LEADERSHIP, TRUST AND COMMUNICATION: BUILDING TRUST IN .

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WESTMINSTERBUSINESSSCHOOLLEADERSHIP, TRUST AND COMMUNICATION:BUILDING TRUST IN COMPANIES THROUGHEFFECTIVE LEADERSHIP COMMUNICATIONPrepared by:Dr Katalin Illes - Principal Lecturer in Leadership and Development,Westminster Business School, University of WestminsterDr Martin Mathews - Senior Lecturer in Business Strategy,Westminster Business School, University of WestminsterFebruary 2015In collaboration with:University of Westminster Drs Katalin Illes and Martin Mathews, Leadership, Trust and Communication1

CONTENTSAbout the authors3Foreword4Trust - so what? What business leaders and internalcommunication practioners will get from this report7Executive Summary9Introduction11Listening is the key to good communication13Leadership myths15The leadership moment16Theory ‘U’: as it emerges18Repairing trust20The key role of line managers22Creating a trusting company23Conclusion24References25University of Westminster Drs Katalin Illes and Martin Mathews, Leadership, Trust and Communication2

ABOUT THE AUTHORSDr Katalin Illes - Principal Lecturerin Leadership and Development,Westminster Business School,University of WestminsterDr Martin Mathews - SeniorLecturer in Business Strategy,Westminster Business School,University of WestminsterKatalin Illes is a Principal Lecturer in Leadership andDevelopment at the University of Westminster inLondon. Previously she held leadership positions in theUK and China, contributed to international collaborativepartnership developments and worked as an adviserand consultant. Her research interests and publicationsinclude ethical leadership, trust, spirituality in leadershipand innovative ways of developing leaders andorganisations.Martin Mathews obtained his PhD in strategy and trustfrom the University of Chester in 2012. He is also theholder of an MBA from EM Lyon business school inFrance. He is currently senior Lecturer in Strategy atWestminster Business School. His research interestsinclude trust, both between and inside firms and hehas published articles in major European journals onthese subjects.University of Westminster Drs Katalin Illes and Martin Mathews, Leadership, Trust and Communication3

FOREWORDNick Terry - Managing Director, Top BananaUK business is in the midst of a trust crisis. Was it causedby the European Union, the global finance communityor those that monitor them? Or can we blame politiciansand the expenses scandal (amongst others!) and thecollection of high profile business leaders who havefallen from grace, whilst gaining big bonuses on the waydown? Not to mention the ‘celebrities’ who have donethe same or the most high profile of consumer brandsoverstating figures, although perhaps with less bonusesand more jail terms.Whomever we blame, there is no doubt that the globalproperty of ‘trust’ has been broken and every businessorganisation in the UK has been affected, whether welike it or not.The presence of trust in an organisation has aconsiderable impact on the performance and financialhealth of that organisation. From better cooperationand more effective problem solving, to a positivework climate and employee engagement, to improvedindividual, group and company performance, thebenefits of a trusting workplace are well researched.Another thing that is well documented is the key roleof effective communication in driving trust.The big opportunity for business leaders is to trulyunderstand not only the issue of organisational trustand the role of communication within it, but to delvedeeper and examine the specific role of leadershipcommunication in building trust. That is what thisreport was commissioned to do.By utilising existing research to investigatethe connection between trust, leadership andcommunication in a way that has not been done before,this report presents a blueprint for leaders to understandtrust and provides the necessary knowledge to help buildor rebuild trusting relationships in organisations. It alsointroduces a suite of new leadership communicationconcepts which have the potential to drive a significantstep change in how leadership communication isapproached within organisations. Top Banana, inpartnership with the Institute of Internal Communication,has then supported the academic and theoretical workby creating a suite of actionable recommendationsbusinesses can start to put in place today. We havedeliberately put these at the front so that it is clear toboth leaders and communicators what they will getout of reading and understanding this report and tounashamedly make the case for why it is worth investingthe time and energy it will require to absorb the pagesto follow.It’s been a pleasure to work with Katalin and Martin, suchwell established experts in this field, from the Universityof Westminster on this important report, which weurge every business leader and supporting internalcommunication professional to read, absorb and mostimportantly act on.There is much more work to do in this area but we hopethis report starts more conversations around trust andit’s pivotal role at the heart of UK business. There hasnever been a more important time to talk about trust.University of Westminster Drs Katalin Illes and Martin Mathews, Leadership, Trust and Communication4

