Transparency Is a Must for Leaders

close up photography of person holding crystal ball

At the Society for Industrial and Organizational Psychology (SIOP) conference last week, I had a conversation with an employment discrimination investigator who noted that most complaints were driven by misunderstanding of the reasons for decisions. When people fail to get something they feel they deserve, like a promotion, in the absence of an explanation, they often assume that it was because of who they are. Many of these complaints could have been avoided by just being honest and transparent with people about the reasons for the decision. Transparency is a must for leaders to not only avoid misunderstandings, as there are other advantages and little downside.

People Assume the Worst

In the absence of information, people will invent their own explanations. Rumors will fly, and over time the invented explanations will become worse and worse. I once saw people in a department overreact to someone being fired. Because no one provided the reason as terminations are often kept confidential, everyone assumed that the firing was arbitrary. People became anxious and paranoid, worrying about who was going to be next. When they finally were given an explanation–that the person had behaved recklessly with disastrous results–they accepted it and calmed down. An explanation at the beginning would have saved months of bad feelings and distraction.

People Accept What They Understand

There is an important distinction between compliance and acceptance. Compliance is when people do something just because they have to whereas acceptance is when people do something because they feel it is the right thing to do. Compliance occurs when a new policy is announced without explanation. It requires close monitoring and enforcement to be sure people follow it. When all people know is that they are expected to do something, it is easy for them to ignore it if they don’t feel the pressure of being monitored. When people know the reason, and when the reason makes sense, people are far more likely to comply because they understand the why. For example, that the new policy is going to make the job easier, and will save money for the company. This is something people can understand. And when the company routinely practices transparency, people will have an easier time accepting explanations.

Transparency Is a Must for Leaders

At Tampa General Hospital, transparency a foundation of our AKTiVe leadership model that says leaders should lead with authenticity, kindness, transparency, and vulnerability. Transparency has to do with keeping followers informed about what is going on that affects them, and about the reasons for decisions–the why. Much of the AKTiVe model has to do with communication.

  • Downward Communication: This is transparency with direct reports to keep them informed about what is happening and why. Followers need honest feedback to help them learn and develop, and they need to know when they are doing a good job so they continue what they are doing.
  • Upward Communication: Leaders should be open to and solicit input from their teams. This not only provides vital information about what is going on in the team, but it gives direct reports a sense of autonomy, which is one of the three basic human needs. This enhances motivation and teamwork.
  • Lateral Communication: Individuals at the same level need to coordinate and communicate. For a leader, this means communication among direct reports and communication with peers who are also leaders.
  • Communication Tone: Leaders and followers should maintain a professional tone in their communication. There is no reason to be mean or harsh when talking to others. Corrective feedback can be given in a kind and respectful manner even if the message is difficult.

Practicing transparency has a positive impact on followers. It can take some time to get used to sharing information and explaining the why, but it becomes second nature with practice. Transparency leads to trusting relationships with leaders and psychological safety within teams. When people are kept informed and understand the reasons for decisions, it make them more confident, motivated, and secure. They will be easier to lead as they will support their leader’s decisions. Transparency is a must for leaders who want to maximize the well-being of their people and the effectiveness of their teams.

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