Management by Trust
Ken Ricci
“Greatness is born not of great acts but out of small sacrifices that groom us to achieve great things.
What I like
It’s a short book (about 150 pages) that is easy to read and concepts are made easy to grasp.
The concept of Trust is explored from a variety of different angles, such as unions, compensation, etc.
What’s missing
Loved the business context in this book. I’m curious to see examples outside of Ricci’s business where this could be deployed- for example: e-Commerce, remote consultancies, In-person software company, or really any sort of business
Key Topics
Trust, Leadership, Creating value for employees, Management
Review
This book was borrowed from a family friend as a recommended business book to read. Ken Ricci, the author of this book, operated one of the world’s largest independent fleet of pilots out of Cleveland. In this book he documents some of the strategies he used to lead this team and interesting operational model. Pilots, after all, move around the world and thus the business must function as a remote operation.
Trust within an organization is the theme of this book, and basically provides guidelines for managing a business through trusting one’s employees, and creating an environment where people are empowered to Trust. The principles introduced and described throughout this book’s chapters are defined through theories, stories, and practical advice. Management by Trust delves into topics like pay transparency, unlimited vacation days, unions, compensation, and stopping secrets at the source. It’s all good stuff and a quick read at around 150 pages.
Learnings
Management by Trust is a business principal that encourages employers to be trusting of employees. If employers do not trust their employees, they will likely attract employees who thrive in that sort of environment, need to invest in consultants who will help them navigate tension in this atmosphere, and also invest in technology to monitor employees.
Management by Trust follow seven core principles which are defined in detail in this book
The company mission statement is a foundational element of a business that provides rationale for business decision-making such as establishing rules, interviewing potential hires, reviewing employee performance, and reasons for hiring and firing.
During the interview process, you can use essays to screen potential hires by their attitudes or beliefs, potentially categorizing them into archetypes to help with decision making at scale.
In general there are three types of employees: committed, stopover, and trapped.
One important but controversial aspect of managing a business through trust is transparency around how much the company is paying each employee of the company. This reduces rumors within the org around how much everyone is getting paid. To eliminate rumors you eliminate the secrets.
Generally speaking, there are two major things employers discuss with employees during Reviews: commendations and warnings.
Trust Deeds are small short-term losses a company can take for long-term benefit as it relates to employee trust and establishment of company values. There are four big trust deeds: