Developing Trust on Your Team

Sep 07, 2020

A Lack of Trust Can Destroy Your Team

What You Can Do To Develop an Atmosphere of Trust on Your Team

Trust is a central component of all healthy relationships. Teams are no exception. “There’s no team without trust,” said Paul Santagata, Head of Industry for Retail/Tech/Telecom at Google. “In Google’s fast-paced, highly demanding environment, our success hinges on the ability to take risks and be vulnerable in front of peers.” [“High-Performing Teams Need Psychological Safety. Here’s How to Create it” by Laura Delizonna, Harvard Business Review August 24, 2017]

The leader must facilitate trust and be a model of trust. This means creating a team environment characterized by open, candid relationships and a climate of psychological safety.

“As a company grows, communication becomes its biggest challenge. If the employees fundamentally trust the CEO, then communication will be vastly more efficient than if they don’t. . . A CEO’s ability to build this trust over time is often the difference between companies that execute well and companies that are chaotic.” – Ben Horowitz (quoted in https://www.zenefits.com/workest/ben-horowitz-culture-leadership-succeeding/)

It is a sad fact of my long experience working with entrepreneurs that many of them do not trust people easily, and this sets the tone for the way they manage their teams and how team members, in turn, manage their teams. When you don’t trust someone, if you feel they lack competence, skill, or experience or you question their good will and good intentions, you are more likely to try to control or micromanage them. This can severely damage a team’s effectiveness.

A lack of trust and a climate of fear on the team is the opposite of psychological safety. It is toxic and can result not merely in an uncomfortable workplace and a lack of openness, but also in finger-pointing and conflicts between team members, politics, false consensus leading to bad decisions, and ultimately in turnover. It will curtail collaboration, weaken problem solving, hamper individual and group performance and diminish results.

The more interdependent the team – the more team members are dependent on each other to get their work done – the more trust matters. This can be particularly relevant for startups where the number of people involved is small and collaboration is especially vital. For example, Engineers can’t build anything unless the Product team defines what customers want, what features they care about, and Product can’t really do that without coordination with the Marketing team. All these relationships rely on trust: that information is being openly shared, that people are telling the truth, giving honest feedback, working through differences and collaborating and working together to meet commitments.

When there is good will and psychological safety on a team, members will be willing to be vulnerable and openly discuss their problems, opinions, and concerns. In addition, trust also increases the commitment and loyalty between team members, which reduces unwanted turnover, and increases a sense of common identity.

How Trust Grows

Trust builds slowly, over time. It is built in very small moments but can be destroyed in an instant. If team members have shared important experiences and been successful working together, or have endured difficult times and made it through to the other side, trust will naturally increase.

Trust grows when there is openness, information sharing, honesty, and the ability to voice differences and work together through conflict. As Google’s Project Aristotle on effective teamwork has found, members must feel free enough to share their opinions without fear of recrimination or attack. As a New York Times article said, “ We must be able to talk about what is messy or sad, to have hard conversations with colleagues who are driving us crazy. We can’t be focused just on efficiency.”

Growth of trust also requires regular interaction between members, listening and respecting each other’s ideas. This too takes time, and it means that you, as the leader, need to look for opportunities to increase the level of interaction and collaboration between members of the team. If team members operate in silos or have more frequent communication with the leader than with each other, the team will be less effective.

This can be especially challenging with remote team members. Videoconferences between team members in another country or city, or just in another building or domain, have become commonplace and the leader must pay close attention to bringing team members together in person whenever possible. Where that is not an option, the leader needs to be very deliberate about insuring active participation from all team members rather than allowing in-person members to dominate the discussion.

Does Your Team Trust You?

