The Power Of Transparency In Business
A lack of transparency and trust in coworkers, leaders, and the company itself is one of the greatest challenges that modern businesses face. However, transparency is essential to healthy growth for any business in any industry.
Transparency can reduce overhead, build employee confidence and foster a culture of openness and accountability.
Still not convinced? Here’s what makes transparency so important.
Transparency Builds Confidence in Your Employees
In order to move forward on projects and for them to be successful, everyone needs to be on the same page. When you are transparent with employees about things like your vision, budget, goals, and concerns, your team can act with confidence on your behalf. How is your team supposed to be as passionate as you if they’re kept in the dark?
“If your team can’t tell you the truth, you have no chance for long-term success. Zero chance. There is nothing more important than this. As a manager, your job is to make good decisions. Good decisions are impossible to make with bad information.” — Brendan Reid
If you are transparent with your team, they will trust you and be inspired to tell you the truth as well. Trust and honesty are vital to any successful business.
Transparency Builds Stronger Relationships
“You have probably heard that people do not leave the job itself but leave the managers associated with it. Solid relationships with strong foundations are built from being transparent.” — Christopher Salem
Being open and honest is always in everyone’s best interest. Openness creates a sense of loyalty and makes your business stand out as one that employees want to work at. Transparency in your business makes them feel like they can turn to you for support and you, in turn, can rely on them for guidance. It’s a win-win situation!
Transparency in business is how you create stronger relationships between everyone, but especially between you and your employees.
Transparency Builds Trust
Trust seems to be a theme in this blog, but that’s because it’s vital for any business and transparency contributes immensely to it! Strong, trusting ties between management and employees form the foundation of any good business.
“Trust empowers your employees. This sense of empowerment leads to at least 26% higher employee satisfaction, according to a study by Yona Kifer of Tel Aviv University. That sense of empowerment translates into more authenticity and feelings of well-being… ultimately, these feelings lead to much higher engagement in the workplace.” — Hatchbuck
Your employees are your most valuable asset. Trust is the glue that holds your team together. In order to build trust with your team, make sure you’re being honest with them about what is happening in the business, and what they can expect from you. You have to set an example for them as a leader.
“Everyone makes mistakes, so don’t judge them for it. It’s important to create a safe space where employees feel comfortable to come clean when issues arise if you want to encourage responsibility.” — Cameron Herold
Transparency Reduces the Need for Work to be Redone
One of the most powerful benefits of transparency is that it can reduce the need to rework. That saves you money and saves everyone time. Work not having to be redone is something that everyone wants!
“Rework is one of the biggest threats to profitability, not to mention your good name. It puts projects behind schedule, requires the manufacture of new parts, drains budgets and makes companies look bad in front of owners.” — Construction Productivity Blog
No matter the industry, each project phase builds upon the one that preceded it. Transparency ensures that any issues are dealt with promptly before the implementation phase of a project has even begun. This leads to a more streamlined process with fewer hitches along the way. Without transparency, there might still be issues during the implementation phase. Once that occurs, it’s much harder to fix. Transparency ensures that issues are noticed and dealt with at the right time.
While transparency can seem scary at first, being vulnerable and forthright is the best way to set your company and your team up for long-term success.
Trust is the key to all healthy relationships in business and in life. When aiming to build a solid foundation for you and your team, honesty is always the best policy!
Why do you think transparency is important? Let me know in the comments below!
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