What Does Transparency Have to Do With the Economy? Why the See-Through Age is Good For Business

The public is sick and tired of corporate scandals. They’re disenchanted with companies that worry about the bottom line but not employees. They believe the current economic situation is the result of an incredible degree of greed and corruption running rampant through the top ranks of corporate America. They distrust leaders and perceive them as self-serving and secretive.

At the same time, the world has become an open book and secrets are harder to keep. Technology makes it easier than ever to access information and privacy is being redefined by a younger generation. They not only want information, they demand it and believe it’s their right to have it.

This demand for openness combined with the current economy is creating a huge shift in the way business leaders now need to operate. The lines between public and private have become blurrier than ever, and the rules of engagement – both in personal and business relationships – have changed. Clear communication, access to information, and transparency is more important than ever.

For leaders who aren’t used to it, transparency is foreign, and perhaps even scary, but it’s the way great leaders throughout history have always operated. Especially in these uncertain economic times, senior leaders need to be seen and heard by employees. Workers are counting on their leaders to build a sustainable organization – because their jobs depend on it!

The more information employees have, the better they understand where the company’s going; they grasp why their best performance is critical, feel like a key player and offer high levels of productivity. Bottom line –the higher the level of transparency the more loyal and committed employees are and the more exceptional their performance is. If all corporate leaders were transparent the improved productivity could have a major impact on the economy.

Great leaders know this. The value of transparency to business success is basic. It’s Leadership 101. Leaders who withhold information and create a culture of perceived secrecy are doomed. Whether they’re unable or unwilling to see the link between transparency and performance, the fact of the matter is that their employees are working in an uninformed vacuum and can only, at best, deliver mediocre performance.

If transparency comes naturally to great leaders, what leadership qualities give them the ability to do this with such ease? What leadership traits are necessary to survive in this new naked environment? Topping the list is authenticity. Leadership authenticity goes hand in hand with integrity, both of which are the foundation for leading with transparency.

So the question is why would some leaders sabotage their own success? What is the purpose of resisting transparency? Why do some feel compelled to hold information so closely to the chest? Given all the business benefits, why would anyone choose not to be transparent?

The answer is simple - their egos get in the way. They are coming from an ego-position that ‘I am the leader … they are the employees. I get to make the decisions. They don’t need to know anything.’ Look at the industries suffering today and the leaders running them. How did they operate? With enormous ego entitlement, secretive, deceptive bookkeeping, outrageous executive bonuses and a short-sightedness that didn’t include the big picture.

And who will replace them? Leaders whose egos don’t drive their behavior and who are aligned with their true spirit. CEO’s that lead with a spirit of collaboration and abundance understand that there is a direct link between transparency and economics.

President Barack Obama says he’s changing the way government operates and opening the process to wider public scrutiny. Transparency is the word of the day from the White House and Wall Street. Old school business leaders are scrambling, trying to come to grips with what analysts call the new ‘See-Through Age.’ And so it should be!

6 Steps to Create Healthy Business Transparency:

1. Hire, train and promote only leaders who know how to manage their ego and lead with a spirit of authenticity.

2. Let employees know how you intend to update them.

3. Create an internal process for regular and ongoing ‘state of the nation’ communication from leaders to employees.

4. When laying out a plan or initiative, provide all necessary details and make expectations clear. Explain the rationale behind plans and decisions. Acknowledge the feelings and concerns of employees. Make sure employees don’t feel uncertain. Uncertainty feeds anxiety; knowledge feeds action.

5. Use a professionally warm conversational tone that encourages engagement and mutual trust and respect.

6. Create a forum for the collection of information from employees regarding barriers to success and insights for positive change.