Michael Patterson, author of "Promotions Are Not Served At The Deli Counter", wrote a recent article that fits right in to what some of you may be telling your June graduates about the “real world”. Michael’s article is reprinted below. You can buy a copy of his book on Amazon or on his website http://www.mikepat.com/. His book is a straight talking gift for someone entering the workforce. Michael’s article below is full of good advice too!
Its All About Integrity, article by Michael Patterson
"Adherence to moral and ethical principles; soundness of moral character; honesty." - dictionary.com
The easiest way to start demonstrating integrity in the workplace is to do what you say you are going to do. I've seen many instances where people make promises they can't keep. Even worse, people make promises they have no intentions on keeping in the first place. It's better to keep expectations low and exceed them than to constantly come short on what you said you were going to do. Keeping and delivering on promises not only show integrity, they also show dependability. Many of the supervisors I've worked with group employees into two categories: ones who are dependable, and ones who are not. When it comes time to give someone a big assignment to complete, which type of employee would they look to assign it? That big assignment is an opportunity for employees to show their abilities and audition for promotions, and the undependable employees are going to miss out.
I provided you the definition of integrity I found when looking it up on Dictionary.com. I tell people my definition is 'doing what you are supposed to do when you could easily get away with doing something else.' We all have responsibilities at work, and we should be aware of what we can or can't do. Most companies have detailed procedures which let you know what you can or can't do. Even if your company does not, I would bet your own determination of right and wrong will point you in the proper direction. I bet you've had a situation in work where you've said to yourself, or co-worker: "I wonder if I'll get in trouble if I do this?" Here is a helpful hint, if you are ever in a position where you are wondering if you should or shouldn't be doing something, you probably shouldn't be. This is what I would refer to as making a wise decision. I've heard people say this: "know I shouldn't do this, but nobody will know." This is where real integrity comes in. If you know you shouldn't do it, but do it anyway because no one is watching then you are lacking integrity. When you do get caught and justify your actions, or try and point the blame at another direction other than your own you are seriously lacking integrity.
I've worked at big banks during my 20-year career in banking. Big banks are usually all about the numbers. Shareholders like to see growth, and one of the ways to grow is increase checking accounts. In my book "Promotions Are Not Served At The Deli Counter" I tell a story about branch employees who would solicit customers to open up checking accounts for just one dollar. On top of that, the branch would charge the dollar to a random general ledger! Most times, these customers wouldn't deposit anything else; they are customers in name only. Sure, the branch got their goals, but they were seriously lacking integrity while achieving them. When the bankers got caught - and they always get caught, the only thing they ended up getting was a quick end to their banking career.
Understand what the right thing is to do each day at work, and do it. You will be better for it in the end.
Michael Patterson- author of "Promotions Are Not Served At The Deli Counter"http://www.mikepat.com/
Article Source: http://ezinearticles.com/?expert=Michael_F_Patterson
Tuesday, June 22, 2010
Thursday, May 20, 2010
Your First Lie
Do you remember your first lie? It was likely told to someone you love or at least respected and was followed by feelings of guilt or at least fear of being found out. More than likely your little lie was to cover up something you had done or perhaps to get you something you wanted. Such is the case with my first lie – which I will NEVER forget!
My family was of meager means living in a small, rural Montana town. Mother made most of our clothes and although we didn’t really lack for what we needed we six siblings knew things that were “not needed” should not be asked for and certainly not begged for! Dad owned the local garage bartering much of his hard work for chickens, sacks of potatoes or whatever else the farmers could use for payment. Money was tight for everyone in our community. That is what made ‘penny candy’, something I had grown to love, so difficult to obtain.
The local store’s candy display was in front of the one and only check stand where the owners could keep an eye on it guarding against little sticky fingers. That thought certainly had never entered my mind but I did cook up a pretty good, fool proof scheme to get some of that long sought after penny candy. I even talked my older sister into plotting with me for half of the loot. This was going to be a big score. Not just one piece of candy but ten !
Everyday during summer my sis and I would walk up town to fetch the mail at the small post office where Mrs. Cinder would give us a stern look as we turned the dial on our P.O. box. We always stopped into Dad’s garage to say hello and see if he needed anything. On this historic day it was Mom who needed something….oh, wait. . . THAT is my first lie. Mom did not need anything. But I carefully told Dad that she needed a spool of red thread at the store so she said to ask him for a dime and I was to bring the thread home to her. He looked like he believed me as he handed over the coin. Perhaps he did but maybe he just happened to see sis and me sitting on the bench in front of the store chowing down! Who knows? But at dinner that night he asked “So, what did you need the red thread for?” Busted. Big Time. Yes, I shall never forget my first lie. Regrettably it was not to be the last.
Thus is the failure of our human nature. Being 100% honest all the time 24/7 is not only difficult but sometimes painful. If your boss looks terrible with his new haircut and he asks you straight away if he looks ok what do you say? You look terrible! No. You lie. The problem with lying is we can’t stop. We may also choose not to remember those times when we did lie hoping if we forget them they didn’t happen.
