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How Leaders Build Trust When Making Unpopular Business Decisions

Every leader eventually faces a decision the team won't welcome. A restructuring, a carrier relationship ending, a commission adjustment, a quality standard that costs more than the alternative. How those decisions land determines whether trust holds or quietly erodes. The leaders who navigate these moments well rarely do it through better communication skills alone. They do it through consistency built long before the difficult moment arrives.

By Viola M.Published 3 months ago 5 min read
How Leaders Build Trust When Making Unpopular Business Decisions
Photo by Hannah Busing on Unsplash

Trust Is Built Before the Decision, Not During It

The foundation of trust during difficult decisions is laid in ordinary moments, not in the announcement itself. Adam J. Greenberg, Founder and CEO of NorthShore Care Supply, explains that teams who trust their leaders through hard decisions are almost never the ones who were simply told to. Trust is built in smaller moments when a leader was honest about something they didn't have to be, when they acknowledged uncertainty instead of performing confidence, and when they made a call that cost them something personally rather than distributing the cost downward. Unpopular decisions don't break team trust. Unexplained ones do.

Michael Sjolie, CEO of SJOLIE, echoes this directly. The decisions that land hardest inside a team are the ones that feel like they came out of nowhere. When people have consistent visibility into how the business is thinking, what pressures exist, and what standards are non-negotiable, a difficult decision becomes something they can contextualize rather than something that feels arbitrary. The leaders who maintain trust through difficult decisions are rarely the ones with the best communication skills. They are the ones whose teams already knew what they stood for before the hard moment arrived.

Dr. Parth Patel, Founder and CEO of iCore, makes the same observation from a healthcare technology perspective. Leaders who communicate context consistently and demonstrate follow-through in ordinary circumstances have a credibility account to draw from when an unpopular decision requires their team to extend good faith. Leaders who communicate selectively during stable periods find that trust evaporates precisely when they need it most.

Transparency About the Reasoning, Not Just the Outcome

When a hard decision arrives, how it's communicated matters as much as what's being communicated. Andrey Kudievskiy, CEO and Founder of Distillery, explains that teams can accept decisions they disagree with when they understand the logic and see that the person making the call genuinely wrestled with the tradeoffs. Sharing context before announcing conclusions, including what alternatives were considered and why a particular path was chosen, gives people the information to evaluate the decision themselves. That transparency respects their intelligence and builds credibility even when the news is unwelcome.

Marty Hitzeman, Director of Marketing at EMPIST, adds that the reasoning behind a decision should be something a leader can explain honestly rather than dressed up in language that feels like it's managing the reaction rather than respecting the audience. People are good at detecting the difference, and the detection damages trust more than the decision itself. When communicating the decision, directness first and context second tends to work best. Leading with the what before the why respects that the team needs to understand what is actually happening before they can process the reasoning behind it.

Yuriy Boykiv, Co-Founder and CEO of Front Row, pushes this further. The approach that has worked for his team is radical transparency about the tradeoffs, not just the conclusion. Not "here is what we decided and why it makes sense" but "here is what we considered, here is what we had to give up, and here is what we are not certain about." That kind of honesty signals that the decision came from genuine deliberation rather than from a place disconnected from the reality the team lives every day.

Getting Ahead of the Conversation

Timing matters as much as framing. Joshua Morrison, President of Bad Driving Record, describes a common pattern in fast-growing companies: communicating decisions without communicating the reasoning behind them. Teams hear what is changing and fill the gaps with assumptions, and those assumptions are almost always worse than the actual situation. When a necessary change was coming, whether a process overhaul or a carrier relationship ending, sharing the business reality driving that decision as early as reasonably possible gave the team enough context to understand what they were responding to.

Boykiv reinforces this point. The fastest way to erode trust during a hard decision is to let rumor and uncertainty fill the space before you do. People will always assume the worst version of what they don't know. Getting ahead of the conversation, even when you can't share everything, is almost always better than waiting until a perfectly polished message is ready.

Brad Spurgeon, Owner of Brad Spurgeon Insurance Agency Inc., has applied this directly across volatile insurance markets. Leading with the reasoning rather than the decision itself gives people context before they react. A team that understands why a difficult call was made may disagree with it but will rarely lose trust over it. People can accept hard decisions. They struggle to accept feeling managed rather than respected.

Bringing Skeptics Into the Room Early

Matt Bowman, CEO and Founder of Thrive Local, restructured his entire service delivery in 2017, reassigning 23 people into new roles to position the agency ahead of where the market was heading. What made the transition work wasn't the logic of the decision. It was that the leadership team had already challenged and shaped it before anyone else heard about it. Bowman's team built what he calls a Decision Visibility Framework, documenting every significant change across three sections: what they're doing, why they're doing it now, and what they considered but set aside. That last section matters most because it shows people their objections were anticipated and weighed seriously before the direction was set. Six months after the restructuring, productivity improved 31 percent, and the two most skeptical team members became its strongest advocates.

Ben Kramer, President of Bio-One, frames the same principle through a franchise lens. Franchisees who already believed their input was heard and that leadership operated transparently are far more likely to extend good faith during a difficult transition than those who only hear from the franchisor when something is being asked of them. Improving internal NPS by 66 points in seven months wasn't the result of making popular decisions. It was the result of making the decision-making process itself feel fair and visible to the people most affected by the outcomes.

Following Through After the Decision

Jessica Hegge, Co-Founder of Dr. Home Finance, points out that a team that watches leadership make uncomfortable choices that still align with company principles develops confidence in the decision-making process even when individual outcomes aren't what they hoped for. The erosion happens when decisions feel arbitrary or when the reasoning shifts depending on the audience. Transparency before and after a hard decision consistently does more for team trust than any amount of positive messaging that follows it.

Patel adds that what sustains trust after an unpopular decision is consistency between what was said and what follows. Teams accept difficult outcomes more readily when they observe that the decision served the purpose the leader described. That consistency between stated rationale and demonstrated outcome is the specific behavior that compounds into lasting organizational trust over time.

What It Comes Down To

The through line across every perspective here is the same. Trust isn't something leaders can manufacture in the moment a hard decision needs to be delivered. It accumulates or it doesn't based on how leadership has communicated, followed through, and made decisions across every ordinary moment that came before. When that account is full, teams can follow a leader into an unpopular call and come out the other side intact. When it isn't, even well-reasoned decisions feel like something being done to the team rather than with them.

Thought Leaders

About the Creator

Viola M.

I’m a writer covering tech, leadership, business, health, insurance and anything under the sun. I turn complex ideas into clear, useful insights. Outside of work, I love reading and staying curious to keep learning and growing.

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    Written by Viola M.