In a recent Harvard Business Review article ("A Culture of Candor," June 2009), Warren Bennis and James O’Toole offer seven steps for developing a culture of transparency:
1. Tell the Truth
Each of us has the impulse to tell others what they want to hear. Instead, keep it simple, and be honest. Candid leaders tell everyone the same thing, and they have no need to revise their stories.
2. Encourage People to Speak Truth to Power
It’s never easy for us to be honest with our bosses. It takes courage to speak up.
But encouraging people to share their honest opinions is crucial if leaders want to build trust and open communication. Of course, this sometimes means executives will hear unpleasant information.
3. Reward Contrarians
If you make it acceptable, are willing to listen to opposing points of view and promise to consider the merits of others’ arguments, you pave the way for a culture of transparency.
Find colleagues who tend to be oppositional, listen to them intently, and create conditions for thinking differently.
4. Practice Having Unpleasant Conversations
Few people excel at delivering negative feedback during performance appraisals. Offering negative feedback upward, to one’s boss, is even more challenging.
The best leaders learn how to deliver bad news kindly so people don’t get unnecessarily hurt. It’s certainly not easy, unless practice opportunities are provided.
5. Diversify Information Sources
Communicate regularly with different groups of colleagues, workers, customers and even competitors to gain a nuanced and multifaceted understanding of others’ perceptions.
6. Admit Mistakes
Candor is contagious. When you admit your shortcomings or errors, it paves the way for others to do the same. Simple admissions can disarm critics and encourage others to be transparent, as well.
7. Build Organizational Support for Transparency
Protect whistle-blowers—but don’t stop there. Other norms and sanctions should encourage truth-telling, including open-door policies, ethics training and internal blogs that give a voice to people lower down in the hierarchy.