Our society today is full of lies in government, workplaces, relationships, history books, the list is endless. There are so many lies when the truth is heard it is out of place and looked upon as an ugly step child. People do not admit that they lied either. Instead, the big thing is to say you “misspoke”. Is that even a word? Yes, it is the past tense of misspeak, which is a transitive verb meaning to pronounce something incorrectly or to express yourself unclearly or to speak incorrectly. Ok, to speak incorrectly is well, to lie. Right?
Most people get that a lie is a lie. However, there was a commentary last evening on a T.V. talking heads program that asked a question about a politician who ‘misspoke’ in a big way saying he served in Vietnam when he had never even been there. The question was “Well, is he a serial liar or is this a one-off kind of thing?” Serving in Vietnam is a big deal to most Americans and to “misspeak” and incorrectly say you served there when you didn’t is a big fat lie. But now, society may let that big lie go with the dues paid that this person is not a serial liar. Sigh. So, you are asking me why are you writing about politics in your blog for Ethics in The Workplace?
Let me first say that members of national government who work for the American people have an awesome workplace that should be respected and treated with the highest ethical behavior. If American workers can see their leaders ethically misbehaving in their workplace then why is that different from the fast food shop down the street?
“May you learn humility by being humiliated, and may you learn honesty by being cheated” Paul Harvey
Friday, May 7, 2010
Blog Abandonment
I surmise that if abandoning your blogging activities were illegal the punishment would be 30 days of continuous Burl Ives music interrupted every so often with Napolitano singing “Homegrown Fantasy”. Thankfully, it is not illegal but it is rather rude, and I apologize to my loyal readers. However, there are many reasons, often called excuses, for my absence. Namely, I fell victim to the constant whining of news reporters telling me more about Wall Street insiders and a certain golf swinger than I wanted to know. All that greed, corruption and bad ethics just simply over whelmed me. Way too many sleazy stories to write about! It is not my fault….I am a victim!
But a few prayers and a new pair of good shoes have helped me walk off my victimization of immoral information overload and see much clearer that the world needs my blog. That is, a blog that is a fun place to discuss today’s errant ethical behavior and dream back to the days when we were kids and the world didn’t not look so harsh.
My generation lived through most of our lives on our own; honestly and with confidence of a future. We had no childproof lids on medicine bottles but rarely did anyone of us die of an accidental overdose. There were no locks on doors or cabinets but we didn’t steal our Dad’s gun to show off at school, we certainly knew better. The old right from wrong thing, remember? We even rode our bikes wearing baseball caps not helmets on our heads, yet rarely left our brains on the sidewalk. And we told the truth about the baseball that went through Mrs. Andrew’s window. Yes, those were the days. They felt honest and pure.
Today’s events proclaim a dirty little world of under ground, under cover shenanigans where money and sex are manipulated – sometimes one for the other. A world where the really bad guys escape the hurt and mayhem in their limos while the rest of us scratch our heads saying, “Well, if that don’t beat all”. During my recent over whelm period, now known as my Toxic Grey Phase, I saw conspiracy in every event. When our government leaders blamed the NY car bomb attempt on patriotic American citizens, I realized that this conspiracy thing is not just affecting me. It is like we have sides and can’t trust the guy on the other side. That would be fine if it were just evil against good, a standard known as reality, but today there are MANY sides and none of them trust the other. Having too many sides, too many rights, too many wrongs is hardly reality so no wonder most of us are left in moral malaise.
What we need to do is turn off the news media, take a walk, and read a book....make that the “Good Book” and things begin to clear up. It is amazing how our computer like brains can shift back to reality where we choose our own personal ‘right’ without being led or misled. Clarity of this nature opens eyes and hearts and even in this dirty little world we can experience joy.
It appears that my Toxic Grey Phase has been replaced…no, no, not Pollyanna or Blonde Bliss! I am now in my Bright Phase….a clear, sharp, un-victimized, joyful person. Feels good.
But a few prayers and a new pair of good shoes have helped me walk off my victimization of immoral information overload and see much clearer that the world needs my blog. That is, a blog that is a fun place to discuss today’s errant ethical behavior and dream back to the days when we were kids and the world didn’t not look so harsh.
My generation lived through most of our lives on our own; honestly and with confidence of a future. We had no childproof lids on medicine bottles but rarely did anyone of us die of an accidental overdose. There were no locks on doors or cabinets but we didn’t steal our Dad’s gun to show off at school, we certainly knew better. The old right from wrong thing, remember? We even rode our bikes wearing baseball caps not helmets on our heads, yet rarely left our brains on the sidewalk. And we told the truth about the baseball that went through Mrs. Andrew’s window. Yes, those were the days. They felt honest and pure.
Today’s events proclaim a dirty little world of under ground, under cover shenanigans where money and sex are manipulated – sometimes one for the other. A world where the really bad guys escape the hurt and mayhem in their limos while the rest of us scratch our heads saying, “Well, if that don’t beat all”. During my recent over whelm period, now known as my Toxic Grey Phase, I saw conspiracy in every event. When our government leaders blamed the NY car bomb attempt on patriotic American citizens, I realized that this conspiracy thing is not just affecting me. It is like we have sides and can’t trust the guy on the other side. That would be fine if it were just evil against good, a standard known as reality, but today there are MANY sides and none of them trust the other. Having too many sides, too many rights, too many wrongs is hardly reality so no wonder most of us are left in moral malaise.
