CIPD Cultivating Trustworthy Leaders 2014
CIPD Cultivating Trustworthy Leaders 2014
CIPD Cultivating Trustworthy Leaders 2014
April 2014
To increase our impact, in service of our purpose, we’re focusing our research agenda on three core themes: the future
of work, the diverse and changing nature of the workforce, and the culture and organisation of the workplace.
WORK WORKFORCE
Our focus on work includes what Our focus on the workforce includes
work is and where, when and how demographics, generational shifts,
work takes place, as well as trends attitudes and expectations, the
and changes in skills and job changing skills base and trends
needs, changing career patterns, in learning and education.
global mobility, technological
developments and new ways of
working.
WORKPLACE
Our focus on the workplace includes how organisations are
evolving and adapting, understanding of culture, trust and
engagement, and how people are best organised, developed,
managed, motivated and rewarded to perform at their best.
About us
The CIPD is the professional body for HR and people development. We have over 130,000 members internationally
– working in HR, learning and development, people management and consulting across private businesses and
organisations in the public and voluntary sectors. We are an independent and not-for-profit organisation, guided in
our work by the evidence and the front-line experience of our members.
Cultivating trustworthy leaders
Acknowledgements
This report was written by Professor Veronica Hope-Hailey and Dr Stefanie Gustafsson, with help from Dr Graham
Abbey, Vanessa Robinson and Claire McCartney.
The research team were:
Director – Professor Veronica Hope-Hailey, University of Bath
Dr Graham Abbey, University of Bath
Juliet Daye, University of Bath
Charissa Freese, Tilburg University
Dr Stefanie Gustafsson, University of Bath
Professor John Hailey, University of Bath
Claire McCartney, CIPD
Tara Rees-Jones, University of Bath
Vanessa Robinson, CIPD
Anne Stevenson, Robert Gordon University
We would very much like to acknowledge the help of Steven Weeks (NHS Employers) in facilitating access to NHS
trusts.
Organisational acknowledgements
We would like to thank the 13 organisations that gave us access to their people and to those people for taking the
time to speak so openly about this important but personal issue:
Aberdeenshire Council
ABN AMRO
BAE Systems
BBC Worldwide
Church of England
Day Lewis Pharmacy Group
GKN
Her Majesty’s Revenue & Customs
John Lewis Partnership
Kingston Hospital NHS Trust
Oxford University Hospitals NHS Trust
Serco
Unilever
Contents
Executive summary 2
Introduction 6
References 61
Practice and
policy
High Balanced
process but approach −
impersonal high process
and non- and strongly
relational relational
Relational
Type 1 Type 2
Emphasising ability Emphasising benevolence
Trustworthiness
Type 3 Type 4
Emphasising integrity Emphasising predictability
As a researcher, it is always pleasing troubled waters and reassure the employees. However, there are still
to be asked to extend a piece of general public. plenty of job opportunities and
research that you have already high salaries for the best talent
published. A chance to explore an Continued prosperity for the or the very experienced ‘C suite’
issue in more depth is a special broader European population is executives. Elitism thrives, resulting
opportunity. So, I was thrilled to no longer assumed as it was at in high incomes and multiple job
be given funding by both the CIPD the start of the new millennium. opportunities for top executives or
and the Higher Education Funding Ten years ago the then PM, bankers. This only widens the gap
Council to extend my first piece of Gordon Brown, had assured us between high-earners and the rest
research on trust. The research team that ‘By working together Britain of the workforce, which breeds a
has again worked in partnership had a new found and hard won resentment and jealousy amongst
with the CIPD research team in terms stability’ – a stability that was then the ‘have nots’. Disappointed
of data collection and data analysis destroyed by the financial crisis graduates in the UK struggle to find
and interpretation. We have looked and its aftershocks. People are still the jobs they expected to get, jobs
at 13 different organisations across shaking from that economic fallout. that were once easily accessible to
many different sectors: the John The Spanish, Italian and Greek previous generations of graduates.
