#10 Transparency: Why is it important

A transparent organisation can best be described as one where clear and open communication is expected and encouraged, both by leaders and front-line staff. ​
​

This expectation helps create a culture in which open and honest information sharing becomes the norm. Organisational transparency challenges the more traditional approach where information was often guarded by those at the top and a belief persisted that communication was strictly on a “need to know basis”. In the past, employees frequently operated in the dark, unaware of the rationale behind the decisions that were being made by managers and leaders. Similarly, employees often kept issues or ideas hidden rather than feeling comfortable sharing with their colleagues. So, what are some of the potential benefits of transparency?

Communication and the sharing of ideas are two of the hallmarks of effective collaboration and serve to foster greater innovation. When people feel 

comfortable challenging the status quo, a marketplace of ideas forms seeking how best to optimise systems, processes, ​workflows and strategies. The next ground-breaking idea doesn’t hold much value if it can’t be communicated, shared, developed and actualised! Similarly, information hording and secrecy can be a very expensive exercise if it stifles new ideas and initiatives. 

Transparency can also be a culture booster - creating trust, a feeling of respect and higher levels of staff engagement. A 2013 Harvard Business Review study found that employee engagement can be positively impacted by transparent leaders who clearly communicate with staff, and ensure individuals understand the impact their role has on overall strategy. This only serves to highlight the importance of moving away from mushroom management and aspiring to share the bigger picture whenever and wherever possible.
 
For leaders, transparency can deliver improved visibility and clearer line of sight across their teams. When leaders model open and honest communication, they create the conditions in which employees feel safe to do likewise. Transparent cultures can also help to avoid the creation of siloes and can provide leaders with the information and insight to make informed decisions leading to better outcomes.
 
If you are seeking to build more transparency into your organisation here are 3 key practices to start with:

1. Operate with an open agenda
2. Encourage clear and concise communication
3. Share the “Why”