The trust among team members is usually good. However, with specific teams, an excessive trust could be detrimental to performance.
Investors should follow the same principles. It is crucial to trust when working with financial advisors, but faith that is blind sometimes leads to deceiving. Therefore, trust but verify is vital in every matter of life. Investors ignore this at their own risk.
The Most Amazing Trick Man in All Time
A couple of many years back, Bernie Madoff rocketed from relative unknown to international recognition. In a flash, Madoff became the poster boy for the disastrous failure in the regulation system and was the embodiment of the corruption that was taking place on Wall Street.
Although it’s been a few years since Madoff was sentenced to life in prison, it’s worth considering how he concealed his fraud for so long and fooled numerous people.
What could he possibly have done to pull this off?
We’re all enthralled by the query. We have to affirm that he’s an intelligent evil. But, he could never succeed if investors were not paying attention to normal business controls and checks. Madoff was everywhere.
He was an investment advisor, broker-dealer, and custodian. He also claimed to be executing trades through an offshore brokerage.
An outsider did not confirm the information. Instead, he printed fake statements supposedly verified by a single-person accounting company operating from an unintentional strip mall. The saga continued over a generation.
Unfortunately, Madoff tainted the atmosphere within an already toxic atmosphere. In the present, the majority of investors are deeply burned that they don’t trust their mothers. Unfortunately, re-establishing trust isn’t accessible within the aftermath of the Madoff world. However, verification should be easy.
A Bit of Skepticism will Never Hurt if you Trust But Verify
Langford interviewed 71 self-managing teams comprised of MBA students to assess the levels of self-monitoring, trust, and autonomy.
Groups were engaged for four months in project analysis, financial analyses, marketing, business case write-ups, and other projects. They then competed at the end of the semester in presenting them to professors or industry specialists.
They were self-managing teams and were in complete control of the best way to complete their assignments.
Outcome Evaluations of Langford about Trust and Verification
Outcome evaluation Langford slowed performance the most in groups whose members were highly autonomous, that is, teams whose members operated independently of each other.
It is not surprising that he discovered that when the team members could trust one another, they tend not to keep track of each other in a significant way. In the end, they had a shared understanding of one another’s activities which adversely affected their performance, possibly because it impeded coordination and processes.
It implies that deliberate supervision is crucial in a specific type of team, where members are highly self-sufficient and trust one another. Even if the members of these teams suspect that care would be beneficial, they might be uncomfortable suggesting the idea.
The Last Thoughts
Today more than ever, customers need to trust but also verify.
Failure to keep the team’s activities under control and their activities could be dangerous, Langford concludes, regardless of the level of trust.
Therefore, managers might want to insist on some form of power rather than let teams decide independently. A little doubt never hurts anyone, nor any group.
Nothing else is more important than you trust but verify. So be sure to verify your claims!