The call came after hours.

A founder of a $25M services firm—exhausted, candid—shared that her team no longer trusted her. She wasn’t dishonest. She hadn’t broken any laws. But somewhere between urgent pivots, tightened margins, and a dozen half-kept promises, trust had quietly eroded. And now, people were disengaging. Clients were wary. Her leadership felt hollow.

Her question was simple:
“How do I rebuild trust when I’m not even sure where I lost it?”

She’s not alone.

Across North America, small to mid-sized business leaders—from $5M to $55M in annual revenue—are feeling this fracture. The organizational ground is shifting, and with it, the most invisible asset of all: trust.

The Truth Behind Broken Trust

Recent research from organizational psychologists and leadership studies highlights five common breakdowns that quietly unravel trust in teams and partnerships.

1. Inconsistent Leadership Actions

When leaders say one thing and do another, skepticism takes root. This is particularly damaging in SMBs, where the founder’s behavior often sets the cultural tone. A PwC study shows that 30% of executives cite an inability to align actions with stakeholder expectations—often due to cost or time pressures. Mixed signals, broken promises, and “we’ll circle back” language become cultural toxins .

2. Lack of Clear Ownership and Accountability

When responsibilities are ambiguous, people assume the worst. According to the Corporate Governance Trust Survey, 24% of leaders admit that unclear leadership accountability is a top reason for broken trust—a figure that’s grown 10 points in just one year . In fast-moving SMBs, where roles blur easily, this vacuum signals neglect rather than agility.

3. Communication Gaps on Expectations

When teams don’t know what’s expected—or don’t believe expectations are fair—they disengage. DDI’s 2025 Trust in Leadership report shows trust in managers drops 17 percentage points (from 46% to 29%) when communication around goals or expectations is murky . The impact is even more acute among employees aged 50–64, who report significantly lower trust than younger peers under unclear directives.

4. Overemphasis on Financial Results at the Expense of People

When profitability is prioritized over people, loyalty erodes. A study by BCG found that a growing number of employees feel alienated when financial imperatives delay investments in development, values, or ethical pivots—even when those delays are “justified” . In SMBs, where margins matter deeply, this tradeoff must be navigated consciously and communicated with care.

5. Distrust in Decision-Making and Data Use

When leaders rely on intuition over transparency, suspicion grows. A Salesforce survey in 2025 revealed that 65% of business managers distrust the data they receive—and many default to “gut” decisions that feel unexplainable to teams . When employees don’t understand how or why decisions are made, trust collapses—even if the outcomes are successful.

This isn’t about being perfect. It’s about being coherent.

What Now? The EDAR Rhythm for Rebuilding Trust

E – Explore What’s Broken

Slow down. Don’t jump to fix. Instead, open up space for honest dialogue:

• When did you first feel a shift in trust here?
• What moments made you doubt leadership’s intentions?
• What would repair look like to you?

Hold that discomfort. Real answers require real presence.

D – Design with Transparency

Once you understand the breach, co-design the rebuild:

• Revisit company values—and recommit to embodying them.
• Define and document roles and decision rights.
• Share tradeoffs, priorities, and even failures openly.

People don’t need you to be all-knowing. They need you to be honest.

A – Act in Micro-Moves

Big speeches don’t rebuild trust. Behavior does.

• Keep every small promise (even the ones you wish you hadn’t made).
• Offer regular updates—even when the answer is “we’re still figuring it out.”
• Apologize clearly. Celebrate progress publicly.

Tiny moments of integrity compound into belief.

R – Reflect and Recommit Weekly

Integrate a rhythm of reflection:

• What did I promise? Did I deliver?
• What messages did my actions send—intentionally or not?
• Where am I aligning—or drifting—from what I claim to stand for?

Then recommit. Out loud. Again and again.

The Dare This Week

Pick one relationship—team, client, or partner—where trust has slipped.

Reach out. Ask them directly:
“What would it take for you to trust me more?”

Then just listen.

Don’t explain. Don’t defend.
Just hear it. Write it down. And take the first step.

Love be with you 💗
Lead on with purpose, grace, and limitless potential. 🚀

Sources

1. PwC Trust in Business Survey – 2024

2. Harvard Law School Forum on Corporate Governance – 2023 Trust Survey

3. DDI 2025: Trust in Leadership

4. Boston Consulting Group: The Long Road to Rebuilding Corporate Trust

5. Salesforce 2025 Report: Business Leaders Are Losing Trust in Their Data