Estimated Reading Time: 7 minutes
Executive Director
Resource Type: Risk eNews
Topic: HR Risk and Employment Practices, Organizational Culture
“The process of building trust takes risk. We start by taking small risks, and if we feel safe, we take bigger risks. Sometimes there are missteps. Then we try again. Until, eventually, we feel we can be completely ourselves.” – Simon Sinek, The Infinite Game
This week I’ve been reflecting on the role of trust in nonprofit leadership and risk management. I’ve also been thinking about some of the lessons I’ve learned from my Dad, who turns 83 tomorrow.
My Dad’s stories, expressions, and admonitions are legendary in our family. One of his favorite cautionary tales is about telling the truth. To paraphrase Dad: “Always tell the truth. That way, you’ll never have to keep track of the lies you’ve told.” I was a pretty typical teenager who groaned and rolled her eyes when Dad got on his soapbox. Imagine my surprise when I discovered—as an adult—that he actually knew what he was talking about!
Truth and trust are symbiotic: you are far more likely to accept as truth a statement of ‘fact’ from someone you trust. And you’re inclined to trust someone who you believe regularly and consistently speaks the truth. Risk professionals occupy a unique role in a nonprofit organization; their success and ultimate contributions depend on the entire team’s support and cooperation. Yet, few risk leaders have the authority to command compliance. Trust establishes a foundation upon which the trusses of compliance are erected. Staff teams who trust their risk leaders will see these champions as partners, mentors, and guides to navigate organizational risks. Without trust, the ambitious goals of a risk management program are doomed to fail.
Even if risk leaders were to sit at the top of the org chart, trust is not something you can demand or a currency you can lock away in a vault. Trust cannot be assumed, presumed, or neglected; it must be carefully tended and nurtured every day. Trust built over months and years of hard work can be lost or squandered in an instant when you’re caught telling an untruth—or hiding something that should have been shared. How can risk leaders fortify trust in the teams they serve and lead? If trust is a currency that your risk program requires, ensure you are making regular deposits.
Secrecy impedes trust, while transparency is the ultimate trust booster. Unfortunately, the risk realm is full of secrets. Risk leaders often worry about what will happen when an organization shares its top risks with the staff, reveals risks to the board, or discloses risks to an external partner. The NRMC team believes that it is impossible to fully understand and unearth the nuances and nature of risk when the issue, event, or possibility is cloistered. Ask:
For additional insights on transparency and the ‘elephants’ in the room, see “Name the Elephant: Coping with the Biggest Risk to Your Mission.”
Three years ago, I replaced the ring of sticky note reminders that once framed the monitor on my desk with a single note containing two tips:
That note was a way of reckoning with the inner voice telling me to ‘do more and more and more’ every year and to expect the same of my colleagues. If you’ve ever worked in—or led—a workplace where the drumbeat of “doing more with less and less” drowned out the joy of your mission, I encourage you to break the cycle this year and resolve to help your team “do less, better.”
As you gear up to face whatever disruptions, mistakes, and misfortunes await your mission this year, remember that one of the hardest parts of changing the world around you is taking time to truly see and change the person in the mirror. When you reckon with the impossibility of doing everything better, and in greater quantities, you create an exponentially rising bar that is exhausting to the people who pledge their talents to support your nonprofit’s ambitious mission. Following this practice is a trap for burnout and broken trust. In his book, The Infinite Game, Simon Sinek reminds leaders, “People are not like wet towels to be wrung out. They are not objects from which we can squeeze every last drop of performance.” A better question to ask is: “How do I create an environment in which my people can work to their natural best?”
To reckon with trust-eroding, unrealistic expectations of your team, ask:
Recently my daughter and I were chatting about the (f)laws of attraction and implicit bias. Without realizing it, interviewers are drawn to interviewees who seem comfortably familiar. We want to hire people we can imagine working with, side-by-side, and without realizing it, we hire people who look like us. Research on this topic has led to the advice to stop focusing on ‘cultural fit.’ A WSJ article cautions that “Employers often aim to hire people they think will be a good fit, but their efforts can easily veer into a ditch where new hires all look, think and act alike.”
