The Profit Leak Blog

post was inspired by some of our clients as this is a topic that often rates as a challenging area. Trust is often spoken of as a “soft skill,” but in reality, it is the bedrock of effective leadership. Yet, it is one of the most misunderstood elements in the workplace. At its core, trust is the belief in the reliability, truth, and ability of others. It’s what enables teams to collaborate effectively, leaders to inspire, and organizations to thrive. However, when trust is damaged—especially after difficult decisions like letting people go—it can feel nearly impossible to rebuild. This blog will explore common misconceptions about trust, define what it truly is, and offer actionable tips for leaders to use trust as a superpower. Misconceptions About Trust Trust is Earned, Not Given:  Many believe that trust must be earned over time, but in reality, trust is a choice. Leaders can choose to trust their teams and set the stage for a culture of mutual respect. Waiting for trust to be earned can delay the formation of strong, collaborative relationships. Trust is Built Through Positive Experiences:  While positive interactions help build trust, how leaders handle negative situations often has a greater impact. Difficult conversations, such as letting people go, can erode trust if not managed with transparency and empathy. Leaders must recognize that how they manage tough situations is just as important as celebrating wins. Trust is a One-Time Achievement:  Some leaders believe that once trust is established, it’s permanent. However, trust is dynamic and requires ongoing attention. It’s not enough to build trust once; it must be nurtured continuously through consistent actions and communication. Rebuilding Trust: The Challenge of Letting People Go One of the most challenging situations for any leader is downsizing or restructuring, where team members are let go. This can create a ripple effect, eroding trust not only with the remaining team but across the entire leadership group. When trust is broken, it often stems from three key areas: Lack of Transparency:  When information is withheld or decisions are made behind closed doors, it breeds suspicion. Rebuilding trust requires leaders to be open about the reasons behind tough decisions and the future direction of the company. Poor Communication:  In times of uncertainty, clear and frequent communication is essential. Silence or vague messaging can lead to misunderstandings and further distrust. Leaders must over-communicate during these times to ensure everyone is on the same page. Inconsistent Behavior:  Trust is eroded when leaders’ actions don’t align with their words. If a leader promises support but fails to follow through, trust can be quickly lost. Consistency is key to rebuilding and maintaining trust. Using Trust as a Superpower Be Vulnerable:  Share your challenges and uncertainties with your team. Vulnerability fosters connection and demonstrates that you are human, just like them. Practice Active Listening:  Show your team that their voices are heard. This builds trust by validating their concerns and demonstrating that you value their input. Lead by Example:  Model the behavior you wish to see in your team. If you want a culture of trust, demonstrate trustworthiness through your actions. In conclusion, trust is not just a feel-good factor; it’s a critical component of effective leadership. By understanding and addressing common misconceptions, handling difficult situations with transparency, and consistently reinforcing trust through actions, leaders can transform trust into their greatest leadership superpower.

