Transparency Builds Leadership Trust
Hire people using whatever (legal) criteria you like. Compensate employees however you like. Charge for your products and services however you like. Run your business however you like. But be transparent about your practices. People want to work with those they trust. Transparency builds leadership trust.
A few weeks ago one of our vendors gave me a bill that was higher than what I expected, so I asked for an itemized invoice. I never heard from the company again. Poof; they disappeared. Not a great way to build leadership trust nor a reputation.
Another vendor was very delayed in filling our product orders. When I asked questions about how such a thing could happen, I got a vague answer. “I guess we have communication issues and you got lost in the shuffle.” It was an insufficient and thus bad answer that didn’t instill confidence in the company. Instead, it created doubt that they could reliably meet our needs and we’re going to replace them.
One of my friends recently got turned down for an internal job. She was told, “She just wasn’t the right fit.” An unhelpful and yet typical way to decline an internal candidate.
You don’t owe your employees or customers answers, but if you want people to want to work with you, have confidence in you, and trust you, you’ll provide more information than you think you need to.
Employees and customers can handle the truth. And while you may not think you need to provide it, people want to work with those they trust. We trust people who give us the whole truth. Or at least more of it than, “I guess you got lost in the shuffle.”
Increase business trust: Outline how you derive your pricing. Be clear and transparent about your pricing.
Increase corporate trust: Tell employees how and why you make the hiring decisions you do. They’ll refer friends to work for you, even when you decline them.
Increase leadership trust: Tell employees how the organization makes money, the feedback you’re getting from prospects and customers, and why you’re making the business decisions you’re making. Employees will feel more connected and thus committed to the organization.
Knowledge makes people feel comfortable. The people who work for and with you want to understand how and why decisions are made. If you want your customers and employees to trust you, give them a little more truth than you might think necessary.