Leaders are often unaware of how much – or how little – team members are on board with the leader’s strategy, goals, and plans. Even worse, they often assume they have the team’s trust, when that is not always the case. Here are some ways to tell if your team trusts you:

Team members sometimes take a different view from yours, and express it freely.
Team members keep you informed of their progress. They are comfortable coming to you for help or suggestions if they get stuck.
Team members appear comfortable admitting mistakes, and are willing to discuss their problems rather than hiding or minimizing them, or concealing them in fancy PowerPoints.
Team members approach you when they have a non-work problem, to request time off or support.
Team members are not obviously defensive or over-critical about statements you make.
Team meetings are relatively open and there is wide participation, with everyone making a contribution.
Team members speak up – often privately – if they have a problem with one of your decisions or your behavior and are prepared to discuss their concerns.
There does not appear to be excessive gossip in the team.

These are all signs that you have done a good job in creating an atmosphere of safety and trust.

What Happens When Trust Is Strong?

A recent meta-analysis of 112 research studies confirmed that trust between team members is highly correlated with the achievement of team goals. When trust is present, problem solving tends to be creative and productive. Discussions are livelier and out-of-the-box solutions get put on the table when fear of self-expression is absent. Members willingly take greater risks and say what is on their minds directly rather than behind others’ backs.

Trust has a similarly powerful impact on decision-making. The best decisions are made when the best thinking and all the facts are put on the table. When team members feel safe and expect that others will behave in a supportive and positive manner, they will be more willing to be vulnerable and open. They will work more collaboratively and stay more focused on team goals.

What Happens When Trust Is Weak?

When trust is not strong, people are unwilling to share their real opinions and concerns. In that case, you are not getting the best thinking out of them. Often this lack of trust is due to the leader, who may have created an intimidating environment or failed to police bad behavior among members, such as personal attacks. In that environment, people are unwilling to share intuitive insights or half-formed ideas.

Problem solving tends to degenerate and become ineffective. Interpersonal relationships among team members interfere with and distort perception of the problem. That’s because, in the absence of trust, people’s energy and creativity are more focused on self-protection than on finding creative solutions. They feel the need to protect themselves from attack, humiliation, or retribution, rather than apply their energy and attention to problem solving and may withhold half-formed ideas that may contain the seed of a solution.

In the absence of trust, team members are more suspicious of others’ motivations, and become defensive. Openness is reduced, and people don’t say what they really think. Team members lose sight of team goals and focus on personal self-interest.