Lewis Partnership, Aberdeenshire economies have been under severe Public sector cuts erode local
Council, ABN AMRO Bank, BAE pressure, a pressure threatening at and national service provision
Systems, BBC Worldwide, Church of points to destabilise the European as the planned staged rollout of
England, Day Lewis Pharmacy, GKN, Community. At the same time, government cuts continues. All of
Her Majesty’s Revenue and Customs, there is a slow, too slow some these dampened expectations breed
the NHS, Serco and Unilever. might argue, recognition amongst a sense of uncertainty, a sense that
the European public that the things will never be quite the same
It is two years since we wrote the economies of the East are growing as they were before the financial
first report on trust for the CIPD: stronger and the locus of economic crisis.
Where has all the trust gone? control may be gradually shifting
(CIPD 2012). Yet trust still remains away from the hitherto prosperous In essence, people are not sure
centre stage. Levels of uncertainty West. The global restructuring that what the future holds for them.
amongst the general public remain was ongoing before the financial There are heightened levels of
high, with ‘trust in business leaders’ crisis continues with multinationals uncertainty. In summary, this has
receiving a rating where only 18% continuing to close unprofitable been caused by:
of people believe they are telling units (with the consequent loss
the truth and with politicians rated of jobs in the West) in favour 1 The erosion of certain
even lower at 13% (Edelman 2013). of acquisitions, joint ventures, unspoken but taken-for-granted
The CIPD Megatrends survey of strategic alliances or greenfield sites assumptions. These assumptions
December 2013 recorded only 37% in the East. A few multinationals included the idea that iconic
of employees trusting their senior are reported by the media to be institutions and respected
managers. avoiding paying tax within Western individuals were guided by a
societies in which they enjoy good set of values that embodied a
Scandals of fraud and misconduct profits. The rapid emergence of reliable sense of moral certainty.
persist within the banking sector the Occupy movement in 2011 These assumptions have been
and utility companies, with was symbolic of some of the brought into doubt by specific
individual journalists, media stars antagonism felt towards ‘big scandals that have been amplified
and politicians also coming under business’ in certain echelons of by coverage in the media.
scrutiny. These scandals come in society (Moran 2013). 2 A perception that for the great
waves despite concerted and sincere proportion of people their
attempts by business, church and Career prospects ‘ain’t what they standard of living has dropped
political leaders to smooth the used to be’ for the great mass of while their working lives intensify.
Report 1
March 2012
Where has all the trust gone?
Key finding:
The importance of senior leaders
Report 2
April 2014
Cultivating trustworthy senior leaders
Report 3
Autumn 2014
Experiencing trustworthy leaders:
working for and with trustworthy leaders
The pillars of trustworthiness of a combination of selection they say but also you’d find
The literature tells us that practices. Organisations that seem it hard to empower others if
trustworthiness is defined based to think of trustworthiness mainly you didn’t build trust. You’d
on four characteristics: ability, as a way of behaving often do also find it hard to run a team
benevolence, integrity and not directly refer to the concept well or be a member of a
predictability (Mayer et al 1995, of trust in the various stages of team well if you didn’t build
Dietz and Den Hartog 2006). the HR lifecycle. Instead, it is for trust. So, I actually think it’s
These four characteristics form the example implicitly embedded in the really important but it’s not
foundational pillars of trust: leadership behaviours that these until I started to properly think
organisations see as desirable. Trust about it that it’s actually the
• Ability describes perceptions
of leadership competence in
doing their job or fulfilling their
role.
here is more about the how of
leadership rather than the what. As
such, it focuses on behaviours and
ways of doing rather than on the
Worldwide)
’
one thread. (Manager, BBC
Leadership selection,
development and assessment
practices
interview stage and continue to play
an important role in the daily social
interactions and work relationships.
Rather than talking explicitly about
‘‘ I think it comes out of the
behaviours, of the leadership
behaviours so I think it falls as
part of what we’re assessing
In our study we were able to trust, it runs through HR practices although we don’t articulate
identify a range of practices and like a red thread: it as clearly as that. But trust,
processes that organisations use as an organisation, trust is
in the selection, development and
assessment of trustworthiness of
their current and future leaders.
