What are we actually conveying when we say “I trust you”?  How and why is trust earned or extended? How is it measured? Does it have economic implications or is it simply a way of describing ones general feelings towards another – either socially, in families, or in business?

With all the distrust taking place around us today in government, business, churches, the media, banks, sports, and an array of other institutions, trust is clearly one of the most fundamental aspects of our lives. The most recent report out from the Edelman Trust Barometer – http://www.edelman.com/trust/2011 – indicates that trust in the United States has significantly declined this year from previous years. As Americans, we often think of ourselves as trustworthy, but for a number of reasons, people of other countries do not agree. Why?

Behaviors are what build or destroy trust – and the core element of Trust begins with self. If you don’t trust yourself, there is probably a good reason for it because only you know yourself best.The next level of trust is that associated with ones nearby relationships…do you talk about others in disparaging terms when they are not present? Do you honor commitments or do you say one thing and then do another? Relationships of trust are built over time – and they affect all aspects of our business and personal lives. An extension of personal trust is organizational trust – how responsibly or trustworthy is the organization which you lead. Do you do the right things for the right reasons? Do you have more than a simple legal obligation to your customers? After all, organizational trust usually leads to market and societal trust. As service providers, there certainly are moral and ethical implications around your business practices – what are they and how do you measure up?

One thing most people don’t fully appreciate about Trust is that it comes with definitiveeconomic implications personally and organizationally- high and low Trust operating environments have financial implications for every business. When high levels of trust exist, things move faster, there is less “games playing”, and with speed comes progress and cost savings. Time to market improves and a feeling of pride and even joy tends to permeate the organization when trust is at a high level. Unfortunately, the reverse of these attributes exists when the atmosphere is one of low trust, suspicion, and fear. So, for economic reasons, as well as good common sense, we all need to strive to understand Trust and make it an active, mindful, and ongoing part of the way we conduct our life and our businesses. These things and more are going to be discussed in a lively XPX session on January 24^th at Babson – come and enjoy a new perspective on a foundational principal of everyday living.

Phil Thomas is an experienced public and private company senior executive. He is a five-time CEO having led both private and public companies. Prior to his business career, he served eight years with distinction as a decorated U.S. Naval Intelligence Officer and subsequently completed executive development courses at the Harvard and Stanford Business Schools.

During his 30 year military and business career, he has traveled extensively throughout the world and was twice named as a finalist in the Ernst and Young “Entrepreneur of the year” award program; several of his companies received awards such as “Most Innovative New Product”, “Best High Tech Company”, and twice as one of the “Top 100 Best Managed Companies in California”. He has been featured in a two page, color article in Forbes Business Magazine and has appeared in a variety of industry publications.