How to Build Team Trust

Be honest with team members. Don’t spin things. If you distort the truth or outright lie, team members won’t trust you. Tell them the truth rather than what you think they want to hear. A leader must establish and maintain high standards of personal integrity.
Show team members that you care about them as people rather than merely as units of production. Organizations and teams are not machines. Results are important but excessive focus on hitting goals and deadlines or improving performance and quality can give the message that you only see team members as means to an end. Create opportunities to socialize with them in informal settings such as team dinners and avoid too much focus on business issues at that time.
Be proactive in building relationships. Listen to individual team members and get to know them and their concerns. Check in with them regularly to find out how things are going in their world and how they are feeling about events, projects, problems etc. It is easy for a busy team leader to become isolated and insulated from the problems and concerns of employees. If you are too distant from team members and don’t invest in getting to know them and what is important to them, they will be less likely to trust you. Leaders who show interest in the needs and challenges of the employees they manage set a positive tone on the team. Employees who feel valued and supported are more likely to be motivated to get results.
Occasionally survey the team to take its temperature, particularly around trust levels and morale. Then discuss any barriers to teamwork that are surfaced by the results.
Don’t withhold information. Leaders often worry that openly sharing sensitive information about financial results, decisions, or developments could cause problems. Whenever possible, eliminate secrets. Provide team members with both information they need, and information they want. Many leaders justify withholding information by saying, “I provide information on a need-to-know basis.” This reflects a lack of trust and need for control. Obviously, not all information can be shared. But ask team members what information they are not getting that they want and need. When possible, let them know about plans, developments, opportunities, challenges, and priorities. Sharing information makes people feel more like partners, and in the absence of information, rumors and speculation about worst-case scenarios proliferate.
Explain the rationale behind your decisions. Give team members the context they need to understand why you made a decision and use it as an opportunity to teach and explain your thought process and the factors that they need to consider in making similar decisions. This is an opportunity to develop new leaders. Don’t be too quick to take responsibility for “important” problems. Let other team members own the analysis, the plan, and as much of the action as possible. Learn to empower team members as they demonstrate competence and good judgment. This demonstrates trust.
Don’t micromanage. It suggests that you don’t believe that people will get things done without close monitoring and control, and that you don’t trust their judgment or capabilities. If you want to develop the trust of others, you must demonstrate trust in them.
Put the good of the team and the organization ahead of your own self-interest. Leaders who are fixated on their reputation, financial rewards, and personal recognition are quickly distrusted by their team.
Keep your commitments to team members and the team as a whole. If you don’t follow through on your promises, they will question if you will really do what you say you will do. If you don’t meet your commitments, you will send a message that others don’t need to meet theirs. Lack of consistency and dependability will destroy trust.
Avoid blaming team members for mistakes, particularly in front of others. Create a norm around learning from mistakes. Effective team leaders take a little more than their share of the blame and go out of their way to give others the credit for achievements.
Be human. Be open about your own mistakes and weaknesses and you will create space for others to be open about their shortcomings and problems. Don’t communicate in a formal, overly business-like manner that hides your humanity and accessibility. Be genuine and real.
Monitor your own behavior and pay attention to the impact of your words and actions. Leaders who fail to treat team members with respect, consideration and sensitivity can destroy trust quickly. Trust takes a long time to develop but can be broken quickly.
Don’t play favorites. When you reward your friends and fail to confront their substandard performance, it undermines trust and increases politics. Treat all team members fairly and consistently.
Walk your talk. Be vigilant that your behavior is consistent with your stated beliefs and values. When the leader doesn’t behave in accord with the organization’s values and the team’s rules of the road, trust and credibility will be destroyed.

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Review of the characteristics of ego-driven versus principle-driven leadership.

