The Currency of Credibility - FATHOM Issue No. 9:
By Jay Prewitt-Cruz, EdD and Aileen Parciasepe
In any organization, leadership is built on credibility—a foundation of trust, expertise, and consistency that allows a team to work together with confidence in the organization’s overall decision-making and strategic vision.
Many leaders believe that their credibility is both assumed and secure, simply by virtue of being a leader. All too often, this persistent belief allows any erosion of credibility to go unrecognized until the organization faces a crisis, in the form of employee resistance, disengagement, or outright failure.
“Credibility… when you have
it, nothing else matters. When
you don’t have it, nothing else
matters.”
Even then, many leaders misdiagnose these problems as communication failures, process inefficiencies, or a lack of innovation. But these are just symptoms. The underlying issue is almost always a credibility gap. When teams don’t trust leadership, they don’t commit. When stakeholders doubt decisions, they don’t invest. When credibility erodes, everything slows, stalls, or collapses. Credibility isn’t just a leadership trait—it’s the currency of leadership. Without it, trust evaporates, alignment collapses, and even the best strategies falter.
In fact, building credibility can and should be treated like any other skill—one that requires practice and cultivation to attain and sustain.
And leaders should not only seek to maintain their own credibility, but to build a culture of credibility within their organization — embedding trust, transparency, and accountability into their culture, processes, and decision-making.
To achieve this, organizations must establish a shared understanding of what credibility entails, how to measure both its presence and impact, and how to effectively demonstrate it through clear and effective communication. The path to success starts with understanding how authenticity and credibility intersect. Leaders who balance genuine self-expression with strategic communication not only preserve trust but also amplify their influence, fostering an organizational culture where both credibility and authenticity thrive.
As we will explore in this issue of Fathom, credibility must be built, reinforced, protected, and communicated daily—because once lost, it’s nearly impossible to restore.
What we mean when we talk about credibility
Credibility is often the silent force behind leadership influence—rarely named outright, yet undeniably essential. It is more than just a trait; it is the foundation upon which leadership is built. Credibility enables leaders to foster trust, as teams are more likely to align with and believe in a clear vision. It helps leaders gain support, with stakeholders advocating for decisions and rallying behind organizational initiatives. Additionally, it drives performance by empowering individuals to excel, confident in the dependability of their leadership. Yet, because credibility is often assumed rather than acknowledged, its absence is felt more than its presence. Without it, trust erodes, communication breaks down, and alignment falters, ultimately undermining even the most well-conceived plans. Simply put, credibility may go unspoken, but it is the defining factor that separates a thriving organization from one in turmoil.
Understanding leadership credibility all too often relies on a “you know it when you see it” mentality. A 2022 systematic review of leader credibility by Williams, Raffo, Clark, and Clark examined 108 peer-reviewed articles and found that, while the concept is frequently discussed in business, politics, and other fields, there is no single, broadly accepted, and clear framework, nor any consistent measurement.
Perhaps the best way to begin to understand what makes up credibility is to break it down to its core components—trustworthiness, expertise, and reliability—all of which rely on clear, effective communication.
Trustworthiness is built on integrity and the ability to consistently act in alignment with shared values and organizational goals, as management professors Daniel Han Ming Chng, Tae-Yeol Kim, Brad Gilbreath, and Lynne Andersson write in the MIT Sloan Management Review. As they note, employees assess a leader’s trustworthiness through behaviors such as transparent communication, protecting organizational interests, and embodying the organization’s vision and mission.
Expertise reflects a leader’s knowledge and capacity to guide their team effectively. This extends beyond technical skill to encompass understanding industry trends, anticipating challenges, and devising strategies to address them. Employees look for action-oriented behaviors that demonstrate not only expertise but also a readiness to tackle complex problems head-on—qualities that distinguish capable leaders from those who falter in times of uncertainty. And leaders perceived as competent often articulate detailed plans for achieving organizational goals, improving processes, and making sound decisions even in high-pressure situations.
Reliability, the third component, is established through consistent actions that align with stated values and commitments. Employees and stakeholders expect leaders to follow through on promises and deliver on expectations. Chng, et.al, underscore that even a single act of inconsistency or dishonesty can significantly damage perceptions of a leader’s credibility, making reliability a cornerstone of maintaining influence. Importantly, leaders who communicate clearly and avoid contradictory or misleading information reinforce their reliability.
