Transparency serves as the bedrock of trust and creates a conduit for open dialogue without indiscriminately laying everything bare. It’s about granting stakeholders access to information while still guarding vital assets like privacy and competitive advantage.
Let’s talk about three areas where acting with transparency and authenticity can yield outsized benefits for your organization and team.
Strategic Planning & Decision Making
A clear and compelling strategy isn’t just a luxury; it’s a necessity. But strategy shouldn’t be a secret locked away in a boardroom. Transparency and authenticity in this area means not just sharing the “what” and the “how,” but also the “why” behind important decisions.
Transparency in strategic planning contributes to team buy-in of the vision and also enables agile team responses to market shifts. The end result is a team that’s both united and nimble, driving the organization toward shared goals.
To improve your transparency around the strategic plans of the business, consider trying the following:
- Monthly Strategic Briefings: Set aside time each month to share updates on strategic initiatives, key decisions, and their rationale. Make it an open forum for questions and concerns.
- Involve Teams in Strategy Formulation: Include representatives from various departments in strategy formulation sessions. This fosters a collective sense of ownership and alignment with the organization’s goals.
- Postmortems on Major Projects or Decisions: Once a significant project or decision has concluded, offer a transparent postmortem analysis sharing what worked, what didn’t, and what will be improved next time.
Financial transparency goes beyond compliance – it’s a cornerstone for building a culture of trust within an organization. Authentic leaders go beyond sharing spreadsheets or charts; they engage in honest dialogues about the challenges and opportunities that lie ahead. And as a result, teammates who understand the financial health of their company feel more connected and committed to their roles.
Transparency in this context means making complex financial data accessible and understandable, sharing the implications of that data. This empowers teams to take collective responsibility for the organization’s financial outcomes. To work toward financial transparency you could try…
- Quarterly Financial Updates: Share financial summaries or dashboards that highlight key performance indicators. Explain how these metrics tie into organizational goals and day-to-day work.
- Resource Allocation Discussions: Transparently discuss how budget decisions are made and the principles guiding these decisions. This helps staff understand the ‘why’ behind resource constraints or investments.
- Being Open About Challenges: If the company is facing financial difficulties, communicate this openly and early. Discuss steps being taken to improve the situation and, where appropriate, ask for input on solutions.
Feedback, Development, & Progression
The best organizations recognize that their most valuable asset is their people. Transparent leadership in this context means offering radical candor, which includes clarity about career paths, performance evaluations, and opportunities for growth, and it involves taking a genuine interest in the well-being and professional development of your team members. When leaders commit to a culture of continuous feedback and show they care, they foster a work environment where their people feel valued, empowered, and engaged.
A transparent approach to feedback and development is more than just good optics—it can lower turnover rates while simultaneously fostering a culture where teammates feel valued and invested in. As you think about fostering transparency in the area of team feedback and development, consider…
- Career Development Plans: Work with team members to co-create personalized career development plans, discussing what they need to do to reach their goals.
- 360-Degree Feedback: Encourage a culture of continuous feedback involving peers, direct reports, and managers. Share what you are doing as a leader based on the feedback received.
- Open-Door Policy for Career Conversations: Maintain an open-door policy specifically for discussions about career development, allowing team members to initiate these crucial conversations without fear.
Transparency + Authenticity ≠ Adoration
It’s important to acknowledge that embracing transparency and authenticity does not necessarily mean you’ll be winning any popularity contests.
Leading in this way often means confronting challenging and uncomfortable situations and decisions. And there will also be instances where full disclosure isn’t possible due to sensitive matters like HR related issues or merger activities. But if you’ve built a track record of genuine transparency and consistency over time, such one off scenarios shouldn’t erode your team’s trust in you.
Trust building doesn’t require knowing all the answers and sharing without discretion; it’s earned when your team observes your consistency as you stay true to your values and communicate candidly, even when full disclosure isn’t feasible. To better navigate the complex relationship between transparency and authenticity, consider these ideas:
- Develop a Communication Plan for Sensitive Topics: Even when you can’t share all the details about sensitive issues, you can still maintain a communication plan that acknowledges there are ongoing developments that can’t be disclosed yet. This plan should outline how and when updates will be given, maintaining your team’s trust even during uncertain times.
- Establish Transparency Norms: Clearly define what types of information will typically be shared and what won’t, setting organizational norms around transparency. For example, while it may be standard to discuss quarterly results, it might not be appropriate to discuss individual salaries. These norms will provide a framework for team members to understand the limits and scope of transparency in your organization.
- Be Open About Your Own Learning Curve: Authenticity includes admitting when you’ve made a mistake or when you’re in unfamiliar territory. Share with your team how you’re navigating challenges and what you’re learning along the way. This not only humanizes you but also encourages a culture of continuous learning and growth.
BOxD is here to help you balance transparency and authenticity in your organization!