The Impact of Leader Transparency

The first rule I was taught in business? Something that came back to haunt me. Let me explain. Growing up, I was told: Keep business information close to the chest. The belief was: If employees knew too much… revenue, challenges, what’s really going on… they might use it against you. That’s the mindset I saw modeled. So at first, I followed it. The result? ❌ Team members felt like outsiders, not owners ❌ Trust eroded each time something surfaced indirectly ❌ Morale dropped (it’s hard to stay motivated when you don’t know what you’re working toward) ❌ It slowed us down (more questions, more confusion) ❌ It created silos (departments focused on surviving, not collaborating) I knew something was broken, but didn’t know how to fix it. Until… a hero came along. I hired Sean to replace me as CEO. And one of his first decisions was something I was feeling in my heart all along. That we need to lead with transparency. So we did a full 180. Now, once a quarter, we host an all-hands meeting where we share everything… no sugarcoating. ✔️ Revenue growth (or decline) ✔️ Viewer stats and content performance ✔️ What’s working ✔️ What’s broken ✔️ New bets we’re making (and the ones we’re letting go of) Yesterday, we opened the books and laid it all out for nearly 100 team members in person and 100+ tuning in remotely. The wins, the losses, all of it. The new result? Transparency has done something that secrecy never could: It’s built trust. Ownership. Alignment. What I’ve come to learn is, when everyone knows the scoreboard: They don’t just clock in… they lean in. The old way was fear-based. This way? It’s mission-based. And in today’s world, that makes all the difference.

The Strength of Vulnerability: Communicating Uncertainties and Mistakes in the Team In a recent coaching session, a coachee asked whether it is acceptable to admit uncertainties or mistakes to the team. This question has been on my mind for several days as it touches on an important aspect of modern leadership and corporate culture: The importance of authenticity and vulnerability. Why should one communicate uncertainties and mistakes? 🤝 Promoting Psychological Safety: Studies, such as those by Amy Edmondson of Harvard Business School, show that psychological safety – the feeling that it is okay to take risks and speak openly – is crucial for team performance. When leaders openly communicate their uncertainties and mistakes, they create an environment where employees also feel safe to express their own concerns and errors. This fosters a culture of learning and innovation. 🤝 Trust and Credibility: Authenticity and transparency are key components in building trust. A study by Kouzes and Posner (2002) found that honesty and integrity are the most important qualities that employees appreciate in their leaders. By admitting their weaknesses and mistakes, leaders show their human side and thus gain the trust of their team. 🤝 Role Modeling: Leaders who admit their uncertainties and mistakes act as role models for their employees. They demonstrate that it is okay to make mistakes and learn from them. This promotes a culture where continuous learning and development are possible. 🤝 Enhancing Collaboration: Admitting uncertainties can also improve teamwork. When leaders reveal their weaknesses, they encourage their employees to contribute their own skills and knowledge to find solutions together. This strengthens team spirit and collective intelligence. My Personal Conclusion: It is not only acceptable to admit uncertainties and mistakes to the team – it is even desirable and fosters a healthy, productive corporate culture. Leaders who show vulnerability strengthen psychological safety, trust, and collaboration within the team. What are your experiences and thoughts on this? Have you ever experienced that a leader’s openness positively influenced the team? #Leadership #Authenticity #PsychologicalSafety #Teamwork #Innovation #Leadership #ErrorCulture #Trust #Coaching

