Is Trust a Transaction?

The way that Ronald Reagan approached the United State’s relationship with the Soviets, perhaps trust was simply a transaction. But with organizations in a free society, should we use this “trust as a transaction” approach with the people we lead?

I once worked with a leader who was concerned about trust within the organization. He often asked the people reporting to him if they trusted him. Over time, his discussions and his actions revealed that this “leader” had little, if any, trust in some of his direct reports. It seemed very apparent that “a lack of trust” was always on his mind.

This experience was a prime example of trust being considered a transaction. And, as one might expect with something so valuable and fragile, it didn’t work to build anything worthwhile in terms of organizational effectiveness.

This type of thinking follows the idea that “if you trust me, then I will trust you.” This type of transactional thinking provides a very shallow and fragile sort of relational bond. It can be broken easily and therefore is probably not worth investing in. This kind of thinking carries the undertone of “Beware! If you do something to lose my trust, then its all over!”

Instead of investing in a paradigm that is so weak, I would rather invest in a belief system that supports something of lasting value. Of a system that can support a heavy load of “transactions” that can bridge short term indiscretions, weaknesses, and imperfections found in ordinary everyday imperfect people.

Offering trust in this manner means being somewhat vulnerable and acting on faith in the ability of others to do their best given the context. This type of thinking takes courage. It takes strength. It takes an ability to handle failure. And yet, it is still worth all of it.

For the leader-follower relationship to really work, trust must exist in an open and unpredictable environment that allows it to grow strong. It cannot be wimpy. If a person is always afraid of losing someones trust, they may be overly cautious and never comfortable enough to perform at the highest levels.

The trust that exists has to be one of open discussion. This will inevitably invite the occasional respectful conflict. In this type of environment, individuals need to be mentally and emotionally prepared to be vulnerable, compassionate, empathetic, and kind. It is an occasionally bruising place, but it is well worth the effort.

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