FOREWORDSteve Doswell - Chief ExecutiveTrust is essential. Without it social groups cannotfunction properly. It’s true on any scale, from individualfamilies to the international community. And it’s certainlytrue of businesses and all employer organisations. Theserely on the trust of a whole range of stakeholders, andcrucially this includes employees. In the organisationalcontext, leaders have a hugely influential role to playin building, demonstrating and earning trust in theorganisations they seek to lead (the verb is importanthere – they can only truly lead if employees trust themand trust the organisation itself). To a very large extent,the communication choices they make or are advised tomake, can help build trust or erode it.As is shown in the research you are about to read,communication is a vital component linking leadershipand trust. The mutually dependent relationshipbetween communication, leadership and trust isconvincingly demonstrated on the pages that follow. Thisdemonstration provides powerful arguments and a clearprescription for trust-building communication styles,methods and behaviour, both for the benefit of internalcommunication practitioners and for the organisationalleaders they coach, guide and advise.This research project brings to fruition a closecollaboration between Westminster Business School,Top Banana and the Institute of Internal Communication.I encourage everyone interested in the dynamics ofleadership and communication to read it carefully and Ihope that what they learn will provide insight that theycan use to build trust in their organisations.University of Westminster Drs Katalin Illes and Martin Mathews, Leadership, Trust and Communication5

FOREWORDDr Katalin Illes - Principal Lecturer in Leadership and Development,Westminster Business School, University of WestminsterWe need to let go of the mindset of maximum “me” maximum material consumption, and special-interestgroup-driven decision-making that has led us into a stateof organised irresponsibility, collectively creating resultsthat nobody wants.Leaders have a key role to play in changing their ownperceptions and helping the change process of others.Leadership is about shaping and shifting how individualsand groups attend to and respond to situations.The trouble is that most leaders are unable to recognise,let alone change, the structural habits of attention theyuse and that is used in their organisations to drive keyfactors such as trust.Continuously declining levels of trust in society indicatethat we are not relating to each other in the rightway. Humans are social creatures and both historicand current findings confirm that strong, supportivecommunities have higher survival rates, they prosperbetter and enjoy a more content and fulfilled human life.This is also true of business communities.There are attempts to address some of thesocio-economic, geopolitical and cultural-spiritualchallenges of our time. The problem is that these effortsare not interconnected. In order to address thesecomplex and deeply concerning issues simultaneouslyand make a greater impact, we need a fundamentalchange of perspective.In order to change our perception we need to ask newquestions and appreciate the interconnectedness ofthe different sides and aspects of the phenomenon weare studying. This can be particularly difficult when weare surrounded with taken for granted, unchallengedassumptions about our business and social environments.The Edelman Trust Barometer, 2015 clearly indicates thatpeople are suspicious of change and innovation whenthey do not see the long-term benefits for allthe stakeholders. This all comes backto trust.Learning to recognise our blind spots in any businessculture requires a particular kind of deep personal andcollective listening. To recognise the patterns we needto slow down, suspend judgment, listen with our wholebeing, be comfortable with the silence and wait patientlyfor the feelings and thoughts to emerge.The benefits of connecting mind, heart and the feltsense are well documented both in scientific andpopular publications. Integrating such practices into theorganisational culture increase not only the level of wellbeing but also the levels of trust, honesty and opennessof communication.There are examples and recommendations in this reportthat will help leaders to explore how to operate fromthe highest possible future, rather than being stuckin the patterns of past experiences. It requires a freshperception, an open mind, readiness to learn and actfrom a deeply connected sense of reality.The aim of Westminster Business School is to help toco-create a more sustainable and humane future andwe are committed to working closely with leaders andmanagement teams to assist the transformation ofindividual and organisational perspectives. To this end weshare our research findings, accumulated knowledge andpractical experience. It was a real pleasure working withTop Banana and the Institute of Internal Communicationon this project. We hope you will enjoy reading this reportand benefit from the thoughts and ideas in it.University of Westminster Drs Katalin Illes and Martin Mathews, Leadership, Trust and Communication6

