Oh, yes! We’re getting into high trust organization dividends now. Remember, when you add up the cost of all these taxes that are imposed in low-trust organizations, it’s apparent what the connection is between low trust, low speed and high cost.
The second dimension is customer value. As a result of the last five dividends, high-trust organizations are consistently able to create and deliver more value to their customers. This customer value, in turn, creates more value for other key stakeholders.Stephen Covey
So, I thought about this recently with the last company I was working for. Remember I told you that it was a complete mess. The customers were the stakeholders. If it wasn’t for one customer, that place would be beyond quiet because she was able to bring friends in to study with her.
Nonetheless, after they relieved me, it was clear to the stakeholders that they weren’t cared about. The management had romanticized about what they wanted and not what the stakeholders wanted. This will doom your business if you let this happen. Failure will come so fast that you won’t know until your doors are locked up.
High-trust companies outperform low-trust companies, not only in shareholder value, but also in sales and profits. Research clearly shows that customers buy more, buy more frequently, refer more, and stay longer with companies and people they trust. Plus, these companies actually outperform with less cost. It’s “Jim,” the donut and coffee guy writ large. The net result is not just accelerated growth, but accelerated profitable growth. As Vanguard Investments CEO John Brennan said, “Trust is our number one asset…..as customers learn to trust us, they generate surprising amount of growth.”Stephen Covey
Customers buy more, buy more frequently, refer more, stay longer with companies and people they trust. That reminds me of one of my students. They’ve been with a language center for three years, so obviously the retainment is apparent, but now they’re going to start losing customers because of the bureaucracy, politics and not giving a damn about stakeholders.