Transparency | Efficiency
The need for more transparency
Transparent systems tend to be the most efficient systems. The fluidity of information in transparent systems yield better and more ideas. It’s like the nuclear fission of ideas. Of course, just like fission there must be some safety measures built in.
From my limited work experience, there are 3 main barriers in the workplace that add layers of complexity and unnecessary confusion.
Sometimes I wonder if inefficiency exists to create more work opportunity giving rise to departments like compliance and business controls.
The Client Supplier Barrier
Starting with the most obvious barrier: the gap between client and supplier.
As a client you do not wish to disclose your budget. As a supplier you do not wish to disclose your cost. It’s a chicken and egg problem. This is where supposed skillful negotiators, lawyers and technical staff are brought in from both sides to hammer out a deal. To me it is a zero sum game where one party tends to be the loser (dependent very much on Porter’s 5 competitive forces). It is not the way a relationship should begin. With one party on the losing side, it will always be a tug of war, a battle to gain the upper hand.
Now I’m not advocating total transparency, that would be a bit too much and I doubt most people would be able to accept the notion. It would be akin to walking around like the cadavers from Bodyworlds
However, there should be a better way. I was recently on a project that implemented an e-procurement system known as Ariba (It is now a part of SAP but the concept is an interesting one, albeit in the client’s favor)
Basically Ariba would allow the client’s procurement team to raise a request and allow any supplier to submit their bid package (in theory, although most businesses will limit the suppliers to save time vetting through those that may fail credit checks or technical expertise). The process is totally open, you can opt for reverse bidding and allow all the suppliers to see exactly who is bidding on what. The flow of information is also without human influence. The only time there is human input is requisition. This will flow through to become the PO and then become the invoice used later for 3 way matching. Ok it is starting to sound like a sales pitch so back to the notion of transparency. Having a platform that allows everyone to see what is going on real time is pretty impressive. To lay all the cards on the table makes communication easier (it does take away the element of suspense and fun but not everything should be a game)
The Inter Department Barrier
The notorious company politics.
It never fails to amaze me to see different departments fighting over a client only to lose them to an external competitor. It’s like watching a National Geographic special featuring coyotes fighting over a carcass only to have it stolen by nearby vultures.
We have all been on the giving and receiving end of company politics. Offices are the new Savanna hunting grounds where the fittest thrive. Departments absolutely refuse to share information with each other, giving rise to the silo mentality. ERP systems were supposed to break down the silos. Sadly they have only served to enable bean counters to count more efficiently as opposed to creating an environment of trust. Hopefully with the advent of cloud computing, information can start to really flow like a waterfall instead of drip like a leaky faucet.
Corporations are still very hesitant to adopt cloud computing and the adoption rate is still crawling for established enterprises. Startups on the other hand embrace cloud from the get go. Perhaps it is a generational gap of openness that translates into different management styles.
The Internal Cliques Barrier
Company politics, the sequel.
Even within the department there are multiple cliques. Limited opportunities and opaque appraisals / reviews do not help the situation.
My previous boss shared something rather entertaining with me before he left the company:
Management needs to be more open with employees. With portals like Glassdoor where information about compensation and employee reviews are openly shared, barriers in the office are as effective as moats and castle walls against the B2 bomber.
How to break down barriers?
Technology, technology, technology
- Real time information
Social Psychology
- Remove the illogical human emotions from the equation