What we need to do is turn off the news media, take a walk, and read a book....make that the “Good Book” and things begin to clear up. It is amazing how our computer like brains can shift back to reality where we choose our own personal ‘right’ without being led or misled. Clarity of this nature opens eyes and hearts and even in this dirty little world we can experience joy.
It appears that my Toxic Grey Phase has been replaced…no, no, not Pollyanna or Blonde Bliss! I am now in my Bright Phase….a clear, sharp, un-victimized, joyful person. Feels good.
Sunday, October 11, 2009
Skin In The Game
Today’s buzz words for figuring out how to “solve” the current mortgage crisis is for every player to have some “skin in the game”. The Financial-Directory describes the phrase ‘skin in the game’ as
“Informal; a situation in which an executive in a publicly-traded company uses his/her own money to buy stock in that company. It is fairly common for an executive to receive stock as compensation or to exercise stock options to buy stock at a discount. It is less common for an executive to risk his/her own money in the company for which he/she works as if he/she were an outside investor. Putting skin in the game is seen as a sign of good faith or a show of confidence in the future of the company. The term was coined by Warren Buffett.
Lets look at why “skin in the game” may not be the end all answer in mortgage lending.
Historically, the mortgage industry players valued production numbers first and took loan quality as a “given” as the loan passed from originator, to wholesaler, correspondent lender and on into the secondary market trades. Each one in turn trusted the quality of the loan as it had always been a “trustable” commodity. As our country’s morals were slowly decaying, mortgage interest rates were quickly declining and easy mortgage loan programs created a wind storm of new activity in lending. These three things converged to blow in the winds of change along with huge commissions for those working in the mortgage industry. Loan officers, both retail and wholesale, were earning six figure incomes as their support staff, formerly earning $30K were now earning $60K+ with their production incentives. And those on Wall Street’s mortgage side were achieving new income heights of their own, again based on volume, not quality.
The word of ‘easy mortgage lending’ spread quickly and those folks who formerly knew nothing about lending were now passing out business cards touting themselves as “mortgage experts”. In states without licensing a consumer could fill out a mortgage loan application with the loan officer/hair dresser while getting a shampoo.
Once, while checking references of an employment applicant, her former employer, a shop keeper in Modesto, told me she worked his kiosk in the mall selling jewelry. If someone wanted a mortgage loan she also gave them the paperwork for that. My question: “Did she quote rates and explain the programs?” Answer: “She quoted rates but we sent the loan papers to my brother-in-law and he got the thing funded”. He verified that he paid her $55K that year. Not bad for a kiosk clerk! Note: We did not hire her due to her minimum knowledge of mortgage lending. A year later I couldn’t help wondering if some of the foreclosures in the Modesto Fresno area were people who bought a necklace and a mortgage loan at a kiosk.
At the end of the day it was all about money. Big money. Ethical loan professionals who had transacted mortgage loans for many years may not have had “skin in the game” in the form of money as the definition above implies. However, any ethical business person knows the ‘skin in the game’ is often good reputation and future referrals; in the loan business that is better than gold.
Not every loan person lied or has lied. Not every loan person cheats or has cheated. Sadly, those who did soured the industry and today onerous regulations are coming out of Washington to “solve” the problem. It is a human condition that good, strong ethical behavior can not be regulated or mandated away by government degree.
What do you think? Does putting money on the table make a person truthful? Ask a poker player.
“Informal; a situation in which an executive in a publicly-traded company uses his/her own money to buy stock in that company. It is fairly common for an executive to receive stock as compensation or to exercise stock options to buy stock at a discount. It is less common for an executive to risk his/her own money in the company for which he/she works as if he/she were an outside investor. Putting skin in the game is seen as a sign of good faith or a show of confidence in the future of the company. The term was coined by Warren Buffett.
Lets look at why “skin in the game” may not be the end all answer in mortgage lending.
Historically, the mortgage industry players valued production numbers first and took loan quality as a “given” as the loan passed from originator, to wholesaler, correspondent lender and on into the secondary market trades. Each one in turn trusted the quality of the loan as it had always been a “trustable” commodity. As our country’s morals were slowly decaying, mortgage interest rates were quickly declining and easy mortgage loan programs created a wind storm of new activity in lending. These three things converged to blow in the winds of change along with huge commissions for those working in the mortgage industry. Loan officers, both retail and wholesale, were earning six figure incomes as their support staff, formerly earning $30K were now earning $60K+ with their production incentives. And those on Wall Street’s mortgage side were achieving new income heights of their own, again based on volume, not quality.
The word of ‘easy mortgage lending’ spread quickly and those folks who formerly knew nothing about lending were now passing out business cards touting themselves as “mortgage experts”. In states without licensing a consumer could fill out a mortgage loan application with the loan officer/hair dresser while getting a shampoo.
