Tuesday, February 21, 2012

The Bases

I remember the Yankees' Casey Stengel, the legendary manager who with the likes of Mickey Mantle, Whitey Ford and Yogi Berra won five straight world championships and added two others.   But there was also the Mets' Casey Stengel, the highly frustrated manager who took a collection of ball players who in their first year lost 120 ball games.  In spring training of 1962 perhaps sensing what was about to unfold during this inaugural pathetic year, Stengel took his players for a stroll around the diamond.  "Them are the bases!" Casey explained.

Ignoring, abusing or simply not recognizing the power and dynamic influence of the public trust whether we're in business, government, academia, the professions or any other pursuit is tantamount to futility and failure.  Yes,  we can fake it for a while but treading on trust, scorning what enabled us to succeed and behaving badly will ultimately lead to our downfall.

There are "bases" to consider and the most important base begins at "home plate"--TRUST!

The Chicago Booth/Kellogg School publishes quarterly the Financial Trust Index which measures confidence Americans have in the private institutions in which they invest their money.  The Index is calculated on a sample of 1,000 American adults.  The most recent results published for the quarter ended December 2011 reflects that less than 25% of Americans trust our overall financial systems and the institutions operating within.  The stock market is trusted by 16%, large corporations by 17%, banks and mutual funds by 30%.  Folks, this is absurd--the low degree of trustworthiness in the fundamental and integral parts of our financial and economic lifeblood.  Can I trust you?  No! is our resounding response. 

Another respected measure of trust in institutions is the Edelman Trust Barometer.  The 2012 published report gives some insight into the appropriate focus companies must have to engender trust.  Edelman based on a survey of over 5,000 individuals in 23 countries in the age group of 25-64 found that corporate reputation and credibility is based on quality products/services (69%), transparent and honest business practices (65%), simple trust in a company (65%) and how a company treats its employees (63%).  This information is not really a revelation to us--we've known this for as long as people have bartered, traded or sold anything.  But we apparently are in need of constant reminding--"them are the bases."

The good news is that there are many companies and firms--the vast majority in my opinion--who get it right and know the bases of delivering quality producs/services, behaving well and treating customers, suppliers and employees as treasured relationships.  I'm sure you know of some.  I invite you to share them with us.  Tell me about companies and firms which "get it" and conduct their business honorably.  These are the companies which recognize the "bases" and know the game begins and ends at "home plate"--TRUST!

Ad astra, per aspera

Thursday, February 9, 2012

The Question

In flight from New York to Los Angeles, the plane made an unexpected stop in Chicago.  The head attendant announced the approximate hour delay and upon landing passengers could deplane if they'd like.  Everyone did except for a blind gentleman who periodically took this flight and was well known to the pilots and attendants.

"John," said the pilot to the blind man, "would you like to stretch your legs as well?"

"No, but I would like for someone to walk my dog Charley who is getting a bit restless."

As the pilot, donning his sunglasses, came into the gate area with Charley the seeing-eye dog, you can imagine the startled look on the faces of those watching.  Many changed planes and some changed airlines.

"The Question" we all face numerous times a day and to which we all expect a clear answer or resolution is "Can I trust you?"  It might be restated or rephrased to "can I trust it?" or "can I trust the situation?" or other like queries.  And "the question" is not always asked and in fact more times than not is simply raised or processed in our thoughts and in our mental assessment of a person, situation, or circumstance.  Passengers observing an apparent blind pilot need not ask the question but most certainly will process the issue of trust.

Whether republican, independent or democrat there is one thing we can all agree on with President Obama as a part of his 2010 State of the Union address:  "...we have to recognize that we face more than a deficit of dollars right now.  We face a deficit of trust--deep and corrosive doubts about how Washington works that have been growing for years."   And it's not only Washington, it's Fannie Mae, Freddie Mac, insider trading by public officials, tax dollars thrown away on Solyndra, falsification and misrepresentation of company performance, sloppy/incompetent/prejudicial work by auditors and the list seems endless.

Trust drives markets, sustains relationships and nourishes confidence in business and government.  Where there is little or no trust, nations go to war, economic systems falter, homes are broken, and lives are shattered.  

Companies receive from us the ultimate and best we have to give--our trust, our confidence, and our belief in them.  All we ask in return is that they be trustworthy.  Trust begins with the simple belief in the representations made to us.  It's the kind of reliance we had in our parents, our grade school teachers and our friends.  We really want to trust.  Most of us are wired that way from infancy--which is when we learn that the world is a safe place and that others can be relied upon.  We simply want companies to do what they advertise; live up to their optimistic press releases, annual reports and 10-Ks, and behave properly in the marketplace.  We buy their products and services, they earn a fair and reasonable return on their investment and employees, management, stockholders, and the public are rewarded and go on happily.

We want to trust.  But what each of us wants to know is:  Can I trust you?  Are you worthy of my trust?

My commentary on "The Question" will be ongoing and will seek to hold companies, firms, and entities accountable for their representations to us the public.  When Ernst & Young (I'm an alum) boldly proclaims as part of their firm logo, "quality in everything we do," then we the public have the right, the obligation to test that representation.  And it's a great thing if I can really trust that statement based on appropriate firm behavior.  I just believe it's time for companies and firms to stand behind their statements which they want all of us to accept, believe and rely upon. 

Being a frequent flier I appreciate passengers not trusting an apparent blind pilot to safely get them to their destination.  As consumers and citizens we also must be vigilant and confirm our trust in companies, firms and in government through filters which measure actions against words.