Ego-Driven vs Principle-Driven Leadership

By Richard Fagan • 02 Apr, 2024

Ego-driven leaders This type of leader often sees themselves as the architects of their own fates, solitary figures in the harsh world of business where competition is fierce and only the strong survive. They prize individual success and recognition above all else, their self-worth rooted deeply in personal triumphs. In their world, each decision is a step on the path to victory, which they walk with unwavering confidence. To them, leadership is less about marshalling the collective strength of a team and more about showcasing the force of their own unique vision. Their approach is characterized by a focus on the immediate, with a horizon that often doesn't extend beyond the next win, the next deal, the next acclaim. This type of leader regards the people around them as instrumental to their own narrative, valuing them for what they can contribute to the next achievement. Relationships are often seen through a lens of self-interest, with an underlying expectation of personal gain. They make decisions unilaterally, trusting in their own judgment and instincts above the counsel of others. They are mavericks who challenge the status quo, sometimes at the expense of the greater good, bending rules when they feel it's necessary to reach their goals. To these leaders, success is not just the best measure of their worth; it is often the only one that matters. They push boundaries, and in doing so, they can either lead their ventures to new heights or to precarious edges. They view life as a competition where for them to win, others must lose. Their self-worth is tightly bound to winning and personal achievements. They prioritize their own interests and believe in their unique talents. Recognition of their abilities and contributions is essential for them. They have a strong sense of entitlement and predestination for leadership. Enjoyment of attention and a conviction in their own ideas characterize their self-image. They adopt a utilitarian view of success, willing to use any means to achieve goals, even if it involves manipulating others. The value of others is assessed based on their utility in achieving personal ambitions. They see relationships transactionally, ensuring personal gain. Self-assurance in their judgment leads to a preference for autocratic decision-making. They trust their intuition over others' input and feel they have a superior understanding of the “big picture.” They are willing to bend or break rules if it serves their vision of innovation and success. Ethical flexibility is rationalized if it leads to profitability or maintaining power. There’s a reluctance to admit fault, often attributing criticism to jealousy or misunderstanding. They have a short-term focus on immediate gains rather than long-term strategic planning. Societal norms or ethics may be disregarded if they conflict with personal goals. The Consequences of Ego Driven Leadership Their resistance to criticism and feedback severely limits their capacity for learning and adaptation. By prioritizing their own ideas and dismissing others', they miss out on valuable insights that could steer the company away from potential pitfalls or toward innovative solutions. This closed-minded approach can hinder a startup's ability to pivot or adapt to market changes, a crucial aspect of scaling successfully Their transactional view of relationships undermines trust and loyalty within the team. Viewing interactions as mere exchanges diminishes the intrinsic motivation of team members and erodes the sense of community and belonging. As startups grow, the complexity and demands of managing a larger team require a cohesive, motivated workforce. Ego-driven leaders struggle to foster this environment, leading to high turnover rates and difficulty in attracting and retaining top talent. The overconfidence of ego-driven leaders in their abilities and judgment can lead to risky and impulsive decisions without adequate consideration of potential consequences. While risk-taking is a part of startup culture, unchecked ego can push a company toward unnecessary dangers. Scaling successfully requires balanced, data-informed risk-taking that ego-driven leaders might overlook in favor of bold, but ill-advised, moves. Ego-driven leaders' tendency to bend rules and ethical boundaries for short-term gains can pose significant reputational risks. Such behavior not only jeopardizes the company's standing with customers, investors, and regulatory bodies but can also lead to internal cultures that justify unethical actions. As startups scale, maintaining a strong ethical foundation becomes increasingly important for sustainable growth and avoiding legal and reputational pitfalls. Their focus on immediate results often comes at the expense of long-term planning and sustainability. Ego-driven leaders might prioritize quick wins to boost their image or satisfy short-term financial goals, neglecting the investments in infrastructure, culture, and strategy necessary for scaling. This shortsightedness can stunt a startup's growth trajectory and leave it ill-prepared for future challenges. Lastly, the need for control that characterizes ego-driven leadership impedes their ability to delegate effectively and empower team members. Scaling a startup requires distributing responsibilities and trusting others to make decisions. Ego-driven leaders struggle with this aspect of growth, often becoming bottlenecks for decision-making and innovation, which can slow down the organization and demotivate talented employees Principle-Centered Leadership Leaders who exhibit emotional maturity and responsibility steer their teams with a clear sense of purpose, guided by the ethos of service and community impact rather than personal glory. They recognize their role as an opportunity to uplift and empower, measuring triumph not in the echo of their accolades but in the progress and well-being of their collective. They understand that a variety of perspectives fuels smarter strategies and true innovation, and they champion a collaborative approach that harnesses the collective strength of their team. At the heart of their leadership style is a commitment to trust and respect, essential ingredients in cultivating an environment where open communication and innovation can thrive. These leaders are adept in emotional intelligence, balancing empathy with self-awareness, and adjusting seamlessly to change. Their decisions are anchored in integrity, serving as a living example to their teams. With a gaze set on the long-term horizon, they emphasize sustainable practices and resilience, knowing that meaningful success is not a sprint but a marathon. By investing in their people, they're not just building a team; they're nurturing an ecosystem where every member can flourish. They view leadership as a duty to serve rather than a right to command. They measure success by the positive impact on the team and community. They prioritize serving others and contributing to the greater good. They value diverse perspectives and encourage every voice to be heard. They emphasize collaboration and shared leadership for collective success. They practice and model integrity and transparency. They create a safe space for innovation and honest feedback. They celebrate collective achievements to motivate and unite the team. They believe in the interconnection of the team's and organization's welfare. They utilize emotional intelligence for empathetic and effective leadership. They commit to personal growth and adaptability based on continual feedback. They uphold ethics and integrity as foundations for all decisions. They focus on sustainable success with a long-term perspective. They invest in building strong relationships and a cohesive team. They maintain resilience and positivity in the face of challenges. 16. They encourage work-life balance for team health and sustained performance.

