How Trust Can Be A Competitive Advantage

Building bonds of trust is essential for firms to compete effectively in a networked world. Trust is the sum of all connections, and strategy must focus on widening and deepening links to resources outside the firm. In today's competitive environment, taking a major hit of any kind can hamper a firm's operations for years and sometimes permanently. A recent report by Accenture Strategy analyzing over 7000 firms found that trust disproportionately impacts revenue and EBITDA. Trust events can cost a fortune, and firms in industries such as banking, retail, and industrial services that depend on complex ecosystems are more sensitive to these events. A company can improve its resiliency significantly by striving to be trustworthy by responding well to any trust event that may occur. Empathy and building a culture of trust is the best strategy for building trust.