Olivia: A study found high-trust companies outperform low-trust ones by nearly 300% in shareholder returns. Jackson: Whoa, hold on. Three hundred percent? That's not a small rounding error. That's the difference between thriving and being a historical footnote. Olivia: Exactly. It suggests that trust isn't some soft, nice-to-have virtue. It's a hard currency. And that's the central argument of the book we’re diving into today: The Speed of Trust by Stephen M. R. Covey. Jackson: Covey. That name rings a bell. Is he related to the 7 Habits guy? Olivia: He is! He’s the son of the legendary Stephen R. Covey. But he absolutely carved his own path. What's fascinating is that before he ever wrote this book, he was a practitioner. He took over his father's company, the Covey Leadership Center, when it was struggling and in just a few years, grew its value from $2.4 million to over $160 million. Jackson: Wow. Okay, so he’s not just an academic theorizing from an ivory tower. He actually got in the trenches and used these ideas to make something happen. That makes me want to know his secret. Where do we even start with a concept as big as trust? Olivia: We start by looking at it as a simple, powerful formula. Covey argues that in every single interaction, every project, every relationship, trust is a hidden variable that is either working for you or against you.

Jackson: A hidden variable? What does that mean? Olivia: It means trust directly impacts two measurable outcomes: speed and cost. When trust is high, speed goes up and cost goes down. He calls this the "Trust Dividend." But when trust is low, speed goes down and cost goes up. That's the "Trust Tax." Jackson: A trust tax. I feel like I've paid that tax without even knowing it. Is that all the bureaucracy, the endless meetings, the need to get five different people to sign off on a ten-dollar expense report? Olivia: That's precisely it. It's the micromanagement, the office politics, the redundant checks and balances, the CYA emails. It's all the friction that slows things down because people don't fundamentally believe in each other's character or competence. Jackson: Okay, that makes the tax feel very real. What about the dividend? What does it look like when trust pays off in a big way? Olivia: Covey gives this incredible, almost unbelievable example. It involves Warren Buffett and his company, Berkshire Hathaway. They were looking to acquire McLane Distribution, a massive $23 billion company, from Wal-Mart. Jackson: A 23 billion dollar deal. I can't even imagine the paperwork. That must have taken an army of lawyers and accountants years to complete. Olivia: That's what you'd think. A deal of that magnitude would typically take six to twelve months of grueling due diligence, costing millions upon millions in legal and consulting fees. But that’s not what happened. Jackson: Don't leave me hanging. Olivia: The entire deal was essentially negotiated in one two-hour meeting and sealed with a handshake. Jackson: Come on. A handshake? For a deal bigger than the GDP of some countries? How is that even possible? Olivia: Because the trust between the two parties was so astronomically high. Buffett trusted Wal-Mart's reputation and the numbers they presented. Wal-Mart trusted Buffett's integrity to honor the agreement. That trust eliminated the need for months of verification. The deal was done in less than a month. That's the trust dividend in action. They saved millions of dollars and nearly a year of work, all because trust allowed them to move at incredible speed. Jackson: That is insane. It reframes trust from a feeling to a financial strategy. It's literally a competitive advantage. But for the rest of us who aren't Warren Buffett making multi-billion dollar deals, how do we build that kind of asset? It can't just be a vague feeling of 'I trust you.' Olivia: You're right, it's not. And that's where Covey gets really practical. He argues that to build trust, you first have to be credible. And credibility isn't one thing; it's a structure built on four distinct pillars.

Jackson: Four pillars. Okay, I like that. It sounds like something we can actually analyze. Olivia: He calls them the 4 Cores of Credibility. And they're split into two categories that I think everyone will intuitively understand: Character and Competence. Jackson: Ah, I see where this is going. I've definitely met people who are high in one but disastrously low in the other. The super nice guy who can't get anything done, or the brilliant jerk who you wouldn't trust to watch your dog. Olivia: Exactly. The two Character Cores are Integrity and Intent. Integrity is about honesty, but it's more than that. It's congruence—walking your talk. It's having the courage to do the right thing, even when it's hard. Jackson: That sounds simple, but doing it consistently is the hard part. Olivia: It is. Covey tells this amazing story about the tennis player Andy Roddick. He was in a major tournament in Rome, at match point. His opponent hits a second serve, the line judge calls it out. The match is over, Roddick wins. The crowd is going wild. Jackson: Game, set, match. Easy. Olivia: But Roddick walks over to the umpire. He saw a tiny mark on the clay court where the ball landed. He tells the umpire, "The ball was in." He overrules the call, against himself, on match point. Jackson: Wait. He corrected the call to lose the point? And the match? Olivia: He lost the match. But think about the credibility he gained in that moment. With the officials, with his opponent, with the fans, and most importantly, with himself. That's integrity. It's choosing what's right over what's easy or advantageous. Jackson: Wow. That's a powerful example. Okay, so that's Integrity. What's the second Character Core, Intent? This one feels trickier. How do you prove good intent? People can fake that. Olivia: They can try, but Covey argues that true intent reveals itself over time. It's about your motive and your agenda. Is your primary motive genuine care for others, or is it self-interest? Is your agenda to create mutual benefit, or is it to win at all costs? When people sense your agenda is hidden or self-serving, they immediately put up their guard. The "trust tax" goes way up. Jackson: That makes sense. So you've got the two Character Cores: Integrity and Intent. What about the Competence side? Olivia: The two Competence Cores are Capabilities and Results. Capabilities are your talents, skills, and knowledge—your ability to do the job. And Results are your track record. It's the proof. Jackson: It's like a four-legged table, isn't it? You can have three strong legs, but if one is missing—say, you have great character and good intentions, but you deliver zero results—the whole thing collapses. No one is going to trust you with an important project. Olivia: Precisely. You can be the most honest, well-intentioned person in the world, but if you're not capable and don't deliver, you're not credible. This is where Covey's own story is so powerful. When he took over the Covey Leadership Center, the company had great ideas—great capabilities—but it had 11 straight years of negative cash flow. The bank was about to pull their funding. Jackson: So they had no Results. Olivia: None that mattered to the bank. So Covey focused relentlessly on getting results. He changed the business model, hit financial targets, and consistently delivered on his promises. Within a couple of years, the bank that was about to shut them down had increased their line of credit. The results built credibility, which in turn built trust. Jackson: Okay, so the 4 Cores give us a blueprint for being trustworthy. But how does that translate into day-to-day action? How do we actually do trust? Olivia: I love that question. Because that's the next wave. We move from who you are—the Cores—to what you do. And this is where it gets super practical.

