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Index >> Contract Management >> Trust

Trust
By Paul Rogers

The second type of trust identified by Sako is Competence Trust where we ask if the other party is capable of what they claim than will do. Competence trust requires a shared understanding of standards of professional conduct and technical standards. If you begin a trading relationship with a pilot delivery or small scale trial, you are creating an opportunity to build competence trust.

The third distinctive type is Goodwill Trust which is based on whether the other party will make a unilateral commitment to behave in a mutually acceptable way and refrain from opportunism. Goodwill trust is ¡¥fair¡¦ between the parties and is the most difficult form of trust to develop. A common view is required about equity and a shared sense of mutuality.

But  can a trading partner really be trusted at one level and not another? The practicalities of trust it is often felt subjectively. We do not say ¡¥I have calculated that I will only have Contractual Trust with you!¡¨ We either trust someone or we don¡¦t.

The PMMS view is that trust is an expression of our experiences in dealing with:

  • the other party as an organization, how efficient they are, do they do what they say, the nature of their culture.  
  • the other party¡¦s people¡Ktheir behaviour, their values and their attitudes.  

    PMMS has developed a simple framework, COPPER, to allow practical measurement of trust using all of Sako¡¦s dimensions.

    Competence         Does their business have the potential for good performance?
    Openness             Do they disclose information freely?
    Predictability         Can we anticipate how they will behave in a given situation?
    Performance         Do they keep their promises consistently?
    Equity                    Do we feel the sharing of value is fair?
    Responsiveness   Do they accept feedback and amend behaviour accordingly?

    To find out more about COPPER, contact Paul Rogers at the PMMS Melbourne office e-mail: paul.rogers@pmms.com.au






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