Once, while checking references of an employment applicant, her former employer, a shop keeper in Modesto, told me she worked his kiosk in the mall selling jewelry. If someone wanted a mortgage loan she also gave them the paperwork for that. My question: “Did she quote rates and explain the programs?” Answer: “She quoted rates but we sent the loan papers to my brother-in-law and he got the thing funded”. He verified that he paid her $55K that year. Not bad for a kiosk clerk! Note: We did not hire her due to her minimum knowledge of mortgage lending. A year later I couldn’t help wondering if some of the foreclosures in the Modesto Fresno area were people who bought a necklace and a mortgage loan at a kiosk.
At the end of the day it was all about money. Big money. Ethical loan professionals who had transacted mortgage loans for many years may not have had “skin in the game” in the form of money as the definition above implies. However, any ethical business person knows the ‘skin in the game’ is often good reputation and future referrals; in the loan business that is better than gold.
Not every loan person lied or has lied. Not every loan person cheats or has cheated. Sadly, those who did soured the industry and today onerous regulations are coming out of Washington to “solve” the problem. It is a human condition that good, strong ethical behavior can not be regulated or mandated away by government degree.
What do you think? Does putting money on the table make a person truthful? Ask a poker player.
Sunday, August 9, 2009
The Only Saint In The Neighborhood
No one is completely infallible. In the astute words of literary critic, Alfred Kazin, there may even be ‘danger’ in being “the only saint in the neighborhood”. The danger in mortgage banking is that many successful mortgage industry professionals from Wall Street to Main Street “believed” they were infallible. Feeling infallible sets one’s moral compass spinning and control is lost. Once control is lost, honesty and ability are right behind it.
In the game of mortgaging, much like the children’s game of “Jacks”, there is a certain amount of luck and a fair amount of ability. But in mortgaging when we don’t trust our ability and feel a need to "insure” that our loans close, our ethical compass goes in circles. Control of that compass ( aka self control) is essential to earning an honest win. Self control has been written about since the beginning of time. It is mentioned numerous times in the Bible. Why is it so important? Because self control is difficult and cheating is easy. Weather it is on your diet, with the IRS, in your marriage or in a loan file; cheating can be fast and easy.
Sorry folks, but cheating is a loss of self control. The 1960s saying “If it feels good, do it!” may very well be the worst slogan in the history of mankind. It encouraged us to be weak by giving into temptation. Sometimes that temptation was to cheat to win or cheat to earn money. The sad thing is, today there is much cheating for power going on, and frankly speaking, cheating holds no power.
A non-cheating, self controlled person has control of their moral compass and can set their own direction. Now THAT is a real power! And power used wisely with thoughts of consequences in mind produces benefits both immediate and future. For comparison, check out business people who are genuinely interested in developing discipline rather than a big piece of market share. Even in this rough economy most are still here.
Cheating for money is a well traveled road. However, keep in mind, many roads lead to money. In our society’s ‘right now’ mentality it is easy to see why some people have a difficult time investing in their future by taking the more difficult, controlled route to fortune.
Recent mortgage market history has taught us that prosperity that lasts in mortgage lending has been found by those who took the more difficult route not the quick, “cheater’s detour”.
Quote of the day:
" Opportunity may knock once, but temptation bangs on the front door of the cheater forever. " Author Unknown
In the game of mortgaging, much like the children’s game of “Jacks”, there is a certain amount of luck and a fair amount of ability. But in mortgaging when we don’t trust our ability and feel a need to "insure” that our loans close, our ethical compass goes in circles. Control of that compass ( aka self control) is essential to earning an honest win. Self control has been written about since the beginning of time. It is mentioned numerous times in the Bible. Why is it so important? Because self control is difficult and cheating is easy. Weather it is on your diet, with the IRS, in your marriage or in a loan file; cheating can be fast and easy.
Sorry folks, but cheating is a loss of self control. The 1960s saying “If it feels good, do it!” may very well be the worst slogan in the history of mankind. It encouraged us to be weak by giving into temptation. Sometimes that temptation was to cheat to win or cheat to earn money. The sad thing is, today there is much cheating for power going on, and frankly speaking, cheating holds no power.
A non-cheating, self controlled person has control of their moral compass and can set their own direction. Now THAT is a real power! And power used wisely with thoughts of consequences in mind produces benefits both immediate and future. For comparison, check out business people who are genuinely interested in developing discipline rather than a big piece of market share. Even in this rough economy most are still here.
Cheating for money is a well traveled road. However, keep in mind, many roads lead to money. In our society’s ‘right now’ mentality it is easy to see why some people have a difficult time investing in their future by taking the more difficult, controlled route to fortune.
Recent mortgage market history has taught us that prosperity that lasts in mortgage lending has been found by those who took the more difficult route not the quick, “cheater’s detour”.
Quote of the day:
" Opportunity may knock once, but temptation bangs on the front door of the cheater forever. " Author Unknown
Tuesday, July 28, 2009
Robbed Of Trust
Kathy Sweeney is on vacation. Howard Weldon stepped up to fill in as our first "guest blogger" handling a very tough subject, the loss of trust when ethics are upside down.
Mr. Weldon is a graduate of the National Commercial Lending Graduate School of Banking at the University of Oklahoma where he received the designation of CCL, Certified Commercial Lender. He completed coursework at Williams College, Wharton School of Business, Duke University, advanced real estate at Harvard University and has been a guest lecturer at Carlson School of Business at the University of Minnesota.
Mr. Weldon served as President of Valley National Bank in Apple Valley, MN and as Vice President and COO of Fidelity Bank and Trust Co. in Burnsville, MN. He was also a Vice President with First Bank Edina in Edina, MN, where he headed various lending departments as well as being charged with Strategic Planning for the bank. He spent four years as a Commissioner on the Planning Commission for the City of Apple Valley, MN. Mr. Weldon served in Branch Administration for Peoples Bank in Rhode Island for over ten years. Locations included Providence Main Office, Wayland Square, Barrington and Johnston.
Howard wrote:
There was an article in the September 2006 issue of Harvard Business Review on trust in the workplace. That got me thinking about how important trust it is in marketing as well, and in fact, in any business relationship. One of the most important ingredients in building a thriving business is establishing a feeling of trust in potential customers. Without a degree of trust at least sufficient for the dealings at hand, customers are unlikely to give us their business.
The HBR article includes some gloomy statistics, starting with the finding that about half of all managers don't trust their company's leaders. In 2002, a University of Chicago survey found that four out of five (80%) Americans have little confidence in the people running major corporations, and a Golin-Harris survey found that almost 70% of Americans “just don't know who to trust anymore.” That paints a pretty grim picture, and I daresay things may be even worse today than in 2002.
The headlines are full of failed-trust issues: Formerly “respected business leaders” being jailed for illegal financial manipulations; companies accidentally revealing or losing sensitive customer data; and let's not even start talking about the political arena!
What is a person to do? What is a marketer to do? In order to win their business, we have to establish trust with our prospective clients and customers. On the one hand, with people feeling so robbed of trust today, we might ask how a company can possibly create the necessary trust with prospects in order to turn them into customers. On the other hand, we can speculate that with so few people and companies to trust, people are hungry for trust connections they can make.
Who Do You Trust?
To paraphrase the old Jim Croce song, You don't tug on Superman's cape, you don't spit into the wind. You don't pull the mask off that old Lone Ranger, and you never trust anyone who says “trust me.” Trust is something that has to be earned, not just asked for.
Apparently the folks at Perot Systems want to be known for being trustworthy, but aren't aware that saying they are isn't enough. The headline in their current advertisement says just “Trust.” The copy then begins, “At Perot Systems, earning our clients' trust is not just a goal – it is what distinguishes us in our industry.”
Does that make you inclined to trust them? I think not. Talking about being trusted or trustworthy is almost an ineffective as saying “trust me.”
So how do we build that necessary trust? There are a number of factors that influence both perceived trustworthiness and an individual's willingness to convey trust. Let's look at the latter first.
If a person is in a precarious situation, one outside his control or his comfort zone, he is likely feeling ill-at-ease to begin with. In this case, the stakes are already high for the prospect, so he is apt to feel at greater risk and less willing to bestow trust. In such a case, it may take the influence of several trust-inducing factors to gain the prospect's trust.
It is also important to realize that there are all sorts of people: some are risk takers, and some are risk-averse. The amount of risk the prospect sees being involved with bestowing trust on the person or company that wants his business is an important factor, and this will vary depending on the customer's risk tolerance.
Another consideration is that the prospect may have previously been let down by a company or advisor in whom he placed trust. This type of prospect is less likely to readily trust a new relationship until trust has been well-earned. “Once burned, twice shy,” is an expression we need to take to heart.
Important questions a prospect (truster) is likely to ask include, how reliable is the trustee? Do I get a sense of integrity from him? How reliable has he demonstrated himself to be? These are significant contributors to conveying trust.
Make a Promise, Keep a Promise
FedEx's "absolutely, positively overnight" promise (an old favorite of ours) communicated that sense of reliability and therefore trust, and it worked incredibly well for the company. If they are promising certain overnight delivery, we thought, they must really come through! In fact, the campaign only worked because FedEx was able to come through and keep that promise virtually every time.
Coming through on promises inspires trust. And if someone does more than just come through, so much the better. That is why the advice to under-promise and over-deliver is so wise. People are impressed when they get more than they expect.
I have purchased a number of computers from Dell over the years, and I found them to under-promise and over-deliver almost to an extreme. Several times the computer we ordered was delivered before the date they quoted as being the “expected shipping date.” Perhaps this is one of the reasons the company became so successful!
The opposite is devastating, though. A company that over-promises and under-delivers exhibits unreliable behavior, and unreliable behavior arouses distrust instead. It doesn't matter how well-intentioned the company – or the person – is, the fact remains that they didn't come through as promised.
Tell Me True
Good communication is another essential element in building trust. This seems obvious when you think about it, but it is something that businesses often ignore. Many businesses tend to use their communication budget – be it time or money – to solicit new customers rather than maintain current ones. They seem to think, well, we're doing what they hired us to do, so that is enough, isn't it? Often it is not.
