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Building the Business

BE A STRAIGHT SHOOTER
Transparency in employer-employee communications will promote an efcient workforce and put your company in a better position for success
By Quint Studer

f youre like most business leaders, you have a pretty clear picture of the state of your industry and the nancial health of your company. And youve likely wondered, How much should I tell them about whats really going on behind the scenes? The answer is simple: the more, the better. Leaders have talked about the concept of transparency for a long time, but its never been more important than it is now. Remember, we share information with employees for a couple of reasons: one, its

seem ill-advised or unfair. Transparency connects them to the why and that understanding prompts them to act. You can ask people to change their work habits and established processes all day long. But if they dont know why theyre being asked to change, they wont change at least not for long. Employees need consistency When you commit to transparency, people dont have to get their (speculative,

Communication helps retention Top employees dont thrive in an atmosphere of secrecy and uncertainty. They want to work for a company that treats them with respect and values their problem-solving skills. Hold critical information too close to the vest and they may assume the company isnt healthy, and because they often have options in even the worst economy, top performers may leave for greener pastures. And, obviously, your hardworking innovators are the very people you want to hold on to in times like these. Youll encourage leadership If you were lost in the woods a few times and a park ranger always showed up and led you to safety, you wouldnt develop any survival skills. The same is true of employees who wait for their heroic park rangers (thats you) to lead them out of the economic wilderness. Its far better for employees to pursue their own salvation than to wait passively for rescue

Top employees dont thrive in an atmosphere of secrecy and uncertainty. They want to work for a company that treats them with respect and values their problem-solving skills.
the right thing to do, and two, its good for business. And most companies can use every possible edge these days. If your company doesnt have a culture of openness and free-owing information, now is the time to move in that direction. Here are seven reasons why you should embrace transparency: People assume the worst Silence from the leaders ofce causes a lot of fear and resentment, which certainly doesnt contribute to a productive culture. Maybe the news is bad, but maybe its not as bad as they are imagining. And even if it is, once they know the truth they can plan and act accordingly. Transparency helps employees When employees are working in a vacuum, they cant see the nancial big picture, and decisions leaders make may
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distorted) news through the company grapevine. They hear whats really going on, in a controlled and consistent way, from their manager. When everyone hears the same messages from their leaders, everyone is motivated to respond in similar ways. Everyone knows the rules. And this consistency trickles down to customers, who get the same basic experience regardless of who theyre dealing with. Transparency improves execution When times are tough, execution is everything. And whats required for better execution is a shared sense of urgency. When employees know customer spending is down 30 percent and that a new competitor is eating into market share, they tend to get focused fast. And helping them understand that downsizing might occur if sales dont increase can change their behavior overnight.

and that means they need to know exactly what threats they face. When people know what the problems are, theyre more likely to come up with creative solutions. Workers will become problem-solvers In transparent cultures, leaders encourage employees to solve problems themselves. And because those employees are the people closest to a problem, and because they must live with the outcome, they almost always design the most effective, efcient solution. Thats what employee ownership means. When people are allowed to solve their own problems, theyll do a much better job than if they have to work with a solution imposed on them. One more thing: Dont think of transparency as a crisis control program. Its a long-term commitment. When the good times roll around again, the strategy will serve you just as well. Transparency shapes