RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Why Building a Culture of Trust Will Boost Employee Performance—and Maybe Even Save Your Company

Home Best Practices
May 2, 2011
Reading Time: 4 mins read

RISMEDIA, May 3, 2011—Do your employees trust you? The brutal truth is probably not. It may not be fair, and you may not want to hear it, but chances are that previous leaders have poisoned the ground on which you’re trying to grow a successful business. Make no mistake: Unless you and all the leaders in your organization can gain the trust of your employees, performance will suffer. And considering how tough it is to survive in today’s business environment, that’s very bad news for your company.

Why is trust so pivotal? According to John Hamm, author of Unusually Excellent: The Necessary Nine Skills Required for the Practice of Great Leadership, it’s a matter of human nature: When employees don’t trust their leaders, they don’t feel safe. And when they don’t feel safe, they don’t take risks—and where there is no risk taken, there is less innovation, less “going the extra mile,” and therefore, very little unexpected upside.

“Feeling safe is a primal human need,” says Hamm. “When that need isn’t met, our natural response is to focus energy toward a showdown with the perceived threat.

“Our attention on whatever scares us increases until we either fight or run in the other direction, or until the threat diminishes on its own,” he adds. “Without trust, people respond with distraction, fear, and, at the extreme, paralysis. And that response is hidden inside ‘business’ behaviors—sandbagging quotas, hedging on stretch goals, and avoiding accountability or commitment.”

Hamm calls trustworthiness “the most noble and powerful of all the attributes of leadership.” He says leaders become trustworthy by building a track record of honesty, fairness, and integrity. For Hamm, cultivating this trust isn’t just a moral issue; it’s a practical one.

Hamm has spent his career studying the practitioners of great leadership via his work as a CEO, venture capitalist, board member, high-level consultant, and professor of leadership at the Leavey School of Business at Santa Clara University. In his new book, he shares what he has learned and brings those lessons to life with real-world stories.

Unusually Excellent is a powerful back-to-basics reference book that offers both seasoned and aspiring leaders a framework for understanding and a guide for applying the battle-tested fundamentals of leadership at every stage of their careers.

In his book Hamm explains that most employees have been hurt or disappointed, at some point in their careers, by the hand of power in an organization. That’s why nine times out of ten leaders are in “negative trust territory” before they make their first request of an employee to do something. Before a team can reach its full potential, leaders must act in ways that transcend employees’ fears of organizational power.

The first step starts with you, Hamm notes. As a leader, you must “go first”—and model trustworthiness for everyone else. Being trustworthy creates trust, yes. But beyond that, there are very specific things you can do to provide unusually excellent, trust-building leadership at your organization:

First, realize that being trustworthy doesn’t mean you have to be a Boy Scout. You don’t even have to be a warm or kind person, says Hamm. On the contrary, history teaches us that some of the most trustworthy people can be harsh, tough, or socially awkward—but their promises must be inviolate and their decisions fair.

“You can be tough. You can be demanding. You can be authentically whoever you really are,” says Hamm. “But as long as you are fair, as long as you do what you say consistently, you will still be trusted.”

Look for chances to reveal some vulnerability. We trust people we believe are real and also humanly imperfect and flawed—just like us. And that usually means allowing others to get a glimpse of our personal vulnerability—some authentic weakness or fear or raw emotion that allows others to see us as like them, and therefore relate to us at the human level.

No matter how tempted you are, don’t lie to your employees. Tell the truth, match your actions with your words, and match those words with the truth we all see in the world: no spin, no fancy justifications or revisionist history—just tell the truth.

“Telling the truth when it is not convenient or popular, or when it will make you look bad, can be tough,” admits Hamm. “Yet, it’s essential to your reputation.”

Never, ever make the “adulterer’s guarantee.” This happens when you say to an employee, in effect, “I just lied to (someone else), but you can trust me because I’d never lie to you.” When an employee sees you committing any act of dishonesty or two-facedness, they’ll assume that you’ll do the same to them.

Don’t punish “good failures.” This is one of the stupidest things an organization can do—yet it happens all the time. A “good failure” is a term used in Silicon Valley to describe a new business start-up or mature company initiative that, by most measures, is well planned, well run, and well organized—yet for reasons beyond its control (an unexpected competitive product, a change in the market or economy) it fails. In other words, “good failures” occur when you play well, but still lose. When they’re punished, you instill a fear of risk-taking in your employees, and with that you stifle creativity and innovation.

Don’t squelch the flow of “bad” news. Do you—or others under you—shoot the messenger when she brings you bad news? If so, you can be certain that the messenger’s priority is not bringing you the information you need: It’s protecting her own hide. That’s why in most organizations good news zooms to the top, while bad news—data that reveals goals missed, problems lurking, or feedback that challenges or defeats your strategy—flows uphill like molasses in January.

“Unusually excellent leaders build a primary and insatiable demand for the unvarnished facts, the raw data, the actual measurements, the honest feedback, the real information,” he adds. “Very few efforts will yield the payback associated with improving the speed and accuracy of the information you need most to make difficult or complex decisions.”

Constantly tap into your “fairness conscience.” Precise agreements about what is fair are hard to negotiate, because each of us has our own sense of fairness. But at the level of general principle, there is seldom any confusion about what fair looks like. Just ask yourself: Would most people see this as fair or unfair?

“If you treat your followers fairly, and do so consistently, you will set a pattern of behavior for the entire organization,” says Hamm.

For more information visit www.unusuallyexcellent.com.

ShareTweetShare
Beth McGuire

Beth McGuire

Recently promoted to Vice President, Online Editorial, Beth McGuire oversees the editorial direction and content of RISMedia’s websites, and its daily, weekly and monthly newsletters. Through her two decades with the company, she has also contributed her range of editorial and creative skills to the company’s publications, content marketing platforms, events and more.

Related Posts

Tackling Homeownership Challenges: Strategies for Helping Buyers Get Into Homes
Industry News

Tackling Homeownership Challenges: Strategies for Helping Buyers Get Into Homes

December 23, 2025
How to Make 2026 a Comeback Year
Agent

How to Make 2026 a Comeback Year

December 23, 2025
consolidation
Agents

When Giants Move, Everyone Feels It

December 23, 2025
Consumer Confidence
Industry News

Consumer Confidence Dips Lower to Close out 2025

December 23, 2025
How to Diversify Your Skill Set to Build a Market-Resistant Business
Industry News

How to Diversify Your Skill Set to Build a Market-Resistant Business

December 23, 2025
Diane Keaton, House Flipper and Renovator
Industry News

Diane Keaton, House Flipper and Renovator

December 23, 2025
Tip of the Day

Safe at Home: Holiday Tips That Keep Risks and Hazards to a Minimum

Getting back in touch through emails or notes can provide a subtle reminder that you want to stay connected, as well as providing useful information. Instead of sending a generic Happy Holidays card, why not add helpful holiday safety tips? Read more.

Business Tip of the Day provided by

Recent Posts

  • Tackling Homeownership Challenges: Strategies for Helping Buyers Get Into Homes
  • How to Make 2026 a Comeback Year
  • When Giants Move, Everyone Feels It

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2025 Newsmakers
    • 2024 Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2025 Power Broker
    • 2024 Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X