The Speed of Trust

I received this from a friend of mine, Brian Doud. I thought it interesting. Pay close attention to Stephen Covey as he discusses the Speed of Trust and how quickly things get done when trust exists.

Chris: You talk a lot about the speed of trust. Can you explain, a little bit more in detail, what you mean by that?

Stephen (Covey) Well, here’s an illustration. Warren Buffett, who’s the CEO of Berkshire Hathaway, always writes a management letter every year with his annual report and his management letters are studied widely in business schools and elsewhere in the country and
around the world. A year ago, in his management letter, he talked about the big acquisition that his company, Berkshire Hathaway, did of a $23 billion company that they bought from Wal-Mart. This company was McLane Distribution Company, $23 billion in revenue.

Now, Berkshire Hathaway is public. Wal-Mart is public. So these are two public companies. They have all the requirements of the public marketplace; all the scrutiny, et cetera. But to make this deal happen, it took place in a total of a two-hour meeting, and then 29 days later, Wal-Mart had their money from Berkshire Hathaway for a $23 billion transaction. Berkshire Hathaway did no due diligence, and Warren Buffett said, “I trusted Wal-Mart, I trusted the people I worked with. I knew everything would be in exactly the order that they said it would be, and it was.” He said, “We did no due diligence,” and in 29 days they did this deal.

In most mergers of this size, we’re talking several months, if not six, eight, ten, twelve months to close a deal like this, with armies and teams of accountants, CPAs, attorneys, et cetera, that come in and do all kinds of due diligence to verify, to validate, and it takes a lot of cost and it takes a lot of time. But the idea of the speed of trust is literally, both speed in terms of actual time that you can do things in, and also speed as a metaphor, to mean benefits, results, dividends that are abundant; and the fruits of high trust and the speed at which you can move are close to miraculous.”

What are you doing to create trust with the people you work with?

 

Ron Finklestein
Business Training at a great price: Http://www.aboutbusinesssuccess.com  

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