The Leadership Mistake That's Quietly Killing Trust Inside Your Company

Forbes

07-05-2025

The Leadership Mistake That's Quietly Killing Trust Inside Your Company getty
In a world of constant disruption, it's not strategies or software that make the difference, it's trust. Trust in the mission. Trust in your coworkers. Trust in leadership. But building trust isn't about being nice. It's about being real.
That theme sits at the heart of Leading in the Age of Digital Disruption , the new book by Mike Peterson. We recently sat down for a conversation about the hidden ways leaders sabotage trust, how to make accountability constructive, and why vulnerability is leadership's most underused asset. What sets Peterson's work apart is his use of narrative. Rather than offering abstract principles, he brings them to life through the journey of Ethan, a fictional CEO tasked with rebuilding a company from the inside out. But while the story is fictional, the insights are all too real.
One of the first things Peterson told me was this: 'Leaders often mistake being approachable or friendly for building trust. But trust is built through consistent, transparent action.'
When we look at why employee engagement remains low in so many organizations, one major factor is a lack of clarity and courage at the top. Too many leaders want to be liked more than they want to lead. They permit low engagement, avoid tough conversations, and fail to explain the 'why' behind decisions. And as the saying goes, 'what we permit, we promote.'
In the book, Ethan inherits a culture where those very behaviors have corroded morale. He doesn't fix it with rah-rah speeches. He fixes it by naming what others won't. By explaining the purpose behind each tough call. And by making sure accountability is practiced, not just preached.
Some leaders still believe that showing vulnerability will make them appear weak. But as Peterson explains, 'Vulnerability isn't weakness, it's leadership in its most human form.'
In one of the most pivotal scenes in the book, Ethan admits to his team that he doesn't have all the answers and he asks for help. Far from undermining his authority, this moment earns him respect. Because when a leader is willing to be honest, it opens the door for everyone else to do the same.
Psychological safety, after all, isn't a memo or a mission statement. It's what happens when people feel safe to speak, even when what they're saying is uncomfortable. And it begins at the top. Research from Leadership IQ has shown that when employees feel their leaders welcome suggestions, they're 12 times more likely to recommend their company as a great place to work​.
But if leaders don't model that behavior — if they dominate every conversation, dodge feedback, or deliver performative nods without follow-through — people stop talking. And that silence is deadly. Accountability Without Trust Is Just Blame
One of the most refreshing aspects of Peterson's work is how he redefines accountability. Instead of a tool for punishment, it's framed as a function of clarity and trust.
As he told me, 'Leaders get it wrong when they only invoke accountability after something goes wrong — by then, it's too late.'
A Leadership IQ study found that only 29% of employees say they 'always' know whether their performance is where it should be. In other words, the majority are operating in a fog. That's not a people problem, it's a leadership failure.
Worse, in 42% of organizations, high performers are less engaged than low performers. Why? Because those who give their all are often rewarded with extra work but little recognition. Meanwhile, low performers coast without consequences. The result? Burnout at the top, disengagement at the bottom, and silence in between.
In the book, Ethan confronts this dynamic head-on. He introduces a new framework where expectations are clearly set, feedback is frequent, and performance is no longer measured by ambiguity or favoritism. He reminds his team that 'trust, communication, and accountability must go hand in hand.' And that's the only way it works. Set Expectations Out Loud, Not in Your Head
Another theme Peterson explores is the danger of unspoken expectations. Far too many managers operate with a 'dual deadline' system — stating one date out loud while secretly hoping for another. And then penalizing employees for not reading their mind.
This kind of silent standard doesn't challenge people, it sabotages them.
Instead, we need to be clear, consistent, and explicit. In the book, Ethan starts every planning session by answering three questions: What does success look like? Why does it matter? And how will we know when we've achieved it?
And as Peterson makes clear, when leaders are transparent about the 'why,' people don't just perform, they invest. Culture Is Created One Conversation at a Time
Perhaps the most resonant idea in Leading in the Age of Digital Disruption is this: Culture isn't built in all-hands meetings. It's built in one-on-one conversations. In how leaders respond to failure. In how they show up during change. And in whether they treat employees as contributors or problems to be managed.
In one especially powerful scene, Ethan walks into an executive meeting and calls out the fear in the room; not to shame anyone, but to free them. By naming the discomfort, he removes its power. And by speaking last, he makes space for others to speak first. That's how change happens: not by mandate, but by modeling. Leadership Is Human Work
If there's one takeaway from my conversation with Peterson, it's that the future of leadership isn't about knowing more. It's about being more clear, more consistent, and more human.
In an age obsessed with speed and scale, the leaders who will win are those who make their people feel seen, trusted, and challenged. Not coddled. Not ignored. And certainly not managed through silence.