Lecture on Trust and Leadership

Key Issues in Modern Capitalism

• Trust indices are at an all-time low due to the recession.
• Lack of trust in various institutions:
  • Lawyers
  • Accountants (e.g., shredding documents)
  • Politicians
  • Banks
• Loss of faith in political and economic institutions can lead to significant crises.

What Do Followers Want?

Community

• Followers want a sense of belonging.
• Decline in informal institutions of civil society (e.g., bowling leagues in the U.S.).
• Leaders have the opportunity to become community builders.
• Challenge: Defining community building in various sectors (banks, hospitals, etc.).

Authenticity

• Desire for leaders they can believe in and trust.
• Followers seek leaders who can reveal their strengths and weaknesses.
• Importance of self-awareness through tools like 360 assessments.
• Avoiding impersonation of famous leaders; being genuine.
• Epicurus' idea: Real people with strengths and weaknesses.

Significance

• Followers want to feel their contributions are appreciated.
• Example: John F. Kennedy and the NASA janitor story.
• Importance of making even lowest-level employees feel connected to organizational goals.
• Reception staff as the organization’s window to the market.
• Contrast of two experiences: a hotel receptionist vs. a private bank receptionist.
• Leaders need to be sources of significance.

Energy and Excitement

• Workplaces need to inspire and lift performance.
• Creation of a positive and inspiring atmosphere by good leaders.
• Passion and energy as key elements.
• Importance of excitement over charisma.

Fundamental Questions for Leaders

• Are leaders sources of energy to their teams?
• Are they authentic and real at work?
• Followers decide on the leader's authenticity and excitement level.

CASE Framework for Leadership

• Community
• Authenticity
• Significance
• Excitement