Sometimes, Trust is not an Option

I pride myself on being good at working with and collaborating with people. I tend to be very forgiving of other people's errors, even costly ones, when I am confident that their heart is in the right place. I work well with people with strong egos and people with no confidence. I work well with **sholes. But one area that I have struggled with for my entire career is working with people that are not trustworthy. It's not just a personal thing, but it’s a professional issue as well, since I am not sure how to proceed on various issues that arise. Below are strategies I’ve learned over time for dealing with untrustworthy people in business.

Introduction

In the ideal business world, partnerships and key relationships are built on mutual trust, aligned goals, and shared interests. But reality often tells a different story. Sometimes, your business may become reliant on an individual—whether it’s a supplier, client, or key employee—whom you don’t fully trust or suspect doesn’t have your best interests at heart.

While this is far from ideal, it’s a situation many business owners face. The key to navigating this delicate dynamic is to balance reliance with safeguards, transparency with boundaries, and practicality with preparation.

Understanding the Risks

Before diving into solutions, it’s essential to identify the risks associated with relying on someone untrustworthy:

Financial Risks: They may act in ways that prioritize their gain over your business’s profitability.
Operational Risks: Delays, poor quality, or withholding critical resources can disrupt operations.
Reputation Risks: If their actions reflect poorly on your business, it can damage client trust and brand reputation.
Legal Risks: Breaches of contracts or unethical behavior can lead to costly disputes.

Acknowledging these risks allows you to take proactive steps to mitigate them.

Strategies to Navigate the Relationship

1. Establish Clear Contracts and Boundaries

Clearly define the scope of work, deliverables, and expectations in written agreements.
Include measurable performance metrics and consequences for non-compliance.
Regularly review and, if necessary, renegotiate terms to ensure fairness and alignment.

2. Increase Transparency

Insist on regular updates, reports, or check-ins to maintain visibility into their actions.
Use tools like dashboards or shared project management systems to track progress in real time.
Request documentation or evidence for any critical claims or decisions they make.

3. Diversify Dependencies

Reduce reliance by identifying alternative suppliers, employees, or partners who can step in if needed.
Cross-train employees or develop backup plans to ensure continuity if the relationship falters.
Avoid single points of failure by distributing critical tasks or resources across multiple channels.

4. Build Strategic Leverage

Strengthen your bargaining position by understanding what they value in the relationship.
Document instances of untrustworthy behavior to maintain evidence for renegotiation or legal recourse.
If possible, create contingencies that allow you to function independently of their cooperation.

5. Manage with Empathy but Caution

Avoid openly confronting their motives unless necessary—focus on collaboration where possible.
Offer incentives for good behavior while maintaining vigilance.
Preserve professionalism and avoid personalizing the relationship, even if tensions arise.

When to Cut Ties

Sometimes, no amount of management can salvage a toxic or risky relationship. Consider cutting ties if:

Their actions repeatedly jeopardize your business’s success or integrity.
Alternative solutions or replacements are feasible.
The long-term risks outweigh the short-term benefits of continuing the relationship.

Turning the Challenge into a Strength

While managing an untrustworthy relationship is challenging, it can also push you to improve your business’s resilience:

Develop better processes to monitor and evaluate partnerships.
Foster a culture of accountability within your organization.
Strengthen your negotiation and conflict-resolution skills.

Conclusion

Dealing with someone you don’t trust but rely on requires a delicate balance of strategy, preparation, and foresight. While these situations are far from ideal, they’re an opportunity to build a more resilient and adaptable business. By safeguarding your interests and planning for contingencies, you can navigate these relationships successfully while maintaining your business’s stability and growth.

As we say here in Texas, “You’ve got to know when to hold ‘em, and when to fold ‘em.” Whether you choose to manage the relationship or cut ties, the most important thing is to stay true to your business’s core values and long-term goals.