Trust Across Civilizations
Trust Across Civilizations
Section titled “Trust Across Civilizations”Long before AI agents, humans invented a technology for scaling trust: bureaucracy. Every organizational form—from pirate ships to the Papacy, from startups to the Soviet Politburo—is a solution to the same fundamental problem: how do you get things done when you can’t do everything yourself and can’t fully trust anyone else?
This page applies delegation risk framework to human organizations. No AI, just the oldest delegation problem in existence.
Part 1: Trust Topologies Across Civilization
Section titled “Part 1: Trust Topologies Across Civilization”Different organizational forms solve the trust problem differently. Let’s analyze some unexpected examples.
The Pirate Ship: Surprisingly Democratic Trust
Section titled “The Pirate Ship: Surprisingly Democratic Trust”18th-century pirate ships had remarkably sophisticated trust architecture:
flowchart TB
CREW[Crew<br/>All pirates] -->|"elect"| CAPT[Captain<br/>Battle decisions only]
CREW -->|"elect"| QM[Quartermaster<br/>Day-to-day operations]
QM -->|"distributes"| LOOT[Loot<br/>According to articles]
CAPT -.->|"can be removed"| CREW
subgraph "Checks and Balances"
QM -->|"checks"| CAPT
CAPT -->|"commands in battle"| QM
end
Trust innovations:
- Elected leadership: Captain could be voted out at any time, keeping trust accountable
- Separation of powers: Captain for combat, Quartermaster for everything else
- Written contracts: “Articles of Agreement” specified exact Delegation Risk bounds—loot distribution, injury compensation, punishment for violations
- Radical transparency: All loot displayed publicly before division
Delegation Risk Analysis of a Pirate Captain:
| Authority | P(abuse) | Damage | Delegation Risk |
|---|---|---|---|
| Battle command | 0.05 | 50 lives × 2.5M | $125,000 |
| Loot distribution | 0.01 (public, audited) | $100K | $1,000 |
| Discipline | 0.03 | $20K (crew morale) | $600 |
| Route decisions | 0.10 | $500K (bad hunt) | $50,000 |
| Total Captain Delegation Risk | $176,600/voyage |
Compare to the Royal Navy captain of the same era: ~$2M Delegation Risk (absolute authority, no accountability, press-ganged crews with no exit option).
The Monastery: Eternal Trust Through Ritual
Section titled “The Monastery: Eternal Trust Through Ritual”Benedictine monasteries have operated continuously for 1,500 years. Their trust architecture:
flowchart TB
GOD[Rule of St. Benedict<br/>Immutable principal] --> ABB[Abbot<br/>Elected for life]
ABB --> PR[Prior<br/>Deputy]
ABB --> CEL[Cellarer<br/>Resources]
ABB --> NOV[Novice Master<br/>Onboarding]
PR --> MON[Monks<br/>Brothers]
CEL --> MON
NOV --> NOV_M[Novices<br/>1+ year probation]
subgraph "Trust Verification"
CON[Daily confession]
CHP[Chapter meetings]
VIS[Visitation by higher authority]
end
Trust innovations:
- Slow trust: 1+ year novitiate before any commitment; vows only after years
- Ritual verification: Daily confession, weekly chapter meetings—continuous trust recalibration
- Poverty as trust mechanism: Monks own nothing; no economic motive for violation
- Lifetime stakes: Can’t leave without severe social/spiritual cost
- External audit: Periodic visitation by bishop or order superior
Why monasteries survive:
| Organization Type | Median Lifespan | Trust Decay Rate |
|---|---|---|
| Startup | 3 years | λ = 0.8/year |
| Corporation | 15 years | λ = 0.15/year |
| University | 200 years | λ = 0.01/year |
| Monastery | 500+ years | λ = 0.002/year |
The secret: extreme trust verification frequency (daily) combined with extreme trust stakes (eternal salvation). Most organizations verify trust quarterly at best; monasteries verify it every 24 hours.
