I believe that true leaders foster trust, that leadership is earned, and that it is granted by followers.  “Leadership” is a way of being with people such that others want what the leader stands for.  Leadership is not about position power.  It might be about charisma for awhile, but if the leader does not deliver what is promised, charisma will not hold the followers’ trust.

I just made a significant assertion and would like to test it out.  I would like to know if you see YOUR leaders fostering YOUR trust, and if so, how?  By leaders, I do not mean “representative” leaders, those whom you know only by reputation with whom you have had no personal experience.  I mean leaders whom you follow because of who they are being and what they stand for.  You might have chosen to work at a company because of exceptional leadership and your trust in that individual, or team.  You might attend a particular church because of the minister and their leadership in the area of spirituality.  You might have joined a not for profit because the leader was successful in enrolling you in the cause, and embodied a trusting presence.  I am wondering about your PERSONAL experience of leaders fostering trust.

We have experienced significant disappointment in leaders in recent months who have demonstrated the antithesis of fostering trust.  The newspapers are full of stories about business leaders at AIG, car manufacturers, financial institutions of all kinds, and political leaders who put self-interest before the interest of customers.  Self-interest at a senior executive level does not foster trust!  I have personally seen a great leader painted with the same brush because of the press around poor leadership. These disappointments, although maybe not personal, can damage our willingness to trust.

The issue of leaders fostering trust is subtle and powerful.  If I were to conduct a survey, what issues would I need to include in that survey to generate an understanding of what, in a leader, fosters trust?  I welcome your comments, your questions, your concerns.

I had the opportunity in January to see the outgoing SEC Commissioner Christopher Cox in person. Monday I saw the new SEC commissioner, Troy Paredes, pictured here.  Both were Corporate Directors Forum events in San Diego.

What a difference. Christopher Cox, while brilliant, on his way out of office was quite ebullient about how everyone else was responsible for the financial crisis but himself. Now, I am sure in his very upsetting content, there was some truth. No one needs to see Christopher Cox or Troy Paredes to be worried about our United States’ financial security.

That said, the experience of listening to Troy Paredes fostered hope.  Not like a strategy, but like a light at the end of a very political, very long tunnel.  He didn’t promise miracles.  He was thoughtful, saying things like, “This economy brings a historic expansion of government influence on the economy.” “The mission of the SEC is disclosure.  Are we asking for the correct disclosures?”  “The goal of these changes… is reducing risk.  The regulatory regime became too permissive.  But even in hardship, we cannot over play the role of regulation.”    “We need caution to weigh the costs and benefits and assess the effect of our decisions.”  “Regulation to avoid risk is not without costs.”  We want to find the “optimal degree of risks, netting costs against benefits.” “Risk is the price we must pay to make room for the entrepreneurial opportunities…”

HOW systemic risk will be managed is a major concern of this new commissioner, more so than WHO will manage it.  Now, I don’t know corporate governance like many do, but the questions that were forthcoming from that sizeable Monday morning 7 a.m. crowd had me thinking that we might have a leader we can trust at the SEC.

He has a 5 year gig.  Can he stomach the politics?  Will he stay true to his very thoughtful approach?  We shall see.