IT'S A MATTER OF TRUST

On July 20, 2015, The Wall Street Journal reported the disappointing quarterly results for Whole Foods Markets, a natural-foods grocer.  Sales at established stores rose 1.3% in the three months ending July 5 – its weakest growth since 2003 (WSJ, 7/30/15, p. B1).  The main explanation for the modest sales growth was the increasing competition from mainstream retailers now stocking local and organic food.  However, pointing the finger at increasing competition may mask the real reason for the modest sales growth at Whole Foods.  

Whole Foods prices have always been considered high (to some, very high). Customers were willing to pay for the quality, convenience, and “trust” in local and organic foods. The Whole Foods value proposition can be: " Buy our foods to keep you and your family healthy and help the world be healthy as well.”

However, this value proposition was severely undermined by a recent incident. New York officials discovered that the company had mislabeled weights of freshly packaged foods like vegetable platters and chicken tenders, leading to overcharges of under $1 to nearly $15 an item” (WSJ, 7/30/15, p. B1). This revelation had a profound impact on the company's sales. In response, co-chief Executive Walter Robb acknowledged the gravity of the situation, stating, "If trust is broken, it has to be rebuilt a step at a time.” This incident is a stark reminder of the importance of trust in business and leadership and its potential to make or break a company's reputation.

Trust is not just a buzzword in the business world. It's a fundamental ingredient in any relationship, personal or professional. Whether selling organic foods, building cars, running a staff meeting, selling a product to a prospective client, or even cooking dinner for the family, trust is a significant factor in ensuring the confidence and loyalty of those you serve.  It has been said that a relationship can foster and grow; without trust, there is no relationship. This universal truth underscores the importance of trust in all aspects of life, including business and leadership.

Today, take a moment to reflect on how you foster and build trust with those you serve and with those you lead. Examine how your product and services communicate honesty, transparency, competency, accessibility, and humility to your customers. Each value instills trust in those you serve and those who trust you. 

Simply put, when it comes to serving others … it’s a matter of trust.

Until Next Friday,