Poor communication creates distrust, because without communication, we don't know if the trustee is doing anything on our behalf. At one time I had an investment advisor who called me every month or so just to touch bases and update me on the outlook for the securities I was invested in. I appreciated that communication and felt I was being taken care of. When he left the business, I switched to someone else who had come highly recommended. After the honeymoon period, though, I never heard from her unless there was a trade to discuss. Even when I told her I would like to hear from her more often, she basically told me that I'd hear from her when there was something to talk about. As a result, I felt that she was not paying much attention to my account and didn't have my best interests at heart. Needless to say, she lost my trust and my business.
Communication can be especially important in times of crisis. Someone who proactively communicates and is honest and forthright when things are rocky can engender a great deal of trust. Maybe that is because so many others treat us like mushrooms … you know, keep us in the dark and feed us so much manure!
Are You Interested?
How closely someone's interests are aligned with yours can affect your willingness to trust that party. If you both benefit from the same outcome, you naturally have the feeling that the other party will serve your interests, because her interests are being served at the same time.
In the case of a stock broker, there is little alignment of interests. The broker makes her money by buying and selling securities. The client only makes money if the securities go up in price. The broker has an interest in keeping the client from becoming so dissatisfied that he takes his business elsewhere, but only to that extent do her financial interests align with those of her clients. Therefore, this is a situation in which other trust factors (like good communication) come more heavily into play.
Competence is the final trust factor we will cover, although there are certainly other issues involved in engendering trust. Competence can be difficult to judge, especially when the trustee has some specialized or expert knowledge. How is the lay client supposed to judge the expert's competence?
Often it is really the ”perception” of competence rather than the actual that we assess. If the person has the trappings of someone who is successful in his area – reputation, accreditation, apparent success, referrals from other trusted sources, etc. – we believe he must have the necessary competence in order to have achieved those things.
This is why recommendations are so great, both for the prospect and the business. Since it is difficult to judge competence outside our own ken, and it is impossible to know if someone keeps their promises and comes through, a referral from someone we do trust imparts that feeling of trust to the party being recommended. As the business being referred, the referral from a trusted source legitimizes you. Naturally, you have to live up that as you build you own relationship with the client or customer, but you don't have to forge the initial trust from scratch as you would otherwise.
Trusted Brands
The need for trust is another reason why building your brand is so important. Brands that become well known become familiar entities, something like friends in their own right. We tend to trust our friends, so a familiar brand inspires trust as well. It is similar to getting a recommendation. A strong brand image can convey the perception of success, professionalism, competence – those qualities a prospect tries to judge before doing business with a company.
Mr. Weldon is a graduate of the National Commercial Lending Graduate School of Banking at the University of Oklahoma where he received the designation of CCL, Certified Commercial Lender. He completed coursework at Williams College, Wharton School of Business, Duke University, advanced real estate at Harvard University and has been a guest lecturer at Carlson School of Business at the University of Minnesota.
Mr. Weldon served as President of Valley National Bank in Apple Valley, MN and as Vice President and COO of Fidelity Bank and Trust Co. in Burnsville, MN. He was also a Vice President with First Bank Edina in Edina, MN, where he headed various lending departments as well as being charged with Strategic Planning for the bank. He spent four years as a Commissioner on the Planning Commission for the City of Apple Valley, MN. Mr. Weldon served in Branch Administration for Peoples Bank in Rhode Island for over ten years. Locations included Providence Main Office, Wayland Square, Barrington and Johnston.
Howard wrote:
There was an article in the September 2006 issue of Harvard Business Review on trust in the workplace. That got me thinking about how important trust it is in marketing as well, and in fact, in any business relationship. One of the most important ingredients in building a thriving business is establishing a feeling of trust in potential customers. Without a degree of trust at least sufficient for the dealings at hand, customers are unlikely to give us their business.
The HBR article includes some gloomy statistics, starting with the finding that about half of all managers don't trust their company's leaders. In 2002, a University of Chicago survey found that four out of five (80%) Americans have little confidence in the people running major corporations, and a Golin-Harris survey found that almost 70% of Americans “just don't know who to trust anymore.” That paints a pretty grim picture, and I daresay things may be even worse today than in 2002.
The headlines are full of failed-trust issues: Formerly “respected business leaders” being jailed for illegal financial manipulations; companies accidentally revealing or losing sensitive customer data; and let's not even start talking about the political arena!
What is a person to do? What is a marketer to do? In order to win their business, we have to establish trust with our prospective clients and customers. On the one hand, with people feeling so robbed of trust today, we might ask how a company can possibly create the necessary trust with prospects in order to turn them into customers. On the other hand, we can speculate that with so few people and companies to trust, people are hungry for trust connections they can make.
Who Do You Trust?
To paraphrase the old Jim Croce song, You don't tug on Superman's cape, you don't spit into the wind. You don't pull the mask off that old Lone Ranger, and you never trust anyone who says “trust me.” Trust is something that has to be earned, not just asked for.
Apparently the folks at Perot Systems want to be known for being trustworthy, but aren't aware that saying they are isn't enough. The headline in their current advertisement says just “Trust.” The copy then begins, “At Perot Systems, earning our clients' trust is not just a goal – it is what distinguishes us in our industry.”
Does that make you inclined to trust them? I think not. Talking about being trusted or trustworthy is almost an ineffective as saying “trust me.”
