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Not All Levels Of Transparency Are Created Equal…

March 13th, 2017

Transparency

Over time it’s always interesting to see how individuals and organizations define and operate under varying levels of “transparency”. These insights may take weeks to play out or may ultimately take years. While I will agree out of the gate that there should be varying levels, depending on the sensitivity of the underlying data, an extremely high percentage of transparency should exist within an organization to build trust with internal and external customers, as well as investors and other key constituents. In summary, Transparency should be defined as…

a :  free from pretense or deceit : 

b :  easily detected or seen through : 

c :  readily understood

d :  characterized by visibility or accessibility of information especially concerning business practices

As mentioned, there are always certain types of information that need to be contained to a small group depending on the level of sensitivity, but 98% of discussions should be open and collaborative with the broader team. Are you planning a reduction in force that may cross over multiple departments…then yes, that is going to require an incredibly amount of sensitivity and confined to a small group in the planning of the event. Releasing this information to the broader group would result in a paralyzing decrease in productivity across the teams and produce undue anxiety for those that aren’t affected. Absolutely painful, but these are actions that need to be controlled with military precision.

Are you doing an IPO? The group in the know on this activity obviously widens as it becomes necessary to involve more people in the process as you continue to bolster internal functions, coordinate functional area contributions to the drafting of an S-1 and the characterization of the business, working with investors, bankers, and legal partners. A large group…absolutely, but still a relatively combined group of folks. Will there be leaks in this pool and others find out…absolutely. But again, not necessarily doing regular updates out to the broader organization and discussing in an open environment in a regular cadence.

I’m really not a fan or subscriber of playing semantics with certain topics. The allowance of “access” or inclusion in a meeting or systems is also not equal to transparency. It’s just exactly that…access or inclusion. You may be given access to a courtroom to view a criminal case, but that doesn’t mean that you’re given access to all the details of the files held by the defense and prosecution, but you have “access”. In a corporate environment, that absence of financial information, historical activities, investor information, or operational performance will simply result in the failure of a team to succeed…period.

When it comes to strategic planning, hiring, geographic expansion, financial performance, facilities expansion, or other operational initiatives, there’s no reason not to be working in a fully transparent manner to build trust and effective collaboration across the teams. It’s not about spinning the information or results to create a sense of vagueness of lack of definition for the team, or withhold information that creates a hurdle in allowing the team to make a fully informed decision. Ultimately, as reflected in the definition above, any level of deceit will always be discovered and the subsequent erosion of trust can seldom be recovered.

This is not a topic that should require extensive discussion…it comes down to just recognizing the DNA of an individual or organization. For a team, and ultimately an organization to succeed, there needs to an environment free of pretense and deceit, an environment that is easily translated and readily understood, and is characterized by high visibility & accessibility of information concerning the vast majority of business results and practices. It’s an insightful walk to observe how different people and organizations promote these conditions, but in the end, it’s critical for the success of the team, company, and ultimately promoting a healthy environment of trust and collaboration.

Thanks for reading and sharing in my walk…

Jeffrey Ishmael

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