Leaders uncover, don’t cover What’s the scariest thing you’ve ever hidden? Maybe it was a bad grade, a typo in an important email, or the fact that your "homemade" lasagna was actually store-bought. Now imagine magnifying that fear to the size of an entire organization. That’s what happens when leaders decide to cover instead of uncover. Great leaders don’t play hide-&-seek with problems, failures, or truths. They face them head-on, armed with the understanding that transparency builds trust, engagement, & resilience. HBS reveals that employees are 70% more likely to trust leaders who admit their mistakes rather than attempting to hide them. Yet, some leaders still subscribe to the “Wizard of Oz” school of leadership—pulling levers behind a curtain, projecting an illusion of omnipotence. Guess what? Dorothy exposed the wizard, & so will your team. Leaders who cover mistakes or uncomfortable truths create a culture of fear & suspicion. This results in what psychologist Daniel Kahneman calls a "cognitive minefield." Team members waste mental energy navigating politics instead of solving problems. A transparent leader, on the other hand, clears that minefield, enabling creativity & collaboration to thrive. 1. Trust becomes your superpower: Trust isn’t built in grand gestures; it’s built in moments of truth. When you uncover the realities—good, bad, & ugly—you’re telling your team, “I trust us to handle this.” 2. Failure becomes a trampoline, not a trapdoor: Teams that see their leader owning up to mistakes learn to view failure as a learning opportunity. Stanford research shows that organizations embracing a “failure-positive” culture outperform their peers in innovation. 3. The truth sets you free (from micromanagement): When you’re honest about challenges, you’re not stuck spending your days spinning stories or cleaning up cover-ups. Instead, you’re empowering your team to step in & collaborate on solutions. How do you practice "uncover leadership"? • Own your mistakes before they own you: When something goes wrong, don’t wait for your team to discover it. Beat them to the punch by admitting it first—& then shift the focus to how you’ll fix it. • Ask the hard questions: Instead of brushing issues under the rug, ask your team, “What’s not working, & what can we do better?” Just be ready for some raw answers. • Celebrate vulnerability: Highlight stories where transparency led to success. Turn uncovering into a celebrated behavior. Leadership isn’t about x-ray vision to expose everyone else’s flaws; it’s about turning that vision inward first. It’s about saying, “Here’s where I messed up, & here’s how I’m making it right.” That level of honesty is contagious—& it’s how cultures transform. So, to all the leaders out there: Stop playing the Wizard. Step out from behind the curtain. Your team doesn’t need smoke & mirrors; they need someone who’s brave enough to uncover the truth & lead the way forward. #Leadership #Management #Business  

My dad always stressed the importance of transparency. He ran his own architectural business, and, as with many entrepreneurial endeavors, there were ups and downs along the way. Even as kids, we knew what we were working with - “This is how much we earned, this is how much we’ll pay in taxes.” “This is how much our electricity cost in February.” ← 👀👀👀 “Here’s what we invested in, here’s how much we earned.” It was never anything dramatic - my father was good with money and always had a contingency plan - but he made sure we understood how much was in the bank account, what our budget was for the year, how much things cost, what kind of vacation we could afford, that sort of thing. He wanted us prepared for the future. I appreciated my dad’s transparency. It provided clarity. And I always try to do the same with my teams. Transparency builds trust and expertise, it is the foundation of developing the next set of leaders and helps prepare your teams by giving them firsthand experience through good and bad times, so they don’t question the fragility or health of the company. I strive to be frank in those discussions - here’s how we’re doing, here’s what we need to improve, here’s what will happen if we don't achieve X,Y, and Z, and here’s what will happen when we do! It’s the best way to learn, it instills confidence and trust, and it allows your teams to focus on the work, not their fears of what’s being withheld.

The Leadership Lesson That Changed Everything for Me A few years ago, I was leading a high-stakes project. Deadlines were tight, pressure was high, and my team looked to me for direction. One day, we hit a major roadblock. Instead of admitting the challenge, I tried to push through—masking the problem with vague optimism. But my team wasn’t fooled. I could see the doubt in their eyes. Then, I did something different. I called a team huddle and laid it all out—the challenge, the risks, and even my own uncertainties. To my surprise, instead of panic, there was relief. Ideas started flowing, and together, we found a way forward. That day, I realized: Leadership isn’t about having all the answers. It’s about trust. Here’s how you can build that trust through Transparent Leadership: ➤ Be Open – Share not just your decisions, but the reasons behind them. When your team understands the ‘why,’ they feel valued and aligned. ➤ Listen Actively – Encourage honest feedback, listen without judgment, and create a space where every voice matters. ➤ Own Your Mistakes – No one expects perfection. But they do expect honesty. Acknowledging missteps shows strength, not weakness. The Result? A team that’s engaged, motivated, and fully invested in your vision. Leadership isn’t about control—it’s about connection. And the more transparent you are, the stronger that connection becomes. What are your thoughts on transparent leadership? Share your insights in the comments! #Leadership #Trust #Communication #Authenticity #Teamwork #TransparentLeadership #Growth

