Transparency as a Business Model: Managing a Transparent Business Relationship

Whenever I mention the word transparency in a business setting, I get a few reactions — rolling of the eyes, some accuse you of being naive and then there are people that think it’s a great idea. The word transparency has been thrown around a lot lately, in the news, blogs, and social media, there’s this idea of transparency in business floating around them. But what is transparency as a business model and how can a company be successful in utilizing it?

Transparency is not as simple as being honest. In business, some define transparency as “a lack of hidden agendas and conditions. Sharing of all information required for collaboration, cooperation and collective decision-making.” Or more simply, accurate and timely disclosure of all information. There are a few ways to implement transparency internally, with other stakeholders like vendors, and outward with your customers. So how does one make transparency as a business model work for them?

Accept the Risk

Understand that anytime you are transparent with someone, whether it be a person, a vendor or a customer, you are taking on all the risk. You need to be comfortable with a few outcomes. First, you could very well get screwed (for lack of a better term), someone could take your honest information and use it against you. Second, nothing happens at all — nothing bad and nothing good, it just falls flat. And lastly, you get transparency and/or cooperation in return. With all these outcomes, at least you get a clear picture of with whom you are dealing.

Trust

For your transparency to have the desired affect, you need to have the trust of who you are sharing it with. If the only time there is transparency is when it is being used to solve an issue, then it’s not true transparency and it will be glaringly obvious to everyone. There cannot be a possibility of alterior motive behind the transparency. The more often you share, the more you will gain trust.

Give and Take

In a business relationship, full transparency can build a strong and long-lasting partnership. So if you find a company sharing information that they don’t have to with you, start sharing back, and watch the relationship move to the next level.

All or Nothing

To pick and choose what you share will work against you. All information pertaining to the situation needs to be disclosed for transparency to have its desired effect. If it’s suspected that you are holding back, you can lose both trust and credibility.

Authenticity

Be sure that whatever information or items you share are delivered in an authentic way. Ensure that the other party knows that you are there to further both of your goals and mutual success. Success of your client or vendor ensures that you will succeed as well. Be sure that both of you are on this page and it will strengthen the relationship and push both agendas forward.

Do you think your business could benefit from a transparent model?