In some of these trust is explicitly
‘‘ I’d say yes it probably does,
and more so than we
probably thought we had,
as I said before, a list of
important to us; it’s what we’re
built on basically but if I had to
articulate how do we assess,
well we don’t assess trust in
stated. In others it seems more competencies that we look a nice neat package, but it’s
implicitly embedded. In the first at around communication there.
part of this section, we will provide and empowerment of others
a general overview of these, and relationship-building but My perception is that we
emphasising practices that seem trust, kind of, runs throughout just take trust for granted in
particularly innovative compared all of it. I don’t think we’ve what we do because of who
with others. sat down and said ‘are they we are. And I think that’s
trustworthy?’ at an interview. underlying in those behaviours
1 Selecting trustworthy leaders
Our case organisations make use
But I think it’s that feeling
you get from someone, what
is my personal perception.
(Manager, John Lewis)
’
10 Cultivating trustworthy leaders
This is also what we saw in Day Innovative practice competencies, skills and behaviours
Lewis. Day Lewis is the UK’s and which are underlying leadership
Europe’s largest independently Values-based interviewing (VBI) development. Organisations do this
owned pharmacy chain and includes follows a similarly in-depth in different ways. One particularly
more than 200 pharmacies across approach as interviewees are innovative example is that of Serco.
the country. At Day Lewis trust asked about their beliefs and
is very important given its family behaviours. As such it helps to
business structure. Trustworthiness identify candidates who are a Innovative practice
is assessed at recruitment stage by ‘better fit’ with the organisation
focusing on candidates’ ‘values and based on them having the Living the values (Serco)
attitudes’. ‘right values’. In turn, VBI helps describes how the organisation
to recruit those that are likely to has created global consistency
In addition, there were also three be more engaged in their roles across all parts of the
particularly innovative selection as they fit with the culture of organisation by building a
practices. This includes John Lewis the organisation: ‘candidates common language for what
Partnership’s (JLP) use of whole- have the right attitude; they it means to be a leader at
person interviewing, Oxford stay longer and are positive’. Serco in its new leadership
University Hospital’s (OUH) piloting model. This is put into practice
of values-based interviewing (VBI) Selection involving stakeholder through supporting materials
and selection involving stakeholder engagement describes how and resources which help the
engagement used by the Church of in some public or non-profit organisation to communicate
England (CofE)1 and OUH. organisations such as the and create meaning around
Church of England and the leadership. Engagement case
Oxford University Hospital studies have been developed
Innovative practice Trust external stakeholders are to identify best practice and
involved in the selection process highlight the how of leadership.
Whole-person interviewing
of future leaders. This may Here stories are presented and
describes an interview
involve the larger congregation shared which are supposed to
technique where candidates
such as in the case of the CofE, exemplify what it means to be
are not only asked in relation
who are consulted through living the values of Serco:
to previous experiences in
the Church newspaper. In the
terms of work in order to test These people are Living the
case of OUH, in the selection
their capability or competency, Values; you just need to read
of nurses, stakeholder events
but also to share stories from the case study and you think,
have been carried out with
their personal life: ‘You’re ‘well if you want to know
staff and local groups to gather
asking for examples both in that the say/do gap is about
feedback, which is provided to
the work life and in the home integrity of values hanging
and taken into account by the
life. You’re looking at the on the wall and being
interview panel.
range of their career and not behaved, here are some
just their permanent job.’ This great examples’. (Senior
allows recruitment decision- Manager, Serco)
makers in John Lewis to assess 2 Developing trustworthy leaders
a person holistically in order Generally, there is a range of
to ‘allow the whole light and practices in place that organisations There are other examples of
colour of the individual to use to develop trustworthiness organisations as well who
come through’. in their leaders. These include are concerned about creating
leadership models, development a common set of leadership
programmes, action learning competencies in their development
and master classes. These can be practices of trustworthy leaders.
grouped into two common themes: This includes the Church of
aligning leadership competencies England, which relies on a common
and individualised development. language around leadership as
1
Our study is based on interviews senior leaders engage in what
with senior leaders in one diocese, and Aligning leadership competencies they call ‘development through
not all these practices are universal describes organisational efforts pilgrimage’. This describes how
throughout the Church of England. to create a common set of leaders are developed through
change.
’
On the other hand, we also
identified a set of practices that
to develop trustworthiness in their
leaders.