Building Trust Through Transparency in Leadership Early in my career, I worked at a company where the leadership implemented extreme secrecy. The various project teams were separated into different halls, with combination locks required to enter them (access cards didn't exist yet), teams were not allowed to share information. There was always a sense of hush-hush in the office; it was all a bit intimidating. Different people had access to different information, not necessarily based on need to know, but on whom they knew. This was about 30 years ago but I do remember it resulted in a strong us vs them (management vs staff) feeling, which led to a reduced sense of ownership and commitment. When information leaked the management would run investigations to find the leak rather than understanding the root cause. I started looking for options and was one of the first to leave. It eventually led to high attrition. They tried to retain people by paying very high salaries but even that didn’t work in the long run. Fortunately, practices have changed since, even in larger corporations. The emphasis has been more and more on employee engagement and helping team members to grow and advance themselves. Trust has been recognized as playing a huge role in getting business done more smoothly and efficiently. One of the bases of trust is transparency. Where there is secrecy, there can never truly be trust. Withholding information from someone is like saying "I don't trust you to act responsibly with this information." Authentic HR leadership is grounded in transparency, a commitment to openness that differentiates itself from the shadows of secrecy. Defining transparency within HR practices sets the stage for a workplace where trust can be a fundamental building block. Secrecy is not always intentional. I have seen it be a consequence of poorly set up communication channels and structures. Unfortunately, the effect on the employees is the same, whether information is withheld intentionally or incidentally. By adopting effective communication strategies and sharing information openly, HR leaders create a culture where employees feel not only informed but also valued, fostering an environment of trust and collaboration. It goes even further: transparency empowers employees by providing them with information and insights. HR leaders who prioritize transparent practices create a culture where employees feel informed, heard, and an integral part of the decision-making process, contributing to a workplace characterized by mutual respect and empowerment. Finally, consistency in decision-making and transparent handling of challenges are pivotal trust-building practices. HR leaders who demonstrate transparency in their actions foster a culture of accountability, laying the foundation for a workplace where trust thrives. #trust #transparency #transparentleadership #globalleadership #gccs #authenticity Sunil Khunteta . Ruchira Garg what is your take on this?

"We need to explain to everyone exactly what is going on," I told the executive committee….       …we were breaking from the norm - it wasn't comfortable for the executive team… But they agreed, and we chose to tell the organization precisely what was happening… and it made a world of difference!   We would have to change direction, impacting many people radically. It was crucial to say things how they were. After our announcement, people said they were highly thankful for the openness. Because of the transparent communication and approach, the whole organization became fully engaged in the change and did its utmost to contribute to its success.   If leadership is not transparent, the consequences are far-reaching on the organization and often underestimated.   People will make up their reality, and the impact on effectiveness and performance is undeniably negative, as illustrated by the seven points in the graphic.     I profoundly believe that transparency is crucial to effective leadership and performance.   Transparency in an organization does more than just clear up operational fog; it empowers individuals, builds trust, and lays the groundwork for a culture of high performance and continuous improvement.   When leaders are open about the organization's challenges and opportunities, they invite their team into the problem-solving process and foster a sense of ownership and accountability across all levels. This enhances innovation, efficiency, and resilience.     What's your view - does transparency matter?   Jakob  #transparency #management #leadership PS. If you found this valuable, follow Jakob Bovin. Thanks!

🔓 From Trust Crisis to Trust Building: The Foundation of Transparent Communication 🔓 🌟 Why Transparency Matters Great leaders don't just announce decisions—they share the story behind them. When I was a police sergeant, I learned that telling my team "We're changing patrol routes" created confusion and resistance. 😤 But explaining "Crime patterns shifted east, response times increased by 3 minutes, so we're adjusting routes to better serve the community" built understanding and buy-in. ✅ 💫 The Vulnerability Factor Transparent communication requires leaders to be vulnerable. Admitting uncertainty, acknowledging mistakes, and sharing constraints creates psychological safety. 🛡️ When leaders say "I don't have all the answers," they give permission for others to contribute solutions. 🤝 ⚡ In Practice Replace "This is how we're doing it" with "Here's what we're facing, here's my thinking, and here's how your input will shape our approach." This shift transforms followers into partners and builds trust through inclusion rather than exclusion. 🌱 📊 The Research Connection Kelloway et al. (2012) found that clear communication from leadership directly correlated with increased trust and psychological well-being. Transparency isn't just nice to have—it's measurable competitive advantage. 📈 🏆 Trust: The Superpower of Leadership starts with transparency. When leaders share context, reasoning, and even their uncertainties, they create environments where innovation thrives. ✨ 💪 I help organizations transform trust into high-performance through the BELIEVE Framework program. Reach out to me if you need to Lead Boldly, Build Boldly, Grow Boldly. I am here to help. 🚀 📚 Reference: Kelloway, E. K., Turner, N., Barling, J., & Loughlin, C. (2012). Transformational leadership and employee psychological well-being: The mediating role of employee trust in leadership. Work & Stress, 26(1), 39-55. #TransparentLeadership #TrustBuilding #BELIEVE #LeadershipDevelopment #PsychologicalSafety #TrueBoldness