So how do we build that necessary trust? There are a number of factors that influence both perceived trustworthiness and an individual's willingness to convey trust. Let's look at the latter first.
If a person is in a precarious situation, one outside his control or his comfort zone, he is likely feeling ill-at-ease to begin with. In this case, the stakes are already high for the prospect, so he is apt to feel at greater risk and less willing to bestow trust. In such a case, it may take the influence of several trust-inducing factors to gain the prospect's trust.
It is also important to realize that there are all sorts of people: some are risk takers, and some are risk-averse. The amount of risk the prospect sees being involved with bestowing trust on the person or company that wants his business is an important factor, and this will vary depending on the customer's risk tolerance.
Another consideration is that the prospect may have previously been let down by a company or advisor in whom he placed trust. This type of prospect is less likely to readily trust a new relationship until trust has been well-earned. “Once burned, twice shy,” is an expression we need to take to heart.
Important questions a prospect (truster) is likely to ask include, how reliable is the trustee? Do I get a sense of integrity from him? How reliable has he demonstrated himself to be? These are significant contributors to conveying trust.
Make a Promise, Keep a Promise
FedEx's "absolutely, positively overnight" promise (an old favorite of ours) communicated that sense of reliability and therefore trust, and it worked incredibly well for the company. If they are promising certain overnight delivery, we thought, they must really come through! In fact, the campaign only worked because FedEx was able to come through and keep that promise virtually every time.
Coming through on promises inspires trust. And if someone does more than just come through, so much the better. That is why the advice to under-promise and over-deliver is so wise. People are impressed when they get more than they expect.
I have purchased a number of computers from Dell over the years, and I found them to under-promise and over-deliver almost to an extreme. Several times the computer we ordered was delivered before the date they quoted as being the “expected shipping date.” Perhaps this is one of the reasons the company became so successful!
The opposite is devastating, though. A company that over-promises and under-delivers exhibits unreliable behavior, and unreliable behavior arouses distrust instead. It doesn't matter how well-intentioned the company – or the person – is, the fact remains that they didn't come through as promised.
Tell Me True
Good communication is another essential element in building trust. This seems obvious when you think about it, but it is something that businesses often ignore. Many businesses tend to use their communication budget – be it time or money – to solicit new customers rather than maintain current ones. They seem to think, well, we're doing what they hired us to do, so that is enough, isn't it? Often it is not.
Poor communication creates distrust, because without communication, we don't know if the trustee is doing anything on our behalf. At one time I had an investment advisor who called me every month or so just to touch bases and update me on the outlook for the securities I was invested in. I appreciated that communication and felt I was being taken care of. When he left the business, I switched to someone else who had come highly recommended. After the honeymoon period, though, I never heard from her unless there was a trade to discuss. Even when I told her I would like to hear from her more often, she basically told me that I'd hear from her when there was something to talk about. As a result, I felt that she was not paying much attention to my account and didn't have my best interests at heart. Needless to say, she lost my trust and my business.
Communication can be especially important in times of crisis. Someone who proactively communicates and is honest and forthright when things are rocky can engender a great deal of trust. Maybe that is because so many others treat us like mushrooms … you know, keep us in the dark and feed us so much manure!
Are You Interested?
How closely someone's interests are aligned with yours can affect your willingness to trust that party. If you both benefit from the same outcome, you naturally have the feeling that the other party will serve your interests, because her interests are being served at the same time.
In the case of a stock broker, there is little alignment of interests. The broker makes her money by buying and selling securities. The client only makes money if the securities go up in price. The broker has an interest in keeping the client from becoming so dissatisfied that he takes his business elsewhere, but only to that extent do her financial interests align with those of her clients. Therefore, this is a situation in which other trust factors (like good communication) come more heavily into play.
Competence is the final trust factor we will cover, although there are certainly other issues involved in engendering trust. Competence can be difficult to judge, especially when the trustee has some specialized or expert knowledge. How is the lay client supposed to judge the expert's competence?
Often it is really the ”perception” of competence rather than the actual that we assess. If the person has the trappings of someone who is successful in his area – reputation, accreditation, apparent success, referrals from other trusted sources, etc. – we believe he must have the necessary competence in order to have achieved those things.
This is why recommendations are so great, both for the prospect and the business. Since it is difficult to judge competence outside our own ken, and it is impossible to know if someone keeps their promises and comes through, a referral from someone we do trust imparts that feeling of trust to the party being recommended. As the business being referred, the referral from a trusted source legitimizes you. Naturally, you have to live up that as you build you own relationship with the client or customer, but you don't have to forge the initial trust from scratch as you would otherwise.
Trusted Brands
The need for trust is another reason why building your brand is so important. Brands that become well known become familiar entities, something like friends in their own right. We tend to trust our friends, so a familiar brand inspires trust as well. It is similar to getting a recommendation. A strong brand image can convey the perception of success, professionalism, competence – those qualities a prospect tries to judge before doing business with a company.
Tuesday, July 14, 2009
Suspension Of Disbelief
Scene 1: Rural town department store circa 1970, before security devices
Male Shopper: He folder the sweater he was thinking of buying and with direct eye contact with me he stuffed it inside his parka, zipped the jacket up to his neck and with one more glance at me walked out of the store.