Uniformity is the executioner of innovation. Invest in diversity to breathe life into the new ideas that will uplift and advance your mission. In his volume The Art of the Idea, John Hunt reminds us: “By channeling our differences at a problem, something richer seems to appear….Working with people of different backgrounds doesn’t just give the group a different point of view, it makes you reassess your own. This is extremely powerful because we’re all trapped in what we’ve previously learnt… And that’s often not true or entirely accurate.”
Ask:
In her book, Teaming: How Organizations Learn, Innovate and Compete in the Knowledge Economy, Amy Edmondson writes: “As a society, we are still largely inured to a fear-based work environment. We believe (most of the time, erroneously) that fear increases control. Control reinforces certainty—and predictability. We don’t immediately see the costs of fear. . . In fact, many managers believe that without fear people will not work hard enough.”
Leaders who are feared fail to inspire trust. In “Advice for Living,” Dr. Martin Luther King, Jr. writes: “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.”
Ask:
The ultimate strategy to inspire trust is to be trustworthy. Trustworthiness is how others view us, not how we view ourselves. Being trustworthy means that others can rely on you, to be honest, truthful, transparent, and accountable.
Trust is the requisite cornerstone of mission-advancing risk leadership and organizational effectiveness. Yet too often, we take trust for granted, believing that the position we occupy or our expertise and experience demand trust, just as they demand respect. Unlike knowledge that can be acquired through academic pursuits and observation, trust is built through consistent action: aligning your actions with your pronouncements. Rules that protect the safety of clientele, staff, and your mission, must apply to everyone. Therefore, holding yourself accountable to the values you espouse and the commitments you make to others, is the form of accountability that truly matters.
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. She welcomes your stories and comments about the intersection of risk leadership and trust. Reach out to Melanie at 703.777.3504 or Melanie@nonprofitrisk.org.
“First let me congratulate you on a conference well done. I had a great time at the Nonprofit Employee Benefits Conference and walked away with some valuable tools and questions that we’ll need to be addressing in both the short and long term. Thanks to you and your staff for all you do to provide us with quality resources in support of our missions.”
“BBYO’s engagement of the Center to conduct a risk assessment was one of the most valuable processes undertaken over the past five years. Numerous programmatic and procedural changes were recommended and have since been implemented. Additionally, dozens (literally) of insurance coverage gaps were identified that would never have been without the work of the Center. This assessment led to a broker bidding process that resulted in BBYO’s selection of a new broker that we have been extremely satisfied with. I unconditionally recommend the Center for their consultative services.
“Melanie Herman has provided expert, insightful, timely and well resourced information to our Executive Team and Board of Directors. Our corporation recently experienced massive growth through merger and the Board has been working to better integrate their expanded set of roles and responsibilities. Melanie presented at our Annual Board of Director’s Retreat and captured the interest of our Board members. As a result of her excellent presentation the Board has engaged in focused review which is having immediate effects on governance.”
“The Nonprofit Risk Management Center has been an outstanding partner for us. They are attentive to our needs, and work hard to successfully meet our requests for information. Being an Affiliate member gave us access to so many time- and money-saving resources that it easily paid for itself! Nonprofit Risk Management Center is truly a valued partner of The Community Foundation of Elkhart County and we are continuously able to optimize staff time with the support given by their team.”
“The board and staff of the Prince George’s Child Resource Center are extremely pleased with the results of the risk assessment conducted by the Nonprofit Risk Management Center. A thorough scan revealed that while we are a well run organization, we had risks that we never imagined. We are grateful to know that we have now minimized our organizational risks and we recommend the Center to other nonprofits.”
Great American Insurance Group’s Specialty Human Services is committed to protecting those who improve your communities. The Center team has committed to delivering dynamic risk management solutions tailored to nonprofit organizations. These organizations have many and varied risk issues, hence the need for specialized coverage and expert knowledge for their protection. We’ve had Melanie speak on several occasions to employees and our agents. She is always on point and delivers such great value. Thank you for the terrific partnership and allowing our nonprofits to focus on their mission!