Entrepreneurship on Line

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Monday, April 12, 2010

Covey: Low Trust Works Like A Tax

Covey says: "If you don't have a high-trust organization, you are paying a tax, and it's a wasted tax. While these taxes may not conveniently show up on the income statement as 'trust taxes,' they're still there, disguised as other problems." (p. 250)

Think about Covey's equation: Lower trust means slower speed and higher costs. The difference between the costs your company bears as a low-trust organization and the cost it would bear if it became a high-trust company equals the amount of this tax.

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