How does Trust Lead to Profitability?

Shareholder Value Perspective
Knowledge Center

Forum

New Topic

Robert Whipple
Consultant, United States

How does Trust Lead to Profitability?

🔥NEW Do you know any specific figures that support the notion that higher trust in an organization will result in higher profits. I am looking for numerical facts, not hearsay.

  abraham garshong
 

How Trust Leads to Profitability

Profitability is about having revenues higher than the costs that generated it. Trust essentially reduces the need for layers of supervisors in the internal control chain, and allows for flatter line staff system, which reduce bureaucracy and increase speed of decision making, thereby reducing the total cost of the firm.

  David Wilson
Manager, Canada
 

Trust and Profits

Employees need to trust their leaders and believe in their future, If this is the case, a company may increase its profits. I have no solid figures, but I hope you will find the following three references helpful as a starting point. They refer to an number of studies (without all of the specific details), such as the Henry Ford story where he rewards employees while aiming for and obtaining higher efficiency. "Full" employee engagement and profit sharing may also be important elements. In addition, people need to be considered as partners and organizations need to do things right, including the management of change!

1. Lessons from Henry Ford
2. Blanchard on Trust (cost of low trust, elements of trust, trust busters, trust builders, 8 things your organization can do to build trust)
3. Kevin Kruse's GR8 Model

Have you considered a literature review (e.g., Built to Last, Built to Change, Good to Great, How Toyota Became #1, etc.)? It is also possible for companies to plot stats on turnover, share prices, profits, employee engagement, etc. Personally, I like the studies on 3M and the need for supporting innovation, while rewarding employees. Hope this helps.

  Rudy de Beer
 

How Does Trust Lead to Profitability

I would recommend you read RESPECT by Drs. Jack Wi (...)

  Andrew Blaine
Business Consultant, South Africa
 

Trust and Profits are Related in at Least 3 Different Areas

I would suggest that the loss of trust in a busine (...)

  BENJAMIN ANYANAH
CEO, Ghana
 

From Trusting Employees to Profits

Trust is key as employee will necessarily be given (...)

  Arrey Benedict
Management Consultant, Belgium
 

Trust & Cost Efficiency

The higher the amount of trust among corporate emp (...)

  Elfrink
 

Trust and Profit

@Andrew Blaine: Trust indeed can be from the stake (...)

  Andrew Blaine
Business Consultant, South Africa
 

Quantifying the Value of Trust in Business

@Elfrink: As I understand the original question, t (...)

  Briolett
Manager, Canada
 

Trust is an Intangible Asset

Trust breeds better work conditions, business prac (...)

  Andrew Blaine
Business Consultant, South Africa
 

Please Prove It!

@Briolett: The question asks that this assertion b (...)

  Arrey Benedict
Management Consultant, Belgium
 

No Price on Reputation ⇒ No Quantities of Trust

All reputations owe their base from some sort of u (...)

  Briolett
Manager, Canada
 

Trust is an Intangible!

@Andrew Blaine: If you've experienced what I'm tal (...)

  Andrew Blaine
Business Consultant, South Africa
 

Agreement on an Emotional Basis

@Briolett: I agree completely with your opinion. (...)

  Erik van geel
Management Consultant, Netherlands
 

Trust and Profits

Interesting discussion. Thanks all for the input. (...)

  Briolett
Manager, Canada
 

Trust is an Intangible

Analytical examination doesn't necessarily offer p (...)

  AHLIJAH CHRISTIAN JACOBSON
Accountant, Ghana
 

Trust and Profitability

Trust is a key factor in determining where an inve (...)

  Andrew Blaine
Business Consultant, South Africa
 

Trust and Banking

@AHLIJAH: I wonder what would be discovered if, a (...)

Start a new forum topic

 

More on Shareholder Value Perspective
Summary
Forum
Types of Shareholders / Investors
How does Trust Lead to Profitability?
Shareholder Value is the End
Special Interest Group

Are you interested in Shareholder Value Perspective? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:

Shareholder Value Perspective
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.8 - Last updated: 10-4-2021. All names of their owners.