Why You Need Trust to Do Business: Crash Course Business - Soft Skills #1

Summary

This Crash Course Business video explores the concept of trust as a fundamental aspect of business relationships. It explains the importance of trust in forming a reputation, which is crucial for promotions and job opportunities. The video delves into different types of trust, such as cognitive, dispositional, and emotional, and how they contribute to one's trustworthiness. It emphasizes the significance of competence, intent, and integrity in building cognitive trust, while also discussing the role of dispositional trust and how it can be influenced by risk aversion. The video encourages viewers to be mindful of their actions and reputation, and to understand that trust is a complex and essential component of success in the business world.

Takeaways

• 😀 Trust is fundamental in business and forms the basis of reputation, working relationships, promotions, and job offers.
• 🔍 Trust is influenced by confidence in someone, knowledge about them, and past experiences.
• 🚗 Trust involves vulnerability, like trusting someone with your car or career dreams.
• 🤝 Cognitive trust is based on rational reasons and involves assessing a person's competence, intent, and integrity.
• 🏆 Demonstrating competence means showing you can do what's needed, honing skills, and acknowledging areas for improvement.
• 🌟 Intent is about aligning your interests with others and showing genuine concern for their well-being.
• 📝 Integrity is about being consistent and following through on what you say you'll do.
• 🧐 Dispositional trust is a person's baseline level of trust in others, which can vary from person to person.
• 💼 Building and maintaining trust is crucial for career advancement and requires time, effort, and a focus on actions and their perception.
• 💡 Trust can be affected by competence and intent mismatches, where trust in one area doesn't necessarily translate to another.

Q & A

What is the main theme of the 'Crash Course Business: Soft Skills' series?

The main theme of the series is to help viewers improve their day-to-day business skills, such as negotiation, self-presentation, event planning, and management, to advance their careers and succeed on their own terms.

Why is trust considered a fundamental concept in business?

Trust is considered fundamental in business because it forms the basis for reputation, working relationships, promotions, and job offers. It is the bottom level of the business pyramid, essential for a successful professional environment.

How does one's competence factor into building cognitive trust?

Competence is a key element in building cognitive trust as it demonstrates an individual's capability to perform the tasks required by their employer. It involves showcasing skills, improving abilities, and acknowledging and working on weaknesses.

What is intent in the context of cognitive trust, and how can one demonstrate it?

Intent in cognitive trust refers to whether a person is looking out for others' interests as well as their own. Demonstrating good intent involves showing genuine concern for others, being tactful, and helping coworkers, which can build a positive reputation.

How does integrity contribute to cognitive trust, and what is the advice for maintaining it?

Integrity contributes to cognitive trust by showing consistency in actions and words. To maintain integrity, one should be consistent in performance, avoid being late, and ensure quality in all tasks. The advice is to under-promise and over-deliver to manage expectations effectively.

What is dispositional trust, and how does it differ from cognitive trust?

Dispositional trust refers to a person's baseline level of trust in others, which can vary from person to person. It differs from cognitive trust in that it is not based on evidence or rational analysis but rather on an individual's inherent tendency to trust others.

Why is it important to manage one's time wisely when building cognitive trust?

Managing time wisely is crucial for building cognitive trust because it helps in delivering quality work on time and meeting deadlines, which are key to demonstrating competence, intent, and integrity.

How can trust impact professional opportunities?

Trust can impact professional opportunities by influencing whether one is chosen for team projects, promotions, or job offers. A lack of trust can close doors on opportunities, while being seen as trustworthy can open them.

What is the significance of the 'AUX cord' analogy in the context of trust?

The 'AUX cord' analogy signifies the vulnerability associated with trusting someone with something valuable or important, like one's car or career dreams. It highlights the personal risk involved in placing trust in others.

What advice is given for building trust in a new job environment?

To build trust in a new job, one should focus on demonstrating competence, intent, and integrity consistently. It's also advised to be patient, as trust building takes time, and to work smartly, not just hard.

How does the concept of 'idiosyncrasy credits' relate to trust and reputation?

The concept of 'idiosyncrasy credits' refers to the goodwill or trust one has built up that allows for occasional mistakes without severely damaging their reputation. It's like a bank account for trust, where positive actions add credits, and mistakes require spending them.