The trust tax: how low trust quietly destroys operating model performance

Every operating model carries a hidden cost

Not in structure. Not in process. Not in governance. But in trust.

Trust is the currency that makes an operating model work. When trust is low, even slightly low, the organisation pays a tax on every decision, every dependency, every cross functional interaction.

Most executives feel the trust tax long before they can name it. Delivery slows. Alignment slips. Teams hedge. Leaders double check. The operating model that once looked elegant on paper becomes heavy in practice as a consequence.

Not because the model is wrong. But because the trust fabric isn’t strong enough to sustain it.

What the trust tax looks like

Different roles, different symptoms, but the same pattern emerges: low trust increases friction, slows delivery, and destabilises the operating model.

Example 1: The CPO who adds extra governance because she doesn’t trust the data

A Chief Product Officer wants to move fast but she doesn’t trust the accuracy of the data coming from other teams. So she adds checkpoints. Adds reviews. Adds validation steps.

She’s not slowing things down. She’s compensating for a gap in trust.

Example 2: The CTO who re-does work because he doesn’t trust the decisions made without him

A Chief Technology Officer empowers teams to make decisions. But when he sees the output, he quietly re-works them. Not because the teams are incapable. But because he doesn’t trust the quality or consistency of their judgment yet.

He’s not micromanaging. He’s paying the trust tax.

Example 3: The COO who escalates everything because she doesn’t trust cross functional follow through

A Chief Operating Officer sees dependencies slipping. She sees commitments made but not honoured. She sees teams working around each other but not with each other. So she escalates. Every time.

She’s not over-managing. She’s compensating for low cross functional trust.

Example 4: The GM in Product who builds buffers because he doesn’t trust capacity signals

A General Manager in Product wants predictable delivery because he’s made commitments to the market and their customers. But he doesn’t trust the capacity signals coming from engineering. So he builds buffers. Adds contingencies. Pads timelines.

He’s not being conservative. He’s protecting himself from trust volatility.

Example 5: The CEO who sees the symptoms but can’t get the exec team to name the root cause

A Chief Executive Officer sees the drift. The rework. The escalations. The friction. But when he asks the exec team what’s happening, they talk about process, structure, or resourcing.

No one names the real issue: “We don’t trust each other enough to run this model efficiently or effectively.”

Why the trust tax is so destructive

Because trust is the force multiplier.

When trust is high:

• Decisions are faster,

• Alignment holds,

• Teams move with confidence,

• Leaders stay in their lane,

• Governance becomes lighter, and

• Delivery accelerates.

When trust is low:

• Everything takes longer,

• Everything feels heavier,

• Everything requires more oversight,

• Everything becomes political, and

• Everything becomes personal.

Operating models don’t fail because people don’t understand them. They fail because people don’t trust each other enough to run them properly.

A quick reflection if this resonates

Take 60 seconds and ask yourself:

“Where are we paying the trust tax, and what behaviour is driving it?”

You’ll know immediately.

If you want to go deeper, ask:

“What would we do differently tomorrow if trust was 20% higher?”

That’s where the real opportunity sits.

What the reflection tells you

If you can see the trust tax, you’re already ahead of most organisations.

The question isn’t whether the model is right. It’s whether the trust fabric is strong enough to carry it.

Leaders who get ahead of this don’t redesign the model. They rebuild the trust that makes the model work.

If you’re seeing the trust tax, now is the moment to act

You don’t need more governance. You need trust that holds under pressure.

If you’re ready to steady the system, let’s work on this together. Here are three ways:

• Interim Executive - when the transformation needs a senior leader inside the organisation to stabilise, steer, and deliver,

• Capability Building - when product and transformation leaders are expected to know how to navigate the people, politics, and performance expectations that come with their jobs, yet no one has taught them these skills during their entire career, and

• Executive Coaching - when senior leaders need a confidential, strategic partner to think clearly, make decisions, and lead through change and complexity.