Today’s organisations demand more from their leaders. They are required to not only possess a high learning quotient (LQ), the ability to test, learn, and pivot in uncertain times, but to also have a high trust quotient or TQ (the fourth Q)—the ability to be relied upon and to be truthful. While IQ, EQ, and LQ are easier to identify and quantify, knowing whether a CEO is trusted (TQ) can be more difficult to determine.

Trust is the foundation for all effective relationships—professional or personal. It’s the glue that holds C-suite teams together. It’s the currency that enables collaboration.

When trust is present, it can be a key indicator of long-term organisational success. We found that leaders at high-performing organisations were over eight times more likely to feel that their C-suite displays a level of trust that’s visible across multiple areas of the organisation.

Creating an environment of trust is one of the most important things you can do as a CEO. But, we’ve found that trust is broken across C-suites. According to our research, only 22% of C-suite members say that they trust their team.

When trust is lost, it’s impossible to ignore. Sometimes this loss of trust can be catastrophic and quick—when a CEO goes back on their word, or is deliberately dishonest, for example. But, often, a loss of trust can creep into a team over time and can be difficult to spot. In both situations, trust takes time to rebuild.

Four Key Quotients to be an Effective CEO

4 Ways You Can Create an Environment of Trust Within Your C-Suite

How do you address a lack of trust in your C-suite? Ultimately, it’s a problem that only you, as a CEO, can solve. But, that doesn’t mean trust is something that can be demanded or expected—it’s an evolutionary process and can only be built when a CEO leads by example and champions the right behaviors.

Here, we explore the actions that you can take to build up stores of this essential leadership capital and improve trust in your top team.

1. Foster inclusive and transparent leadership

Some CEOs approach leadership with a divide-and-conquer mentality, actively promoting tension in their senior leadership team. They want executives to challenge each other’s ideas, in the hope that it will drive competition, while also protecting the CEO from challenge.But in fact, the most effective CEOs do the complete opposite—they find ways to unite their team. One surefire way to do this is by sharing information with the entire C-suite, not just a select few. When everyone feels that they’re treated the same, it reduces competition, cultivates trust, and allows your C-suite team to effectively work together.

Transparency is also key as CEO. Sharing both bad news and good news requires courage. But being honest and showing vulnerability when you do have bad news to share not only builds trust, it demonstrates that you’re human.

Role modeling honesty, transparency, and inclusivity will encourage your top team to do the same. It will allow for better collaboration, while also giving your team the space and security to take risks and innovate without fear of failure or finger-pointing.

2. Avoid ‘control and command’ style leadership

For decades, many CEOs possessed a hierarchal and rigid ‘command and control’ style mentality. It was a time when the CEO’s word reigned supreme and the title alone garnered respect and deference. This style of leadership doesn’t work today, nor does it foster trust across the C-suite.

Today’s successful CEOs serve the organisations and the people they lead. They are collaborators in chief. They actively listen to their team and have self-awareness and empathy. When your top team feels heard and valued, they’re more likely to trust you and feel comfortable bringing up concerns or sharing ideas. Taking the time to listen to your team’s perspectives and feedback can make a huge difference in fostering collaboration and stopping mistrust from taking root.

3. Be consistent

Trust is also built through consistency, predictability, and reliability. Part of your role as CEO is to do what you say and say what you mean. Demonstrating that you can fulfill commitments and promises is a straightforward yet powerful way to establish trust.

You will not always make the right decisions. There will be moments when you have a lapse in judgment or make the wrong decision. After all, we’re all human. As long as your C-suite executives know what to expect from you more often than not, it creates a sense of psychological safety and stability—essential components when building trust.

4. Hire wide T-shaped leaders

In the past, CEOs hired executives with deep expertise in a certain function or geography. But, this approach can often mean your C-suite is focused on fighting for resources for their departments, rather than solving enterprise-wide issues such as sustainability and tech transformation.

As the former professional basketball player, coach, and executive, Phil Jackson concisely articulated, “Good teams become great ones when the members trust each other enough to surrender the ‘me’ for the ‘we.’”

Instead, it’s wise for CEOs to hire wide T-shaped leaders—executives who have deep functional expertise in one domain (the vertical stroke of the T), while also having the ability to effectively collaborate across disciplines with experts from other areas (the horizontal stroke of the T).

These leaders will have the ability and willingness to consider how decisions impact the wider business context and connect to the strategy. This mindset will allow them to make balanced assessments, and take actions that don’t inhibit the organisation’s ability to succeed.

So, as you build your top team, look for and assess wide T-shaped leaders. It will be a powerful way to not only drive enterprise performance, but it will also aid collaboration and allow trust to flourish.

Authors

• Emma Combe is a member of Russell Reynolds’s Associates Board & CEO practice. She is based in London.
• Dee Symons is a member of Russell Reynolds’s Associates Board & CEO practice. She is based in London.

The article was first published by Russell Reynolds Associates.

Photo by August de Richelieu on pexels.com.