Innovative practice
In the case of Unilever, trust is
not explicitly stated in any of its
performance assessments. However,
by assessing the ability of its leaders
are concerned with the individual in having achieved strategic change
development needs of each leader Live 360-degree feedback goals, Unilever evaluates what
and asking leaders to take initiative (BBC Worldwide) describes they see as central to trustworthy
for their learning. This helps to a particularly innovative leaders, ability:
cultivate trustworthiness through development practice where
developing a greater awareness
of oneself as a leader and one’s
development needs, as the best
leaders ‘tend to be the most
future leaders of their Inspire
programme participate in a
live feedback session of up
to eight people consisting
‘‘ I think ability with assessment
is very much about what
they’ve done. So, your abilities,
that competence, it’s what
confident themselves, most self- of peers, people they report they’ve actually delivered so
aware’ (Senior Manager, Unilever). to and others who report to if you look at any of your
them. Candidates here receive interview techniques, you’ll
This is for example the case in JLP, direct and live feedback, which always be looking at what did
where leaders are encouraged to is particularly ‘powerful’, they need as opposed to what
take initiative for self-development: ‘insightful’ and ‘informative’ for did they support, what did they
the participants. The feedback actually deliver, what was the
‘‘ We do encourage self-
development, personally
own development as
generated is then incorporated
into the candidate’s individual
development plan.
impact of what they delivered.
So, for me, that’s all about
ability. If you’re looking at it
opposed to anything else.
(Senior Manager, JLP)
’
Similarly, ABN AMRO, our financial
3 Assessing and rewarding
trustworthiness
from a promotion perspective,
that ability will come through
in the delivery of the 3+1s
[three business objectives and
case study organisation, uses an In terms of performance one development objective],
e-survey in order for their leaders to assessment, the majority of the stretch of the 3+1s, etc. So,
assess their individual development
needs:
our participating organisations
have a range of assessment
practices in place. This includes
(Senior Manager, Unilever)
’
that’s a relatively easy one.
ABN AMRO)
’
programme. (Senior Manager, balanced scorecard (Serco) and
performance frameworks (BAE).
Only some of our participating
meet performance targets, or
predictability, is seen as an indicator
of trustworthiness. A central
Summary
develop and reward. All of these term incentives. They’re applied As this shows, our case organisations
are centred around BAE’s central to the population of leaders. make use of a range of practices
leadership mission: leading for total Plus the benefits that are to select, develop and assess
performance.
’
sharing. (Senior HR Manager,
Aberdeenshire)
’
gas. (Senior Manager,
Aberdeenshire)
HMRC)
’
you can trust. (HR Manager,
In this section we look more closely are underpinning work. As such, knowledge. One of our participants
at the organisational ecosystem that leaders should know ‘people in the refers to this in the following way:
allows trustworthy leaders to thrive. organisation’ as well as ‘people
Types of trustworthiness
Let us begin with the variations in
the meaning of trustworthiness.
outside their organisation’ who may
be central to their department and
task.
‘‘ I think it’s about… trusting,
having confidence in somebody
else’s knowledge, their skills,…
so that you don’t – you’re
Based on the characteristics of One of the examples for this type not second guessing them all
trustworthiness, we distinguish
these four types (Figure 3).
Type 1 Type 2
Emphasising ability Emphasising benevolence
Trustworthiness
Type 3 Type 4
Emphasising integrity Emphasising predictability
Manager, Unilever)
’
what they’re doing. (Senior
‘‘
Potential risks of Type 1
Senior leaders have the their employees’ best interests at
responsibility of building • A too strong emphasis on heart, combined with an aura of
winning teams, high- numerical data may ignore genuineness:
performing teams. So the the wider story of the
‘‘
perform bit is objective-setting individual. A trustworthy person, I mean
… being able to articulate how • A too strong focus on ability I think it’s very interesting
we go about differentiation of may lead to undesirable we’ve got a new Archbishop,
performance, how we classify cultures as leaders try and I think he’s commanding
performance ratings themselves, to emphasise individual quite a lot of trust, people are
so we understand what good achievements over collective feeling they can trust him. I
looks like. We understand goals. think it’s about understanding
what exceptional looks like. that someone has your best
You have to hit everything and interests at heart, that they
exceed everything to become Type 2 – Emphasising benevolence really care about what happens
Systems)
’
exceptional. (Manager, BAE
’
entry [to leadership]. satisfaction of its members. taking care of members of the
’
reinforce the family ethos.
