Fostering a Culture of Trust and Transparency
One of my CEO leadership coaching clients normally has a very participative leadership style. However, in this turbulent economy he made a strategic decision to be much more directive with his senior leadership team. He was very open with his senior team members, that he was going to be much more hands on to get through this difficult economic period.
The CEO also needed to be very clear with his senior leaders that they would be accountable for achieving results. He inspired trust by being transparent about his intention. The CEO needed to be firm, but at the same time engage his people in a positive fashion. The culture of the company needed to retain its’ fun and playful atmosphere while still creating a context for maximum achievement.
Inside and Out
Broadly defined, transparency should mean the degree to which information flows freely within an organization, among managers and employees, and outward to stakeholders. A company cannot be transparent to its shareholders without first being transparent to its workforce.
A January 2009 Harvard Business Review survey revealed that, over the last year, readers reported having 76% less trust in U.S. companies’ senior management and 51% less trust in non-U.S. companies. (Of the 1,000+ respondents, 60% were based outside the United States.) That’s a significant drop in confidence levels.
Roughly half of all managers don’t trust their leaders. Exact figures and study results vary, but no data compiled over the last seven years have shown more than 50% trust for company leaders. When people experience such distrust, they describe their working environment as:
• Threatening
• Divisive
• Unproductive
• Tense
In contrast, when working in a trusting environment, people report the experience as:
• Fun
• Supportive
• Motivating
• Creative
• Comfortable
• Productive
Companies that foster a culture of transparency and trust clearly have a competitive advantage for sustainable success.
Companies cannot innovate or rapidly respond to new challenges unless all employees have access to relevant, timely and valid information.
Easier Said Than Done
The obvious question remains: Why wouldn’t companies promote openness and a free flow of information?
Several issues seem to arise:
• Can people communicate upward and do so honestly?
• Are teams capable of challenging their own assumptions?
• Can boards of directors communicate important messages to company leadership?
Transparency issues can involve a leader who won’t listen to followers, as well as followers who won’t speak up. They also occur when team members are ensconced in “groupthink,” usually without awareness. People on the same team don’t challenge each other. Sometimes, they like each other too much. Other times, they simply don’t know how to disagree with one another.
Shared values and assumptions play a positive role in groups that work well together. But when a team of senior managers suffers from collective denial and self-deception, its members cannot unearth and challenge their shared assumptions. Such blinkered thinking leads to disasters, in both a business and ethical sense.
Are you working in a company or law firm where leadership models trust and transparency? Does your company or law firm provide leadership coaching and leadership development to help leadership develop trust? Leaders need .to lead by example for followers to fully engage.
One of the most powerful questions you can ask yourself is “Do I lead by inspiring transparency and trust?” Emotionally intelligent and socially intelligent organizations provide executive coaching and leadership development for leaders who want to become more transparent in their communications.
Working with a seasoned executive coach trained in emotional intelligence and incorporating leadership assessments such as the Bar-On EQ-i and CPI 260 can help you become a more effective at being open and transparent increasing the level of trust in your organization. You can become a leader who models emotional intelligence and social intelligence, and who inspires people to become fully engaged with the vision and mission of your company or law firm.
I am currently accepting new executive coaching and career coaching clients. I work with both individuals and organizations. Call 415-546-1252 or send an inquiry e-mail to mbrusman@workingresources.com
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