Stephen M. R. Covey has built a career based on trust and leadership. His name\u2014as well as his late father\u2019s, Stephen Covey\u2014is often associated with leadership theory, training and advice.<\/p>\n
Stephen M.R. Covey is the former CEO of Covey Leadership Center, where he headed up the strategy that propelled his father\u2019s influential book The 7 Habits of Highly Effective People to become a bestseller. He then held top leadership positions when the center became FranklinCovey following its 1997 merger with Franklin Quest, and cofounded leadership consulting practice CoveyLink, which is now part of FranklinCovey and doing business as the Global Speed of Trust Practice.<\/p>\n
In addition to helping leaders learn how to cultivate trust, Covey has also written two bestselling books on the topic: The Speed of Trust in 2006 and Trust & Inspire in 2022.<\/p>\n
Trust between leaders and employees is always important to business, but the rise of generative AI is making it a much more complicated dynamic today. I talked to Covey about how to build (or rebuild) and maintain trust between management and employees in the new gen AI world. Today\u2019s edition of Forbes CEO spotlights our conversation and what business leaders need to know.<\/p>\n
This is the published version of Forbes\u2019 CEO newsletter, which offers the latest news for today’s and tomorrow’s business leaders and decision makers. Click here<\/a> to get it delivered to your inbox every week.<\/p>\n WHERE IS THE TRUST?<\/p>\n Even before ChatGPT shook the world in late 2022, trust in both institutions and other people was waning, Covey said. Many people don\u2019t trust businesses, government, institutions, media, science and experts\u2014and Covey said such distrust can be contagious.<\/p>\n Stephen M.R. Covey<\/p>\n FranklinCovey<\/p>\n \u201cIn a low-trust world, it\u2019s very important for leaders to counteract that and be intentional about building trust in their team, their company and their culture. \u2026Because if you don\u2019t, the default position will tend to drift towards distrust,\u201d he said.<\/p>\n AI can make that drift worse. Covey described the wildly diverging attitudes toward AI. Some are excited, seeing it as a massive technological breakthrough that can help them achieve more than ever before.<\/p>\n But others view the technology with fear and trepidation. The fear stems through two viewpoints. Some may be worried about society in general, and are concerned that the rise of AI is the first step toward machines taking over all essential institutions. For others, the fear is much closer to home: They\u2019re afraid that AI will replace their jobs.<\/p>\n REGAINING EMPLOYEE TRUST<\/p>\n Covey said there is some truth to both viewpoints on AI. Yes, it will revolutionize the way work is done and how society is run. And yes, it will replace some of the jobs in today\u2019s market. It\u2019s important to acknowledge and listen to employees\u2019 fears about AI replacing them, while also recognizing that it is a possibility, he said. But it\u2019s crucial to talk openly about your reasoning for bringing AI into the workplace.<\/p>\n Covey said you shouldn\u2019t start by talking about the potential for job elimination\u2014that would amp up employees\u2019 fears, as well as decimate their trust in you and the organization. He advocates for a blended approach. Talk about both the good and the bad when it comes to AI: Discuss how it will unleash potential and talent in your organization, but acknowledge that it might eventually lead to some jobs being eliminated. However, be sure to reiterate that AI is likely to create new jobs and opportunities for growth within the organization.<\/p>\n But a leader who wants to build trust needs to do more than just tell employees that AI will empower them. You need to include employees in the entire discussion about bringing AI into the company, Covey said. Do it with them, not to them.<\/p>\n \u201cThe more we involve them in that, and \u2026we come up with a solution together, the more they can be part of that solution and embrace it, the more trust we\u2019ll have,\u201d he said.<\/p>\n UNDERSTANDING AND EMPATHY<\/p>\n Listening, showing empathy and working to understand how employees feel is a powerful way to build trust around AI implementation, Covey said. Employees need understanding from a leader in the same way that a body needs oxygen. Listening to what they have to say and showing some understanding of their opinions won\u2019t necessarily fix any issues, but it shows that you value being on the same page. Covey said it\u2019s also important to respect their opinions, even if they are contrary to your plans.