The Most Valuable Currency of a Leader
When Daniel steps into the meeting room on his first day as the new department head, he immediately senses the tension. His predecessor was a micromanager, a control freak. Fear had been the dominant emotion. Now, his new colleagues sit before him—polite but distant. Their eyes ask: Are you any different?
Daniel knows: He has one chance to earn his team’s trust.
He could introduce himself, list his past achievements, and establish his authority. Instead, he says: „I trust you. You are the experts. My job is to support you. I will make mistakes, and so will you. Let’s create a culture where we can learn from them together.“
Silence. A few skeptical looks. But then, a few nods. The ice begins to break.
Then, Daniel asks a question no one expects:
„What did you wish for from my predecessor that you never received?“
Hesitantly, they begin to open up. More autonomy. Clearer communication. Less control. Daniel writes it all down, and as he leaves the room, he knows: This was the first step. Trust isn’t built through words but through actions.
Why Trust Matters More Than Authority
I’ve been in this situation so many times—waiting to ‘earn’ trust never works. The best leaders I’ve worked with don’t wait for permission; they extend trust first, even when it feels risky. That’s what Daniel did, and that’s why it worked. If he had walked in, listing his credentials and laying down rules, the team would have stayed distant. Instead, he led with trust, and that changed everything.
Do you wish to rise? Begin by descending. You plan a tower that will pierce the clouds? Lay first the foundation of humility.
Saint Augustine
1. The Trust Triangle (Frei & Morriss)
Frances Frei and Anne Morriss identify three pillars of trust:
- Authenticity: People trust you when they feel you are genuine.
- Logic (Competence): They trust you when your decisions are sound and well-reasoned.
- Empathy: Trust grows when people sense that you understand and care about their perspective.
For me, authenticity isn’t optional. I’ve seen too many leaders try to ‘perform’ trustworthiness instead of just being real. People pick up on that instantly, and trust disappears. That’s why Daniel’s words—„I trust you. You are the experts.“—worked. They weren’t scripted; they were real. He’s not putting on an act (authenticity), he recognizes their knowledge (competence), and he shows respect (empathy). That’s why his words worked.
Example: Imagine a leader who openly admits when they don’t have all the answers but is committed to finding solutions collaboratively. For instance, Satya Nadella, CEO of Microsoft, transformed the company culture by embracing a ‚learn-it-all‘ mindset rather than a ‚know-it-all‘ approach. Instead of pretending to have all the answers, he fosters an environment where employees feel encouraged to experiment, take risks, and grow. Compare that to a leader who avoids admitting gaps in knowledge—who would you trust more?
Reflection Question: Which of these three pillars is your strength—and which one needs improvement?
2. The Five Dysfunctions of a Team (Patrick Lencioni)
Trust isn’t just a nice-to-have—it’s the foundation for how teams work together. When it’s absent, dysfunction takes its place.
I remember it clearly: A meeting, a well-thought-out idea, ready to take responsibility. My manager looked at me and asked: „Are you really sure about this?“ It wasn’t the question itself—it was the tone. The unspoken message was clear: I don’t trust you.
At that moment, my motivation vanished. I started doubting myself—and doubting them. Because if a leader doesn’t trust me, why should I trust them?
I’ve been in rooms where trust was missing, and I’ve felt the energy drain. When trust is low, people hold back. That’s not the kind of leader I ever want to be. That’s exactly how dysfunction starts—when trust erodes, so does the team’s ability to collaborate and commit. Patrick Lencioni outlines how this breakdown happens:
Fear of conflict – People avoid difficult conversations.
Low commitment – No one fully buys into decisions.
Lack of accountability – People don’t hold each other to high standards.
Focus on personal success instead of team goals – Silos emerge.
Daniel avoided this by leading with trust. Had he micromanaged, his team would have remained distant, avoiding real conversations.
Example: Picture a team where no one speaks up in meetings versus one where healthy debates lead to better decisions. Which team performs better?
Reflection Question: Are there unspoken tensions in your team caused by a lack of trust?
„Trust and power are two equally important components of collaboration.“ – Reinhard Bachmann
Good leaders make people feel that they're at the heart of things, not at the periphery. Everyone feels that he or she makes a difference to the success of the organization. When that happens, people feel centered, and that gives their work meaning.
Warren Bennis
The 12 Principles of Trust in Leadership
David Horsager, in The Trust Edge, outlines key pillars that make trust a competitive advantage. He emphasizes that trust is built through clarity, compassion, character, and consistency—without these, leadership crumbles. One of his most powerful insights is that trust is not a one-time achievement but a habit reinforced daily. Leaders who communicate openly, follow through on commitments, and genuinely care about others create environments where trust thrives.
