Authored by Oscar Amundsen, Professor of Organization Studies at Norwegian University of Science and Technology.
Do you trust your colleagues? And does your leader trust you? This article is about how the ‘trust mechanism’ affects the ability to change and innovate in any organization.
Many experts think that trust mainly relates to expectations, or more precisely, having positive expectations of others. Still, there is no escaping the fact that trust also implies ‘risk-taking.’ This means that uncertainty is part of the deal, which then means that trust can be abused, with all the problems that follow from that.
One might say that trust as a concept loses its content when not linked to uncertainty and risk. The question, therefore, is whether you would take the chance when something is actually on the line? There are strong arguments for answering ‘yes’ to this question, as the level of trust is closely connected to an organization’s ability to innovate.
Trust as a Mechanism for Innovation
It is not controversial to claim that trust promotes innovation in an organization. But it may be a point that is often unclear and vaguely justified. To make it more explicit and concrete – these are the five ‘mechanisms’ that explain why trust matters:
- Trust increases the flow and sharing of knowledge and information. We tend to share information with people we trust rather than those we don’t trust. This works both ways: We are less likely to accept information and knowledge from sources we don’t trust.
- Trust promotes workflow and collaboration. Here is why: If we trust a colleague’s work, we can proceed based on what has been done. If we don’t trust what people have done, we will go back to check and verify. ‘Double work’ is both inefficient and boring.
- Trust provides relief for leaders. The reason is this: If you trust a colleague, they can ‘take care of’ tasks that you are responsible for. This frees up and strengthens your own capacity as a leader. Thus, it becomes easier to prioritize other important matters that require your attention.
- Trust boosts mental capacity. The reason is that low trust creates psychological strain. Tired and suspicious individuals have little energy left. Thus, it’s not easy to be creative and constructive.
- Trust improves performance. Expectations are an important component of trust. A person who experiences positive expectations directed toward themselves and their work will perform better. In research, this is known as the Rosenthal effect.
Research points out that trust is a basic premise for social life. In practice, social participation simply assumes some degree of trust; thus, pure distrust is basically the same as pure madness.
Trust and Control
A culture of control generally dampens innovation within an organization. However, it might be a little too simple to postulate that control and trust are true opposites. In practice, these two will exist in combination.
Organizations do not have zero need for control over what is going on. The point is rather to be aware that there are links between the two, meaning that control measures can easily have an unfortunate effect on the organization.
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Trust is Cheaper than Control: A Danish Leadership Lesson
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The introduction of a quality control system may be perceived as a sign of distrust in employees. Such a measure, introduced with good intentions, may thus become the start of a negative spiral of decreasing trust in the organization. In general, there is reason to assume that increased control in an organization will detrimentally affect the internal motivation of the employees and therefore their creativity. Thus, the ‘impulse’ to commit to innovation is undermined.
Even if there is no either-or in the relationship between control and trust, there is good reason to be aware that a balance must be struck: What is the genuine need for control? Is there more control than necessary in this organization? Thus, the heaviest burden of evidence should be on the control mechanism in a good organization.
You should have good reasons for increasing control activities in an organization if innovation is important for the enterprise.
Trust Requires Courage
We can confidently conclude that trust is a ‘gold mine’ for a business. However, trust comes with degrees of risk, because you can never be 100 percent certain that things will turn out well when you trust someone. Therefore, trust requires a certain kind of courage if you want to get access to this gold mine.
This means that building trust within an organization starts with courageous leaders. When you, as a leader, demonstrate trust in an employee, the likelihood increases that the employee will reflect it back. In this way, you contribute to gradually developing a culture of trust within your organization. The thing about trust is that it is not something that can be ‘used up’ through use; rather, the opposite is true: the more it is used, the greater it can become.
Keep in mind that other factors will also influence employees’ levels of trust in an organization. Research particularly highlights the experience of fairness as crucial for the development of trust among employees. More specifically, this involves respectful treatment, fair procedures, and equitable distribution of resources.
If you want to build trust, it is therefore important to consider how fair things appear to the average employee. One key aspect here will be to strive for as much openness and transparency within the organization as possible.
Trust is One Piece in the Puzzle of Innovation
Trust plays a central role in an organization’s ability to change and innovate, but it does not operate in isolation. Research suggests that trust works together with several other organizational conditions that jointly shape how well an organization adapts, learns, and develops.
One way to understand this interaction is through the Diamond Model for Change and Innovation. The model highlights eight organizational features that together promote the ability to change and innovate. At the center is the outcome: an organization’s capacity for change and innovation. Surrounding it are eight mutually reinforcing elements:
1) Trust – 2) Autonomous work – 3) Pride – 4) Tolerance – 5) Fearlessness – 6) Practical anchoring – 7) Genuine participation – 8) Listening leadership
Each element can be read as a relationship to the center. For example, trust promotes the ability to change and innovate, just as listening leadership or genuine participation does. The point of the model is not that one element is more important than the others, but that sustainable innovation depends on how these conditions work together in practice.
From a leadership perspective, the model illustrates why trust alone is not enough, and why control-heavy or narrowly technical approaches to change often fall short. Trust enables knowledge sharing, collaboration, and initiative, but it must be supported by leadership practices, participation, and structures that make it possible for employees to act with confidence and responsibility.
The practical implication is straightforward. Leaders who want to strengthen their organization’s capacity for innovation should view trust as one essential element in a broader organizational system. By paying attention to how trust interacts with leadership behavior, participation, autonomy, and everyday practices, leaders can contribute to building organizations that are both resilient and capable of meaningful change.
The underlying ambition is practical rather than idealistic: to help make the organization you work in better — for yourself, for your colleagues, and for the enterprise as a whole.
Reference:
Amundsen, O. (2025). How to Become a Dream Organization. Eight Things Leaders Need to Know to Promote Change and Innovation. London/Washington: Business Books.
