Best Practices for Creating the Culture of Trust in Your Organisation Reply

Ahmed BahwaGuest blogger: Ahmed Bahwa, Senior HR Manager, Al Bakio International.

This content first appeared on HRZone, an online HR publication dedicated to bringing science, opinion, analysis and insight to bear on the rapidly-developing HR function.

Culture plays the role of cement in binding the members of a group together. If cement is not good it malfunctions and affects the bond that exists between the members of a group. If the element of trust misses from culture then mistrust creeps in. Mistrust weakens the relationship among the members of a group. Furthermore, it becomes difficult to achieve a common goal in the presence of mistrust. Now look at mistrust in the context of an organisation. It weakens relationship among the members of an organisation. Employees feel vulnerable as they are always suspected. Workers do not give their best that affects production, services and sales. Organisational profits decrease. Issues of workforce engagement arise and employee turnover increases. Chances of cheating and deceit within organisation increase. Different studies have revealed that almost 60-65% employees of companies do not trust their leaders. Reason is absence of the culture of trust within organisations. Obscure agendas, concealing organisational aims & goals, dishonest and unbiased leadership, tax evasions, employee benefit cuts, lack of readiness at the part of organisational leadership to hear employee feedback, unclear performance goals and hidden employee performance measuring scales are some of the major reasons for the culture of mistrust in organisations.

After facing the consequences of the culture of mistrust now organisations are realising the importance of trust. Therefore, all around the world companies are trying to make cultural changes in this regard. But cultural change is not as easy as it sounds. It takes time, commitment and efforts to replace the culture of mistrust with the culture of trust. The following practices are helpful in building the environment of trust:

  1. Study the actual reasons of mistrust and learn about the damages it is causing.
  2. Always have clear aims & goals in front of you that what do you want to achieve by having the culture of trust in your organisation.
  3. Create a clear program in this regard. Have workers on board during the course of crafting it.
  4. Set performance measures to gauge the performance of the program. Satisfied workforce, low employee turnover and increased profitability can be some of the performance measures in this respect.
  5. Leadership must take the first step in this regard by being as role model. Cultural change travels fast from top to bottom.
  6. Leaders should reduce the say-do gap.
  7. Fulfil promises that are being made with the workforce.
  8. Make your workforce understand the importance of trust. Offer training and courses in this regard.
  9. Not just in their professional lives leaders must try to be honest in their personal matters as well.
  10. Bring in transparency in terms of organisational process, decision making, goals’ communication and financial matters.
  11. Do not over estimate your employees always assign those goals to them that they can achieve.
  12. In case of failure be polite and generous.
  13. Always separate dirty fish from the rest in order to avoid setbacks.
  14. Remember in many cases mistrust spreads due to unclear and biased programs of performance management in organisations. Create a clear and fair system in this regard and award rewards on the basis of performance.
  15. Tell inspiring stories to your workforce in regard of trust.

If an organisation is making cultural changes in terms of trust it does not mean that its leaders close their eyes and start trusting everything they hear, they must always keep their eyes open to avoid any setbacks. Keep it in mind that it takes time to clear the poison of mistrust from the environment of an organisation, thus be patience. Environment of trust takes time to grow. Leadership of an organisation plays the most important role in it.

 

How to effect culture change in financial services 1

Guest bloggers:

jill traffordnatalie wharton

Jill Trafford (left) and Natalie Wharton (right) are consultants within Deloitte’s change practice


The financial services industry has been dealing with significant change following the banking crisis in 2008

Since then, close scrutiny and countless internal reviews and economic and regulatory reform has result in a wave of change activity across the sector.

Banks specifically have been adapting to a changing – and more challenging – market, with greater consumer awareness of financial performance and new banks competing for customers and employee talent. Those banks that haven’t yet considered their ability to adapt and change in this market will struggle to survive.

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When the need for change is so significant and immediate, companies often react by looking at their internal structures and processes – in effect the tangible solutions. This has proven to be an effective short-term fix for many, but it has not been addressing the underlying issues that contributed to the financial crisis: culture.

Organisations now realise that sustainable change, which will have a real impact on a company’s long-term reputation, can only be achieved through changing the underlying culture that inspires people to think, act and make decisions.

We only need to look at the banking industry to see how culture can negatively impact a business, both in terms of profit and consumer reputation. While cultural change is a familiar concept, it is often difficult to imagine and implement real and practical steps and measures to encourage change. There is a perception that culture (and therefore cultural change) is somehow intangible and, as a result, many organisations are wary of committing the time and effort to something that they cannot see delivering definite, substantial and financial results. This often translates as something that is not worth doing, since it simply does not lead to immediate cost cutting and improvement in profitability.

Traditionally, boards have relied on internal employee satisfaction surveys to provide them with insight into how employees think and feel about their company and the culture of the business. The actions following such a survey often lack impact and ability to drive real change. This is in large down to managers viewing the activity as a ‘tick box’ exercise, the actions being deemed too difficult to manage, or outside a manager’s sphere of immediate control.

Any culture change programme must start with a clear understanding of the outcomes the organisation wants to achieve and the impact – good or bad – that the current culture is having on its performance. Organisations can define a future culture through breaking it down into specific categories and assessing or understanding where they would like to be against each one.

These categories can be across a range of areas including; appetite for innovation and transformation, the level of external focus, the style of leadership, the exposure to risk and regulation and the infrastructure or process requirements. A session to identify the culture vision would help any organisation identify the type of culture they are striving to achieve and the journey they need to take to get there.

After a new future culture has been articulated and visualised, and it’s fully endorsed by leadership teams; companies face another challenge: how do you make culture change tangible? How do you know it has worked?

Our experience on large change projects in different organisations and across industries has enabled us to develop definite ways in which companies can make culture change tangible:

  1. Developing organisational values and behaviours that are then embedded across the entire colleague lifecycle or employee value proposition including recruitment policies, development interventions and talent and performance management processes. The focus will then be on how the leadership population implements and executes the values as part of these people processes, and being ultimately held account.
  2. Analysing the business and identifying the critical moments that drive disproportionate value for the business, such as the first point of contact for a customer, or the security check for a cold caller. Then, identify the skills, knowledge and behaviour required to execute these and streamline the delivery of the business strategy to improve performance.
  3. Identifying a specific area of culture change to focus on first; responding to risk and regulation, developing innovation and transformation capability, defining clearer control mechanisms or defining how performance is managed. By focusing on one area, and using this as the catalyst for change, organisations can implement initial quick wins and employee engagement whilst developing longer term change to drive deeper change across the business

Organisations, especially those in the financial services industry, have recognised their part in the financial crisis and are engaging in the process of change to win back the trust of consumers. They must find a different way to transform their businesses to succeed in this new environment. Cultural problems have many causes and therefore there will be no single ‘silver bullet’ solution. However, changing the way they manage their people and therefore how their people behave will be the driver for success. The key change necessary for financial institutions to prosper will be cultural, and this is ultimately in the hands of business leaders.

This article was originally published under HR Magazine on 25 June 2013.