Gurumantra

in trust we trust

Morgen Witzel

What will be the next big issue that determines competitive success for failure? Where will be the next battle ground? In the 1980s, it was quality. In the 1990s, it was knowledge. In the first decade of this century it has been the Internet, knowing how to use it and leverage it to reach customers. So what is coming around the corner? It may sound odd, but I think the next big thing could be trust. Think about how. How many people have been burned in the last few years, investing in supposedly secure assets whose value evaporated like water after the economic crisis? How many people feel let down by the service they receive from their banks, insurance companies, call centres? How many people feel unhappy about the quality of the products that are sold to them? And these days, thanks to the Internet, when they feel unhappy, they can tell the world about it. And they do. Think of the phenomenal growth of Trip Advisor, the web site that allows people to review their travel experiences. Enough bad reviews can seriously damage the reputation of a hotel or resort. And there are other forums and Facebook groups for other products and other companies too. Everyone’s business reputation is under scrutiny like never before. Professor Jagdish Sheth calls this ‘the digital fishbowl’. Every business is visible now, around the world. So what is the answer? Well, try this: make promises to customers, and then keep them. Honour them in full, in spirit as well as letter. Do that often enough, and you will get a reputation for trustworthy products and services, a trustworthy brand. And there, unless your competitors can do the same – and evidence suggests that many of them probably cannot – you have a priceless source of competitive advantage. I think the companies that succeed over the next decade are going to be the companies people trust.

Over the past 20 years Morgen Witzel has established a international reputation for innovative thinking and clear incisive writing about a range of management issues in books, newspaper columns, journal articles and online forae. His work has been translated into many different languages including Chinese, German, Greek, Japanese, Korean, Polish and Spanish.

Morgen’s work encompasses writing, teaching, research and editorial work with a particular interest in the history of management and management thinking. His most recent book, Tata: the Evolution of a Corporate Brand is a full length study of the origins and development of India’s most famous brand, and indeed one of the world’s most valuable brands. This book combines historical analysis with an in-depth look at the brand’s reputation in the eyes of its stakeholders and has been on the Indian bestseller list since its launch in August 2010.