Leadership - What Really Matters: A Handbook on Systemic Leadership (Management for Professionals)

(C. Jardin) #1

2.3.3.2 Why Trust?


The old means of control, power and money, are no longer sufficient to coordinate
the actions of knowledge workers in modern organizations and rapidly changing
markets, continues Sprenger. Because everything depends on the cooperation of
employees it cannot be controlled by the old measure of inspection. Here trust has
to be added as a new means of control. “Trust is the key factor in successful
management” (Sprenger 2002b, p. 25).
In today’s world, trust has become the key basis of organizations. Globalization and
information technology have produced serious changes in the economic system and the
labor market: strategic alliances, outsourcing, agency agreements, new public manage-
ment, internationalization, franchising, telecommuting, mobile working, network
organizations and virtual enterprises have sparked a change from closed systems
clearly isolated from their environment to open and flowing systems, systems that
call for physical and mental mobility. “Blind” trust across thousands of miles, and
extended towards people whom we’ve never met in our life makes this system work.
“Trust allows coordinated action between partners who do not know each other. It is a
substitute for knowledge of others and their motives” (Sprenger 2002b, p. 28).
The need for trust is steadily growing, while the traditional sources of trust fall
by the wayside, as it can now develop on the basis of less and less familiarity. In
the modern business world trust is no longer based on reputation, experience, and
familiarity. This is the reason why trust is indispensable as an organizing principle.
In today’s markets, organizations have to be highly flexible and willing to change.
In the process of transformation from rigid hierarchies towards flexible, customer-
focused approaches, trust is essential. Empowerment, business process optimization,
flat hierarchies, teamwork and learning organizations only work on a foundation of
trust, according to Sprenger.
In most cases the employees know that change is necessary if their company
wants to survive. However, they support the change process only if they trust
that the changes take place not only to their disadvantage. The management has
to convince them that it also has their interests in mind. But among employees there
is encrusted black and white thinking that prevents them from having the necessary
trust: socialist slogans of “the exploited down here” against “the capitalists at the
top” do not help. The picture of executives that Sprenger presents in his books even
exacerbates this, in my opinion.
Trust also facilitates the necessary reorganization of enterprises, since changes
lead to uncertainty, fear and resistance in most people, according to Sprenger. But
every organization needs to transform itself and adapt to the changing environmen-
tal conditions in order to survive. Only in a climate of trust and security can old
routines and structures be dismantled in a short time frame. Only in such a climate
can managers initiate a process of change that is supported by the employees on all
levels from the start.
A leader who understands how to establish trusting relationships – not only
internally but also externally – is of great advantage for an enterprise, as trust creates


92 2 Occupation or Calling: What Makes for Good Leadership?

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