Understanding The Trust Equation – By Charles H. Green
Trust relationships are vital to the way we do business today. In fact, the level of trust in business relationships, whether internal with employees or colleagues or external with clients and partners, is the greatest determinant of success.
The challenge is having a conceptual framework and analytical way of evaluating and understanding trust. Without the proper framework for evaluating trust, there’s no actionable way to improve our trustworthiness.
In 2000 and 2006 the founder of Trusted Advisor, Charles H. Green co-wrote two books: The Trusted Advisor and Trust-Based Selling. Both books describe The Trust Equation in detail. It’s a model of trust that Charles H. Green has built and evolved over many years.
The Trust Equation is now the cornerstone of the practice at Trusted Advisor: a deconstructive, analytical model of trustworthiness that can be easily understood and used to help yourself and your organization.
The Trust Equation
When we think of trust and what it means, we quickly realize it encompasses many things. We use the word “trust” to:
- Interpret what people say
- Describe behaviors
- Decide if we feel comfortable sharing information
- Indicate whether we feel other people have our interests at heart
The Four Variables
The Trust Equation uses four objective variables to measure trustworthiness. These four variables are best described as: Credibility, Reliability, Intimacy and Self-Orientation.
We combine these variables into the following equation:
TQ stands for Trust Quotient. The Trust Quotient is a number — like your IQ or EQ — that benchmarks your trustworthiness against the four variables.
Let’s dig into each variable a bit more:
- Credibility has to do with the words we speak. In a sentence we might say, “I can trust what she says about intellectual property; she’s very credible on the subject.”
- Reliability has to do with actions. We might say, “If he says he’ll deliver the product tomorrow, I trust him, because he’s dependable.”
- Intimacy refers to the safety or security that we feel when entrusting someone with something. We might say, “I can trust her with that information; she’s never violated my confidentiality before, and she would never embarrass me.”
- Self-orientation refers to the person’s focus. In particular, whether the person’s focus is primarily on him or herself, or on the other person. We might say, “I can’t trust him on this deal — I don’t think he cares enough about me, he’s focused on what he gets out of it.” Or more commonly, “I don’t trust him — I think he’s too concerned about how he’s appearing, so he’s not really paying attention.”
The Trust Equation has one variable in the denominator and three in the numerator.
Increasing the value of the factors in the numerator increases the value of trust. Increasing the value of the denominator — self-orientation — decreases the value of trust.
Self-orientation, which sits alone in the denominator, is the most important variable in the Trust Equation. We developed the formula this way on purpose. A seller with low self-orientation is free to completely and honestly focus on the customer — not for his own sake, but for the sake of the customer. Such a focus is rare among salespeople (or people in general for that matter).
The truth in selling is that you succeed more at sales when you stop trying to sell. When all you focus on is helping prospects, they trust you more and buy from you more as well.
Written By: Charles H. Green