△ MENU/TOP △

Holtz Communications + Technology

Shel Holtz
Communicating at the Intersection of Business and Technology
SearchClose Icon

Muddying transparency

John C. Havens, my co-author, and I presented a session last Friday at the New Media Expo on the subject of our new book, “Tactical Transparency,” which is due out in November from Jossey Bass. Early indications (as represented by the tweet shown here) suggest the session was pretty well received. The relevance of transparency to the expo is based on the book’s focus: the use of social media to promote organizational transparency.

Shel Holtz

Ours is not the first book to address transparency. I read several, including “The Naked Corporation” by Dan Tapscott and David Ticoll, as part of my research for the book. All of the books—and other materials—define transparency pretty much the same, although they may use different words. Which is why I find it interesting that some seem to be appropriating the word as a synonym for authenticity.

Over on her terrific marketing blog, Michelle Greer posted an item in which she calls the idea of transparency in marketing “hilarious,” “a buzz word to use if you want to sell books or get paid to speak.” Which, of course, I do. But her point is that you’re not transparent if you despise the product you’re trying to help a company sell. (By way of example, she suggests a lack of transparency in selling Hummers when your personal philosophy leans toward the green.)

imageOne of the comments to the post, from P.J. Brunet, suggests that transparency came into vogue after some fake blogs were exposed. The fact is, transparency (in the U.S., at least) became mandated by law after companies like Enron and WorldComm imploded partly due to their opacity (which is, by definition, the opposite of transparency). The doors and windows were shuttered, nobody could see what was going on, and ethics-challenged leaders were able to engage in business practices that cost shareholders their investments and employees their jobs and retirement savings.

Contrary to musings of some critics, transparency does not mean full disclosure; the very idea is just silly. You can’t be “transparent” about, say, your employees’ medical histories (a HIPAA violation) or confidentiality agreements. A couple definitions, though, help clarify what it is:

  • The extent to which a financial market is characterised by prompt availability of accurate price and volume information. Transparency is a good thing because it helps create a fair and efficient market for all participants.—Financial Guide
  • Transparency is a measure of how much information you have about the markets where you invest and the corporations whose stocks or bonds you buy.—Morgan Stanley
  • Open, comprehensive and understandable presentation of information.—ACLA
  • The process by which companies disclose all possible information, a practice that boosts employee morale and performance, facilitates business partnerships, and helps responsible corporations attract socially conscious consumers and investors.—Tapscott and Ticoll (the emphasis on “possible” is mine)

Wikipedia defines “radical transparency” as “a management method where nearly all decision making is carried out publicly.”

For the purposes of “Tactical Transparency”—which deals with the use of communication tools in order to promote transparency beyond that which is required by law—as the degree to which an organization shares its business strategy, practices, and processes by making information available through accessible leaders and employees. By virtue of such transparency, it should be clear that business practices and processes are driven by the organization’s culture and a shared set of values.

None of which has anything to do with Michelle’s noble belief that marketers should be passionate about the products they’re selling. In a response to a comment I left to her post, Michelle argues that she’s “asking people to take transparency a step further by being passionate about what they do.”

It’s not that I disagree with Michelle’s sentiment; not in the least. People should be passionate about what they do. (I know I am.) But I worry about getting squishy with definitions. I know it’s just a matter of semantics, but when you’re trying to drive a company’s culture toward greater transparency—openness about the processes and practices that drive business decisions—turning a clearly defined word into a catch-all label for other organizational and personal attributes just muddies the waters.

By the way, there’s a blog tied to book and—being completely transparent—we have made the audio of all our interviews available on BlogTalk Radio, where most of them were conducted; we’re continuing to conduct interviews post-publication, just to keep the discussion going.

08/17/08 | 3 Comments | Muddying transparency

Comments
  • 1.Thank you for untangling some of the distorted uses of the term "transparency."
    Here is another tangled mess: "passionate." It's the 2008 equivalent of "client-centric," a term that has lost its meaning because everybody claims to be that.
    In marketing today, you must claim to be passionate about your product or service. Do you believe everyone who says they're passionate really are? More importantly, do clients and customers care if you are passionate? I advise my clients: instead of claiming you're passionate, give examples of your work that demonstrates your passion -- but do not use the word passion. *Res ipsa loquitur* (your work speaks for itself).

    Dave Freedman | August 2008 | Chicago

  • 2.Shel,

    Thanks for referencing my coauthored book, The Naked Corporation. I certainly agree with you that confusing definitions of transparency abound, and that it is decidedly not appropriate to describe it as "full disclosure" (of, I presume you mean, all information that an organization has). However the definition of transparency that you attribute to us is not quite accurate. We don't say, as far as I know, that it entails disclosure of all "possible" information - in fact we argue against such definitions. Your further description of our definition is really a discussion of the impacts of transparency, rather than specifically what it is.

    For the way we define transparency, check out page 22 of the book: "the accessibility of information to stakeholders of institutions, regarding matters that affect their interests."
    This is intended to be a quite narrow and clear definition, one that is interest driven.

    For, say a food manufacturer, interest-driven disclosure to consumers means accurate content labeling; however it does not typically mean disclosure of the firm's acquisition plans, or of the compensation of individual employees. Consumer "interests" are not legitimately about such matters. On the other hand, a consumer has a legitimate "interest" in understanding the food safety and (arguably) the environmental footprint and labor practices of the company's supply chain.

    Later in the book, we say that there should be limits to disclosure, e.g. personal information, proprietary and competitive secrets, and so on.

    In my opinion, faddish concepts like "radical transparency" muddy the discussion.

    David Ticoll | August 2008

  • 3.Thanks for the great comment, David. FYI, the description I used is from the Amazon.com listing for your book!

    Shel Holtz, ABC | August 2008 | Concord, CA

Comment Form

« Back