I don’t have to agree with Elon Musk’s antics or his politics to admire him as a founder and entrepreneur. The man has built some incredible companies, changing countless lives and industries. His early days at SpaceX, in particular, hit home for me. Back then, SpaceX was less of a polished corporation and more of a scrappy, make-it-happen kind of place. No hierarchy, no red tape, just a relentless focus on achieving what most people thought was impossible. As I learned by listening to the awesome Founders podcast by David Senra , Musk didn’t just build rockets; he built a team of “doers.” He interviewed the first 3,000 employees himself, throwing curveballs in interviews to see how people adapted under pressure. He wasn’t after people who had all the right answers—he was looking for those who could think on their feet and weren’t afraid to dive in and try new things. And if someone said, “That can’t be done,” Musk’s response was, “What would have to happen for it to be possible?” That attitude, that curiosity, and that drive to make things happen are core to any great team, no matter what you’re building. Here are three big takeaways I think every leader can apply from those early SpaceX days: 1. Build a Team of “Doers” and Lose the Bureaucracy Musk kept the hierarchy flat at SpaceX. Everyone was accountable, and everyone was expected to contribute to the mission, even the Head of Sales cleaning the meeting rooms... When you create a team where people feel ownership over the results, they show up differently. Instead of layers of hierarchy, make it so that everyone’s ideas can flow freely. Great ideas don’t only come from the top. Encourage your team to act, experiment, and own their part of the mission. 2. Let Failure Be Part of the Process (Yes!!!) At SpaceX, failure wasn’t a dead end; it was a step forward. They failed, they learned, and they tried again. This kind of culture is huge for innovation. When people aren’t afraid to make mistakes, they’re willing to take risks and bring forward ideas that just might change the game. Encourage a mindset where setbacks are part of the journey, not a reason to back off. If people learn from each failure, they’re only getting closer to success. Just like in SKOR's Courage ingredient for culture measurement. 3. Ask: “What Would Have to Happen for This to Be Possible ?” Musk’s favorite question when faced with a “no” was, “What would have to happen for it to be possible?” It’s a simple shift, but it moves the team’s mindset from “we can’t” to “how can we?” This question can change a team’s perspective and spark problem-solving like nothing else. Encourage your team to think beyond the barriers. Often, the path forward is just a few creative solutions away. These early SpaceX principles—empowering doers, learning from failure, and asking “what if”—don’t just build successful companies; they build teams who are genuinely excited to see what’s possible. In my experience, when a team has this level of ownership and curiosity, incredible things start to happen. It’s how great companies are built, one challenge at a time.

Have you ever been ghosted? I have, and let me tell you—it's infuriating I'm not sure about you, but ghosting drives me up the wall—especially when it comes from people who are supposedly champions of courage and leadership. They convey what it takes to be a leader with courage but here they are not courageous themselves. Ghosting often boils down to a fear of saying 'No.' But in trying to spare someone’s feelings, ghosting actually causes more harm—it wastes time and stalls things. A quick 'No, thanks' is all that is needed, allowing everyone to move forward without future time wasting (and emotion)." I'm frankly sick of you ghosters out there - do yourselves a favor and be courageous and get back to people and say simply, "No thanks". How hard is that? 2 words. That show you how courageous you are and also it provides feedback to the person that is chasing you. In sales (and let's face it, we're all in sales), I’m reaching out constantly. And if someone takes the time to pitch or follow up with me, I make sure to respond—especially if we’ve spoken directly. A simple response shows respect and saves everyone time." What gets me is when you meet someone, they show interest or in fact want to go ahead, then they ghost - WTF? So, to all the ghosters out there: step up, do the right thing, and respond. Being a leader means showing courage, not just when it’s easy, but when it’s uncomfortable. So if you think you're above giving someone a reply, it's time for a reality check. You know who you are. Here's to a more courageous world, one 'No, thank you' at a time!!

