Warren Buffet's story about doing a $23 billion deal with Walmart based on trust rather than extensive due diligence highlights the significant impact of trust on reducing transaction time and cost. This concept, consistently emphasized by Buffet in various business deals, demonstrates that trust always affects two measurable outcomes in business deals: speed and cost.
The Learning Leader Show With Ryan Hawk
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Full notes can be found at www.LearningLeader.com
Episode #358: Stephen Covey - The One Thing That Changes Everything (Trust)
Notes:
- Sustaining excellence = They get results in a way that inspires trust. If you cut costs for profits, you won't earn trust long term. You won't win long term.
- "You must think... There always is a next time."
- Build a culture of character and competence. Those are the components of trust.
- Taking shortcuts, cutting corners will get your short term results, but you will not sustain it. "Beware of the shortcuts."
- Make expectations clear. Hitting the number is a commitment.
- For the mid-level manager: The middle is the key leverage point. You always need to be building trust and delivering results. Leaders go first.
- "Be trustworthy. Be trusting." Give trust to others, lead with trust.
- If you have a bad boss? "Create an island of excellence in a sea of mediocrity."
- "If we think the problem is everyone else, we disempower ourselves." --> Look in the mirror: 'Here's what I can do..." Self trust. It starts inside of you.
- Neuroscience on trust - When there is low trust on a tea, it saps the energy and joy. It's not fun.
- High trust = energizing. How can I be that type of leader?
- For the person that doesn't trust anyone else, they are really saying, "I don't trust myself." They know they lie.
- How to build trust with yourself?
- Learn to make and keep commitments with yourself and others.
- "Make, keep, repeat. Make, keep, repeat."
- "Trust is doing what you say you're going to do."
- "Saying it builds hope. Doing it builds trust."
- Trust = Character + Competence.
- Admiral McRaven - "If you wan to change the world, start with making your bed."
- "Private victories precede public victories."
- Warren Buffett does deals based on trust. Trust impacts speed and cost. "Trust decrease transaction costs." --> When you don't have trust, there is a tax on that.
- When trust goes time, costs go up. When trust goes up, costs go down.
- Focus on your credibility. Your character and your competence. Build your reputation. Start with your behavior. Behave in a way to garner trust.
- Distrusts is exhausting. It's not sustainable in relationships.
- How to handle a non-trusting boss?
- "You can't change the conditions or change them. If you must stay, focus on YOUR credibility. The starting place is on increasing your credibility, it will create more clout, courage, and permission in your organization. Always start with yourself."
- The Seven Habits Of Highly Effective People
- #1 - Be proactive. You're responsible. "You're not a program. You're a programmer." Between the stimulus and response, there is a space. I choose my response and take responsibility."
- What's it like having Covey as his last name - "The power is in the principles."
- #5 - Seek first to understand, then to be understood. A doctor diagnoses before they prescribe. It builds trust when the other person feels understood.
- #7 - Sharpen the saw - Getting better. "The Learning Leader has never arrived..."
- His Dad's ethos:
- To Live
- To Love
- To Learn
- To Leave a Legacy
- Here is WHY joining a Learning Leader Circle is a good idea...