"𝐒𝐭𝐨𝐩 𝐬𝐡𝐚𝐫𝐢𝐧𝐠 𝐧𝐮𝐦𝐛𝐞𝐫𝐬 𝐰𝐢𝐭𝐡 𝐲𝐨𝐮𝐫 𝐭𝐞𝐚𝐦. 𝐒𝐭𝐨𝐩 𝐬𝐡𝐨𝐰𝐢𝐧𝐠 𝐯𝐮𝐥𝐧𝐞𝐫𝐚𝐛𝐢𝐥𝐢𝐭𝐲. 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲 𝐜𝐫𝐞𝐚𝐭𝐞𝐬 𝐭𝐫𝐨𝐮𝐛𝐥𝐞" This was the worst advice I ever received as a founder. And if I had followed it, we wouldn’t be where we are today. Back in 2015, when we were still figuring things out, we believed in one simple principle—𝐭𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲 𝐛𝐮𝐢𝐥𝐝𝐬 𝐭𝐫𝐮𝐬𝐭. We were open with our team about our numbers, challenges, and even vulnerabilities. But many seasoned founders at the time told us: "𝘐𝘧 𝘺𝘰𝘶 𝘸𝘢𝘯𝘵 𝘵𝘰 𝘴𝘶𝘳𝘷𝘪𝘷𝘦, 𝘴𝘵𝘰𝘱 𝘴𝘩𝘢𝘳𝘪𝘯𝘨 𝘯𝘶𝘮𝘣𝘦𝘳𝘴 𝘸𝘪𝘵𝘩 𝘺𝘰𝘶𝘳 𝘵𝘦𝘢𝘮." "𝘋𝘰𝘯’𝘵 𝘴𝘩𝘰𝘸 𝘺𝘰𝘶𝘳 𝘴𝘵𝘳𝘶𝘨𝘨𝘭𝘦𝘴—𝘪𝘵 𝘮𝘢𝘬𝘦𝘴 𝘺𝘰𝘶 𝘭𝘰𝘰𝘬 𝘸𝘦𝘢𝘬." "𝘚𝘢𝘭𝘦𝘴 𝘢𝘯𝘥 𝘥𝘦𝘷𝘦𝘭𝘰𝘱𝘦𝘳𝘴 𝘴𝘩𝘰𝘶𝘭𝘥𝘯’𝘵 𝘴𝘪𝘵 𝘵𝘰𝘨𝘦𝘵𝘩𝘦𝘳." "𝘋𝘦𝘷𝘦𝘭𝘰𝘱𝘦𝘳𝘴 𝘴𝘩𝘰𝘶𝘭𝘥𝘯’𝘵 𝘬𝘯𝘰𝘸 𝘵𝘩𝘦 𝘱𝘳𝘰𝘫𝘦𝘤𝘵 𝘤𝘰𝘴𝘵—𝘵𝘩𝘦𝘺’𝘭𝘭 𝘴𝘵𝘢𝘳𝘵 𝘥𝘦𝘮𝘢𝘯𝘥𝘪𝘯𝘨 𝘮𝘰𝘳𝘦." We were shocked. And honestly, it hurt to be judged like that. But we followed our gut. 𝐀𝐧𝐝 𝐈’𝐦 𝐬𝐨 𝐠𝐥𝐚𝐝 𝐰𝐞 𝐝𝐢𝐝. Instead of hiding and restricting, we shared our challenges and educated our team on business impact. The result? 💡 A team that thinks like owners, not employees. 💡 Developers who build with business context, not just code. 💡 Sales teams that sell what can actually be delivered. 💡 A culture where people feel valued, not used. 𝐀𝐧𝐝 𝐭𝐡𝐞 𝐛𝐞𝐬𝐭 𝐩𝐚𝐫𝐭? 𝐓𝐡𝐨𝐬𝐞 𝐬𝐚𝐦𝐞 𝐚𝐝𝐯𝐢𝐬𝐨𝐫𝐬 𝐰𝐡𝐨 𝐰𝐚𝐫𝐧𝐞𝐝 𝐮𝐬 𝐧𝐨𝐰 𝐚𝐝𝐦𝐢𝐫𝐞 𝐨𝐮𝐫 𝐜𝐮𝐥𝐭𝐮𝐫𝐞. Not every piece of advice—deserves to be followed. Trust your instincts. Build the company you’d love to work at. And your people would fall in love with. #Entrepreneurship #Leadership #Transparency #Startup