{"id":55820,"date":"2021-12-27T08:24:00","date_gmt":"2021-12-27T12:24:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=55820"},"modified":"2022-01-10T16:56:23","modified_gmt":"2022-01-10T20:56:23","slug":"transparency-in-the-workplace-2","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/transparency-in-the-workplace-2\/","title":{"rendered":"The Benefits of Transparency in the Workplace"},"content":{"rendered":"\n<p>Why is transparency important in the workplace? How does <a href=\"https:\/\/www.shortform.com\/blog\/importance-of-transparency-in-the-workplace\/\">workplace transparency<\/a> help improve <a href=\"https:\/\/www.shortform.com\/blog\/methods-of-decision-making-crucial-conversations\/\">decision-making<\/a>? <\/p>\n\n\n\n<p>Transparency lets everyone see everything.<strong> <\/strong>According to <a href=\"https:\/\/www.shortform.com\/blog\/who-is-ray-dalio\/\">Ray Dalio<\/a>, everyone in an organization should get access to the full information, rather than having it filtered through other people first. In turn, people with more complete information can <a href=\"https:\/\/www.shortform.com\/blog\/make-better-decisions\/\">make better decisions<\/a>, and the organization draws on the full power of its people.\u00a0<\/p>\n\n\n\n<p>Here is why <a href=\"https:\/\/www.shortform.com\/blog\/transparency-in-the-workplace\/\">transparency in the workplace<\/a> is a good thing and when it might not be ideal. <\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-benefits-of-extreme-transparency\">The <strong>Benefits of Extreme Transparency<\/strong><\/h2>\n\n\n\n<p>Dalio says that extreme transparency in the workplace is a good thing because:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>It reduces politics and keeps people from having to manage others\u2019 impressions of them, since everything\u2019s out in the open. (Shortform note: <a href=\"https:\/\/www.shortform.com\/app\/book\/no-rules-rules\">Netflix<\/a> has a similar policy of organizational openness. For example, they <a href=\"https:\/\/www.shortform.com\/app\/book\/no-rules-rules\/chapter-5\">tell employees when there\u2019s a <em>possibility<\/em> that they\u2019ll lose their jobs<\/a>. Though it\u2019s a risky move because it can distract employees and make them anxious, CEO Reed Hastings believes it\u2019s better than telling people that they\u2019ve lost their jobs without notice.)<\/li><li>It reduces bad behavior, since it can be monitored. At first, Bridgewater lawyers thought recording everything would be a liability in lawsuits and regulatory action. In reality, extreme transparency <em>limited<\/em> bad behavior, since people knew they were being watched. Justice is also more likely to prevail because decisions aren\u2019t made behind closed doors, so people can defend themselves when they\u2019re accused of things they didn\u2019t do. (Shortform note: While Netflix doesn\u2019t record all meetings, Hastings does <a href=\"https:\/\/www.shortform.com\/app\/book\/no-rules-rules\/chapter-5\">conduct most meetings out in the open<\/a>.)&nbsp;<\/li><\/ul>\n\n\n\n<p>Learning is amplified by other people\u2019s experiences. For example, recorded meetings provide training scenarios, where new employees can simulate their responses to real situations. (Shortform note: As Dalio says, Pain + Reflection = Progress. At Netflix, <a href=\"https:\/\/www.shortform.com\/app\/book\/no-rules-rules\/chapter-5\">people are encouraged to own up to their mistakes<\/a> because this not only serves as a teaching tool but also encourages people to take risks and builds trust.)<\/p>\n\n\n\n<p>At Bridgewater, extreme transparency means all meetings and interviews are recorded and made available to the entire team, personality profiles show each person\u2019s strengths and weaknesses, and an app allows everyone to rate each other in real time.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>A Different Approach to Extreme Honesty and Transparency<\/strong><br><br>Extreme honesty and transparency can build trust within a team, help people grow, and increase efficiency. Dalio\u2019s version of it seeks to remove emotions from the equation, but the book <a href=\"https:\/\/www.shortform.com\/app\/book\/radical-candor\"><em>Radical Candor<\/em><\/a> has a different approach. Author Kim Scott writes that the <a href=\"https:\/\/www.shortform.com\/app\/book\/radical-candor\">two crucial components<\/a> of radical candor are:<br><br><strong>Caring personally<\/strong>\u2014this means seeing employees as people and not just as workers. Keep in mind that work isn\u2019t \u201cjust business,\u201d and recognize that employees have a life outside of work that may be affecting their job performance.<br><br><strong>Challenging directly<\/strong>\u2014this means giving criticism <em>in private<\/em> to help improve performance. Scott writes that <a href=\"https:\/\/www.shortform.com\/blog\/public-criticism\/\">public criticism<\/a> (which is the norm at Bridgewater) triggers defensiveness and anxiety within a team.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-radical-transparency\">Radical Transparency<\/h3>\n\n\n\n<p>A key element of Bridgewater\u2019s culture is extreme transparency (what Dalio calls \u201cradical transparency\u201d): Everyone should know how everyone else feels about everything.