(Investors in People Report, Day
Lewis)
trustworthy leader, participants
suggest the following:
is deemed particularly important
in situations of crisis. Also, many
articulate the need to increase their
organisations could particularly to go – and she’s got very However, it seems as if integrity
experience low work accountability good leadership skill, so she needs to be accompanied by a
from individuals. Members of Day will set the direction. So level of care and compassion in
Lewis voiced this concern, for you’re very clear the path you delivering difficult messages and
example, but are actively addressing need to follow, rather than finding the appropriate channels.
this through various structural perhaps being shrouded in Trustworthy leaders need to also
changes. As a result, organisations mystery. Even though she have the ability to deliver difficult
such as JLP and Day Lewis are sits away from us, she’s very messages in the appropriate way
concerned with developing a more approachable and she’s also using the right means. One of our
adult relationship between their very clear on what she’s trying participants from Aberdeenshire
members as performance and ability to achieve. She’s just open Council describes this ability as
have started to play a stronger and honest with us, which telling people in a ‘gentle way’
role in leadership selection and immediately just creates and in ‘a way they can handle it
development.
An additional example of an
and absorb it’. As such, there may
be a risk that organisations ignore
the other pillars of trustworthiness
such as ability, benevolence and
• A too strong focus on care
and compassion may result organisation that emphasises predictability when putting too
in a paternalistic culture integrity in their interpretation of much emphasis on integrity.
where work accountability trustworthiness is HMRC. Following
and ownership is low. a challenging couple of years,
participants described how they
• High benevolence may lead trust the new leadership team
to low acceptance of process as they are planning ‘big change
and practices. with the right intentions’. Having
’
• May risk ignoring other processes and procedures. succeed. (Senior Manager,
pillars of trust such as Aberdeenshire)
ability, benevolence and However, focusing too much
‘‘
predictability by focusing too on predictability runs the risk of …hold others accountable and
much on integrity. stifling innovation and personal themselves but on the other
development, as a senior manager hand also allow people to try
in BBC Worldwide suggests: and learn and make mistakes.
Type 4 – Emphasising predictability So although we hold people
Aberdeenshire Council is one
of our case organisations
where predictability is seen
‘‘ …that’s almost seen as a
negative that people can’t
be spontaneous. They can’t
accountable and that to be a,
you know, theme, they should
also have the space to make
to be important. This diverse
organisation, which employs
people in a wide variety of roles,
emphasises predictability in the
’
innovate.
’
being punished for it. (Senior
Manager, Unilever)
context of behavioural consistency. employees less space to explore and Potential risks of Type 4
Here, leaders are seen as make mistakes. As such it reduces • A too strong focus on
trustworthy when they ‘do what the possibilities for empowerment predictability may stifle
they say they’re going to do’. which are perceived to be important innovation and employee
by many of our respondents in empowerment.
In addition, predictability is leadership development:
strongly linked to consistency
in performance. This includes
expectations in terms of delivering
on deadlines and standards that
have previously been agreed
‘‘ …so, we are risk-aware, and
we will take risks, where
appropriate – and help
employees to be creative
Factors influencing the meaning
of trustworthiness
We identified some overarching
similarities in our case organisations
upon. At an organisational level, and innovative and take a that enable us to group them
predictability is ‘one thing the risk. Don’t punish them for based on their definitions of
council is good at’ as its members doing things differently, praise trustworthiness. We came up
Industry
context
Factors
External
Organisational
relationship
context
context
Trustworthiness as explicitly
JLP, the organisation’s future vision
is to become more commercially
and capability focused, which puts
greater emphasis on ability looking
‘‘ It is about accountability
actually. It’s how to be
challenged without being
defensive because as soon
stated and implicitly embedded
In addition to distinguishing
between the various meanings that
organisations seem to propose in
Explicity stated
Trustworthiness
Implicity embedded
Capability
Trustworthiness
Behaviour
’
enhances their ability. (Senior
Manager, Unilever)
When we look at the interplay • by rewarding behaviours that is a suggestion that too strong a
between trust and leadership are perceived to be trustworthy, reliance on practices may result in
selection and development trust is recreated an environment where there is low
policies and practices, we realise • practices help to build evidence trust in people.
that most of our participating by formalising ‘gut feel’ and
organisations suggest that their ‘cross-referencing’ sources. In addition, there is also a concern
practices help to increase trust that as organisations introduce
by either strengthening the Strengthening trustworthiness more practices and policies, there
individual trustworthiness of their of organisations is little possibility for individuals
leaders and/or strengthening the Similarly, HR practices may help to earn trust. As we have seen
trustworthiness of the organisation to increase trustworthiness at an before, trust is built as individuals
itself. We summarise some of the organisational level by: are empowered and given space
themes in the following sections. for experimentation. However,
• creating platforms for when an organisation becomes
Strengthening trustworthiness conversations and open dialogue too concerned with adhering to
of individuals about trust policies, this space ceases to exist.
