Author: David Horsager
_David Horsager_
Reading time: 26 minutes
Synopsis
The Trust Edge (2013) is about trust. Trust is the money of tomorrow. It is not only important in your personal life. It also greatly helps a company’s future success. How does this happen? These summaries explain it. They show what trust is built on. They also show how companies can use trust to their advantage.
What’s in it for you: Get ahead by building trust.
A lack of trust causes big problems. For example, the financial markets crashed in 2008. This happened mainly because investors stopped trusting the market. So, they rushed to sell their shares. This distrust was like the first spark of a forest fire. It pushed companies into trouble and burned billions almost overnight. No relationship works without trust. This is true for friendships, romantic relationships, work, and business life.
What is trust, exactly? It is a strong belief in a person, a product, or a group. It is also the base for every business deal. David Horsager calls it the currency of tomorrow in his book. These summaries for The Trust Edge will explain why trust gives you a business advantage. They will show you how to build and use it in your company. Also, if you are a trustworthy person, your private life will be easier. The author called his book The Trust Edge in English. This means getting ahead through trust.
In these summaries, you will also learn:
- why a small software company did well during the financial crisis,
- how Google became what it is today, and
- what the Big Mac has to do with being consistent and McDonald’s success.
Blink 1 – Trust gives you business advantages like loyal customers, free advertising, and a safety net.
Here’s the good news first: Just as distrust can cause huge damage, having others trust you is a great advantage. In business, almost nothing better can happen to you.
Customers who trust you are usually loyal and stick with you. This is true even if a competitor offers a better price or other benefits. Once you earn trust, you become more appealing. Your customers know that you will deliver what you promised. They can rely on you. They do not need a backup plan. They do not have to remind you three times that your delivery is still missing.
And that is good for you. A loyal customer base makes it easier to plan for the long term. You can use your resources well. Instead of spending money to get new customers all the time, you can offer your product at a good price. This makes your regular customers happy and keeps them with you for a long time.
Happy customers are also a good safety net in hard times. Plus, they are the best advertising. They tell friends and family about you. This gives you free and very effective marketing. People trust recommendations from their friends more than an advert or a slogan.
You cannot buy this advantage. You must earn it by building trusting relationships with your customers. The small software company Passlogix shows how this pays off. In 2009, during the financial crisis, Passlogix was doing very well. Most companies were stuck or shrinking. But Passlogix managed to take jobs from big companies like IBM. How was this possible? The company focused on trusting relationships with its customers. Customers could even call the CEO directly if they had problems. Clear and open talking is always key to building trust.
Blink 2 – Find out what you want, then speak clearly, openly, and honestly.
Do you know people who cannot say what they plan to do? Their hopes are unclear and seem to change all the time. It is hard to trust such a person.
So, to seem reliable and trustworthy, you should always speak honestly and openly. You will see positive effects not only in your relationships but also in your sales.
Clear and simple communication makes work much better. No one has to guess what the other person is thinking. Both sides know what the other expects. This stops misunderstandings. Instead, we can focus on the actual work.
Clarity is also the basis of a good vision. A clear vision leads to the success of many big companies. A vague, unclear vision goes nowhere. It does not give employees a path to follow. But with a clear vision, we know the steps that lead us to success.
Many successful companies today started as underdogs. But they had a very clear idea of where they wanted to go from the start. Take Google, for example. Today, it is a giant in search engines and much more. Ten years ago, Google was just an idea. It was about “organizing the world’s information and making it available to everyone.” This clear vision helped Google work with focus. All decisions were based on this main goal. Everything served the big vision, from web design to the search algorithm itself.
Or consider Ingvar Kamprad, the founder of Ikea. From the beginning, his clear goal was to make good quality furniture affordable. He stuck to this vision even in the hardest times. This was true even when his suppliers boycotted him. His stubbornness paid off. What started as a 17-year-old’s garage idea later became the world’s biggest furniture seller. Kamprad knew exactly what his goal was. You will learn what else pays off in the next summary.
