Today, the customers have the power, the option, and the choices because they have access to information and they want access to all the information about you.
Radical transparency is a new way of doing things, the way we can make a difference. A social business is a transparent business. It enables us to share valuable tips, strategies, and practices which will validate one’s credentials and experience in the respective industry.
Prospective clients will feel less anxious or hesitant to work with you because they will see that you know what you’re talking about. Your colleagues will begin to take you seriously, and your audience will start asking you questions and reach out to you to know your opinion and advice.
Several businesses are reluctant to share their secrets out of fear that others in their industry will learn their ways and rob them of business or page views. However, a proper insight will showcase one’s expertise and legitimize the owner’s knowledge on the subject.
Focus on work culture
Embracing a transparent work culture is slowly turning into a driving force in promoting the image of a positive employer brand. Understanding what is true is essential for success and being radically transparent about everything including mistakes and weaknesses helps create an environment where progress is an everyday activity. It ensures that important issues are apparent and transparent. It also enforces good behavior and good thinking because when you have to explain yourself, everyone can openly assess the merits of your logic. If you are handling things well, radical transparency will reflect your performance and if you are handling things badly, radical transparency will allow you to get better in the areas, where you are not going in the right direction. Thus, it helps to maintain high standards.
Focusing on salary
It is tough for small companies as people start comparing salaries, and even reduce employee motivation because they feel undervalued and disconnected from the company. Bloobloom is one of the underrated companies to follow radical transparency. Besides excellent customer support, they also reveal how much money they make and how much it costs to create different models of glasses.
Image source: Bloobloom.
They have also developed a special program for using their revenues to provide free glasses to people in need. In this way, glasses have started to serve a third purpose, that is, to support specific ethos. Radical transparency can be one reason behind the loyalty customers have towards a company. It is a critical hallmark of a company that is going to be sustainable. Bloobloom follows the principle that an enterprise can’t judge its sustainability.
Namaste Solar is a solar panel installation company based in Boulder which keeps all salary information transparent and available to employees, is attracting the best people and is able to retain them better than other companies in the same sector. By embracing information sharing within the company, they are ensuring that important information is easily accessible to staff keeping workers updated and informed on current goals, challenges and hurdles so everyone is made to work together.
When people know why something happens, and possess information which they could possibly want or need, they don’t waste time repeatedly going back to their bosses with questions that they could themselves answer. Being open to communication is a route which has been working very well for businesses.
Another perspective of this idea can be how a sense of real fairness turns out to be deeply rewarding to the brain, especially when compared to a sense of unfairness that pervades many employees’ dark thoughts, which activates threat response. One of the biggest reasons companies fail is because people lose focus and get off track. It’s specifically true of the young, fast-growing companies pacing to meet stretch revenue goals and keep their investors happy. Making all employees’ performance data available to everyone in the company solves such trust issues. Doing so removes the distractions, fears, and negativity which saps concentration. The entire workforce has access to a host of information about the performance and practice of each team. Such mirroring is extremely powerful in encouraging positive work performance. Another advantage is that the right people get promotions, which means the people who are really consistently performing are rewarded, not the ones, who are close to the boss.
As Ray Dalio had observed, we tend to avoid discussing our weaknesses and mistakes, choosing instead to dwell on what we’ve done right. Even businesses engage in extensive image creation to the point of giving false promises to showcase their capabilities. In virtually any context, it’s very comfortable to focus on the positive than the negative, even if doing the exact opposite would be more beneficial.
Many companies often face these biases and problematic tendencies. Making themselves transparent, and making it acceptable to do something about it as Dalio has done at Bridgewater, has the potential to transform your workforce. It encourages more open conversations in an environment where people challenge one another in search of the right solution, rather than proving themselves right.
Everlane is another good example of transparency. At Everlane, when you click on an item that’s for sale, say, a black dress, you see all the standard stuff like the dress’ measurements, the colors it’s available in, and its price. What may not be available to see is the information about the model – how tall she is, the measurement of her waist, or what size she is wearing. They include information that’s actually relevant and can help their customers to make more informed decisions. One can even find pictures of the factory, a bit of history on the owner, and some facts about the kinds of working conditions, on their website. Such detailing is largely appreciated by the audience.
Inculcating radical transparency in business can improve customer acquisition percentage and provide more value and trust of the customers into it. Portraying a false impression about a product will diminish its value over time. At the end of the day, transparency is something which works for both sides.