The Trust Equation

Calculate how much you trust someone.

LEADERSHIP

10/18/20232 min read

Trust is the currency of success in today's fast-paced business world. The secret sauce that makes partnerships thrive and transactions flow seamlessly.

Do you know how to calculate a person's trustworthiness?


Enter the 'trust equation,' a powerful tool to capture the key elements that build trust in any personal or professional relationship. The equation consists of four components that play a crucial role in establishing and maintaining trust.

The Trust Equation
The Trust Equation

Example of trustworthiness

Consider a manager in a company who consistently demonstrates trustworthiness to an employee:

  • Credibility score = 9 (the manager has a proven track record, extensive experience, and is respected in the industry).

  • Reliability score = 8 (the manager consistently keeps promises and delivers on commitments).

  • Intimacy score = 7 (the manager takes the time to understand the employee's goals and provides guidance and support).

  • Self-orientation score = 2 (the manager prioritizes the employee's career growth and well-being).


Now, let's calculate the trust score using the trust equation:

Trust = 12 [(9 + 8 + 7) / 2]

In this scenario, the trust score is 12, a positive outcome.
The manager's high credibility, reliability, and ability to connect with the employee, combined with their low self-orientation, result in a strong foundation of trust.

The four components of trust

Credibility: are you seen as an expert in your field? This is often based on your qualifications, experience, and knowledge. People believe you know what you're doing when you have a high credibility score.

Reliability: do you consistently keep promises and deliver results? A high reliability score indicates that you do what you say and say what you do.

Intimacy: can you establish a personal connection with clients or colleagues? High intimacy indicates you can relate to others on a personal level.

Self-Orientation: are your actions self-centered or focused on others? A low self-orientation score reflects a genuine concern for others' interests.

Example of trust betrayal

Suppose the manager promises an employee a promotion and a significant salary increase for hard work and dedication. The manager continually praises the employee but fails to deliver on the promised promotion and raise.

  • Credibility score = 7 (the manager's words were not matched by actions).

  • Reliability score = 3 (the manager did not fulfill the promise).

  • Intimacy score = 6 (the manager maintained a friendly demeanor).

  • Self-orientation score = 9 (the manager's primary concern was their own interests).


Now, let's calculate the trust score using the trust equation:

Trust = 1.78 [(7 + 3 + 6) / 9]

In this scenario, the trust score is less than 2, which is a negative outcome. The manager's broken promises and self-centered behavior resulted in the employee's significant loss of trust.

Trust is the foundation upon which strong relationships are built and long-lasting collaborations are formed.

Trust allows individuals and companies to confidently rely on one another, knowing that commitments will be fulfilled and expectations will be met.

Trust is necessary to make business interactions apparent, hindering growth and inhibiting progress.

Your challenge as an entrepreneur is to master this equation and forge lasting trust. As you do, you'll unlock doors to unimaginable success. Trust, once established, becomes a foundation upon which you can build your empire.