conversations
Analyze the risks, there are three variables in the “Smart
Trust” analysis (see sidebar on page 21) which could help you
gain judgment on who, when and how to trust.
Provide employees parameters and educate them how to
handle situations, but allow them to use their best judgment
as to how to make customers happy or solve problems
without having to ask their managers.
P: What are the steps towards building a culture of
trust in a workplace?
L: Culture is such a big word and sometimes, small companies or day spas don’t think of their business as a culture, but
it really is. What companies tend to do to create a culture is
come up with a bunch of rules documented in their policy
and procedure manual which, in a low-trust company, is often
very thick.
The high-end retailer Nordstrom is a great example of a
high-trust company which creates a culture of trust through
hiring and training and putting together a system that aligns
to a high-trust environment, not through a policy and procedure manual. In fact, Nordstrom’s policy and procedure is no
bigger than a postcard. It says welcome on the front, and
notes on the back: “We only have one rule: Use your best
judgment.”
Again, you can’t be stupid about this and throw out your
policy and procedure manual and replace it with a postcard.
You need to first create a high-trust system and hire and train
your team for that purpose.
“‘Smart Trust’ is NOT ‘blind trust.’
The art of ‘Smart Trust’ is the
ability to gain judgment...”
and 2) we trusted our customers.” Zappos trusts its employees to make good decisions and trusts its customers—to the
extent of letting them ship shoes for free!
Jim Sinegal, CEO of Costco, is another great example of a
high-trust leader. Costco has the lowest employee turnover in
the retail industry and has an extraordinary loyalty from their
customers. Their customers have tremendous trust when they
purchase an item. In fact, you don’t need a receipt to return
an item at Costco, all transactions are in the company’s
online database. Sinegal is one of the few CEOs cited by
Warren Buffett as best of breed.
P: What gets you glued to the TV?
L: I watch a lot of news although I tend to look at it differently through the lens of trust. My favorite television show is
The Good Wife which I think is interesting since it weaves
trust into the whole legal profession. I also like the comedy
TV series The Big Bang Theory, I’m sure your young readers
will be surprised to hear that a 60-year-old leadership guy
watches this show, but I do!
P: How do you live the spa lifestyle?
P: Can you give examples of leaders who lead and
operate using the principle of “Smart Trust”?
L: One of the most visible and dramatic examples is Zappos.
CEO Tony Hsieh grew a company from zero to a billion
dollars in the lowest-trust economic times in history. I asked
Tony how, he said two things: “1) We trusted our employees;
L: For someone who travels so much, I try to find time to
recharge through a good massage treatment at airport spas.
I’m also a big believer in taking vacations, although not the
kind that involves running around to do touristy things but
instead, the rejuvenating kind, like a spa vacation. ■
LEADERSHIPTIP
HOW CAN YOU make a business case using
trust? Visit digital Pulse on experienceispa.com to read
Link’s response.
22 PULSE
■
May 2012
Trust is contagious and reciprocal. Your employees treat
your customers the way management treats them.