Blink 3 – Empathy leads to trust and respect.
Most people trust those who show empathy. This means people and companies who understand their customers and employees. They care about them, not just about making money. It may sound strange, but empathy pays off.
Empathy leads to loyalty. When do employees stay with their company? The Saratoga Institute in California found out: when they feel the company cares about them. They want to be seen as more than just workers. Such companies can keep their staff even in tough times. This is true even if a competitor offers higher pay.
Because of this, many people leave their jobs if they feel their bosses do not respect or value their work. Such employees will never be loyal, no matter how much they are paid.
Starbucks, for example, is known for keeping its employees for a long time. In similar fast-food companies, employees often quit after a few months if a better chance comes along. What makes Starbucks different?
It’s simple: Employees are loyal because the company cares for them. For instance, it offers health insurance and retirement plans. This is very unusual in the USA.
So, what seems costly at first actually makes money for Starbucks. The company saves millions. Its competitors have to spend that money again and again to hire and train new employees.
Empathy is also good for a company’s reputation. The example of Indra Nooyi shows how this helps business success. She became CEO of PepsiCo in 2004. She aimed to do business well and also do good. So, PepsiCo launched healthier products. They also worked to fight obesity. Success followed. Pepsi’s reputation got much better, and profits rose quickly.
Blink 4 – Show good character by saying what you think and doing what you say.
How can you describe a great leader with just one quality? It would probably be “character.” People trust and follow those with good character. And what makes someone have good character? Mainly two things: honesty and morals.
To be honest means saying what you think. It also means doing what you say you will do. It is the opposite of being fake or two-faced. Would you let a doctor who smokes a lot and is overweight tell you to live healthier? Or let a heavy drinker with a red nose tell you to stop drinking? Would anyone have followed Martin Luther King if he preached peace but carried a gun?
What does it mean to be moral? It means doing the right thing. Not only when it is easy and does not cost you anything. But especially when it is hard. Mother Teresa, for example, was known for sacrificing herself to help others. People admired her so much for this. Today, a million people in 40 countries continue her work for the poorest.
Often, it seems easier to go along with a small lie. It feels better than being honest and risking an argument. But this can go terribly wrong, as seen with the Challenger disaster. The Space Shuttle broke apart in 1986 because of a faulty seal. All seven astronauts died. What started as a tiny mistake ended in a disaster.
The company that made the seal knew there was a risk of disaster at the time of launch. But they still agreed to the launch date. They did not want to face criticism. After the disaster, the criticism was much worse, of course.
What do we learn from this? Acting morally pays off, even when no one is watching. There is always a risk of losing trust and respect. Even if it’s just respect for yourself.
Blink 5 – Keep learning to stay skilled.
Trust does not have to be for everything. You can trust your doctor to cure a cold. But you would not expect them to fill out your tax forms well or fix a car.
Trust is closely linked to having special skills. So, it is worth staying up-to-date in your area of expertise. You should keep learning. If you stop learning, you will lose. For example, most companies that rule their industry usually stay at the top for no more than ten to fifteen years.
Why is this? Successful people start to relax. They stop learning and growing. Sooner or later, this means competitors catch up or even pass them.
A good example of this is the US car industry. In 1979, nine out of ten cars sold in the home market were from the three big American car makers: Ford, General Motors, and Chrysler. Today, their market share is 40 percent. The Americans rested on their success. They missed new ideas. This gave German and Japanese manufacturers plenty of time to catch up. They became tough competitors.
The drug giant Bayer had a similar problem. The company ruled the pain relief market with Aspirin for half a century. There was a clear need for cheaper pain relief drugs. But Bayer did not dare to work on a rival product to its bestseller, Aspirin. So, other companies developed products like Paracetamol. This greatly shrank Bayer’s market share.
So, never stop trying just because you are successful!
