Monday 14 February 2011

TRUST

1) Trust can create value, reduce costs, reduce complexity, reduce the need for costly control mechanisms.
2) Trust is regarded` as not only the glue that holds organizations together but also the essential lubricant that helps to get things done.

3) Trust is fragile and must be continuously preserved: a client analyses his contractor’s response to a project to measure his reliability.
4) If the contractor behaves in a suspicious way, the client might find it necessary to expand control.
5) ) Trust is developed through an approach based on integrating trusting (problem solving) and mistrusting (competitive) styles of negotiation.
6) Trust gives rise to risk, such as partner’s self-interest seeking behaviour and opportunistic actions.
7) Trust alliance includes cooperation and competition.
8) Building trust based on common stakes lead to the sustainability of the alliances.

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