Lead with trust
In this conversation with Niklas Gustafsson, senior partner at EMA Partners Finland, we address the growing value of trust in the digital age.
There are no borders for digital. Barriers of language, culture or time are easily dissolved. Professionals start conversations, hires, close deals. The teams work in harmony, despite the thousands of kilometers that separate them. At the base of these relationships, an invisible but highly precious asset: trust. To bring us a global overview of the importance of trust in companies, we invited Niklas Gustafsson, senior partner at EMA Partners Finland. Gustafsson is an experienced marketing and sales professional with a demonstrated history of working in the marketing, media and banking industries. Personable, responsible, and persistent with a customer-focused and goal-driven mindset.
Niklas Gustafsson, senior partner at EMA Partners Finland.
We live in the era of reputation, and trust has emerged as one of the most valuable intangible assets of companies. It is trust that guarantees credibility, directly influences consumer decisions, market/investor decisions, and talent attraction. And trust starts from within, from the organizational culture. How can leaders ensure or build a culture based on trust?
I think that trust is built over time through consistent actions, respect, and genuine care for people.
It all starts from building a long-term relationship with stakeholders through an open, honest and consistent communication. Understand stakeholder needs and expectations while aligning them with your goals. Keep stakeholders informed and involved through meetings, updates, and consultations.
By fostering strong relationships, organizations can gain stakeholder support, enhance reputation, and drive long-term success. How can leaders then create trust within the organization? In my opinion, one of the most powerful tools is Leading by Example. When leaders uphold the values they preach, employees are more likely to believe in them. Employees respect leaders who “walk the talk.” Trust grows when leaders are transparent about challenges and decisions, share information both good and bad openly, avoid hidden agendas and genuinely care about their teams. Invest in employee well-being by providing opportunities for growth and development and showing genuine concern for their professional end personal well-being.
So in summary, while leading by example in my opinion is one of the most powerful tools, it works best when combined with consistent integrity, transparency, and empathy.
Now addressing external perception, trust and reputation is less about what the company says about itself and more about how people and the market perceive it. In this aspect, what is the role of ESG? Is investing in environmentally and socially responsible practices the best way to generate public trust?
Investing in environmentally and socially responsible practices is one of the most effective ways to generate public trust. However, it is not the only factor that matters. Transparency in business operations and clear communication are also crucial in building public trust. Additionally, consistently delivering high-quality products or services and demonstrating accountability when issues arise can further strengthen trust among stakeholders. The basis for building trust is ethical behavior, transparency, accountability, and genuine stakeholder engagement. ESG is one of the strongest trust-building tools, but it works best when combined with genuine corporate responsibility and ethical leadership.
Returning to organizational issues, according to the Global Leadership Forecast report, only 46% of leaders fully trust that their direct managers will do the right thing. And only one in three employees trusts their organization’s senior leaders. For companies that are experiencing this problem, how can this situation be reversed?
Low leadership trust affects employee morale, engagement, and business performance. Rebuilding trust at the managerial and senior leadership levels is crucial to reversing this situation. There are certainly many perspectives on how this problem could be addressed. As a starting point, I’d recommend the company focus on a few key points. First, leaders should communicate openly and often about company goals, decisions, and challenges.
Second, leaders should always be honest and do what’s right, even in tough times. Last but not least, I have to repeat myself and the perspective I outlined in my first response. Employees trust leaders who practice what they preach—leaders should demonstrate the behaviors they expect. As far as I’m concerned, this perspective has the potential to have a big impact on many challenges and operations of the organization. These issues are rarely generic, so it’s up to the company to identify how to solve them in their specific environment. Finally, I would say that in this (and many) cases, a genuine attitude goes a long way.
Among the problems generated by lack of employee trust, which is the worst in your opinion? On the opposite path, what are the benefits of having leaders who establish trusting relationships with
employees?
My opinion is that low employee engagement is the most severe problem caused by a lack of trust. Employees who don’t trust their leaders are less productive, less innovative, and more likely to leave. In addition to a lack of trust, employees feel their voices aren’t heard, or their concerns are ignored. You’ll get misunderstandings and morale will suffer.
Leaders who trust their employees are more likely to motivate them, take ownership, and go above and beyond. Additionally, it’s important to note if employees feel valued and supported, they’re more likely to stay. To summarize, trusting leadership is key to long-term success. Builds loyalty, collaboration, and engagement, which all drive individual and team performance. It’s easier for employees to take initiative, contribute creative ideas, and stay committed when leaders are trusted.
