In one of the larger studies we’ve seen on this subject, Accenture has published an analysis of over 7,000 firms on the factors that drive revenue and profitability. The study focused on key dimensions related to agility, the ability of the firm to respond to external challenges and adapt to new markets and challenges. AFter analyzing over 4 million data points, the study found that metrics related to Trust impacted the outcomes disproportionately.
In this review by Greg Satell, author of the book Mapping Innovation, Satell points to a number of interesting nuances in the report’s findings. Above all, events leading to a loss of trust can be devastating to a firm. The author points out that these impacts extend well beyond the firm’s customers to include other stakeholders such as employees, investors, and regulators – a point we’ve made ourselves here.
This damage impacts firms differently depending on their industry but at least as important is how a firm responds. The difference comes down to having a well planned and disciplined response as well as a strong foundation of trust built up ahead of time.
Read the Accenture Report: The Bottom Line on Trust