Measuring Trust in Business Relationships

Trust seems to be a recurring theme for me 😀. I can’t seem to move past this topic. Perhaps it’s because I see more and more examples of deficient relationships around me from this point of view. Relationships that manage to drain energy not only from those directly involved but also through them, others. Whether we are talking about a business collaboration relationship or a personal relationship, trust should be the engine that fuels the people involved. When this engine is “seized” then the relationship suffers and the journey turns into a pointless race.

Last time I talked about how not to affect trust in a process of negotiation or mediation of problems. Today I want to discuss how we measure the level of trust and what are the parameters that show us if it exists between two or more parties involved in a collaborative process. Considering that we are not discussing gears but about behaviors, it is quite difficult to “measure”, but we can try.

I propose the following exercise. Choose a collaborative relationship with one of your business partners and evaluate the following behaviors using a simple scale (1 to 5 where 1 is great and 5 is far from what I would like).

Performance – always, in a business environment, there will be a close relationship between results and trust. We should not expect someone to trust us if we do not consistently fulfill our obligations. And here we are not only talking about contractual obligations but simply doing what we promise.

Sincerity – if there is a feeling that the partner is not open and sincere in the relationship with us then trust is questioned. Most of the time, this feeling generates a protection reaction for both us and the person in front of us.

Honesty – I believe that honesty is the foundation of a relationship based on trust, but in the business environment it is often sacrificed in favor of games – especially during negotiations.

Promptitude – There is a general acceptance in business that it is possible not to receive immediate answers to our questions, but if they remain forgotten for a long time or it becomes a habit to be ignored then the feeling of frustration appears. Many times it can be concluded that the answers are “manipulated” or that some aspects are hidden. In these conditions, trust is questioned.

Commitment – this aspect must be seen as a predominant attitude not as a failure of the action. Lack of action may be a reflection of other problems, but the way of perception will be related to the desire for involvement.

Fairness – the business world can be a tough environment, but in general fairness is assumed by those involved in it. The result of a collaboration will be judged by the parties (and not only) taking into account both the individual objectives and how fair it is perceived, given the circumstances.

Information exchange – one of the benefits of collaborative work is the added value of the exchange of information. The moment the flow is interrupted then feelings of concern and mistrust will appear.

Communication – most disputes that arise between individuals or organizations originate in the communication process. When it is deficient it can be concluded that the other party is not interested in collaboration or does not want to communicate for some unknown hidden reasons. Both variants have a major impact on trust.

Early warning – I have not seen a project without problems so far, maybe I am unlucky but many times I have been put in the situation to transmit unpleasant news to partners. It is important how we do it but from my point of view it is much more important when we do it. If I am announced that there is a problem too late I feel that I do not have the chance to look for a solution that involves all the affected parties, and then I lose my trust.

Additional effort – the perception that the person in front of me or the partner organization is available for another step greatly increases the feeling of trust. Even if at the end that step will not be needed I want to know that I can rely on it.

Trust manifests and is evaluated differently depending on the specific business relationship.

  • With clients, trust often centers on competence, reliability, and delivering on promises. Clients need to trust that you can solve their problems and provide value. Transparency in pricing and project updates is crucial.
  • In contrast, within an internal team, trust is built on collaboration, mutual respect, and shared goals. Team members need to trust each other’s expertise, willingness to contribute, and commitment to the team’s success. Open communication, constructive feedback, and shared decision-making processes are vital in this context.
  • Trust with suppliers often revolves around quality, timely delivery, and fair pricing. Businesses need to trust that their suppliers will meet their specifications and maintain consistent performance. Clear contracts, regular communication, and a collaborative approach to problem-solving are key.

Therefore, the specific behaviors and metrics used to evaluate trust must be tailored to the unique dynamics of each relationship type.

But measuring trust isn’t just an academic exercise; it’s a crucial step towards building stronger, more productive business relationships. The exercise outlined in this article provides a framework for assessing trust levels, but the real value lies in how you use those insights to drive positive change. So, how are we interpreting the results and translating them into actionable steps?

Once you’ve completed the evaluation for a specific business relationship, analyze the scores for each behavior. Don’t just look at the overall score; delve into the individual ratings. Where are the strengths? Where are the weaknesses?

  • High scores across the board indicate a healthy level of trust. However, don’t become complacent. Even strong relationships require ongoing nurturing. Consider how you can further reinforce these positive behaviors.
  • Low scores in certain areas signal potential problems. Identify the specific behaviors that received low ratings and consider the underlying reasons. Is it a lack of communication? A failure to deliver on promises? A perception of dishonesty?
  • Pay attention to significant differences in how you perceive the relationship compared to how your partner might. These discrepancies can highlight areas of misunderstanding or miscommunication. Openly discussing these differences is essential.

But the key is to move beyond simply identifying areas of weakness and develop concrete strategies for improvement. Here are some suggestions:

  • If communication is a concern, schedule regular check-ins with your partner. Create a safe space for open and honest dialogue. Actively listen to their concerns and be transparent about your own.
  • If performance scores are low, work with your partner to clarify expectations and develop a plan for improvement. Provide support and resources to help them succeed. Celebrate their successes, no matter how small.
  • Honesty and sincerity concerns: These are delicate areas. If you suspect a lack of honesty or sincerity, approach the conversation with empathy and a genuine desire to understand their perspective. Focus on building a relationship based on mutual respect and trust. Be willing to address your own behavior as well.
  • If promptitude is an issue, establish clear timelines and expectations. Communicate proactively about any potential delays. Demonstrate your commitment to being responsive and reliable.
  • Demonstrate your commitment to the relationship through your actions. Be reliable, follow through on your promises, and show genuine interest in your partner’s success.
  • Ensure that all interactions are conducted with fairness and transparency. Be open about your decision-making processes and be willing to consider different perspectives.
  • Foster a culture of open information sharing. Be proactive in sharing relevant information with your partner and encourage them to do the same.

Trust is not built overnight. It requires ongoing effort and attention. Regularly review your trust evaluations and adjust your strategies as needed. Treat trust-building as an ongoing process, not a one-time event.

And don’t forget that we are all humans and we need to have some fun 🙂

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