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Barbara Pagano & Elizabeth Pagano

The transparency edge

Transparency in business builds credibility and trust. Leaders should communicate openly and honestly with stakeholders. However, full disclosure of everything reduces effectiveness. Leaders should share information judiciously. Research shows 9 key behaviors that determine leader credibility: integrity, accountability, expertise, vision, inspiration, listening, clear expectations, feedback, and empowerment. Leaders with these qualities gain loyalty and confidence. Transparency requires balance between openness and discretion to drive business success.

The transparency edge
The transparency edge

book.chapter Lead by example through honest words and actions

Effective leadership hinges on honesty and transparency. Leaders who are open in their communication foster trust and credibility. Yet, discretion is also crucial, particularly when dealing with sensitive information. Leaders should aim for maximum openness, providing context when full disclosure isn't possible, to maintain trust. Creating a safe environment for open dialogue is vital. Leaders should encourage input, particularly from junior members, by asking questions that invite diverse viewpoints. Additionally, leaders can promote honesty by being vulnerable themselves, sharing their own mistakes, and showing that it's safe to speak openly. Linking transparency to business success is another strategy. By demonstrating how honesty leads to better decisions and quicker problem-solving, leaders can highlight its practical benefits. Regular meetings and one-on-ones can help make transparency routine. Proactive communication is key to staying ahead of rumors. Leaders should update their teams on difficult issues, even if it's just to acknowledge ongoing deliberations. When full transparency isn't possible, leaders can maintain trust by acknowledging the information gap and providing a timeline for future updates, or by explaining the need for discretion without revealing sensitive details. Leaders can balance the need for confidentiality by being more open in other areas. This approach, along with being available for questions and feedback, helps build trust even when some topics require secrecy.

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