Trust

Trust.

It is a pretty astounding thing. That we function at all in society is a result of a vast interlocking system of trust. We approach a green light at the intersection and we trust the people approaching the red-light are going to stop since it is "our turn". There are a million other daily examples.

I was reading up on negotiating techniques today (I negotiate a lot in my work, finding ways to move through the conflicting interests that are common in any large complex organization) when I came across an article by Seth Freeman, a teacher of negotiation and conflict management at New York and Columbia universities.

The article was primarily about the current credit crisis, but it laid out six steps toward building trust very concisely and I thought I would take a few minutes and share them with you all here, just in case you ever need them. The high level framework of establishing (and re-establishing) trust is universal.

1.) Who can serve as a credible bridge of trust? If two parties do not trust each other, is there a third party that both parties trust that is willing to serve as a bridge of trust? Picking a successful mediator to establish that bridge of trust is often tricky. This most effective mediator is someone who a.) has a general interest in resolving the issue but b.) does not have a vested interest in a specific outcome.

2.) How can we most effectively watch or test the two parties ability to perform? In any issue of trust it is important to remember something. Both parties think they are in the right. Both parties have a legimate reason to not trust the other. Any effective monitoring solution must monitor both parties - to the satisfaction of each party.

3.) What incentives and penalties can best encourage performance? The parties will want to construct a system that rewards trustworthy behavior and penalizes untrustworthy behavior. Be as explicit as possible with the events or milestones that will trigger both behavioral modification alternatives.

4.) Build in mild, moderate, and strong trust supports within the incentive/penalty process. A range of behaviors allows the parties involved to begin the intervention process early and mildly if it starts to go astray - and at the same time allows both parties to have options, enabling them to feel in control of the process, and reducing the coercive feel of it.

5.) Does the solution satisfy all parties key interests? It is important that the solution be both simple (easy to comply with, easy to monitor, easy to enforce) and comprehensive (covering all of the key points at dispute). The vast majority of negotiations break down because one or both parties have one or more key interests that are not satisfactorily addressed in the solution. It is often very tempting in any negotiation to set aside the really sticky break points and address them later. This is almost always a mistake. Be sure and include them in your roadmap to establishing trust.

6.) What if the worst case scenario happens? It is always best to think of that worst case scenario before it happens. When they happen, our emotions, our ego, our pride, our feelings, all get tangled up inside of them. Take the time in the process to determine what the worst case scenario is and discuss how it will be addressed when it occurs (not if - when). If you prepare for the worst case scenario you will find that everything short of it is much easier to handle.

(Seth Freeman is currently writing a book called "Promises: Making Commitments More Reliable in Business and Beyond".)