Decoding Success: My Methodology of Distinguishing Founders' Competencies

By Richard Fagan • 13 Mar, 2024

My methodology is a comprehensive approach that delves deep into the intricacies of founder competencies to unearth the secrets of success. Through meticulous analysis and categorization, this methodology provides valuable insights into the behaviors that correlate with success, offering a roadmap for aspiring entrepreneurs navigating the startup journey.

Team Strength is Key in Securing Second-Round-Funding for Startups

By Richard Fagan • 11 Mar, 2024

Securing second-round funding is often a pivotal milestone on the journey toward success. While innovative ideas and promising markets certainly capture investors' attention, one fundamental aspect consistently stands out as a critical factor: the strength and experience of the founding team. Behind every groundbreaking startup is a team with the vision, expertise, and determination to turn dreams into reality. Investors recognize that a strong team can navigate challenges, capitalize on opportunities, and drive sustainable growth. Let's delve into why team strength matters and explore the statistical evidence supporting its importance in securing second-round funding. Diverse Skill Set: The Engine of Innovation A diverse skill set within the founding team is akin to having a well-equipped toolbox for tackling the complexities of startup life. Startups require a range of talents spanning product development, marketing, sales, finance, and operations. According to research conducted by Harvard Business Review, teams with diverse backgrounds and skill sets are more innovative and better equipped to solve complex problems. Investors seek teams that complement each other's strengths and compensate for weaknesses, fostering a culture of collaboration and creativity. Startups with diverse teams are more likely to identify unique market opportunities, develop innovative solutions, and adapt to evolving industry landscapes. Relevant Industry Experience: Navigating the Terrain Experience is invaluable in the startup ecosystem, where uncertainty and rapid change are constants. Investors place great emphasis on founding teams with relevant industry experience, as they bring insights, networks, and best practices that can accelerate growth and mitigate risks. According to a study by CB Insights, startups founded by teams with industry experience are more likely to achieve higher levels of success and attract follow-on funding. Seasoned entrepreneurs understand market dynamics, customer needs, and competitive forces, positioning their startups for strategic advantage and sustainable growth. Track Record of Execution: Turning Vision into Reality Ideas are abundant in the startup world, but execution is the true currency of success. Investors scrutinize the track record of founding teams, seeking evidence of execution prowess and the ability to deliver results in the face of challenges. Startups that have demonstrated traction, achieved key milestones, and effectively allocated resources are viewed favorably by investors. According to data compiled by PitchBook, startups with proven execution capabilities are more likely to secure second-round funding and position themselves for long-term success. Investing in People, Investing in Success Team strength emerges as a decisive factor in securing second-round funding. Investors understand that while ideas may spark interest, it is the people behind those ideas who ultimately drive success. Startups with diverse teams, relevant industry experience, and a track record of execution stand poised to capture investors' attention and fuel their growth trajectory. As the startup ecosystem continues to evolve, the emphasis on team strength remains unwavering, underscoring the timeless adage: "Invest in people, and success will follow." For startups eyeing the next stage of growth and expansion, investing in team strength is not just a strategic imperative—it's the cornerstone of enduring success. Team strength emerges as a decisive factor in securing second-round funding. Investors understand that while ideas may spark interest, it is the people behind those ideas who ultimately drive success. Startups with diverse teams, relevant industry experience, and a track record of execution stand poised to capture investors' attention and fuel their growth trajectory. As the startup ecosystem continues to evolve, the emphasis on team strength remains unwavering, underscoring the timeless adage: "Invest in people, and success will follow." For startups eyeing the next stage of growth and expansion, investing in team strength is not just a strategic imperative—it's the cornerstone of enduring success. It is however important to understand that: What got you here, isn't going to get you there!. Being ready and willing to accept that there needs to be some measure of personal growth is what sets Founders who can scale, apart from those who won't.

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