What about authenticity? This ideal—that leaders should bring their “whole selves” to work and engage in transparent communication—often is cited as a fundamental part of achieving credibility. After all, authenticity can help build trust, foster alignment, and achieve organizational success. However, as Lisa Rosh and Lynn Offermann write in the Harvard Business Review, unchecked self-disclosure or poorly timed expressions of authenticity can alienate teams, damage reputations, and erode trust. Rather than a fundamental element of credibility, authenticity should be seen as a strategic communication tool, one that takes note of one’s audience and goals. It is important to be honest, but equally important to understand what aspects are appropriate and valuable to share at any given time.
Together, trustworthiness, expertise, and reliability can be considered the building blocks of leadership credibility. By demonstrating these qualities through intentional behaviors, strategic actions, and consistent communication, leaders can strengthen their influence and foster alignment within their organizations.
Building credibility
Credibility is not about rhetoric or positional authority—it is earned and sustained through transparent communication, consistent follow-through, and accountability. This begins with critical self-assessment and reflection. Leaders should ask themselves: “Do my teams trust the vision I’ve set?” and “Do stakeholders believe in the integrity of our decisions?”
Credibility comes in three distinct forms—positional, inherited, and behavioral—each with different sources, strengths, and levels of staying power.:
Positional credibility is the authority granted by a leader’s role or title. It is automatically assumed that when someone achieves a position of power, they possess the competence and consistent performance necessary to sustain it. However, it can quickly diminish if their actions fail to meet expectations.
Inherited credibility, on the other hand, refers to trust passed down through association with a respected individual or their reputation. It is earned rapidly through affiliation with a trusted entity but remains fragile and temporary unless reinforced by consistent actions.
Behavioral credibility, the most significant and enduring form, is earned through consistent actions, integrity, and reliability. This type of credibility takes time to build, as it is developed by delivering on promises and modeling values. While it is the most challenging to earn, it is also the most meaningful and enduring. Positional and inherited credibility may provide initial opportunities, but behavioral credibility is the true sustainer of trust and influence, making it the most critical for leadership success. Once lost, behavioral credibility is the hardest to rebuild.
And, importantly, communication is key. Leaders who engage in open, constructive dialogue with stakeholders at all levels are better equipped to navigate disruption and maintain alignment across their organizations. As McKinsey analyst Liz Harrison has written, “Consistent communication, backed by concrete actions, builds a virtuous cycle of credibility and engagement. It unlocks new possibilities in teams and helps them realize their full potential.”
Mind the credibility gap
What if credibility fails? A credibility gap often manifests in several ways: disengaged teams that resist leadership directives and lack enthusiasm, stakeholders who question decisions or perceive a lack of transparency, and low morale coupled with high turnover, which stagnates innovation and growth. These indicators often point to a deeper issue within leadership’s ability to inspire trust and confidence.
To address these gaps, leaders must examine the root causes of these issues by asking critical questions:
Are there inconsistencies between our stated goals and actions?
Has communication been transparent and timely?
Have past promises or commitments been left unfulfilled?
Do my team members hesitate to provide honest feedback?
Are my decisions frequently challenged or second-guessed?
Am I consistently following through on commitments or do I make promises I can’t keep?
By conducting an honest assessment of their credibility, leaders can begin to rebuild trust and reenergize their teams, setting the stage for renewed alignment and progress.
Often underlying these issues is poor communication—as Chng and his co-authors note, communication missteps such as relaying false information in an attempt to “spin” bad news or offering inconsistent messaging undermine a leader’s credibility. Improving communication—to provide direct, clear, consistent messaging—is a key element in repairing a breach of trust.
As Warren Buffett wisely observed, “It takes 20 years to build a reputation and five minutes to ruin it.” The takeaway for leaders? Every interaction, every decision, every commitment, and every message must reinforce—not jeopardize—the credibility they’ve worked hard to establish.
Scaling Credibility Across Your Organization
A strong organizational culture is built on credibility at every level. Organizations may assume their credibility exists because they have trustworthy leaders. But without credibility built into the system, it will disappear when key leaders leave. Consider this: if your leadership team disappeared tomorrow, would credibility still exist within your organization?