TRUST - SO WHAT?What business leaders will get from this report Building and maintaining a culture of trust is one of the biggest challenges facing UK business today, whether yourorganisation knows it or not. This report distills the latest thinking on trust, introducing a number of thought provokingconcepts that will change the way we lead in the future, in line with how organisations and the communities within themare evolving. The report highlights the central role of effective leadership communication in creating and repairing trust,starting with basic foundations such as listening and face to face communication and moving through to more complexideas that have already started a paradigm shift in UK business culture and which provide guidelines to leaders wishingto develop new, trusting work environments to drive higher performance and a more ethical workplace. Reading this onereport will give you a good understanding of the current and future thinking on trust, the role and responsibility of bothyourself as a leader and the organisation that supports you in the challenge to build trust, as well as a suite of practicalinsights to start building trust in your organisations today.RECOMMENDATIONSfor business leaders1. Listen to the organisation and the people within it.Create ongoing opportunities for listening, using avariety of tools, and do it with an open heart2. Articulate, illustrate and be evangelical about a clearset of values and behaviours supported by genuinemanagement commitment and rigorous trainingand discipline3. Trust is found at the heart of values, beliefs andorganisational culture. Create a culture of transparencyand support it with necessary processes4. Make trust a corporate governance issue. Establisha formal system of measurement for trust. There’s nouniversal way to do this so allocate resource, eitherinternally or externally, to get it right foryour organisation5. Ensure you have a professional, competent, wellresourced communication counsel and/or team toact as integrator, interpreter, translator, facilitatorand challenger6. Be seen! Trust is personal and face to facecommunication is key. Create rich communications andcontinuous opportunities, both formal and informal,to be seen and interact with employees7. Love your line managers. They are a critical componentto building trust in your organisation. Communicatewith them in a bespoke way, get them together, workcollaboratively with them and constantly check theirtrust levels, in both you as an individual and yourmanagement team8. Be authentic i.e. be yourself and communicate openly,honestly and with an open heart. Never be afraid toapologise and put things right. Remember Aristotle know who you are and the principles upon which thatis based9. Be clear on the changing and developing skillsexpectations of business leaders - are you anticipatingchange and are ready to lead from the future?Become more self aware as the organisation’s primecommunicators and get coaching where it wouldbenefit you10. Remember the phenomenology of leadership - it isnever static but is a series of social moments. As a leaderlooking to build trust, you will also need to listen, beguided and follow.University of Westminster Drs Katalin Illes and Martin Mathews, Leadership, Trust and Communication7