The Manhattan Project: Compartmentalized Trust for Catastrophic Stakes
Section titled “The Manhattan Project: Compartmentalized Trust for Catastrophic Stakes”100,000+ people kept the atomic bomb secret. How?
flowchart TB
FDR[President Roosevelt] -->|"0.95"| STIM[Stimson<br/>War Secretary]
STIM -->|"0.90"| GROVE[Groves<br/>Military Director]
GROVE -->|"0.85"| OPP[Oppenheimer<br/>Scientific Director]
subgraph "Compartmentalization"
OPP -->|"limited view"| LOS[Los Alamos<br/>Assembly]
GROVE -->|"limited view"| OAK[Oak Ridge<br/>Enrichment]
GROVE -->|"limited view"| HAN[Hanford<br/>Plutonium]
end
LOS -.->|"no communication"| OAK
OAK -.->|"no communication"| HAN
Key insight: Workers at Oak Ridge didn’t know they were enriching uranium. Workers at Hanford didn’t know they were making plutonium. Only ~dozen people understood the full picture.
Trust topology properties:
- Need-to-know: Each component had minimum context for their task
- Physical isolation: Sites geographically separated
- Internal security: 500+ security officers, mail censorship, travel restrictions
- Misdirection: Cover stories (“agricultural research”) reduced even the motivation to inquire
Delegation Risk of the Manhattan Project:
| Failure Mode | P(occurrence) | Damage | Delegation Risk |
|---|---|---|---|
| Leak to Germany | 0.001 | Nuclear arms race during WWII, $100B+ | $100M |
| Leak to USSR | 0.01 | Earlier Soviet bomb (happened: Fuchs) | $50B? |
| Technical failure | 0.20 | $2B wasted, war prolonged | $400M |
| Workplace accident | 0.30 | $10M (radiation, criticality) | $3M |
Actual outcome: The USSR got the bomb 2-4 years earlier due to Klaus Fuchs (British physicist) passing secrets. The trust architecture failed at a node that had atypically high context—Fuchs worked in the theoretical division and understood the full design.
The Startup: Trust Phase Transitions
Section titled “The Startup: Trust Phase Transitions”Startups undergo dramatic trust architecture changes:
flowchart LR
subgraph Phase1["Phase 1: Founding (1-3 people)"]
F1[Founder A] <-->|"0.95"| F2[Founder B]
end
subgraph Phase2["Phase 2: Early (4-15 people)"]
F3[Founders] -->|"0.80"| E1[Early Employees]
end
subgraph Phase3["Phase 3: Growth (15-50 people)"]
F4[Founders] -->|"0.70"| MGR[Managers]
MGR -->|"0.75"| TEAM[Teams]
end
subgraph Phase4["Phase 4: Scale (50+ people)"]
EX[Executives] -->|"0.65"| DIR[Directors]
DIR -->|"0.70"| MGR2[Managers]
MGR2 -->|"0.75"| IC[ICs]
end
Phase1 --> Phase2 --> Phase3 --> Phase4
The trust math changes:
| Phase | People | Trust per Person | Total System Delegation Risk | Delegation Risk per Person |
|---|---|---|---|---|
| Founding | 2 | 0.95 | $50K | $25K |
| Early | 10 | 0.80 | $200K | $20K |
| Growth | 40 | 0.65 | $600K | $15K |
| Scale | 150 | 0.50 | $1.5M | $10K |
Interpretation: As startups grow, per-person trust decreases but total trust exposure increases. The architecture must become more defensive.
The “Series B Betrayal”: Many startups experience trust violations around 30-50 employees—the point where personal relationships no longer suffice and formal structures don’t exist yet. This is a trust architecture gap.