HR practices may help to increase • building trust relationships Similarly, policies and practices
individual trustworthiness in various across the organisation by only ‘come to life’ when they
ways: creating cross-team exchange are implemented by people who
line manager involvement believe in them being good for the
• selection techniques such • increasing consistency, organisation and the ‘right thing
as evidence-based, values- objectivity and transparency to do’, rather than a box-ticking
based and whole-person- through selection and exercise.
based interviewing, referrals development practices leading
as well as assessment centres to increased perceptions of So what then seems to be
build trustworthiness through integrity, inclusivity and hence important in order to create
increasing evidence about the higher levels of trust an environment of trust and
individual • receiving external recognition trustworthiness is that practices
• development practices such for practices helping to build and policies evolve alongside the
as action learning increase organisational trustworthiness personal and relational side of trust.
leader self-awareness around internally and externally. Trust is about accepting vulnerability
weaknesses and strengths which of someone else and, as we have
may build trust in oneself as When policies and practices shown in our previous report
well as the human element of challenge trust levels (Where has all the trust gone?), is
leadership While overall most of our primarily relational.
• development practices such participants described a positive
as master classes and training relationship between practices and However, a strong relational focus
courses increase consciousness trust levels, some also expressed may also challenge trust levels.
of the needs of others, such as their concern about a possible For example, when manager and
the need to trust and be trusted negative relationship between the employee are personally close,
• assessment practices such two. This is particularly the case this may hinder their ability to
as 360-degree feedback when there are perceived to be have those difficult and ‘hard
increase trust in individual ‘too many’ rules and regulations, conversations’, because when it’s
leaders by providing evidence which could be interpreted by ‘relationship-based people want to
of trustworthiness as well as individuals as ‘we don’t trust you be liked and it’s hard to find a way
creating trust relationships to do things’ or ‘we command to do that tough conversation in a
through open exchange and and control you to make sure the way that you’re still liked’ (Senior
sharing things are done’. As such, there Manager, BBC Worldwide).
Relationally embedded
Forms of trust
In other cases, a strong Some of our participants suggest The extent to which an organisation
relational focus may result in low that what is needed is a balance may favour one or the other
levels of accountability for one’s between these two by, for example, depends on a variety of factors,
work. letting go and taking control. such as its industry, culture,
Others talk about having a bit of history and so forth. For example,
Based on our research, we thus both: on the one hand a culture we may expect manufacturing
propose that organisations may where ‘trustworthiness becomes or technology organisations to
draw on two different forms of an automatic and the norm’ and emphasise policies and practices as
trust: relationally embedded trust on the other a framework in place well as safety, as we have seen in
and practice- and policy-driven that ‘ensures people act in a certain the case of BAE Systems. Others,
trust. Depending on various way that then delivers trust as an based on their legacy and type of
contextual factors, one of these outcome’ (Senior Manager, BBC organisational structure, may value
may be dominant. Worldwide). relationships more ‘by nature’, such
Figure 8: Getting the balance right between practice and policy and relational trust
Practice and
policy
High Balanced
process but approach −
impersonal high process
and non- and strongly
relational relational
Relational
Summary of HR practices
Summary of HR practices
Summary of HR practices
Figure 9
Setting Direction
Seeing the Big Picture
Changing and Improving
Making Effective Decisions
Summary of HR practices
• face-to-face interviews
• telephone interviews
• documentary evidence from
companies.
In 13 organisations we conducted
53 interviews lasting between an
hour and an hour-and-a-half with a
selection of informants, including:
• senior HR practitioner
• senior HR manager or director
operating at strategic level
• senior business manager or
director including CEO, general
manager, heads of department,
senior strategists.
Issued: April 2014 Reference: 6525 © Chartered Institute of Personnel and Development 2014