Blink 6 – Step up when it counts, even if it means making sacrifices.
True friends often show themselves in tough times. People who work hard and prove themselves in hard times are truly trusted.
In the 1980s, Lee Iacocca guided Chrysler through a difficult period. Tough choices were needed. Many workers were laid off, and offices in Europe closed. But he also managed to keep the best employees. This was because he had their trust.
He earned this trust with a big, symbolic act. He cut his own salary to just one dollar a year until Chrysler was out of trouble. This sign of his commitment earned him a lot of respect. It lifted spirits and the feeling of teamwork in the company. In the end, this helped Chrysler recover.
Another example is the motorcycle brand Harley Davidson. A group of dedicated motorcycle fans bought it in 1981. At that time, the company was in bad shape. The motorcycles were too expensive and of poor quality. People often linked the brand with tattooed, violent gang members.
But the new management team saved the company. They worked eagerly to fix the company’s problems. They made the production process better. They started using outside help and launched ads to improve the brand’s image.
Today, Harley Davidson holds 45 percent of the American market for heavy motorcycles. The company’s stock value is now 170 times what it was 25 years ago. If you prove yourself in hard times, you can achieve a lot. Especially when working with others.
Blink 7 – Get to know the people in your company and your customers.
A study shows that almost 90 percent of consumers trust a friend’s recommendation more than a good review from a professional product comparison. Objectively, our friends may know less about a product. But they have a big advantage over an expert. They know what we like and what is important to us.
So, it is also worth knowing your employees and partners as well as you know your friends. This avoids many conflicts and misunderstandings. Do you know your employees’ strengths and weaknesses? Then it is easy for you to give the right tasks to the right person. Knowing how someone works, whether they need frequent praise or a kick now and then, keeps everyone happy.
Also, it is easier to make your customers happy if you know them well. Customers who feel understood are more likely to give feedback and take part.
Building connections with others is easy for those with a magnetic personality. They attract people and are always surrounded by them. What makes these magnetic personalities special? It is not always the outgoing, charming networkers and talkers, as many think. Often, they are more introverted people. They are caring, interested in others, and like to listen. What else makes magnetic personalities special? Gratitude, not liking gossip, optimism, honesty, and the ability to cheer others up and ask the right questions.
The easiest way to build relationships with others is simply to be truly interested in what they have to say. So, take time for the people around you and listen to them!
Blink 8 – Do not just talk, do something. Give more than you take.
A good plan and great ideas are worth nothing if you do not act on them and show results. But often, unhealthy perfectionism stops us.
It is important to have high standards for yourself. This is especially true when making good quality products or offering good service to your customers. But usually, it is more important to find a middle way. Working forever on new software but never finishing it and giving it to your customers helps no one. What happens if you make your customers wait forever? It destroys trust in the company. Plus, it brings no sales.
Anyone can talk, but actually doing things is hard. If you want to be a doer, you need good organization. You also need to know what tasks are most urgent right now. You can do this by keeping your email inbox empty and avoiding distractions at work. You can also encourage your employees to get things done and try new things. Tell them not to be too perfect or talk about everything too much.
But just doing things is not enough. Try to be seen as a giver by others. Be someone who first asks what they can do for others. This also pays off. The more you give, the more you get back. Givers live happier lives. They have healthier relationships with others. They enjoy being able to help. Because they are known for being kind and generous, they quickly find support when they need it themselves. So, do your part and help others.
Blink 9 – Consistency is key, and every small action matters.
The last and most important pillar of trust is consistency. The other parts are worthless if they are not lived out consistently.
What does character not mean? Acting with honesty one day, then ignoring your values the next. Commitment only brings trust if you stick to a decision.
Being consistent is definitely not easy. But working on it is worth it. Because nothing is harder than getting back trust once it is lost. Being consistent is also the only way to build a strong brand. Only when customers can truly rely on you to stand for certain things will they trust and value your brand.
