Kristina Jarring Lilja is a seasoned board professional who has made trust her hallmark. With a solid background as a CEO and more than 15 years of experience serving on various boards, she has dedicated her career to building what she calls trust capital. She is also the author of the book Trust: A Company’s Most Important Capital and currently serves as Chair of Nitator Stainless Steel and Aroma Frukt & Grönt, Vice Chair of Sjöson Holding, and Board Member of Tooltec and Brännborn Fastigheter.
Since 2010, she has worked as a professional board advisor and independent consultant, providing guidance to business owners and education in corporate governance. We met with Kristina to discuss the crucial role trust plays in today’s business environment.
You have made trust your area of expertise. Why is trust still so difficult to build, even though everyone knows how important it is?
“Trust is about people, emotions, and relationships. It is something we often take for granted and perceive as ‘soft’—difficult to define and measure—which is probably one reason why it has historically received so little attention in business. We tend to discuss it only when it has been broken.
At its core, trust is confidence that expectations will be fulfilled, and that is something we need to focus on much more. I call myself a trust capitalist because I am convinced that trust is our most valuable asset.
I have seen numerous CEO recruitments go wrong precisely because the board failed to clearly communicate its expectations, but also because it did not take the time to understand the CEO candidate’s expectations. As a board chair, I make a point of clarifying both parties’ expectations by documenting them, agreeing on them, and following up regularly. It is something I recommend to everyone involved in a recruitment.”
You say that the owner’s directive is the foundation of all board work, yet many companies do not have one. What happens when a company operates without a clear owner’s directive, and how does it show?
“Without an owner’s directive, it is difficult for a board to create value. The owner’s directive is the foundation that communicates the owners’ intentions; their values, objectives, attitude toward financing, and approach to risk.
It forms the basis for the board’s responsibility to set strategy and oversee the ongoing management of the company. Should the company grow organically or through acquisitions? How should growth be financed?
The owners’ values should also be central when recruiting external board members. Without a directive, it becomes difficult for board members to work effectively and make the right decisions. It is essential if you want to be actively engaged in board work rather than simply occupying a seat.”
You have seen boards that don’t function effectively. What is the most common challenge you see among boards today?
“It is difficult to generalize, but the issue often comes down to the responsibility of the owners and the nomination committee to evaluate the board and have the courage to make changes when things are not working.
This can become particularly complicated when board members have personal relationships with one another. However, the three most important cornerstones are a clear owner’s directive, a well-composed board, and mutual trust. If any of these elements are lacking, it becomes difficult to maintain a high-functioning board where members trust one another and the CEO.”
The CEO is the company’s primary culture carrier. What should a board do when it realizes that the CEO is not living up to the organization’s stated values, and how early do the warning signs typically appear?
“The warning signs are usually visible after just a few board meetings. The chair, being the person closest to the CEO, is often the first to spot them.
At that point, it is critical to have the courage to act. If there is a significant gap between the CEO’s values and those of the company, a leadership change should happen as soon as possible.
Employees are often the first to experience the friction when they see that words are not matched by actions, and they wait for the board to take action.”
You serve on the boards of companies undergoing active transformation, such as Aroma Frukt & Grönt, Nitator, and Tooltec. When you identify a leadership gap or a transformation need, how do you think about strengthening the organization with external interim capacity versus making a permanent hire?
“The choice depends entirely on the company’s needs and strategic plan.
An interim solution can be ideal as a bridge before a permanent hire is in place or when a company needs specialized expertise for a limited period. Right now, I see AI expertise aimed at improving operational efficiency as one such resource that can be highly valuable to bring in on an interim basis. It can help establish new ways of working tailored to the organization’s specific strategic challenges.”
Trust takes time to build—but an interim leader does not have that luxury. How do you view the ability of an external professional to earn trust quickly enough to make a meaningful impact?
“I always come back to expectations. If expectations are clear from the outset and the person consistently delivers on them, trust can be built much faster.
We are what we do.
It is about agreeing on expectations, both what the company expects from the interim leader and what the interim leader needs to successfully carry out the assignment. Through clarity, follow-up, and frequent check-ins, trust can be built both quickly and effectively.”
You often say that trust is not something you are given – it is something you earn. If you could give just one piece of advice to a CEO taking over an organization in crisis, what would it be?
“Communication is absolutely essential. Be transparent and clear about your expectations of the organization and the board, and communicate openly about goals and the rules of engagement that will guide how you work together.
But most importantly, practice what you preach.
We are what we do. If your actions do not match your words, you will never build the trust required to lead an organization through a crisis.”
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