Thursday, April 16, 2009

Trust is the crux of the matter

Trust has come up a lot for me lately. It comes up all the time at work. We talk about how a good compensation strategy and plan that pays correctly and on time will build trust between sales reps and the organization. I also hear it on NPR in the morning when we are talking about banks and lending.

I think the real problem with our economy is trust. We don't have it. No one has true trust. And it's been missing for a while. Reflect with me, and I am reflecting not based on experience, but on what I have heard, so correct me if I am wrong, but remember back to the 1950's when you shopped at your local market, you knew the butcher by name, you had a florist and a dry cleaners and you KNEW them. They KNEW you, and guess what? You TRUSTED them to do their jobs and provide you with good service and quality products. They TRUSTED you to pay them on time if you were using credit, or return to them on a regular basis if you liked their goods and service.

Today, things are different. You can't trust big chain stores, they are just looking out for their bottom line, do you think the butcher at Stop and Shop cares if you come back? He might care if everyone stopped going to Stop and Shop, because he would lose his job, but one person isn't going to make a difference.

Today banks won't lend because they don't trust people will pay back their money, because people haven't been paying back their mortgages. They haven't been paying back their mortgages because they weren't purchased through the local bank, they were purchased on line and now when they are close to defaulting, people don't know who to call and they can't work out a payment schedule because not even the original bank knows who owns the loan anymore.

I am not saying that we need to excuse the people who took the money or the people that lent the money, but I think that had we stuck to our roots and borrowed from people we trusted and lent to people we trusted, we might be in a better place.

So, do the economy a favor and find people and businesses you trust and repay them with your trust and business.