Twenty first century trust
I get asked why I put so much effort into the column I write about graphene and other topics. Part of the answer is that I trained as a scientist and I find this stuff fascinating, I also like to do as professional a job as I can. Another part of the answer is that I’m hardwired to take complicated ideas and make them clear for non-experts. I choose to work with InvestorIntel (and they also choose to work with me) because the leadership cares about these things too and we actively support one another. As a result I trust InvestorIntel; we share the same values.
This notion of trust does not seem to be held by everyone. The Edelman trust barometer shows that trust is in crisis around the world. A Gallup poll shows the decline in trust of the American public in the mass media over the past fifteen years. Trust in many other organisations, business and government follows similar downward trends.
So what? Well, it turns out that trust is getting noticed as an increasingly important part of our digital world. I recently met one of the UK’s top digital strategists, Nigel Cliffe of the Value Exchange. Nigel’s passion is helping businesses be more successful by navigating our ever-changing digital world. He has realised that to effectively use the latest technology means rediscovering some very human skills, namely establishing relationships and building trust.
How is trust built in our digital world?
Nigel recommends three steps:
- First get really clear why you are doing this. These few things become the pillars of your digital strategy that inform everything you do.
- Then select your digital platform(s) of choice. Website, Linkedin, Youtube, Twitter etc.
- Then use these technology platforms to share content and demonstrate knowledge.
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Do all this consistently and you will build and maintain a trusted network. Long-term success follows from clients engaging with you rather than you having to chase them.
Dear InvestorIntel reader, at this point you may be thinking ‘That sounds good, but I don’t really believe the link between trust and success – where is the hard evidence that this link works?’
Proving the link between trust and success
One of my fellow editors, Dr. Luc C. Duchesne, developed a fascinating view on the importance of trust in the investment market, well worth a read. He identified a takeaway lesson for investors is to seek out trustworthy companies. Track records of achievements are by their nature in the past (a lag indicator) Trustworthiness is a predictor of future success (a lead indicator)
Don’t believe me? Well, a study of 111 financing relationships in Germany found that the higher the level of trust between individuals, of venture capital (VC) firms and entrepreneurs of the portfolio companies, the more successful the business investment in three year’s time.
The authors of the study found that the reason trust works is because the really important things in financing relationships can often not be written in to any contract. We live in a Volatile, Uncertain, Complex and Ambiguous (VUCA) world. Trust in relationships is a vital element of managing the risk of investment decisions. Put another way: stuff happens, deal with it – together.
The way I have experienced InvestorIntel dealing with all this is that they trust my fellow editors and me and give us freedom to create real, credible content. The leadership of the organisation complements this by being entrepreneurial and enthusiastic. I find this combination enlightening and refreshing. I trust you do too.
Adrian Nixon began his career as a scientist and is a Chartered Chemist and Member of the Royal Society of Chemistry. As a scientist and ... <Read more about Adrian Nixon>