Leading with transparency has become crucial to business success. For workers, knowing industry and market trends, understanding internal workflows and the logic behind company strategies, and having clarity on professional growth paths prompts more confidence, creative thinking, informed decision-making, and greater team alignment.
And yet, in Slack’s recent State of Work report, while 55% of leaders said they believed their organizations were very transparent, just 18% of their employees agreed.
The good news? As a leader, you have the power to fill in the gap.
Transparency is not about sharing confidential information or delving into every little detail that you uncover, but rather, it’s about knowing how to openly share relevant information with your team members to help them succeed.
From business strategies and financial results to organizational challenges and professional growth opportunities, leading with transparency is about building a culture in which your employees have visibility into what’s actually going on.
So, how can you lead with transparency?
Be open with your team
As much as possible, loop in your team members – tell them about challenges the company is facing, changes that are taking place across the organization, new strategies leadership is exploring, and anything else that could influence their work experience or approach. Even when you don’t have all the answers, be intentional about sharing what you do know in order to send the message that you are committed to being transparent with them. And be sure to make it clear that your organization encourages you to share information – statements like, “I shouldn’t be telling you this” or “don’t share this with anyone, but...” insinuate secrecy and distrust, so actively highlight that the information you’re relaying comes directly from the top.
Prioritize team alignment
Set aside recurring time on everyone’s calendars to bring your team members together and fill them in on what’s going on in the industry as well as at the organizational, and team level. Share relevant updates, present strategic pivots, discuss team-wide goals and priorities relating to company initiatives, and leave time for questions. Giving everyone the same information at once avoids any risk of miscommunication or confusion.
Be upfront about challenges
While it’s easy to acknowledge successes and organizational wins with your team members, it can be pretty intimidating to admit when things aren’t going well. However, transparency goes hand-in-hand with humility, and it’s at moments like these that it’s most important to be honest and truthful with your team. Openly acknowledging challenges, mistakes, and shortcomings instills confidence among your team members that you’re not withholding information from them or trying to make things appear different than they really are. So set the standard that obstacles and missteps are openly discussed to help reduce the likelihood of employees keeping their mistakes a secret and potentially causing real damage.
Clarify growth expectations
Try to set clear benchmarks for your team members about what it takes to get promoted to more senior positions by outlining key milestones to reach, setting quantitative KPIs, and establishing important qualitative contributions that are required to take the next step. And given that word travels fast and employees will likely share snippets from your conversations with one another, it’s essential to be consistent with these metrics and to create a clear standard for growth. This way, there can be a cross-team sense that processes are straightforward and logical.
Address macroeconomic influences
When relevant, openly address macroeconomic factors that may impact budget, headcount, and compensation rewards. This way, rather than feeling overlooked and resentful, your team members will have big-picture context and can feel assured that the decisions being made are not a reflection of how much they are being heard or valued.
For example, saying, “Given the economic challenges, the organization is being stricter about promotions, but I want you to know that I am advocating for you” or “We aren’t able to increase headcount right now but I want you to know that I see how much you are taking on and am going to try and take some things off your plate” are a great way to show your team members that you, as their leader, respect them, appreciate them, and are invested in their success and well-being.
Acknowledge the emotional side
Sometimes being fully transparent with your team members can lead to pushback. They may find a new company policy or business priority frustrating or wrong, and while you may fully relate to their reactions, as a leader, it’s your responsibility to get your team on board. So, the best thing to do is validate feelings while still sending a clear message that you have trust and confidence in the company’s decision-makers. For example, if the organization is cracking down on return-to-office efforts, and you too honestly prefer the old model, you can be transparent with your employees that you’ll all have to make adjustments, while still highlighting the clear benefits of this effort – both for the company and for your team. When you come at this situation human-to-human, you can really help your employees feel like you’re in this together.
Provide honest feedback
Throughout the year, be transparent with your team members about what they are doing well and address the areas where they still need to improve. Being clear about where they stand ensures nothing comes as a shock to your team members later on. It also shows that you’re actively trying to give them the tools and guidance they need to grow and excel.
And try to make that transparency go both ways – encourage your team members to be open and honest when there’s something they’re missing from you or team processes that they think could work better.