Store Clerk (me): ( panic thoughts ) Stop him! Wait…he is over 6’ tall, at least 250 pounds and is the star football player in our small college town. Ok then, tell the store manager quick! No, wait…he is this shoplifter’s uncle. My manager is NOT going to like me accusing a family member of theft. My word against his….this guy is going to get away with it.
On that day I vowed to never again compromise my values and to never again be so weak. Wrong is wrong and theft is wrong.
Fast forward 10 years and now I am a seasoned mortgage loan processor with many loan approvals under my belt. Suddenly I was faced with another business moral dilemma. An appraiser that was the favorite of one of our newest builder accounts began bringing appraisals prepared in pencil (remember, this is before computers!). When I mentioned to him I didn’t want penciled work ups he shrugged and said “Oh, I gave you my work up copy…I will get the final to you before closing.” It happened again on the next loan. Again I told him this wouldn’t work for my file. He said, “Look, these take out loans based on the construction loan are a moving target. I will get the final to you when the builder tells me how much value he needs to cover the transaction”.
Wrong! Even though he was our #1 client’s favorite appraiser he was dropped from our approved appraiser list that day.
I share these stories with you because we have all been there. Faced with a moral dilemma and sometimes feeling powerless we fold to acceptance. However, most companies today have a vehicle for us to voice our concerns. We can seek out the best avenue in our companies and ask for complete confidentiality if and when we are aware of wrong doing in our mortgage workplace. Please understand, I am not advocating running a muck and looking for every single thing that YOU think is wrong. Being too quick to judge is as bad as watching a guy steal a sweater. Just keep in mind, sometimes things are not what they seem. Generally accepted business practices and a good corporate ethics policy will guide you in telling right from wrong at work.
Most people do the right thing or are thinking they are doing the right thing. Sometimes it is a gentle word from a co-worker correcting a simple blunder that will change a person’s work habits to the good and improve their skills for the long term. Even workplace discussions about ethics will evoke renewed understanding in people who have before fostered an illusory sense of piety because they have not yet faced themselves and their tricky ways. And as always we should continue to look upon our fellow workers with love and understanding even when we ‘think’ there is something amiss. Sometimes it is *“that willing suspension of disbelief for the moment, which constitutes poetic faith” that we need to apply to allow correction in the workplace. Have faith in your fellow workers that they are an important ingredient in the renewal of ethics in the business world.
*That willing suspension of disbelief for the moment, which constitutes poetic faith.
Samuel Taylor Coleridge
Male Shopper: He folder the sweater he was thinking of buying and with direct eye contact with me he stuffed it inside his parka, zipped the jacket up to his neck and with one more glance at me walked out of the store.
Store Clerk (me): ( panic thoughts ) Stop him! Wait…he is over 6’ tall, at least 250 pounds and is the star football player in our small college town. Ok then, tell the store manager quick! No, wait…he is this shoplifter’s uncle. My manager is NOT going to like me accusing a family member of theft. My word against his….this guy is going to get away with it.
On that day I vowed to never again compromise my values and to never again be so weak. Wrong is wrong and theft is wrong.
Fast forward 10 years and now I am a seasoned mortgage loan processor with many loan approvals under my belt. Suddenly I was faced with another business moral dilemma. An appraiser that was the favorite of one of our newest builder accounts began bringing appraisals prepared in pencil (remember, this is before computers!). When I mentioned to him I didn’t want penciled work ups he shrugged and said “Oh, I gave you my work up copy…I will get the final to you before closing.” It happened again on the next loan. Again I told him this wouldn’t work for my file. He said, “Look, these take out loans based on the construction loan are a moving target. I will get the final to you when the builder tells me how much value he needs to cover the transaction”.
Wrong! Even though he was our #1 client’s favorite appraiser he was dropped from our approved appraiser list that day.
I share these stories with you because we have all been there. Faced with a moral dilemma and sometimes feeling powerless we fold to acceptance. However, most companies today have a vehicle for us to voice our concerns. We can seek out the best avenue in our companies and ask for complete confidentiality if and when we are aware of wrong doing in our mortgage workplace. Please understand, I am not advocating running a muck and looking for every single thing that YOU think is wrong. Being too quick to judge is as bad as watching a guy steal a sweater. Just keep in mind, sometimes things are not what they seem. Generally accepted business practices and a good corporate ethics policy will guide you in telling right from wrong at work.
Most people do the right thing or are thinking they are doing the right thing. Sometimes it is a gentle word from a co-worker correcting a simple blunder that will change a person’s work habits to the good and improve their skills for the long term. Even workplace discussions about ethics will evoke renewed understanding in people who have before fostered an illusory sense of piety because they have not yet faced themselves and their tricky ways. And as always we should continue to look upon our fellow workers with love and understanding even when we ‘think’ there is something amiss. Sometimes it is *“that willing suspension of disbelief for the moment, which constitutes poetic faith” that we need to apply to allow correction in the workplace. Have faith in your fellow workers that they are an important ingredient in the renewal of ethics in the business world.
*That willing suspension of disbelief for the moment, which constitutes poetic faith.
Samuel Taylor Coleridge
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