Part 2: Historical Trust Failures as Case Studies
Section titled “Part 2: Historical Trust Failures as Case Studies”Case Study: Enron — The Trust Laundering Machine
Section titled “Case Study: Enron — The Trust Laundering Machine”Enron’s collapse wasn’t just fraud—it was systematic exploitation of trust architecture.
flowchart TB
subgraph Public["Public Trust"]
INV[Investors] -->|"trust: 0.85"| AUD[Arthur Andersen<br/>Auditors]
AUD -->|"certifies"| ENR[Enron<br/>Financials]
end
subgraph Hidden["Hidden Structure"]
ENR -->|"controls"| SPE[Special Purpose Entities<br/>3,000+ of them]
SPE -->|"hides"| DEBT[Debt<br/>$30B+]
CFO[Fastow<br/>CFO] -->|"personally profits"| SPE
end
AUD -.->|"complicit"| SPE
Trust Laundering: Enron used its auditor’s reputation to “launder” trust. Investors trusted Arthur Andersen → Andersen “certified” Enron → Investors trusted Enron. But Andersen was compromised.
The Trust Exploit:
| Trust Relationship | Claimed Level | Actual Level | Trust Gap |
|---|---|---|---|
| Investors → Andersen | 0.90 | 0.90 | 0 |
| Andersen → Enron (audit) | 0.85 | 0.30 | 0.55 |
| Investors → Enron (effective) | 0.77 | 0.27 | 0.50 |
Damage calculation:
- Market cap loss: $74 billion
- P(fraud this scale given architecture): ~0.001/year
- Implied Delegation Risk that should have been priced: $74M/year
- Actual risk premium demanded by investors: ~$0
Case Study: Theranos — Trust Through Mystification
Section titled “Case Study: Theranos — Trust Through Mystification”Elizabeth Holmes exploited trust through deliberate opacity:
flowchart TB
subgraph "Trust Sources"
BOARD[Board<br/>Kissinger, Shultz, etc.] -->|"reputation lending"| TH[Theranos]
PARTNER[Partners<br/>Walgreens, Safeway] -->|"validation"| TH
PRESS[Press<br/>Forbes, Fortune] -->|"hype"| TH
end
subgraph "Trust Sinks"
INV[Investors] -->|"$700M"| TH
PAT[Patients] -->|"blood tests"| TH
end
subgraph "Hidden Reality"
TH -->|"actually ran"| SIEMENS[Siemens machines<br/>Not Edison]
TECH[Technology] -->|"didn't work"| FRAUD[Fraud]
end
BOARD -.->|"no technical oversight"| FRAUD
The Trust Architecture Failure:
| Board Member | Domain Expertise | Technical Verification | Trust Contribution |
|---|---|---|---|
| Henry Kissinger | Diplomacy | None | Reputation lending |
| George Shultz | Politics | None | Reputation lending |
| James Mattis | Military | None | Reputation lending |
| William Perry | Defense | None | Reputation lending |
Zero board members had medical device or diagnostics expertise. The board provided trust without verification capacity.
Counterfactual: If the board included one skeptical medical device expert with authority to inspect:
| Scenario | P(fraud continues) | Duration | Damage |
|---|---|---|---|
| Actual board | 0.95 | 10 years | $700M+ investors, patient harm |
| With expert | 0.20 | 2 years | ~$50M |
Trust reduction: 93% from one architectural change.
Case Study: Nixon’s White House — Cascading Trust Corruption
Section titled “Case Study: Nixon’s White House — Cascading Trust Corruption”Watergate shows how trust violations cascade:
flowchart TB
NIX[Nixon] -->|"0.80"| HAL[Haldeman<br/>Chief of Staff]
NIX -->|"0.75"| EHR[Ehrlichman<br/>Domestic Policy]
HAL -->|"0.70"| DEAN[Dean<br/>Counsel]
HAL -->|"0.65"| LID[Liddy<br/>Operations]
subgraph "Trust Corruption Cascade"
NIX -->|"orders cover-up"| HAL
HAL -->|"coordinates"| DEAN
DEAN -->|"pays hush money"| BURG[Burglars]
LID -->|"executes"| BURG
end
subgraph "Trust Collapse"
DEAN -->|"flips"| PROS[Prosecutors]
HAL -->|"implicates"| NIX
end
The Loyalty Trap:
Nixon built his team on loyalty as the primary trust metric. This created a trust architecture optimized for concealment, not accountability:
| Metric | Nixon’s System | Accountable Alternative |
|---|---|---|
| Hiring criteria | Loyalty to Nixon | Competence + ethics |
| Information flow | Up to Nixon only | Multiple channels |
| Dissent handling | Punished (“enemies list”) | Encouraged |
| Verification | None (trust = loyalty) | Independent checks |
Delegation Risk of the Nixon Trust Architecture:
| Failure Mode | P(in accountable system) | P(in Nixon system) | Damage |
|---|---|---|---|
| Minor scandal | 0.20 | 0.05 (concealed) | $1M |
| Major scandal | 0.05 | 0.40 (grows until explosion) | $100M |
| Constitutional crisis | 0.001 | 0.15 | $10B |
System Delegation Risk: Nixon’s architecture had 30x higher Delegation Risk than a standard administration because it optimized for concealment, which meant problems grew rather than getting fixed.
