2:58

Clegg argues that trust is the foundational ingredient for leadership and organizational success: when present it boosts productivity, creativity, employee satisfaction, engagement and retention; when absent it raises stress and leads to poor decision-making and turnover. Trust must be earned and actively nurtured by leaders through authenticity, transparency, reliability, and by spending time connecting employees' purpose to organizational outcomes. Clegg recommends establishing a leadership development program to teach future leaders how to generate trust; building trust is continuous and fragile—years to build, seconds to lose.

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