The recession has done more than create a financial meltdown. It has created a crisis of confidence that infects every element of our society. Witness:
o Subprime mortgages
o Wall Street
o Goldman Sachs
o Toyota
o British Petroleum
o Transocean Ltd.
o Massey Energy
o Nearly 1000 point drop in the stock market on 5/6/10
And unfortunately this is just a partial list! Our confidence in institutions we once trusted is diminished. And it’s not like it’s only one company that has an issue, such as Merck during the Vioxx debacle. It’s much more pervasive.
So why should you care? Other than eyes wide shut and hope is not a strategy, you need to care because what is now unfolding can have a direct negative impact on you and your business. Why? Trust lost.
Trust lost creates cynics, skeptics, and potential buyers who do not believe you. The cynicism about businesses is palpable. Even the brand name business schools like Harvard, Yale, Northwestern’s Kellogg School of Management, Chicago and Michigan have either hired or are searching for new deans. According to the Wall Street Journal (5/6/2010), The “new deans … will be tasked with restoring the tarnished reputation of business schools.”
Businesses in general, are getting caught up in this and getting a bad rap. Trust eroded then generalized.
What should you do about it? First, recognize that the general and pervasive cynicism and loss of trust can have a negative affect on you and your business. While you see yourself as honest and trustworthy, don’t get lulled into believing that your potential customers will see you the same way, at least at first. Sure, we would like trust to be assumed, though it seems that there is more of a calling for demonstration to earn it. Ignore this at your own peril, as complacency will create a barrier to proactive behavior.
On Thursday, we’ll offer Quick Tips on what you can do.
Copyright 2010 Kubica and LaForest
If you enjoyed this piece, please consider sharing it!
