By Yuna Tan

When markets are volatile and transformation is constant, leaders often search for the next structural or technological solution. Yet the factor that most decisively shapes organisational outcomes is frequently overlooked, precisely because it cannot be systemised or accelerated.  

Trust as a Strategic Asset

Trust is often dismissed as abstract or intangible. In reality, it is a strategic asset. It governs how decisions are interpreted, how risk is managed, and how much discretion and ownership people are willing to carry for the organisation. In moments of uncertainty, trust determines whether strategies are merely implemented or truly embraced.  

For Laura Houldsworth, Managing Director and Vice President for APAC at Booking.com, trust functions as a core operating principle rather than a leadership ideal. Her experience leading teams through growth, complexity, and change has reinforced a simple reality. Without trust, even the most carefully designed strategies struggle to translate into sustained performance.  

Understanding the Role of Trust 

Trust is often assumed but rarely examined closely. Laura described trust in its most fundamental form as “the ability to let someone take care of something important to you”. Over time, her leadership experience has reinforced that trust is not automatic, even within long-standing teams or familiar relationships.    

This becomes especially relevant during periods of change. Workforce Singapore’s Annual Report (WSG) (2024/2025) highlights that successful workforce transformation depends on job redesigning, reskilling, and inclusive employment practices. However, these initiatives only succeed when employees are willing to take on new responsibilities and invest in learning. That willingness is shaped by trust in leadership intent, fair treatment, and the belief that there are real opportunities ahead.    

Without trust, even well-designed programmes can fall flat. Employees may comply, but commitment remains limited. Drawing from experience, Laura noted, “the biggest challenge leaders face when they are promoted internally, especially when they start to lead their peers. It can be assumed that they know you, they trust you and that they will support you. This can backfire as people knew you and trusted you in the former role, it's possible that the new role requires trust to be rebuilt in a new capacity.”  

Organisations that demonstrate a genuine, long-term commitment to development are better positioned to attract and retain talent. When employees feel valued beyond the work that they do, engagement deepens, trust grows, and turnover declines. Over time, this sustained investment strengthens organisational capability and resilience. 

Building Trust through Organisational Practices

Trust is not built through slogans or value statements. It is built through consistent and visible actions.   

Clear and honest leadership communication

During periods of change, uncertainty can quickly turn into anxiety. Leaders who communicate openly, explaining the reasons behind decisions and setting realistic expectations help employees feel informed and grounded. Laura shared that “trying to protect team members from information you believe will create stress. It can be the case that it causes stress, but how this information is delivered ultimately is what creates the stress and if it is withheld or heard in a different forum, trust is killed in an instant”. Transparency, even when the message is difficult, builds credibility.    

Psychological safety in the workplace

High-performing teams are those where people feel safe to speak up, challenge ideas, and admit mistakes. Psychological safety becomes especially important during job redesign or shifts in responsibility. Trust creates the environment for experimentation, learning, and innovation.    

Following through on commitments

Trust grows when organisations practice what they preach. Over-committing with good intentions and under-delivering quietly erodes credibility. As Laura stated that one leadership habit that can damage trust is “overly committing because you want to be helpful or seen to be doing everything and not being able to deliver, this is not just for leadership, this applies to all work relationships. It is better to be honest and say when you can commit something and not aim to please and under deliver”.     

Empowerment with accountability

Trust does not mean disengagement. Leaders still need to steer, course-correct, and provide direction. However, excessive oversight such as unnecessary reporting or micromanagement signals a lack of trust and can undermine productivity. When capable people are trusted to do their work, they are more likely to take ownership and perform at their best.   

Trust as an External Advantage

Trust does not stop at the organisation’s doors. Companies that act with integrity and consistency build stronger relationships with customers, partners, and the wider community. In markets where offerings increasingly look alike, trust often becomes the deciding factor.    

Organisations with strong reputations tend to enjoy greater loyalty and support, particularly during times of crisis. As values and conduct play a larger role in commercial decisions, trust increasingly shapes long-term collaboration and competitiveness.    

A Strategic Imperative

In an environment where organisations compete on technology, capital, and speed, trust remains one of the few advantages that cannot be purchased or copied. Systems can be replicated. Resources can be matched. But trust is built slowly through consistent leadership behaviour and everyday decisions. 

When trust is present, people take ownership and commit beyond what is formally required. When it is absent, even the most sophisticated strategies struggle to gain traction. For leaders navigating constant change, trust becomes a decisive competitive edge that determines an organisations long-term performance.

Join the conversation 

Learn how leading employers are leveraging trust as a strategic advantage at our upcoming event, Winning with People – Trust as a Competitive Advantage. Hear from Laura Houldsworth and Yang Wen on how trust shapes leadership, engagement, and performance in today's evolving world of work.

Have a question or a perspective to share?  
Drop us a message on LinkedIn or email marcom@shri.org.sg. Your thoughts could inspire our next Winning with People discussion!