Jackson: I'm ready for it. Give me the how-to guide. Olivia: Covey uses a great metaphor: the "Trust Account." Every interaction you have with someone is either a deposit or a withdrawal. A history of deposits builds a high balance, which can cushion you if you make an occasional mistake. But a series of withdrawals will bankrupt the relationship. Jackson: And I'm guessing the way we make these deposits is through specific actions. Olivia: Exactly. He outlines 13 Behaviors that are the currency of trust. They're all actionable, things like 'Demonstrate Respect,' 'Create Transparency,' 'Listen First,' and 'Keep Commitments.' But one of the most powerful, especially when you've made a mistake, is 'Right Wrongs.' Jackson: Righting wrongs. That sounds like more than just saying "I'm sorry." Olivia: It's so much more. It's about making restitution, not excuses. And he tells this hilarious and very human story about himself to illustrate it. He was at a heated college basketball game with his family, including his nephew, Kam, who was rooting for the rival team. Jackson: Oh, I can see where this is going. A family divided by sports. A dangerous situation. Olivia: The game is on the line. The ref makes a questionable call that benefits Kam's team. Kam jumps up and cheers wildly, right in Covey's face. And in a moment of pure, impulsive frustration, Covey picks up his water bottle and just dumps it right on his nephew's head. Jackson: No! He didn't! Olivia: He did. And he said the regret was instantaneous. He'd just made a massive withdrawal from their trust account. So, what do you do? He immediately started trying to 'Right the Wrong.' He apologized profusely. He bought Kam a drink and a hot dog. He even offered to let Kam dump a drink on his head in return. Jackson: Did Kam do it? Olivia: He didn't, but Covey didn't stop there. For the next two months, every time he saw his nephew, he'd bring it up and apologize again, making it clear how much he regretted his action. He was making deposit after deposit after deposit. Jackson: It's not about being perfect, then. It's about how you clean up your mess. The apology and the follow-through were huge deposits that more than covered the initial withdrawal. Olivia: That's the key. He says their relationship is stronger today because of how he handled his mistake. It showed humility and a deep commitment to the relationship. Another crucial behavior is 'Talk Straight.' This is about being honest and telling the truth in a way that people can verify. It's not about brutal honesty, but about communicating with integrity. Jackson: That seems to be a huge issue in the corporate world. A study by Mercer Management Consulting found that only 40% of employees trust their bosses to communicate honestly. Olivia: And that lack of straight talk creates a massive trust tax. People waste time and energy trying to decipher what's really being said, reading between the lines, and navigating political minefields. When a leader talks straight, it cuts through all of that and accelerates everything. Jackson: So for someone listening who just messed up at work, or feels like there's low trust with their boss, what's the first step? Which of these behaviors is the most important? Olivia: Covey would say it depends on the situation. He suggests you diagnose the problem. Is the issue one of character or competence? If they doubt your integrity, you need to focus on behaviors like 'Talk Straight' and 'Right Wrongs.' If they doubt your abilities, you need to 'Deliver Results' and 'Get Better.' You have to make the right deposit to fix the specific withdrawal.

Jackson: When you put it all together, it seems like the biggest mistake we make is thinking trust is passive—something that just happens or doesn't. Olivia: Exactly. Covey's ultimate point is that trust is a verb. It’s an active choice. It's the integrity to be trustworthy, the competence to deliver, and the humility to repair trust when it breaks. He argues it’s not just the hidden variable in the formula for success; in today's world, it is the formula. Jackson: And it's something you can learn and practice. It's not some magical quality you're born with. It's a skill. Olivia: A skill that pays dividends in every area of your life. From multi-billion dollar acquisitions to a simple relationship with your nephew at a basketball game. The principles are the same. Jackson: So the challenge for everyone listening is simple: think of one relationship—at work or at home—where you could make a trust deposit this week. What's one of those 13 behaviors you can consciously practice? Maybe it's just keeping one small promise you make. Or maybe it's finally having that 'straight talk' conversation you've been avoiding. Olivia: A powerful and practical takeaway. It all starts with one deposit. Jackson: This is Aibrary, signing off.