Utility Week Live

E ven though levels of trust in busi- ness have improved slightly recently, barely half of consumers say they trust UK businesses. This matters because consumers turn away from compa- nies they do not trust. A further problem is that low levels of trust are not just found among customers. According to the Chartered Institute of Per- sonnel and Development (CIPD), only 37 per cent of employees say they trust senior management. This too has a direct effect on the bottom line because employees in low trust organisations are less innovative and productive. So improving trust should be a key prior- ity for chief executives, and there are some clear actions they can take to help meet this challenge. The first is to carry out an honest appraisal of levels of trust in the organisa- tion to gain an understanding of why it has a particular reputation and who is driving it. Then the leadership team needs to set a clear aspiration for the levels of trust they want to see and set out the steps they will take to meet that aim. This should include engaging with stakeholders, both those What influences trust today? with positive views and those with negative perceptions. That needs to be backed up by focused tracking of levels of satisfaction about products, services, leadership and per- formance and a specific plan to respond to the results. This response will vary between organisations but could involve looking at product guarantees, helplines, feed- back mechanisms and ways of being more transparent. At the same time, senior leaders should be working to create a high trust culture with their employees. There is clear evidence that the relationship between the manager and team member is critical to generating trust. So the leadership team needs to ensure they provide strong role models of trust-generat- ing behaviour. That should include actively listening and encouraging others, having honest conversations and seeking feedback – not just offering it. They also need to look for the signs of low trust such as a depend- ence on rules, a culture of blame where peo- ple are afraid to speak up and a view among employees that promises are not kept. There are many different ways to achieve a positive culture of trust but chief execu- tives should look in particular at contracts and roles, performance indicators, feedback mechanisms and the provision of coaching. The benefits of high trust organisations are clear. They have increased stakeholder engagement, business success and easier access to capital. The heightened levels of transparency and accountability can reduce regulatory burdens and the risk of failures of compliance. They also find it easier to attract and retain talent. All of this means trusted organisations have a competitive advantage. Lesley Uren, talent management expert, PA Consulting Group Opinion polled UtiLitieS mUSt work againSt a baCkdrop of pUbLiC miStrUSt of bUSineSS 33% proportion of people in the UK who think businesses are only interested in money 20 million complaints were made to Ombudsman Ser- vices against UK busi- nesses in 2014. 12 | 20th - 26th FEbRUARY 2015 | UtILItY WEEK UtilityWeek Trust "only 37 per cent of employ- ees say they trust senior manage- ment," LESLEY UREN, PA CONSULtING Trust begins within If your own employees don't trust you, why should your customers? It's time to have an honest conversation with staff. Source: Pa Consulting

• Cover