<\/p>\n It\u2019s also vital to explain why you\u2019re moving forward with AI, Covey said. An explanation provides context, meaning, and an opening to wider understanding from employees. Talking directly about the reasoning behind AI implementation helps employees see that you\u2019re being transparent\u2014a vital element to building trust. And, he added, trust built on transparency will remain, even if the employees are still fearful about what AI will do for their jobs.<\/p>\n \u201cThe goal is we want to implement AI, hopefully in a way that brings people with us, involves them with us,\u201d Covey said. \u201cBut also we want to make sure that when it\u2019s all said and done, that there\u2019s trust in our culture. It would be a mistake\u2026if we implement AI …we even get efficiencies and cost savings, and we\u2019ve lost our workforce and they don\u2019t trust us. I don\u2019t know if we\u2019re in a better place. I think we\u2019d be in a worse place.\u201d<\/p>\n PROGNOSIS FOR TRUST<\/p>\n Generative AI is often touted as a way that companies can become more efficient by using technology to complete routine tasks, make complex predictions, do research, provide ideas and create content. But, Covey said, it might also be a more roundabout way to build trust. After all, bringing AI to a company is a complex task\u2014one that involves careful management of people.<\/p>\n \u201cThis whole process of learning how to grapple with [AI] could be a catalyst to focus on the importance of build[ing] a high-trust team and culture,\u201d he said. \u201c…Just like distrust can be contagious, trust also can be contagious, and it can ripple out in a positive way. And if people are part of a high-trust team and culture, they then view the world through the lens of \u2018you can build trust.\u2019\u201d<\/p>\n As more companies embrace AI, Covey said, some are doing extremely well with maintaining trust. Others are not. For some, AI is amplifying companies\u2019 pre-existing strengths and weaknesses. Those that already had a low trust factor between employees and leadership are likely not doing well. But those that had a high trust factor are likely doing better in terms of adopting and utilizing the technology.<\/p>\n Companies can work toward building more trust. The ones that do it best are the ones that make it a priority, similar to increasing revenues or lowering costs. The steps to build trust while bringing AI to the enterprise are similar to those about improving trust in general: talk and listen. Be understanding and empathetic. Be transparent. Include employees in major decisions.<\/p>\n Companies that are doing well with AI so far likely have that trust, Covey said.<\/p>\n \u201cIt\u2019s not because we\u2019ve got this great AI management gave us,\u201d he said. \u201cIt is not technology, it\u2019s not strategy. Those are factors. The No. 1 reason employees trust management is because the management trusts the employees, and they feel it.\u201d<\/p>\n COMINGS + GOINGS<\/p>\n Equipment manufacturer Alamo Group Inc. announced that Robert P. Hureau will be its next president and chief executive officer, effective September 2<\/a>. Hureau previously worked as chief executive officer of American Trailer World, and he will succeed Jeffery A. Leonard, who is retiring. Send us C-suite transition news at forbescsuite@forbes.com<\/p>\n STRATEGIES + ADVICE<\/p>\n In today\u2019s world, it\u2019s easy to get stressed out due to work-related cognitive dissonance: finding yourself acting against your corporate or personal values. Here\u2019s how to recognize it<\/a> and realign your work with your values.<\/p>\n When it\u2019s time for a CEO to step down, there are many things<\/a> to consider that most leaders don\u2019t think about, such as what you will do once you\u2019re out of that executive office, and how your legacy will continue.<\/p>\n QUIZ<\/p>\n The CEO of which company unexpectedly stepped down last week as it reported a third consecutive drop in quarterly sales?<\/p>\n A. Home Depot<\/p>\n B. Target<\/p>\n C. TJX<\/p>\n D. BJ\u2019s Wholesale<\/p>\n
\n Online learning platform Skillshare tapped Paul Slavin to be its next chief executive officer, effective August 19<\/a>. Slavin was a former senior executive at ABC News, and he succeeds Matt Cooper.<\/p>\n