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Building a Culture of Openness: Why Transparency Matters in Leading Change

Blog Post

By Chris Wong

Building a Culture of Openness: Why Transparency Matters in Leading Change

Coworkers communicating change
ROI of Leadership Development: The Case for Strategic Investment

Blog Post

By Chris Wong
Coworkers communicating change

Building a Culture of Openness: Why Transparency Matters in Leading Change

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Toward the middle and end of the pandemic, companies across all industries began pushing for all employees to return to in-office work. After months of remote-first work for many non-essential employees, the philosophy was now to attempt a return to a way of life pre-pandemic.

The problem?

People got acclimated to working remotely, and many found they were just as, if not more, productive and effective. So, the logical question became, “why?”

The company messages all tended to be the same: to increase collaboration and cooperation.

But employees weren’t convinced – why push for in-office attendance when work was getting done at home just the same?

This is the essence of what makes change communication hard. Because in the absence of a reason for change that resonates with people, they start filling in their own reasons why:

  • Because real estate is expensive, and companies don’t want to waste it.
  • It’s a method of layoffs, getting employees to quit without having to provide severance or unemployment.

And this road of thinking begins to infect and disrupt morale across teams and organizations.

The solution to this is a culture of openness and transparency because change at its core is hard. Most people dislike change and work very hard to stay the same. At the individual level, people routinely struggle to change their diet or kick an addiction. At the societal level, new technologies often take a long time to become popular and widespread.

When electricity was first invented, electric companies had to take out full-page ads and run marketing campaigns to convince people to use electricity to power their homes. Now, many of us couldn’t imagine a life without electricity. This blog post will focus on why transparency is the answer to this resistance to change and strategies to create a culture of openness.

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Why Transparency Is Key in Leading Change

At its core, one of the biggest causes of resistance to change is fear and anxiety – fear of the unknown and of what’s happening next. However, openness cuts through that when people understand why something is happening and/or the reasons behind decisions. In Lord of the Rings, even the most reluctant main characters agree to embark on the journey only when they completely understand the full weight of what’s going on and what’s at stake.

As a leader, transparency is one of your best weapons in developing trust. If the people you lead believe what you’re saying is true, they’ll have an easier time hearing what you say – even if they don’t like it.

Transparency, defined broadly here as allowing information to flow freely, has long been identified as a key factor in improving performance. In the book “Outliers,” author Malcolm Gladwell reviewed data from numerous airline crashes and found that the common theme among them was a failure of teamwork and communication. Inevitably, one pilot knew critical information but didn’t share it with the other pilot.

Conversely, sharing information freely with people has a strong correlation to improved performance and buy-in. A Harvard Business Review article cites a NASA study that found flight crews that consistently shared information and encouraged open dialogue routinely made better decisions.

Whether you prefer to hold onto information because

  • you believe it’s power,
  • you worried that employees will handle things poorly and be angry,
  • you believe you’re more capable of handling that information than employees.

Transparency done well can prevent all of those. So, how can a leader be more open?

Strategies for Transparent Communication

  1. Be clear and start with why: You should start by communicating the reasons behind the change clearly and in a way that leaves no room for misinterpretation.
  2. Be consistent: The message shouldn’t change from group to group or employee to employee. Predictability is vital to signal that you won’t make decisions arbitrarily. Employees will invariably talk to each other, so any changes in the story will be quickly discovered.
  3. Be compassionate: Acknowledge that change is difficult and take the time to hear out employees’ concerns about the change. It’s not about changing people’s minds; it’s about understanding their worldview and what drives them.
  4. Be open about the process: Share details on timelines, expected outcomes, and any known challenges. Include what factors led to that decision.
  5. Encourage questions: Create an environment where employees feel comfortable asking about the changes and how they might be affected. You may get pushback or anger. Lean into it and go back to tips three and eight.
  6. Release regular updates: Send out emails, host town halls, or set up Q&A sessions to keep everyone informed at every stage of the change. This can’t be a one-time announcement – it needs to be an ongoing dialogue.
  7. Admit mistakes: Things will inevitably go wrong, sometimes even because of a decision you made. The more you acknowledge this and take responsibility without excuse, the more you set an example for employees to feel comfortable also owning up to mistakes. It also demonstrates that you’re not hiding anything.
  8. Get comfortable with difficult conversations: Whether it’s hearing difficult feedback, delivering hard feedback, or facilitating productive conflict, it’s vital to embrace and lean into hard conversations that open up dialogue without being hurtful.

Build Buy-In and Reduce Resistance

In 2000, Andrew Moorfield built an Internet lending platform for small businesses. At one point early on, he didn’t have enough money to make payroll that month. Most leaders’ instincts would be to hide that info, but he approached it differently. He pulled all 25 employees together to explain the situation with full transparency.

Andrew then did something unexpected; he asked all his employees what they thought he should do about it. This led to a creative solution that he would have never thought of – they suggested that a portion of the employees went without their salary for a period rather than everyone taking a pay cut. It worked, and the company became successful and was able to pay everyone what they were owed.

In an age where information is more readily available to people via social media and the internet, leaders are only doing themselves and their organizations a disservice by not creating a culture of openness and transparency. Rather, candor and honesty can go a long way to making team members feel included in the process and increase the probability of them supporting the change. Whatever momentary discomfort may occur, the benefit of having employees getting on board can transform change into an inclusive and less intimidating process.

Author
Chris Wong
Chris Wong

Chris Wong is a certified executive coach, licensed therapist, and seasoned leadership development professional with a proven track record in the nonprofit sector. He specializes in guiding leaders through strategic prioritization, confident navigation of difficult conversations, and fostering high-performing cultures. As a facilitator and public speaker, Chris has trained hundreds of leaders and spearheaded successful organizational projects. His extensive experience spans nonprofit, health insurance, and government systems and encompasses leadership development, strategic planning, change management, and diversity, equity, and inclusion.

Currently, he partners with human service nonprofit executives to execute strategic plans, addressing challenges such as conflict resolution, culture enhancement, productivity improvement, and fostering inclusive work environments.

Website: www.myleadershippotential.com

Connect with Chris on LinkedIn.

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