How Operational Transparency Can Boost Your Business Growth
What is operational transparency?
Operational transparency is the degree to which customers can see and understand the work that an organization does. It means making your processes visible to customers and your customers visible to employees. It also means communicating clearly and honestly about what you do, how you do it, and why you do it.
Why is operational transparency important for business growth?
Operational transparency is important for business growth because it can increase customer trust, loyalty, satisfaction, and retention. When customers can see how their needs are met and how their feedback is valued, they appreciate and value your service more. They are also more likely to recommend you to others and become repeat customers.
Operational transparency can also improve employee engagement, productivity, performance, and retention. When employees can see how their work contributes to the company’s goals and values, they feel more motivated, empowered, and committed. They are also more likely to collaborate with each other and with customers.
Operational transparency can also enhance stakeholder relations and reputation. When you demonstrate accountability and social responsibility in your operations, you build trust and credibility with investors, regulators, partners, suppliers, media, and society at large.
How can you achieve operational transparency in your business?
In this article, we will discuss some examples of how operational transparency can benefit different aspects of your business. We will also provide some tips on how to implement operational transparency in your communication, collaboration, data sharing, etc.
If you want to learn how operational transparency can boost your business growth by creating happier customers and employees alike read on!
How operational transparency can increase customer trust and loyalty?
One of the main benefits of operational transparency is that it can increase customer trust and loyalty by showing them how their needs are met and how their feedback is valued. When customers can see how you work for them, they are more likely to appreciate and value your service more. They are also more likely to recommend you to others and become repeat customers.
For example, Domino’s Pizza Tracker allows customers to track their pizza order from the moment they place it until it arrives at their door. Customers can see how their pizza is being prepared, baked, boxed, and delivered by real people. This gives them a sense of control and assurance that their order is being handled with care and efficiency.
Another example is the City of Boston, which created an app called BOS:311 that allows residents to report non-emergency issues such as potholes, graffiti, or broken streetlights. The app shows residents how their requests are being processed and resolved by city workers. It also provides feedback on how well the city is performing on various metrics such as response time, quality of service, and customer satisfaction.
These examples show how operational transparency can create a positive feedback loop between customers and service providers. Customers feel more confident and satisfied with the service they receive, while service providers feel more motivated and accountable for the work they do.
How operational transparency can improve employee engagement and productivity?
Another benefit of operational transparency is that it can improve employee engagement and productivity by giving them a clear vision of the company’s goals and values. When employees can see how their work contributes to the company’s success and impacts customers’ lives, they feel more motivated, empowered, and committed. They are also more likely to collaborate with each other and with customers.
For example, Tessei, a Japanese railway cleaning company, transformed its operations by making its employees visible to passengers. The company introduced a ritual called shisa kanko (pointing-and-calling), which involves employees pointing at various parts of the train carriages and loudly announcing what they are doing as they clean them. This practice not only improves safety and quality but also showcases the employees’ skills and professionalism to passengers.
Another example is Zappos, an online shoe retailer known for its exceptional customer service. The company encourages its employees to share their stories and experiences with customers on social media platforms such as Twitter, Facebook, Instagram, etc. This practice not only humanizes the brand but also fosters a culture of openness and authenticity among employees.
These examples show how operational transparency can create a sense of purpose and pride among employees. Employees feel more valued and respected for their work, while customers feel more connected and loyal to the brand.
How operational transparency can enhance stakeholder relations and reputation?
A third benefit of operational transparency is that it can enhance stakeholder relations and reputation by demonstrating accountability and social responsibility in your operations. When you show your stakeholders how you operate ethically, sustainably, and responsibly, you build trust and credibility with them. You also differentiate yourself from competitors who may be less transparent or less ethical in their practices.
For example, Patagonia, an outdoor clothing and gear company, is known for its environmental and social activism. The company publishes an annual report called “The Footprint Chronicles” that details its environmental impact across its supply chain, from sourcing materials to manufacturing products to delivering orders. The report also highlights its efforts to reduce waste, emissions, and water use, as well as its initiatives to support fair trade, organic farming, and conservation causes.
Another example is Buffer, a social media management platform, that practices radical transparency in its business operations. The company shares everything from its revenue numbers to its salary formula to its diversity statistics to its product roadmap with anyone who wants to see them. The company believes that being transparent helps it attract talent, retain customers, improve products, and inspire others.
These examples show how operational transparency can create a positive image and reputation for your business. Stakeholders respect you for being honest and accountable for your actions, while competitors admire you for being innovative and courageous in your approach.
How to implement operational transparency in your business?
As we have discussed how operational transparency can boost your business growth by creating happier customers and employees alike. We have seen some examples of how operational transparency can benefit different aspects of your business, such as customer trust and loyalty, employee engagement and productivity, and stakeholder relations and reputation.
But how can you implement operational transparency in your own business? Here are some tips to help you get started:
- Communicate clearly and frequently with your customers and employees about what you do, how you do it, and why you do it. Use different channels such as newsletters, blogs, social media, videos, etc. to share your stories and insights.
- Involve your customers and employees in your processes and decisions. Ask for their feedback, suggestions, opinions, and ideas. Show them how their input is valued and acted upon.
- Showcase your work and achievements to your customers and employees. Let them see the behind-the-scenes of your operations. Highlight the challenges you face and the solutions you find. Celebrate the successes you accomplish.
- Be honest and accountable for your actions and outcomes. Admit your mistakes and failures. Explain how you learn from them and improve. Share your goals and progress with your stakeholders.
- Be ethical and responsible in your operations. Follow the best practices and standards in your industry. Comply with the laws and regulations that apply to you. Respect the rights and interests of all parties involved.
By following these tips, you can create a culture of operational transparency in your business that will help you grow and thrive in the digital age.
