View from within

Establishing a new business (or team) is like bringing life into the world. New parents may spend hours thinking about what kind of a person they want their child to become and what they can do to make that happen.

It's similar for business founders. They must consider what type of a firm they want. What will be its mission and vision? How will it behave to its employees and others? How will it market itself and what will be the underlying culture? In short, defining ?its personality.

Let me start with a question. How many of you could honestly say that if you started with the proverbial blank sheet of paper, you would plan your business to be the way it is? Very few, I imagine. Firms have a habit of mutating ?in unpredictable ways.

If I was starting out today, my blank sheet would include words such as professional, ethical, respectful, dynamic and innovative - and the most important word, trust. There is much talk about the role of the trusted adviser and the importance of building and maintaining client relationships. But what about gaining the trust of your employees and colleagues?

Many years ago, I was working ?for a firm, which no longer exists. ?My colleagues and I were on a corporate bonding weekend during which we were each asked to stand up one by one to be told by senior management why we were so important to the company. Two weeks later, 25 per cent of us were made redundant.

It is very difficult for a firm to bounce back from the loss of trust and respect that such an experience creates. I was not among those let go, but it did spur me to contact a recruitment agent. I decided I no longer trusted the business.

Team dynamic

Trust is, however, a two-way street. Your staff need to trust you and you have to trust your staff. Central to this is your preferred employee personality. When Sir Dave Brailsford, director of Sky Pro Cycling, started recruiting his team, he had a precise type of cyclist in mind.

Brailsford looked for team players: positive people who, together, were greater that the collective sum of their parts. He also wanted those who accepted personal responsibility and did not complain. When recruiting for a business, the same qualities are required. You need a team that will pull in the same direction for the good of the business.

Responsibility, however, starts at the top. Senior management sets the tone for the firm. If business founders behave badly, it becomes implicitly acceptable for all employees to follow suit. Senior staff must conduct themselves impeccably to set an example that creates respect.

The word trust derives from the ?Old Norse word traust, which means help and confidence. Firms should therefore see traust as an essential constituent not just of their identity but also their philosophy. It should be encouraged to grow organically within the business. But this is not just for display; it should exist even where it is hidden.

Trust is also equally created externally. We are in a world where customers ?want to trust those with whom they work. Therefore, trust can help with increasing turnover as well as creating a respectful atmosphere.

So when you establish a company or team, start by thinking about how you want it to be viewed by its employees - as well as potential clients, of course - and look at the way you present yourself. It matters on the inside and out.

Geraint Jones is private client partner at Reeves

He writes the regular in-practice article on doing business for Private Client Adviser