effective.
Additional Insights Linked to Financial Success
Building Trust 2012 details other patterns around trust, leadership, and collaboration --- characteristics that are strongly correlated with financial success.
- High performing organizations have shifted to a focus on building and managing relationships as a key priority, which differentiates them from the rest of the pack.
- HPO employees are 14% more likely to say they have the interpersonal and group skills needed to collaborate, and are open and receptive to the suggestions and opinions of others.
- Employees at HPO’s are 19% more likely than employees of low-performing companies to say their leaders reflect realistic optimism and confidence in the future, and that they have specific and measurable goals that are clearly linked to the organization’s strategy.
- Employee engagement and involvement levels are down at HPO’s and LPO’s, but employee involvement levels are stronger at HPO’s. In fact, HPO’s have more than double the percentage of involved employees than do LPO’s – and HPO’s are more effective at retaining key employees.
- At HPO’s, fewer employees are disengaged or passively engaged – in fact, HPO’s have 11% fewer of these employees.
- HPO’s and LPO’s share similar business priorities – the top two for both are revenue growth and profit growth – but HPO’s are much more focused on retaining customers and talent than are LPO’s.
To view and download the 2012 edition of Building Trust in Business, please visit http://www.hci.org/lib/building-trust-business-2012-how-top-companies-le...
HCI and Interaction Associates began this research with an initial webcast, aired on April 25th, to acquaint talent practitioners with the foundational elements of trust and trust-building. That webcast can be viewed for free at http://www.hci.org/node/1398063
About Interaction Associates
Interaction Associates (IA) is a 40-year innovator of advanced methods for developing leaders in global companies. The firm helps organizations build high-involvement cultures and achieve excellence in a new measure of ROI — Return on Involvement — where employees go “beyond engagement” to share responsibility for business results. IA develops leaders at all levels through its consulting, learning and coaching services, with a focus on building leaders’ proficiency in collaboration, strategic thinking, and self awareness. IA was named one of Training Industry’s top 20 Training Companies 2012. The firm has locations in Atlanta, Boston, Chicago, Dallas, Denver, Houston, Los Angeles, and San Francisco. For more info: www.interactionassociates.com
About do not use - Human Capital Institute (HCI)
HCI is the global association for strategic talent management and new economy leadership, and a clearinghouse for best practices and new ideas. Our network of expert practitioners, Fortune 1000 and Global 2000 corporations, government agencies, global consultants and business schools contribute a stream of constantly evolving information, the best of which is organized, analyzed and shared with members through HCI communities, research, education and events. For more information, please visit www.hci.org.