See-Through is Sexy
Friday, May 22, 2009 at 6:00AM In every company I’ve owned or advised I’ve been an advocate of transparency. Of telling employees as much as you can as soon as you can.
In the last few months, transparency has become both a political symbol and federal law. So like it or not, we’re stuck with it for a while.
Inevitably, once the government gets its hands on something it becomes fodder for the Sunday talk shows and the extremists. Sooner rather than later it will be consigned to the dust heap of soiled political strategy whose time has come and gone.
And that would be a mistake.
Because transparency is one of the most powerful foundations on which to build a business. And it’s entirely free. Except for the courage it takes to begin.
Human nature is territorial. We protect what we know and guard our independence fiercely, because to rely on someone else is to give up control. “Not invented here,” is more than a catch phrase. It’s the starting point most people adopt when presented with another person’s idea. And it undermines the efforts of even the most visionary entrepreneur.
The answer is to build trust by being the first to demonstrate trust. And nothing demonstrates trust like transparency. Transparency about why you’re in business. About your plans for growth. About the problems and the obstacles. About what’s working and what’s not. About whether you’re having a good or bad year. About what you’re feeling.
Transparency does not mean you hand out your P&L once a month to the entire staff. Or publish everyone’s salary on the company’s Facebook page. Your staff need to have confidence that you will protect their privacy, their confidentiality and their dignity.
But it does mean being willing to have public discussion about any issue. If there’s something you can’t talk about, people will understand if you explain why. What they won’t buy is an illusion of transparency, but a reality in which all the big decisions are made behind closed doors.
I read something the other day in which a person described how they wanted to be treated in a time of crisis. I think their sentiment explains why transparency is such a powerful force in motivating people and engendering loyalty even when they know their jobs are at risk.
“I’d rather be a soldier than a victim.”
In a time when you can’t solve problems with money, giving your employees something to fight for can be even more powerful.
Do you agree?
Reader Comments (3)
Yes, transparency with your colleagues and clients is absolutely vital to build trust and sustain relationships. I have seen so many examples of where individuals have withheld information and a long standing relationship is broken. Rgds Vince
I agree, and I'll give you an example. I was ECD at Grey L.A. when we were purchased by WPP. We had to lay off over 20 people. Our president quit. I became the de facto, temporary head of the office, without any real authority. All office decisions came through New York, and they were having their own problems. I literally couldn't get a phone call or email returned.
Our head of production, a good friend of mine, told me that people were worried and thought that I might be holding something back. There was nothing TO hold back, but I called a meeting to tell them the situation, as best I could, without embellishment or editorializing. It felt a bit strange having a meeting to, basically, tell how little I knew, but that's what I did.
The upshot was that people appreciated it. There was no real news, but just fielding questions seemed to help.
This came up again the other day in a situation we were dealing with. The temptation was to bury the issue and avoid the risk of confrontation. Instead I re-read this post and your comments and forced myself to walk the walk. The result was instant vindication and a confrontational situation turned instantly collaborative.
Transparency. It's powerful medicine.