TRUST - SO WHAT?What internal communication practioners will get from this report The value of this report for IC practitioners rests on four things: firstly, it explains with academic rigour the unbreakableconnection between leadership, communication and trust; secondly, it provides powerful arguments to back up muchof what you already know and make the case for trust-building communication styles, methods and behaviours; thirdly,it reinforces your standing as a trusted advisor to your leadership team – what you know and what you recommendis supported by strong, clear and incontrovertible evidence and finally, it provides a suite of practical insights to startsupporting your company’s leadership on building trust in your organisations today.RECOMMENDATIONSfor Internal Communication practitioners1. Read this report. Know what it says and make the timeto understand it in depth so that you can present thekey arguments to your own leadership andcommunication teams2. Use the keys, the pillars of trust and all the otherconcepts found in the report but explain them in away that will strike the right chords with the peoplein your business3. Understand what current trust levels are in yourorganisation. Become a champion for establishinga formal system of trust measurement4. Learn and understand what creates and destroys trustin your organisation. Promote those communicationtools and practices that build trust. Challenge thosethat don’t5. Put listening and developing the means for employees’voices to be heard at the centre of your work.Communication is about community and that’sexactly what an effective workplace is6. Open your organisation’s eyes to the factors that buildtrust, as identified in the report, and it’s leaders will thenlook to you to build the tools, channels, practices andbehaviours that suit your organisation to apply them7. Focus on creating continuous opportunities foryour business leaders to be seen - both formally (e.g.roadshows and events) and informally (e.g. walkingthe floors). Help them with the right behaviours whenthey are8. Love your line managers. Communicate with them ina bespoke way, get them together, work collaborativelywith them. They are a critical component to buildingwider organisational trust9. Become a trusted advisor to your business leaders andmanagers – you need their trust so that you can convincethem that they need to earn employees’ trust. Theknowledge of this report will help you do this10. Don’t go looking for a magic formula! Much ofwhat the report says will be familiar to you - see it asfresh ammunition. This report explains with academicrigour the unbreakable connection between leadership,communication and trust. It provides you with powerfularguments to back up what you already know. Itreinforces your standing with your leadership teambecause what you know and what you recommend issupported by strong, clear and incontrovertible evidence.Use it with confidence and win the case for effectiveinternal communication to build a trustingand trusted workplace.University of Westminster Drs Katalin Illes and Martin Mathews, Leadership, Trust and Communication8

EXECUTIVE SUMMARYThe purpose of this report is to establish a tighter connection between internalcommunication, leadership and trust in organisations. We make recommendations forleaders and communication specialists to review the current level of trust, communicationsstyles and leadership practices, and when appropriate, introduce more future oriented andresponsible approaches to increase impact and improve relationships in the workplace.We conducted a comprehensive overview of the EBSCOHost; Web of Science; ABI ProQuest; ScienceDirectand Emerald Host databases and reviewed the recentrelevant publications in the Leadership, Trust andCommunication literature. We also consulted surveysfrom CIPD, Edelman Trust Barometer and the Institute ofLeadership and Management focusing primarily on UKorganisations. The findings were analysed, key themeswere identified and written up into a report to assistleaders and communication specialists.Trusting is a key component of human life. It emergesin response to consistent action and behaviourdemonstrating good intent. We need and use trustin different forms in all areas of life. We need to trustourselves and others to make choices that will have animpact on our lives and on the lives of others today andin the future. There are ample examples of trust as ascarce resource and it is often noticed and defined byits absence. We easily pick up signals of suspicion andare acutely aware of the contractual limitations of trustin organisations. Without trust the workplace is a groupof individuals who focus on personal survival ratherthan creation and contribution. Research in the fieldof knowledge management and knowledge creationconclude that trust is a prerequisite to creativity in anorganisational context. If we are to make the fullest useof the knowledge locked in our minds we need to trustand be trusted. We need to feel protected and cared forso that we can focus our energies on creation ratherthan survival.1If an organisation expects its people to be fullyproductive through hard work and commitment, itwill ultimately have to convey a message of protection,security and demonstrate good will.2 Communicationprofessionals need to play a major role in developingand sustaining two way communication channels inorganisations. They have to be able to work effectivelywith leaders and managers, help to disseminate keymessages effectively and educate people of thedetails and benefits of new organisational initiatives.Good communication specialists are also able toassist leaders in strategy development and advise onthe most appropriate forms of internal and externalcommunication methods to support trust building and asense of shared purpose across the organisation.3Leaders need to let go of obsolete ideas about leadershipand extend their awareness from the boundaries of theirown organisation (ego-system) to the extended globalenterprise (eco-system).4 All great leadership startswith listening. That means listening with an open mind,heart and will. It means listening to what is being saidas

this report starts more conversations around trust and it’s pivotal role at the heart of UK business. There has never been a more important time to talk about trust. UK business is in the midst of a trust crisis. Was it caused by the European Union, the global finance community or those that monitor them? Or can we blame politicians and the expenses scandal (amongst others!) and the collecti

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