Part 3: Organizational Trust Anti-Patterns
Section titled “Part 3: Organizational Trust Anti-Patterns”Anti-Pattern 1: Trust Theater
Section titled “Anti-Pattern 1: Trust Theater”Definition: Visible trust mechanisms that don’t actually verify anything.
Examples:
- Annual performance reviews that always rate everyone “meets expectations”
- Audit committees that receive pre-filtered information
- “Open door policies” where using them damages your career
- Ethics hotlines that report to the people being reported
The Math:
Claimed Trust = Verification × Trust_if_verified + (1-Verification) × Trust_if_notActual Trust = Trust_if_not (because Verification ≈ 0)
If: Trust_if_verified = 0.90, Trust_if_not = 0.50, Verification = 0.05Claimed: 0.05 × 0.90 + 0.95 × 0.50 = 0.52Actual: 0.50
Theater contribution: 0.02 claimed trust for $100K annual cost = $50K per trust pointDetection: Ask “when did this mechanism last surface a problem?” If never, it’s probably theater.
Anti-Pattern 2: Trust Dilution Through Layers
Section titled “Anti-Pattern 2: Trust Dilution Through Layers”Pattern: Each management layer claims to add oversight but actually dilutes accountability.
flowchart TB
CEO -->|"responsible for everything"| VP
VP -->|"responsible for division"| DIR
DIR -->|"responsible for department"| MGR
MGR -->|"responsible for team"| IC
subgraph Reality
R1["If failure occurs:"]
R2["IC: 'I followed instructions'"]
R3["MGR: 'I trusted my reports'"]
R4["DIR: 'I trusted my managers'"]
R5["VP: 'I trusted my directors'"]
R6["CEO: 'This was an isolated incident'"]
end
The Accountability Diffusion Equation:
Accountability(level n) = Total_Accountability × (1/n)
With 5 levels: Each level feels 20% accountableSum of felt accountability: 100%Actual total accountability: 100%Gap: 0% ... but each individual takes minimal responsibilityResult: Everyone is “accountable” but no one feels responsible enough to act.
Anti-Pattern 3: Credentials as Trust Proxies
Section titled “Anti-Pattern 3: Credentials as Trust Proxies”Pattern: Substituting credentials for verification.
| Proxy | What It’s Supposed to Mean | What It Actually Means |
|---|---|---|
| Harvard MBA | Good judgment | Passed exams 10 years ago |
| Former McKinsey | Strategic thinking | Was hired by McKinsey once |
| Board member | Provides oversight | Attends 4 meetings/year |
| 20 years experience | Deep expertise | Did something for 20 years |
| Published author | Thought leader | Wrote a book |
The Credential Decay Function:
Trust_value(credential) = Initial_value × e^(-λt) × Relevance(context)
PhD in physics from 1990 for a software company in 2024:= 0.8 × e^(-0.05 × 34) × 0.3= 0.8 × 0.18 × 0.3= 0.04
That credential contributes almost nothing to current trustworthiness.Anti-Pattern 4: The Loyalty-Competence Inversion
Section titled “Anti-Pattern 4: The Loyalty-Competence Inversion”Pattern: Promoting based on loyalty until loyal-but-incompetent people control verification.