Over the years, I’ve realized that trust isn’t just a ‘soft skill’—it’s everything. Without it, no strategy, no vision, no leadership approach will work. This isn’t just theory to me—I try to live these principles every day. Here are 12 ways leaders bring trust to life and keep it growing:
Nr. 1: Trust is a leap of faith
It starts with extending trust, not waiting for it to be earned. Think about a new leader walking into an inherited team. The ones who assume good intentions and trust their team from day one set a completely different tone than those who come in with skepticism and control. Which leader would you rather work for?
NO. 2 _ Trust is built in the small moments
Tiny, consistent actions add up over time. Think about a manager who regularly checks in with their team, not just about work but about how they’re doing. Small gestures—remembering details, following up, being present—make a big difference over time.
NO. 3 _ Vulnerability strengthens trust.
Admitting mistakes creates openness. Imagine a leader who says, ‚I got that wrong, and here’s how I’m fixing it.‘ That kind of honesty sets the tone for a culture where people feel safe owning their own mistakes.
NO. 4 _ People trust those who know their stuff—and do the right thing.
Competence and integrity go hand in hand. Think of a doctor explaining a diagnosis. If they seem unsure or dismissive, trust erodes. But when they confidently share their expertise while showing empathy, trust grows.
NO. 5 _ Clear beats clever.
Uncertainty kills trust—say what you mean. Picture a leader announcing a big change in vague terms, leaving people guessing. Contrast that with one who lays it out plainly—why it’s happening, what it means, and what’s next. Which one earns trust?
NO. 6 _ Accountability makes trust real.
Owning your actions earns respect. Imagine a team where deadlines are missed, but no one takes responsibility. Frustration builds fast. Now picture a leader who acknowledges the issue, takes responsibility, and works with the team to fix it. That’s trust in action.
NO. 7 _ Fear and trust can’t exist together.
A culture of fear kills connection and honesty. Think about a workplace where people hesitate to share ideas, afraid of looking foolish. Now picture one where leaders welcome debate and new thinking. That’s the difference trust makes.
NO. 8 _ Trust is earned slowly—but lost in an instant.
Handle it with care. A single misstep can undo years of effort. Imagine a CEO promising transparency but then hiding key decisions. Trust crumbles overnight.
NO. 9 _ Trust adapts to situations.
What works in one setting may not work in another. A casual, friendly approach might work in a startup but feel out of place in a formal boardroom. Good leaders adjust while staying true to their values.
NO. 10 _ Trust isn’t blind.
Leaders empower, but they also set clear expectations. Giving employees autonomy without direction leads to chaos, but combining trust with clear expectations creates accountability and growth.
NO. 11 _ Connection drives trust.
People trust those who genuinely care about them. Think about a leader who takes the time to listen—really listen. That small act makes people feel valued, and where there’s care, trust follows.
NO. 11 _ Trust isn’t just words—it’s what you deliver.
Follow through on what you promise. Ever worked with someone who talks big but never delivers? Compare that to a leader who quietly does what they say. Trust comes from action, not just talk.
To be really great in little things, to be truly noble and heroic in the inspired details of everyday life, is a virtue so rare as to be worthy of canonization.
– Harriet Becher Stowe
Trust, not money, is the currency of business and life.
David Horsager
Trust in Action: A Daily Habit, Not a One-Time Achievement
In my experience, trust doesn’t come from big, dramatic gestures—it’s in the little things. The everyday choices to listen fully, to follow through, to own mistakes. Those are the moments that add up. Leaders reinforce trust through simple, consistent actions:
- Keep promises—even the small ones.
- Admit mistakes—and show how you’ll fix them.
- Communicate clearly—so there’s no room for uncertainty.
- Show up consistently—trust isn’t built on grand gestures; it’s the sum of everyday choices.
Bridging theory to practice is where trust truly takes shape. It’s easy to talk about trust, but living it—especially in high-pressure situations—requires awareness and intention. The following questions are meant to help you reflect on how trust shows up in your leadership and where you can strengthen it in everyday interactions.
Reflection Questions:
Am I creating an environment where my team feels safe to challenge my ideas?
Do I trust my team as much as I expect them to trust me?
What actions am I taking daily to reinforce or rebuild trust?
Conclusion: Trust Is the Strongest Currency in Leadership
Leadership without trust is like a ship without a rudder—it drifts, but never reaches its destination. I believe trust isn’t just something leaders earn—it’s something they give first. Some of the best leaders I’ve seen understand this deeply: they don’t wait for trust to appear; they create it through their actions. Every moment is a chance to build or break it.
So, what will you do today to build trust?
Further Readings and Sources:
The Five Dysfunctions of a Team: A Leadership Fable“ – Patrick Lencioni
„The Speed of Trust: The One Thing That Changes Everything“ – Stephen M.R. Covey