I speak to CEOs daily about their challenges, opportunities, their people and obstacles in their way. Clearly every one of them have their own sets of issues, insecurities, aspirations and intentions. Some of them lean in with curiosity to learn more from others, while some of them think they know it all. Growth mindset versus fixed mindset. One clearly defined feature though that is often lacking, is their willingness to be truly courageous . I'm not talking about the simple courage that plays to your strengths. Yes of course, that's great but that's easy to do. It's easy to do the things you've always done and leaned into what you know best. But are you truly a courageous leader? I'm talking about the hard stuff. The stuff that really tests you. The stuff that invites vulnerability and realness to you as a human. I learned this years ago and didn't realize it at the time. but the CEO is in fact quite an intimidating creature for many. Just the title invokes fear and uncertainty. Quick to judge people, employees are scared at the thought of interacting with the CEOs of their company. Why is that? Hollywood movies? Bad bosses? In my mind, too many CEOs aren't being real or showing up in a real way. Being vulnerable, sharing weaknesses, talking about mistakes, inviting feedback. It's as if the CEO title means you aren't allowed to screw up or get help? I think that's called a robot - albeit they make mistakes sometimes too. The more people invite feedback, and are open with the facts, the more they are relatable and frankly inspiring. If you aspire to lead courageously, ask yourself these key questions: 1) Do you regularly ask others for help? The bravest leaders understand that seeking help is not a sign of weakness, but of courage. They know surrounding themselves with feedback makes the entire team stronger. Asking for help shows humility, respect for others’ perspectives, and commitment to learning and progress. If you avoid seeking input due to ego or pride, you have more to learn about courageous leadership. 2) Do you view failures and mistakes as opportunities to improve? Fear of failure leads to stagnation, but the most effective leaders see setbacks as opportunities to get better. They create safe environments where people feel comfortable raising issues early so improvements can be made. Courageous leaders don't punish experimentation or trivialize others’ errors. They celebrate failures as part of the iterative process of achieving high performance. 3) Are you as transparent in failure as in success? In all times, especially difficult times, opacity breeds distrust. But courageous leaders communicate openly and truthfully. They welcome tough questions and acknowledge when they don’t have all the answers. They share bad news along with good, knowing transparency builds loyalty and engagement. Courageous leaders do not hide problems; they confront them directly with candor and care. If you can answer yes to all these questions about seeking help, learning from failure and being transparent, you are one of the 0.0001%. Congratulations! We need more leaders like you!!! But if any no’s surfaced, it's not too late to learn, adapt and level up your courage. After all, you have nothing to lose literally and everything to gain. I'd welcome your thoughts and happy to experience share too!

As a founder/CEO several times over, I know all about setting strategy, striving for ambitious goals and empowering teams to help get there. But sometimes, no matter what you try, things are just not working. You then engage your peers or a coach, or perhaps read some books and identify ways to make change. Whether it's implementing a new methodology across your company like EOS/Scaling Up, or redoing the OKRs you've once set up, or changing leadership, there is always something you could level up and improve. You then decide, well when things improve, I'll spend the money to make that change in the future. The irony is, you actually can't afford to delay. And I've learned that the hard way in my first business, which is why it took me 11 years to get to breakout success and record profits. Anyway, I digress... In my career, delaying clear steps towards leveling up our company and teams, always caused more havoc. As a wise coach once told me when I reflected on my mistakes, "Eddie, the best time you could have done that was then, the second best time is now!" That has stuck with me, and I just want other leaders to learn from my mistakes. From my experience, the most successful companies constantly focus on getting better, even when business seems to be going well. They recognize that standing still means falling behind. By taking steps now to implement improved systems for goal setting, accountability, and culture alignment, you position your company for greater achievements when it matters most. Some leaders fall into the trap of believing they need to wait for an opportune time to make major changes. They plan to act when business slows down, or they hit a rough patch that spurs them to action. But by waiting until problems arise, you lose the benefits of compounding positive returns over time. The best time to act is well NOW. Regardless of whether the business is strong or not. Additionally, big changes simply take time to cascade through an organization. If you wait to implement new performance initiatives until you desperately need results, you may not achieve the full benefits before it's too late. However, efforts put in motion now have time to take hold and make a meaningful difference. While cost is always a valid concern, the price of doing nothing over the long-term is far greater. Stalled growth resulting from maintaining status quo will hurt your competitiveness exponentially more than investment made today to enable growth. As a leader, it's your responsibility to make farsighted decisions that set your company up for success both today and tomorrow. Be the catalyst that drives positive change now, and you will reap the rewards many times over. Delay only puts you further behind. The time to act is now. It will be worth every penny.

We've just released the SKOR State of Culture Report for Q1 2024 , and it's packed with insightful data and strategies to elevate your organizational culture to new heights. 📊 Why Download the Report? Learn from the sectors scoring highest in cultural integration and see where your industry stands. Discover actionable strategies that leading companies are using to foster a thriving workplace. Enhance your leadership with data-driven insights that link strong culture to increased profitability and productivity. 👉 Swipe through our infographic series in the report for a quick glimpse of key insights! 📥 Download it here:   SKOR State of Culture Report Let's make 2024 the year we transform our workplaces by prioritizing culture, alignment, and transparent leadership. Your feedback and thoughts are invaluable! 🚀