Start With Trust

At the very core of your nation, your tribe, your company, is the need for trust.

Humans are perhaps surprising in that, on the whole, they reward personal trust. In Freakonomics, Levitt and Dubner tell the story of a bagel salesman who operated on an honor-code business model, and generally managed to make a profit. If it had been impossible to trust people, even people he didn’t know, his business would never have been sustainable.

What do you need to make trust work?

  1. Trust must be personal. This means trust is a part of a relationship. It is expressed with object and subject: I trust you. It isn’t a nebulous faith in the goodness of human beings but a specific faith the goodness of that single person. And the consequences of breaking that trust are likewise personal, even before they are professional. Someone you trust doesn’t want to violate that trust out of fear of disappointing the truster and irrevocably damaging the relationship, not out of fear of professional consequences (even though they will also naturally exist).
  2. Trust must be explicit. It must be unequivocally communicated. The trustee understands that trust is being placed in him by the truster. The scope and limitations of the responsibility are understood.
  3. Trust must be unhedged. Hedging your bet on someone isn’t really trust. If your employee knows you have a backup plan or a failsafe specifically planned in case she violates your trust, she knows that your trust isn’t real. This doesn’t mean having no Plan B in case something goes wrong that is beyond your employee’s control, it means specifically preparing for the employee to fail you.
  4. Trust must be reciprocal. Entrusting a task or responsibility to an employee means that they are also entrusting you to remain consistent in your trust. You must take that trust as seriously as you want the employee to take your trust. Subsequently reassigning the responsibility without clear reason and consent, making changes without involving the employee, or otherwise shifting the sands beneath his feet will erode his trust and make it difficult to execute on your trust in him.

Above all, you must first trust yourself. Trust your own knowledge and instincts when hiring people. In fact, choosing good people is the one and only area in which you truly need to trust yourself, and the absolute most important skill for a leader to master. Choosing your people well is what makes trust possible, and trust is what makes good business possible.

(This post is part two of a series.)

Partnering Up: The Four Things People Need

It’s possible to make everyone who works with you a literal partner, with a share of your company and all the commensurate benefits and dangers. But not only does that likely sound unappealing to you, it’s probably not appealing to most of the people who would work with you.

What most people want isn’t literal ownership. Most people don’t care for the risk and the inconsistency. What they want is actually fairly straight-forward.

  1. Trust. When you are working with a partner, you trust her. Yet in so many environments, employees are treated with suspicion. It’s easy to find reasons to worry that your employees are stealing from you, or wasting time you’re paying them for. The sad irony is that treating your employees with suspicion not only undermines your relationship with them, it actually encourages them to do the very things you’re trying to guard against. Start with trust–which is a form of dependence–and you will be rewarded with a healthier business.
  2. Humanity. The average person wants to be treated like a human being, equal in substance to everyone else. The fact that one person is the employer and another the employee isn’t a matter of quality or even of mastery. It’s a matter of role. If you are suited to be a leader, it’s better for you to lead; if you aren’t suited to be a leader, you have something equally valuable to contribute that your leader can’t. Leadership requires the humility and courage to be equal even to interns and entry-level employees, and to hold their investment in your firm as dearly as you hold your own.
  3. Community. I may use this interchangeably with another word: context. But for now I want to emphasize that the community of co-workers, leaders, and in the larger sphere suppliers and customers, is critical to the ability of each individual to work toward the good of the whole. A business is not just a place of employment, it is a clan, a tribe, a nation. You must be bound not just by function but by myth and identity and culture, or you will not hold together.
  4. Mastery. Each person wants to be a part of that community not just in the abstract, but by bringing mastery to it. This means each individual is the best at something, is constantly challenged to expand her ability, and is poised to contribute in a way that no one else in the company–perhaps no one else in the world–is able. Perhaps just as importantly, it means each individual’s contribution and domain is recognized, respected, and rewarded.

Throughout all these, there is a common undercurrent: respect. At each stage, you are establishing and building respect for the people working with you. And they in turn are growing in their respect for you.

It’s not difficult to understand, but it’s more difficult than you might think to accomplish. Fortunately, I’ve put these in a specific order to help you work toward each. Start at the top and work your way down. Once you get to the bottom, start over again. Make it a regular exercise, and let me know if you don’t see improvement.

Get Rid of Your Employees

For the past few hundred years, employees have been a pretty great thing to have. But that’s all over now. Employees just aren’t useful anymore.

You see, during the Industrial Revolution, we developed a massive machine that was capable of making other machines. And all the machines we made were ultimately made of people. They were rough approximations of things that we would do if we had the right kind of machine power. Employees were educated in things like handwriting and arithmetic so that they could be parts of these machines, these massive–what will we call them?–computers!

A couple centuries later, we finally have on the horizon what we really wanted this whole time: Machines that could do all our machine work for us. So we no longer need employees. What we need today is partners.

And that’s why you’re going to get rid of all your employees. Because instead, these people who were once pieces of a machine will become the people who scheme new machines and new businesses and new and better ways of doing things. They will be the ones to introduce new ideas and new perspectives.

This is what our workforce is becoming: a superpower of humanity, unchained from the need to keep up the drudgery of machine work. You will see your former employees bringing value to the table that neither you nor they at one point thought was possible.

This isn’t the distant future. This is happening now. Today. And it entails bigger changes than many people realize. But it is also bright with possibility and the hope of a healthier world.