Embedding credibility into the organizational culture requires deliberate actions, such as creating structures for continuous feedback, promoting leadership development as a core capability, and establishing transparent communication channels.
Managers and teams must be held to the same standard of integrity and accountability modeled by their leaders. Without that kind of systemic credibility, organizations struggle with instability, disengagement, and reputation loss. To build lasting credibility, companies must embed trust, transparency, and accountability into their culture, processes, and decision-making, from the top down.
Here are six ways to scale credibility throughout your organization:
1. Hire and Promote for Credibility
Use credibility-based interview questions (e.g., “Can you share an example of when you had to stand up for your values, even when it was unpopular?”)
Evaluate trust and ethical decision-making in performance reviews.
Reward credibility in leadership, not just results.
Action Step: Audit your hiring and promotion process—does it measure credibility?
2. Make Credibility Visible in Every Decision
Require leaders to explain major decisions transparently.
Publish Decision Impact Summaries to show how and why key choices are made.
Ensure consistency in messaging to prevent misalignment.
Action Step: Develop a standardized framework for communicating leadership decisions.
3. Hold Everyone—Especially Leaders—Accountable
Implement upward feedback systems for teams to evaluate leadership credibility.
Establish a Leadership Credibility Check, assessing leaders on trustworthiness and consistency.
Apply accountability equally at all levels—credibility must be modeled, not just expected.
Action Step: Implement a credibility review process for leadership teams.
4. Make Credibility Measurable
Track employee trust and engagement using internal surveys.
Monitor external reputation signals (Glassdoor ratings, investor trust, customer satisfaction).
Establish credibility KPIs for leadership effectiveness.
Action Step: Add credibility metrics to company performance evaluations.
5. Reinforce Ethical Decision-Making at Every Level
Conduct Red Flag Review Sessions, where employees can raise concerns about decisions that appear inconsistent.
Encourage employees to speak up about credibility concerns—and reward them for it.
Incorporate ethical decision-making training into leadership development.
Action Step: Train managers to identify and address credibility risks early.
6. Build a Credibility-First Communication Culture
Train leaders in clear, candid communication—ambiguity breeds distrust.
Require regular leadership updates, even when there’s no major news.
Normalize public acknowledgment of mistakes to build long-term trust.
Action Step: Implement a continuous learning practice in strategic and effective communication.
Key Questions for Evaluating Credibility
For Individual Leaders:
Do you follow through on commitments?
Do you make decisions based on principles rather than short-term convenience?
Are you open to feedback, creating a culture where people feel heard?
Do you proactively share information to keep teams informed and aligned?
Are your leadership behaviors consistent and above reproach?
Do you address challenges early, seeking solutions before they escalate?
For Teams and Organizations:
Are diverse voices genuinely influencing decisions, not just present in the room?
Do employees feel safe providing feedback, and is that feedback acted upon?
Is credibility reinforced in hiring, promotions, and leadership development?
Are accountability and recognition equally applied, ensuring fairness and transparency?
Does the organization provide the necessary tools and training to help people build and maintain credibility in their roles?
Credibility is not a luxury—it is a foundational necessity for effective leadership and organizational success. It begins at the top and permeates throughout the organization, influencing trust, alignment, and outcomes at every level. While positional and inherited credibility may provide an initial platform, it is behavioral credibility, earned through consistent actions and integrity, that defines a lasting leadership legacy. Leaders must recognize that credibility is not optional; it is a strategic asset that shapes the trajectory of their teams and the broader organization.
To lead with credibility, model trust through your actions, and demonstrate integrity in every decision. Consistently deliver on promises, engage in open communication that addresses concerns transparently, and lead by example, embodying the values you wish to see in your team.
By building and protecting credibility, leaders can solidify their influence and ensure it drives their leadership legacy forward. In an era where leadership is scrutinized more than ever, those who commit to and communicate with consistency, transparency, and integrity will set themselves apart.
About FATHOM Magazine
Packed with company-wide, deployable business communication concepts and techniques, FATHOM is a quarterly summary of our most effective lessons, proven across 20+ years and 25,000+ individual clients. Each issue is full of hard data, and direct anecdotes from our experienced team. FATHOM is a highly readable and “evergreen” resource for any business leader. Check out the FATHOM archive, and subscribe:
