You Can’t Scratch an Itch You Can’t Find: A Case for More Open Disclosure in the Workplace

Business owners seem to know that the idea of sharing results and outcomes is a no-brainer for building a productive and motivated team. Without clear feedback that tells them if their actions are creating the right results, employees may feel like their fumbling around in the dark. It’s like trying to scratch the itch on somebody else’s back without the benefit of any “a-little-to-the-left-now-up-a-bit-yes-there-there-there” guiding statements. You’re bound to hit the spot by sheer luck eventually, but, really, why make it harder than it needs to be?

Still, many business owners are reticent to share financials, productivity numbers or bad news with their staff. Fear, defensiveness and a desire for privacy can all stand in the way. Here are a couple of things to think about if you tend to hold onto information tightly.

Open Books Can Have Closed Chapters: Some consultants might say “open book management” requires you to pull all the dirty laundry and skeletons out of the closet. I say – you define open. So you don’t want to disclose your personal salary or the fact that the company pays for your newspaper subscription? Then don’t. Better to pick and choose what you want to hold confidential than to universally keep it all under wraps. Open book management is not an all or nothing deal and something is always better than nothing.

Negative Information Can Motivate Employees: Of course, it’s always easier and more fun to share positive information. But maintaining a cool façade and putting on a happy smile when you’re uncertain how you’re going to meet payroll in the coming months does a disservice to you and your employees. When things are not going well, ignoring the facts doesn’t help you gain ground. In fact, employees are likely to drift into denial if the unpleasant reality isn’t spelled out clearly for them.

Larry Bossidy, former chairman of AlliedSignal, describes what he calls the Burning Platform Syndrome. When a company is in trouble, it is like an offshore drilling platform that catches fire. People need to take action quickly, and they do, because they smell the smoke, hear the explosion, see the flames. In a business crisis, employees are often unaware of the pending danger. You can’t act as though everything is peachy and expect them to pick up on the fact that, in reality, every fiber of your body is screaming for them to jump in and help you turn the ship around. Sometimes you have to paint a picture of flames and destruction, disclose the exact location of the itch that is driving you to distraction.

People Will Fill in the Blanks: People automatically fill in the blanks in what they do know with negative information. Human nature draws people to worst-case-scenarios. Whatever you’re paying yourself, your employees will assume it’s more. If you’ve lost a major client, employees will assume there are another half-dozen about to walk away soon. If one employee has been let go, they’re likely to assume they may be on the chopping block next. When left in the dark, people imagine monsters.

The reality is, your staff generally knows more than you think already, and what they don’t know factually they are likely to fill in with fiction. Painting a clear picture of your company’s current reality —good, bad or ugly — is the only way to control the accuracy of the message and to influence the response you desire.