I’m in Cancun this week, participating in the Transformational Leadership Council (a network of transformational trainers and profesionals started by Jack Canfield in 2004).
I had an opportunity again to hear my friend Stephen M. R. Covey speak about his book, The Speed of Trust, and it reminded me just how much I love this book and why it is so important to networking.
During his presentation, he told how Warren Buffet bought a company from Wal-Mart in one single meeting of two hours. Both parties shook hands and, 29 days later, Wal-Mart had its money. In Buffet’s annual report he said; “We did no due diligence. We knew that Wal-Mart would do what they said, and they did.”
In this day and age of long contracts and huge legal bills, this sale was done quickly because there was high trust on both sides. The result was a deal done in less than a month, saving millions of dollars.
Trust is the most compelling form of motivation. Covey spoke about “Three Key Ideas” to move at the speed of trust:
- There is a compelling business rationale for trust. It affects cost. There are economic benefits. High trust is a divedend and low trust is a tax. When trust goes down, speed goes down with it. When trust goes up, speed goes up and costs go down. This is a dividend, a high-trust dividend. Trust is a qualitative and quantitative factor. Nothing is as fast as the speed of trust.
- In today’s new global economy, the ability to establish trust is key to every organization. We are interdependent. In a cluttered world, trust helps you cut through the clutter. It is a performance multiplier. When people trust you, everything else you do is enhanced.
- Trust is a competency. It is something we create and can get good at. It all starts with self-trust and personal credibility. Are we behaving in a way that builds trust and transparency? Are we keeping commitments and talking straight?
One of the best ways to obtain trust is to extend trust. When trust is reciprocated, it moves faster.
Covey ended his presentation by asking, “Are there people that you work with that you could extend trust to who you can make a profound difference for?” Now the key is to follow your conscience. Develop relationships and extend trust.
I love Covey’s book and I highly recommend it to anyone wanting to build and improve his or her personal network.
Shown in photo – Stephen M.R. Covey, Ivan Misner and Greg Link (Covey’s business partner at Covey-Link).