Tag Archives: business

How to Build and Sustain Business Trust

I recently listened to a TED Talks Daily podcast where Marcos Aguiar, an engineer and consultant, talked about business ecosystems that build and sustain trust. He began by asking how many people would allow strangers to pick up their children, drive them around town, drop them off at a remote location and pay them to do so. 

He then shared that this was the foundation of a company started by three women that began in one city and grew to others that transported children to and from after-school activities. This organization was built on what Marcos calls systemic trust – trust in the business or system.

From a study he conducted, he identified various factors that are used when building an organization based upon trust. Four of the factors are:

  • Access focuses on who is (and who isn’t) allowed to interact with the organization.
  • Incentives provide rewards and motivators for specific types of activities and behaviors the organization expects.
  • Transparency communicates a clear message to the consumer, and an example of this is reviews by customers about the business
  • Contracts allow parties to agree to terms and conditions of doing business together.

Marcos shared that there is not a single tool that can build trust by itself, and that most businesses seemed to use three to five of the tools he identified in the podcast. 

Another interesting concept he raised was that most businesses that build trust used both digital and non-digital tools when designing their systems. Think about this for a moment. When you buy things on online shopping platforms or use a particular online service to book your next trip, why do you trust one business model over another?

How do you build trust in your business with your customers, clients, contractors, or suppliers? What tools did you use to build and sustain that trust? How could you incorporate the tools that Marcos mentioned?

Does any of this resonate with you? Would you like the link to the original podcast? Drop me a note and let me hear from you!

Managing a Sustainable Business

Business Strategy

Earlier this month, I presented a webinar on Managing a Sustainable Business. As you look to grow your business and ensure your company’s longevity, it’s important to remember regardless of size, businesses exist for two main reasons:

Provide a product or service that meets an unmet need

Generate an acceptable return on invested resources.

If your product or service isn’t meeting a need, then the business most likely will not be able to generate an adequate customer base, and in turn not be able to generate a return on invested resources. The four factors important for a business to be sustainable include:

Market Positioning – A business needs to be in a market that is large enough to support growth regardless of the percentage of market share your company serves.  There are two methods you can use to grow market share:

generate new customers for your existing products or services

generate new products and services for your existing customers

Sometimes a business is not ready for the market due to limiting factors, or the market is not mature enough to purchase the products and services being offered. Having a clear understanding of the market is key to managing a sustainable business.

Leadership – A business needs to promote learning for everyone involved in the process of operating the organization. This includes:

learning about how the business functions

learning about the products and services the business offers

learning how to collaborate

learning how to be customer focused. 

Mentoring and coaching employees for succession and growth can have a significant impact on organizational culture. Keep in mind that open and authentic communication should also be part of the culture.

Operations – Having systems in place so that the business can operate effectively and efficiently are also important. One of the most important factors in operations is to make sure that internal resources are aligned with external demands. If you own a seasonal business, there may be times where inventories are lower than others, as well as staffing needs and resources.  Addressing the ups and downs of the business cycle should include a review of how work is being considered, and make sure that the right tasks are being incentivized.

Planning – While many businesses don’t work from both a strategic plan and an operating plan, a sustainable business knows the value of both. It’s important to understand the difference between a strategic plan and an operating plan:

A strategic plan maps the way

An operating plan works the day

Planning creates a map of how the business will address short and long-term goals, and should be structured enough to provide stability to the business and flexible enough to allow for contingencies.

I hope these highlights have been valuable, and please check out my upcoming webinars. If you have any questions or would like help managing a sustainable business please email me at jillian@wisewomenleadership.com.