Economic Value of Trust

Organizations with high trust (Watts and Wyatt study) have a three times higher return to shareholders than those with low trust.

Organizations that make the “best places to work” list — the score of which is 60% based on trust — return four times the return of their peers.

Yet most firms do not measure or report their trust levels — or even monitor them — leaving managers and investors in the dark.

One high profile example of a high trust business is Zappos, which has recently become famous for trusting its employees to “do the right thing” — whatever that means to that employee at that time. They do still have to account for what they do, however the decision is theirs.

My advice: find a way to measure trust, and then measure it at least once a year.  Trust is a strategic asset.

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