Why You Need Trust to Do Business: Crash Course Business - Soft Skills #1 | Summary and Q&A

TL;DR

Trust is essential in business as it forms the basis for relationships, promotions, and job offers, and can make or break professional connections.

Key Insights

• 🕶️ Trust forms the basis for working relationships, promotions, and job offers, and it affects whom we trust and who trusts us.
• 🤔 Trust involves vulnerability and being able to rely on others, and it can make or break professional relationships.
• 🚫 Lack of trust can close doors on opportunities and prevent others from seeing you as trustworthy.
• 💼 Cognitive trust is based on competence, intent, and integrity, and it is earned through demonstrating your skills and consistency.
• ❤️ Dispositional trust varies from person to person and is influenced by risk aversion and previous experiences.
• 🧩 Trust is context-dependent and can be specific to certain areas or tasks.
• 🏢 Building trust takes time and effort, and it is important to act professionally and think about how your actions will be perceived.
• 💰 Building a positive reputation earns you credits in the trust bank, but mistakes can deplete those credits and need to be carefully managed.

Transcript

Picture this: a businessperson. What do you see? A grey suit in an office job? A former advertising agent who quit her job to be a freelance YouTuber? Maybe you picture someone who looks like you. Or maybe you don’t. But when it comes down to it -- everyone’s a businessperson. Like, have you ever decided on a chore schedule with roommates? That’s a... Read More

Questions & Answers

Q: How can trust impact professional relationships in the workplace?

Trust plays a crucial role in fostering collaboration and efficiency in a team. When trust is present, coworkers rely on each other to get their jobs done, creating a smooth work environment. However, if trust is lacking, it can lead to an imbalance of work and a challenging work environment.

Q: How can one build cognitive trust in a business setting?

Cognitive trust can be built by demonstrating competence, intent, and integrity. It is important to showcase your skills, be reliable, and consistently follow through on your commitments. By doing so, you can earn the trust of others and make informed decisions about whom to trust.

Q: What is the significance of dispositional trust in business relationships?

Dispositional trust refers to a person's baseline level of trust in others. Some individuals may trust others automatically, while others may require more evidence before placing their trust. Understanding dispositional trust can help manage expectations when building new relationships and allow for a more gradual development of trust.

Q: How can mistakes impact trust?

While no one is perfect, mistakes can undermine trust. Serious mistakes can quickly deplete the trust built, while smaller mistakes can be remedied with time, patience, and a focus on delivering on promises. It is crucial to act professionally, treat others with respect, and take responsibility for mistakes to maintain trust in business relationships.

Summary & Key Takeaways

• Trust is fundamental and challenging in business, as it forms the foundation for working relationships, promotions, and job offers.

• Cognitive trust, which is based on competence, intent, and integrity, is one of the essential components of trust.

• Dispositional trust, a person's baseline level of trust in others, can vary, and building trust takes time and effort.