McDonald’s is an interesting example. This brand is strong because it stands for consistency. The Big Mac tastes the same everywhere. It does not matter if you order it in New York, Berlin, or Tokyo.
Walmart also shows consistency. In recent years, the company has been criticized a lot. People say it sends jobs overseas, treats women unfairly, and stops workers from forming unions. Still, the company continues to grow. Why is that? It is simply because Walmart consistently delivers on what its slogan promises: “Always low prices. Always.”
Consistency here means that every single action counts, no matter how small. Trust builds bit by bit, not with one big bang. You earn it by showing with many small choices that you are trustworthy. Trust is like oxygen. You do not notice it, but it is everywhere and vital for life.
Blink 10 – With trust, you get the best from others.
Being seen as trustworthy is a huge advantage. But the trust advantage also works the other way. Forget the idea “trust is good, control is better”! You will often be surprised how much you can gain.
Trust motivates people. If you control your employees too much, you make them feel bad. They become passive, uncreative followers of orders. And that costs a lot of time and effort. In the end, only one person is thinking.
But if you give out important tasks, you show your employees that you value them. Has someone already shown they can be trusted? Then this is the right way to help them grow and do their best work. Of course, this does not mean you should give a leadership role to an intern in their second week. That would not motivate them. It would probably just overwhelm them.
Another key reason to rely on trust is that it lowers costs. In a place with total control, everything must be watched. Everything takes longer and has to go through many people. But where there is trust, work is done well. Everyone can deliver results without always asking for permission or being led by the hand.
The example of a donut shop in New York shows how trust can pay off. The owner let his customers take their own change from a basket of coins. This saved him time and allowed him to serve more customers. He earned back many times over the few dollars he lost due to mistakes or theft.
Blink 11 – Lost trust can only be rebuilt with much patience and small steps.
Trust is like a forest. It takes years to grow fully. But one careless act, like a dropped cigarette, can start a fire. This fire can burn down the whole forest. The forest will grow back, but it takes a long time on burned land. Have you lost the trust of someone close to you or a customer? Then you need to be patient. You must take many small steps until trust is back.
For example, if you missed a promised delivery date, you should admit the mistake right away. Apologize sincerely. Then, give the other person some time to get over the mistake. In the meantime, you can think about how to make up for it. For example, you could deliver two days early next time or give a discount.
Sometimes, trust is so badly broken that it cannot be fixed. Then, you must try to learn from the mistake and look ahead. What happens when customers are so hurt that they can no longer trust? They will see everything linked to the company negatively in the future. This includes products, employees, and even the logo.
After a serious breach of trust, it can sometimes help to change the company’s management or logo. But this only works if you truly make sure the mistake does not happen again. You might get a second chance, but rarely a third.
Summary
The main message of these summaries is:
Trust is important, and every small action matters. In all interactions, trust can be built or broken. If you show good character and empathy, and always speak clearly, you will seem trustworthy. Ongoing learning and commitment also help. If you know and support the people around you, you can enjoy the advantage of trust. You can also succeed even in bad times.
What you can do:
Do not promise anything you cannot deliver.
No matter how small a promise is, make it a rule never to make one you cannot keep. Nothing makes you seem less trustworthy than saying you will do something but then not being able to deliver.
Always try to understand others.
Whether it’s an employee, customer, or business partner, being willing to listen well and empathize makes you seem trustworthy quickly. It also avoids conflicts and misunderstandings. It makes you a better leader, salesperson, and a magnetic person.
Did you like this?
We hope these summaries were helpful. Please let us know what you think about our content. Just send an email to [email protected] and use the subject line The Trust Edge.
For further reading: My Brand by Hermann H. Wala
In these summaries, you saw how important trust is, not just in personal relationships, but also for companies. Trust is part of what makes companies real, special, and successful long-term. Learn about the other secret ingredients here.
Source: https://www.blinkist.com/https://www.blinkist.com/de/books/vertrauen-de