flowchart TB
Y1[Year 1: Leader hires loyal team]
Y1 --> Y3[Year 3: Loyal team promoted to management]
Y3 --> Y5[Year 5: Loyal managers hire more loyal reports]
Y5 --> Y7[Year 7: Competent people leave or are pushed out]
Y7 --> Y10[Year 10: Only loyalty remains]
style Y10 fill:#f66
Trust Topology Corruption:
| Year | % Loyal-First Hires | % Competence-First Hires | Verification Quality |
|---|---|---|---|
| 1 | 30% | 70% | High |
| 3 | 50% | 50% | Medium |
| 5 | 70% | 30% | Low |
| 7 | 85% | 15% | Minimal |
| 10 | 95% | 5% | Theater only |
Famous examples: Enron, Theranos, WeWork, late-stage Uber, most authoritarian regimes.
Part 4: Trust Dynamics During Crises
Section titled “Part 4: Trust Dynamics During Crises”The Crisis Trust Spike
Section titled “The Crisis Trust Spike”During crises, trust architecture transforms:
Normal: Trust flows through hierarchyCrisis: Trust concentrates in whoever has information/capabilityExample: Cuban Missile Crisis Trust Topology
flowchart TB
subgraph Normal["Normal State"]
JFK1[JFK] --> CAB1[Full Cabinet]
CAB1 --> DEPT1[Departments]
end
subgraph Crisis["Crisis State (ExComm)"]
JFK2[JFK] --> EXCOM[Executive Committee<br/>14 people]
EXCOM --> |"direct"| MIL[Military]
EXCOM --> |"direct"| INTEL[Intelligence]
JFK2 --> RFK[RFK<br/>Informal counsel]
end
Trust changes during Cuban Missile Crisis:
| Role | Normal Trust Level | Crisis Trust Level | Change |
|---|---|---|---|
| Secretary of State (Rusk) | 0.85 | 0.70 | -18% |
| SecDef (McNamara) | 0.80 | 0.90 | +13% |
| RFK (no formal role) | 0.60 | 0.95 | +58% |
| Joint Chiefs | 0.85 | 0.60 | -29% |
| Soviet Ambassador (Dobrynin) | 0.20 | 0.40 | +100% |
Interpretation: Crisis trust flows to whoever has:
- Relevant real-time information
- Aligned incentives for survival
- Capacity for independent judgment
The formal hierarchy matters less; competence and alignment matter more.
The Trust Recovery Function
Section titled “The Trust Recovery Function”After trust violations, how quickly does trust rebuild?
Trust(t) = Trust_baseline + (Trust_pre - Trust_baseline) × (1 - e^(-recovery_rate × t)) × Recovery_actions
Where:- Trust_baseline: Minimum trust for strangers (~0.1-0.3)- Trust_pre: Trust level before violation- recovery_rate: How fast trust can rebuild (typically 0.1-0.3 per year)- Recovery_actions: Multiplier for demonstrated change (0.5-2.0)Recovery times by violation type:
| Violation Type | Trust Drop | Recovery Rate | Time to 80% Recovery |
|---|---|---|---|
| Honest mistake, acknowledged | -10% | 0.5/year | 6 months |
| Mistake, initially denied | -25% | 0.2/year | 3 years |
| Deliberate deception | -50% | 0.1/year | 8 years |
| Betrayal of core values | -80% | 0.05/year | 20+ years (if ever) |
Example: Arthur Andersen’s trust recovery after Enron
- Trust drop: ~95%
- Recovery actions: Firm dissolved—no recovery possible
- Time to recovery: Never (brand abandoned)
Part 5: Speculative Trust Economics
Section titled “Part 5: Speculative Trust Economics”Trust as Currency
Section titled “Trust as Currency”What if organizations explicitly traded trust?
