"Trust is Earned...

April 26, 2021

Share this article:

...When Actions Meet Words”


Last month, we explored the leader-follower relationship through the lens of followership. In this edition, we explore another element of this critical business relationship and a topic that many leadership conversations struggle with. Intellectually, every leader, even the poor ones, can agree that trust and trustworthiness is important to effective leadership. Unfortunately, not all leaders, especially the poor ones, know what it takes to be viewed as trustworthy. Moreover, they fail to understand the consequences of not being trusted until the damage to their team is done. As the expression goes, “Losing trust is like crumpling a piece of paper. No matter how much you smooth it out, it is never the same.”


One of the simplest ways to break down the key elements of trust and trustworthiness comes via the Trust Equation developed by Trusted Advisor Associates, LLC. The equation states Trustworthiness is equal to Credibility plus Reliability plus Intimacy all divided by Self-Orientation as shown in the diagram below:

Let’s break down each element of the equation through the lens of what we are seeing in this post-pandemic VUCA (Volatile, Uncertain, Complex, Ambiguous) business environment.


  • Credibility ~ Credibility relates to the leader’s words revealed through their honesty and believability. It is about their expertise in their role as a leader and the extent that expertise engenders trust in their words. In a VUCA business environment, credibility can be fleeting as the attitudes, skills and knowledge of three to five years ago are no longer relevant or as relevant as they once were. Being a credible leader does not mean knowing all the answers in the present moment. It does mean the leader embraces an attitude of continuous learning such that they remain relevant as leaders as the environment continuously changes!


  • Reliability ~ Reliability relates to the leader’s actions revealed through their ability to keep the promises they make. The consistency of the leader’s actions over time determines the level of trust those who follow have in the leader. In a VUCA business environment, scenarios, conditions, assumptions change constantly, and in many cases, without much notice. To the extent that business goals and processes may change in order to adapt to these changes, the degree to which the leader leans into the change and yet remains consistent in their focus on the Vision and Mission will reinforce the foundation of trust by their followers!


  • Intimacy ~ Intimacy relates to the leader’s emotional state of trust revealed through the psychological safety created in the culture. Leaders play a crucial role in the climate and culture within their teams and organizations. We see intimacy as the degree to which a leader is approachable through their level of empathy and inclusion embedded in their words and actions. In a VUCA business environment, emotions run the gamut of extremes, so it is crucial leaders understand the impact of psychological safety on the degree of trust they have with their teams! The additional challenge with intimacy is its difficulty in being measured. Where credibility and reliability can be measured in straightforward ways, intimacy is less so. Followers must feel their leader cares about them to the degree open conversations support a high level of trust!


  • Self-Orientation ~ Self-orientation relates to the level of caring the leader has revealed in where the leader focuses their words and actions. It is based simply on whether the leader focuses more on their own personal brand and reputation within the organization or whether they focus more on their teams and ensuring the organization succeeds over their own personal recognition. In a VUCA business environment, it can be all too easy to fall into an “everyone for themselves” mindset. It will be in times such as these where the leader’s self-orientation will show its true colors. The more the leader focuses on their own promotability (often at the expense of their teams), the greater the negative impact they have on their trustworthiness. Conversely, the more the leader focuses on their team, the greater positive impact they have on how their team trusts them!


In our coaching practice, we’ve noticed that while everyone knows trust matters to effective leadership, there is an underlying hesitancy to call it out when lack of trust is an issue. It is one of two issues (lack of integrity being the other) on teams where members struggle to speak of it out loud, especially when the breakdown is trust in the team’s leader or when trust breaks down between members of a leadership team. We’ve seen the same dynamic across businesses of all sizes, industries both non-profit and for-profit. All that is to say that understanding what trust consists of can help these conversations be more constructive by breaking it down to the pieces and parts that can be addressed in a meaningful way!


How does your team trust your leadership and how do you know? If you're not sure, we can help!


Lead Well!

Follow Us:

Our Latest Insights

By Rick Lochner • October 26, 2026
...by its resiliency in uncertainty”
How are you leveraging AI to differentiate your business?
By Rick Lochner • September 28, 2026
...so that you can do something about it now”
By Rick Lochner • August 26, 2026
...it’s the product of their interaction.” While we’ve written intermittently about systems and processes, the current VUCA (Volatile, Uncertain, Comple, Ambiguous) business environment compels us to spend more time on how important systems thinking is to effective leadership. We are using the title quote from the late Russell Ackoff , who was a pioneer in the field of operations research, systems thinking and management science. And to illustrate the importance of the title quote, we will use a case study we came across a year ago to drive the point home. The project was a joint venture between General Motors and Toyota named the New United Motor manufacturing, Inc. or NUMMI for short. The goal of the venture was to apply the lessons Toyota learned around lean manufacturing to a failing GM plant in Fremont, California. The results were dramatic in the increased productivity of the plant proving that transformation could occur with fundamentally the same personnel in the plant before and after the switch. While the application of lean methodologies succeeded in producing much improved results, the lessons learned were ultimately lost on GM leadership. They concluded that it was the processes alone that created the change since the personnel were basically the same. In fact, it was the interrelationships between the processes that carried the success of the venture overall. Today, that plant is owned by Tesla. So, what does that mean in a VUCA business environment? It means that leaders trying to react and flex to pieces and parts of the system that are impacted by change will struggle to solve the problem in a sustainable way. It is understanding that volatility and/or complexity, while deeply affecting one particular part of the system, ultimately has systemic impacts across other systems as well. It also means that uncertainty and/or ambiguity will make it difficult to ascertain where the solution lies without looking at the business through the lens of systems thinking. Now, just for the fun of it, let’s throw in the impact of artificial intelligence (AI). The AI impact has come at the business environment with a vengeance to the point where we are already seeing the strategic and systemic challenges encountered by early adopters. In our estimation, it once again looks like business leaders are adopting AI as a workforce replacement instead of addressing where AI fits into the current and desired systems approach to the business. Once again, the absence of being able to see the interrelationships between systems creates major blind spots and lessons not learned similar to the NUMMI and GM venture. From our 2022 book, “ Finding the Missing Piece : The Impact of Effective Communications on sustainable Success”, we define systems thinking as, “...a holistic approach focusing on how a system’s components work together, how a system operates over time as well as how it operates in the context of other larger systems.” The only way systems can provide the foundational value to the organization is through leaders who can fully appreciate and understand its benefits, especially in a VUCA business environment! How are your leadership interactions enhancing the business systems? If you’re not sure, we can help . Lead Well!