Transparency – what is it and why is it important?

Transparency is a word often used within organizations to self-describe culture and values.? But how often do companies really do a good job of being transparent?? What does it look like to get it right?? And what happens without transparency?

Sometimes, there is an assumption that being transparent means everyone in the company knows all the financial details and operational details of the organization. ?Town halls become walks through detailed spreadsheets that prompt endless discussions about minutia and even worse, it can be hard to stay focused on the big, strategic shared goals that are important.? While well-intended, genuine transparency requires a different approach.

Companies that lack transparency are companies without trust.? People do not have a clear view of how they can make a difference, they may not have goals, or they may have too many goals.? It’s hard to hold people accountable in companies that lack transparency since there is a lack of clarity about where one’s efforts fit in the whole.

So, what does it mean to be transparent?? It doesn’t mean that everyone knows everything.? Instead, it means that people have a shared understanding of what the company’s goals are, what the risks and opportunities are in the marketplace, and the role each person must play to support the achievement of those goals.? Trust exists up and down and across management, teams, and departments.? Employees feel empowered to raise concerns and ask questions and do not fear retribution.?

It is inevitable that questions will come up that cannot be answered, either because the information is not known, or is confidential.? When this happens, to maintain trust, it is imperative that management be honest, share what they can, and stay visible. ?Committing to share what you can as soon as you can is helpful.? Above all, though, it is critical to avoid guessing, or providing options, or denials that may be wrong.? One of the best pieces of advice I ever received was from a communication expert who said it is important to continuously ask yourself, “is what I’m about to say, true now, and do I think it will be true later?”?? If you can’t say “yes” to both parts of that question, don’t say it, as you risk compromising trust.

Transparent organizations place a high priority on communication, even over-communication.? They don’t bury their teams in detail, but keep people informed about goals, market conditions, the progress and issues of key initiatives, and overall company health.? They don’t hide issues that may impact company viability and people at all levels feel accountable for results.? Management is receptive to employees’ questions and concerns, and employees feel comfortable raising issues.?

Ultimately, transparency is about trust, and trust is a key foundational element within the most successful teams and companies.? And there’s nothing better than working with people you trust!

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Adapt.Lead.Succeed

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