Trust Exchange Rate:
1 Trust Point = Capacity to delegate $X in expected damageAt 95% reliability, 1 Trust Point ≈ $20 Delegation Risk capacityAt 99% reliability, 1 Trust Point ≈ $100 Delegation Risk capacityTrust Inflation: When organizations grant trust faster than they verify it, trust becomes worthless (everyone is “trusted” but verification is zero).
Trust Deflation: When verification is so strict that no one gets trust, nothing gets done. The organization seizes up.
Optimal Trust Supply: Just enough trust to enable necessary delegation, verified frequently enough to catch violations before they’re catastrophic.
The Trust Balance Sheet
Section titled “The Trust Balance Sheet”Organizations have implicit trust balance sheets:
Trust Assets (trust granted to us by others):
- Customer trust
- Investor trust
- Regulator trust
- Employee trust
- Partner trust
Trust Liabilities (trust we’ve granted to others):
- Employee authority
- Vendor dependencies
- Outsourced operations
- Automated systems
Net Trust Position:
| Company | Trust Assets | Trust Liabilities | Net Position |
|---|---|---|---|
| Apple | $500B (brand) | $50B (supply chain) | +$450B |
| Wells Fargo (2016) | 30B | $40B | -$10B → crisis |
| New Startup | $1M (investors) | $0.5M (founders) | +$0.5M |
Trust Insolvency: When trust liabilities exceed trust assets, the organization faces a run—stakeholders withdraw faster than trust can be rebuilt.
The Trust Market Failure
Section titled “The Trust Market Failure”Why don’t trust markets clear efficiently?
- Information Asymmetry: Trustees know their own trustworthiness better than principals
- Adverse Selection: Most eager-to-be-trusted are least trustworthy
- Moral Hazard: Behavior changes after trust is granted
- Trust is Sticky: Hard to revoke (severance, lawsuits, reputation)
- Verification Costs: Checking trust is expensive; easier to assume
- Trust is Relational: Can’t be transferred—Alice’s trust in Bob doesn’t help Carol
Implication: Organizations systematically misprice trust. They either:
- Over-trust (most common): Insufficient verification, catastrophic failures
- Under-trust (rare): Excessive process, nothing gets done
Part 6: Quantified Organizational Trust Examples
Section titled “Part 6: Quantified Organizational Trust Examples”Example 1: A 50-Person Law Firm
Section titled “Example 1: A 50-Person Law Firm”flowchart TB
MP[Managing Partner] -->|"0.92"| EP[Equity Partners<br/>8]
EP -->|"0.85"| SA[Senior Associates<br/>12]
SA -->|"0.78"| JA[Junior Associates<br/>15]
JA -->|"0.70"| PARA[Paralegals<br/>10]
MP -->|"0.88"| CFO[CFO/COO]
CFO -->|"0.80"| ADMIN[Admin Staff<br/>5]
subgraph "Client Trust"
CL[Clients] -->|"0.90"| EP
end
Delegation Risk by Role:
| Role | Key Trust Exposure | P(violation/year) | Damage | Delegation Risk |
|---|---|---|---|---|
| Equity Partner | Malpractice, client funds | 0.01 | $5M | $50K |
| Senior Associate | Case errors, missed deadlines | 0.03 | $500K | $15K |
| Junior Associate | Research errors | 0.05 | $100K | $5K |
| Paralegal | Document handling | 0.02 | $50K | $1K |
| CFO | Financial mismanagement | 0.005 | $3M | $15K |
Firm Total Delegation Risk: ~$500K/year
Trust Insight: Partners have high per-person Delegation Risk but strong alignment (they own the firm). Associates have lower Delegation Risk but weaker alignment (employees). The highest-risk role is actually CFO—single person with access to client trust accounts.
