Read

Book Review: The Trusted Advisor

A Formula for Trust

T = (C + R + I) / S.

No, it's not another one of Michael Milken's formulas for determining the value of intellectual capital.

Instead, it's an equation put forth by David Maister, author of "The Trusted Advisor", to calculate the level of trust in a business relationship.

What does it mean?

According to Maister, a recognized expert on the unique aspects of managing professional services firms:

1. C = Credibility, which relates to words
2. R = Reliability, which relates to actions,
3. I = Intimacy, which relates to emotions
4. S = Self-orientation, which relates to motives
   Add C + R + I and divide by S and you get the level of perceived trustworthiness (T) in a relationship.

In other words, if a client believes what you say (C), your actions match your words and you follow through on what you say you're going to do (R), and you relate to the client in a manner that involves some self-disclosure and personal intimacy (I), the client will trust you. However, if the client feels you are self-oriented (S) rather than interested in their well-being, their trust will significantly diminish.

Characteristics of Trusted Advisors

The goal in a professional services relationship, says Maister, is to move from a position of content/process expert (which is where most professional service relationships begin) to that of valuable resource and eventually to trusted advisor.

In order to get there, however, you first have to know what a trusted advisor looks and sounds like. According to Maister, trusted advisors adhere to a number of common traits, including:

1. Don't pull punches with clients.
2. Help clients open up their thinking to new perspectives.
3. Don't try to force their judgment on others.
4. Focus on doing the next right thing rather than a specific outcome.
5. Challenge the client's assumptions.
6. Help to put issues in proper context.
7. Have the client's best interests at heart.

Perhaps more than anything, suggests Maister, a trusted advisor places a higher value on maintaining and building the relationship than on solving the current problem at hand or achieving a particular outcome.

Five Steps to Building Trust

Maister believes that building trust in advisory relationships requires five discreet steps. Although his principles are based upon traditional service provider/client relationships (i.e., consultant to client), they fit nicely into the Vistage Chair/member relationship structure.

1. Engage. To begin the engagement, a client must feel two things: an issue worth bringing up and the confidence that he or she will receive value from discussing the issue with you. In fact, one of the key roles of the Chair involves unearthing issues that most affect members' businesses and lives.
2. Listen. In this step, the client begins to feel that you understand his or her problem. According to Maister, effective listening is "active, incisive, conscious, involved and interactive." It involves the process of confirming and validating what the client tells you.
3. Frame. In this step, you help the client crystallize their thinking, cut through the irrelevant and focus on the core issue. In the words of many Vistage speakers, "The problem named is the problem solved." Your job as Chair is to make sure that the member names the right problem.
4. Envision. In this joint process, you and the client imagine what the solution might look like without jumping to conclusions or trying to immediately resolve the issue. The goal is to expand the realm of possibilities rather than narrow the field of options.
5. Commit. Making sure the client fully understands what it takes to realize the vision created in step four. In Vistage, this usually consists of the member agreeing to present the issue during an executive session and getting clear on what kind of feedback they would like to receive from the group.

When applied in a consistent, authentic and sincere manner, says Maister, these steps go a long way toward building trust in the relationship.

What Good Vistage Chairs Do

By substituting the word "member" for "client," many of Maister's truisms scattered throughout the book sound tailor-made for Chair/member relationships, especially in one-to-one situations. For example:

1. You don't have to prove yourself to the member every 10 seconds.
2. The problem is rarely what the member says it is the first time.
3. More value is added through problem definition than through problem answering.
4. Just because the member asks a question doesn't mean it's the right question to answer.
5. Sometimes the best answer is a better question.

Am I trying to win an argument or help the member gain clarity?

In addition, Maister offers a number of succinct checklists that summarize the skills, attitudes and mindsets needed to build strong advisory relationships.

For example, the "What Good Listeners Do" checklist on page 104 provides an on-target reminder of the key points of effective listening. (It could easily be titled "What Good Vistage Chairs Do.") It also includes a shorter, but equally valid list of what good listeners don't do, such as interrupt, respond too soon, jump to conclusions or rush to judgment.

With more than two decades' experience advising professional service firms on strategic and managerial issues, Maister understands the challenges facing today's service providers as few do. "The Trusted Advisor" offers a variety of practical tools and techniques to help you build stronger relationships with your members.

More articles...