Example 2: A City Police Department (500 officers)
Section titled “Example 2: A City Police Department (500 officers)”Trust Topology:
flowchart TB
MAYOR[Mayor<br/>Elected] -->|"0.75"| CHIEF[Police Chief<br/>Appointed]
CHIEF -->|"0.80"| DC[Deputy Chiefs<br/>4]
DC -->|"0.75"| CPT[Captains<br/>12]
CPT -->|"0.70"| SGT[Sergeants<br/>48]
SGT -->|"0.65"| OFF[Officers<br/>420]
subgraph "External Trust"
PUB[Public] -->|"0.55"| DEPT[Department]
UNION[Police Union] -->|"0.85"| OFF
end
The Dual Principal Problem:
Officers have two principals with conflicting interests:
| Principal | Wants | Trust Mechanism |
|---|---|---|
| Public (via Chief) | Accountability, restraint | Policy, discipline |
| Union | Protection, job security | Grievance process, legal defense |
When an officer violates public trust, the union trust mechanism activates to protect them. This is trust architecture conflict.
Delegation Risk Analysis:
| Failure Mode | Officers Involved | P(year) | Damage per Incident | Annual Delegation Risk |
|---|---|---|---|---|
| Excessive force (lawsuit) | 420 | 0.02 | $300K | $2.5M |
| False arrest (lawsuit) | 420 | 0.01 | $150K | $630K |
| Corruption (criminal) | 420 | 0.002 | $1M | $840K |
| Fatal shooting (lawsuit + unrest) | 420 | 0.0005 | $10M | $2.1M |
| Total Department Delegation Risk | $6.0M/year |
Comparison: The department budget is ~$100M. Delegation Risk is 6% of budget—but settlements often come from the city general fund, hiding the true cost.
Example 3: A Presidential Administration
Section titled “Example 3: A Presidential Administration”First-term Presidential Delegation Risk Budget:
flowchart TB
POTUS[President] -->|"0.85"| COS[Chief of Staff]
POTUS -->|"0.80"| NSA[National Security Advisor]
POTUS -->|"0.75"| CAB[Cabinet<br/>15 Secretaries]
COS -->|"0.75"| WH[White House Staff<br/>~500]
CAB -->|"0.70"| AGENCY[Agency Heads<br/>~200]
AGENCY -->|"0.60"| FED[Federal Employees<br/>~2M]
subgraph "External Trust"
PUB[Public] -->|"varies"| POTUS
CONG[Congress] -->|"0.40"| POTUS
MED[Media] -->|"0.50"| POTUS
end
Trust Delegation Risk by Cabinet Position:
| Secretary | Authority Domains | P(major failure/term) | Damage | 4-Year Delegation Risk |
|---|---|---|---|---|
| Defense | Military operations, $800B | 0.15 | $100B | $15B |
| State | Foreign policy, alliances | 0.10 | $50B | $5B |
| Treasury | Economy, financial system | 0.05 | $500B | $25B |
| Justice | Law enforcement, civil rights | 0.20 | $20B | $4B |
| HHS | Healthcare, pandemics | 0.10 | $200B | $20B |
| Homeland Security | Borders, disasters | 0.15 | $30B | $4.5B |
Total Cabinet Delegation Risk: ~$100B per 4-year term
Trust Architecture Comparison Across Administrations:
| Administration | Trust Style | Key Feature | Outcome |
|---|---|---|---|
| Eisenhower | Hierarchical | Trusted Chiefs of Staff | Stable but slow |
| Kennedy | Collegial | ExComm during crisis | Adaptive but chaotic |
| Nixon | Loyalty-based | Inner circle | Corruption |
| Reagan | Delegative | Cabinet government | Mixed results |
| Clinton | Policy wonk | President in details | Micromanagement |
| Obama | No-drama | Process-oriented | Consistent but slow |
| Trump | Transactional | Loyalty tests | High turnover, violations |
Key Takeaways
Section titled “Key Takeaways”See Also
Section titled “See Also”- Organizational Trust (Practical) — Small business and political examples with ROI calculations
- Delegation Risk Overview — The mathematical foundations
- Risk Inheritance — Algorithms for trust networks
- Historical Failures — Financial and technical failures
- Anti-patterns — What not to do (AI version)
- Trust Economics — Markets and incentives
- Case Study: Sydney — Trust failure in AI (contrast with organizational failures)