<\/p>\n\n\n\n<p>When Bridgewater was small, this was easy to manage. But as the company grew, it was impossible to attend all the meetings and listen to all the informal conversations. This threatened extreme transparency because private conversations and office politics could skew the message.<\/p>\n\n\n\n<p>To counter this, Dalio mandated that all meetings be recorded and accessible to anyone who wanted to listen to them. The only exceptions were personally sensitive meetings or confidential proprietary information. Having all meetings accessible allowed people to review why others made the decisions they did and formed valuable case studies for <a href=\"https:\/\/www.shortform.com\/blog\/how-to-train-new-employees\/\">training new employees<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>When Extreme Transparency Is Not Ideal<\/strong><br><br>Other companies also employ some form of extreme transparency. For example, <a href=\"https:\/\/www.fastcompany.com\/1749656\/patagonia-power-brand-transparency\">Patagonia practices \u201cbrand transparency<\/a>\u201d, allowing customers to access slides and interviews that discuss both good and bad qualities of their products. However, a high level of transparency is not appropriate for every situation (as even Dalio concedes). There are <a href=\"https:\/\/www.mckinsey.com\/business-functions\/organization\/our-insights\/the-dark-side-of-transparency\">three areas where transparency can create problems<\/a>:&nbsp;Day-to-day activities where getting more people to weigh in isn\u2019t only unnecessary but may also bog down decision-makingSalary information, which could breed resentment if pay isn\u2019t clearly connected to employees\u2019 performanceCreative work, where privacy can actually help improve performance\u2014a communications agency found that bringing in clients early in the process for the sake of transparency can disrupt idea generation<br><br>Before introducing more transparency into your team\u2019s workflow, carefully consider the impact. Ask yourself: How could this change slow down productivity or create negative feelings? Do the benefits of this transparency outweigh the costs?<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Why is transparency important in the workplace? How does workplace transparency help improve decision-making? Transparency lets everyone see everything. According to Ray Dalio, everyone in an organization should get access to the full information, rather than having it filtered through other people first. In turn, people with more complete information can make better decisions, and the organization draws on the full power of its people.\u00a0 Here is why transparency in the workplace is a good thing and when it might not be ideal.<\/p>\n","protected":false},"author":7,"featured_media":39545,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,30],"tags":[129],"class_list":["post-55820","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management","category-work","tag-principles-life-and-work","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Benefits of Transparency in the Workplace - Shortform Books<\/title>\n<meta name=\"description\" content=\"Transparency lets everyone see everything. Extreme transparency is good for the workplace because it reduces politics and bad behavior.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/transparency-in-the-workplace-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Benefits of Transparency in the Workplace\" \/>\n<meta property=\"og:description\" content=\"Transparency lets everyone see everything. Extreme transparency is good for the workplace because it reduces politics and bad behavior.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/transparency-in-the-workplace-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2021-12-27T12:24:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-10T20:56:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/conflict-colleagues-boss-talking-workplace.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Darya Sinusoid\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Darya Sinusoid\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/transparency-in-the-workplace-2\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/transparency-in-the-workplace-2\/\"},\"author\":{\"name\":\"Darya Sinusoid\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/0421cce75bc249b11e2517b3a91f9c46\"},\"headline\":\"The Benefits of Transparency in the Workplace\",\"datePublished\":\"2021-12-27T12:24:00+00:00\",\"dateModified\":\"2022-01-10T20:56:23+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/transparency-in-the-workplace-2\/\"},\"wordCount\":791,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/transparency-in-the-workplace-2\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/conflict-colleagues-boss-talking-workplace.jpg\",\"keywords\":[\"Principles: Life and Work\"],\"articleSection\":[\"Management\",\"Work\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/transparency-in-the-workplace-2\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/transparency-in-the-workplace-2\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/transparency-in-the-workplace-2\/\",\"name\":\"The Benefits of Transparency in the Workplace - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/transparency-in-the-workplace-2\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/transparency-in-the-workplace-2\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/conflict-colleagues-boss-talking-workplace.jpg\",\"datePublished\":\"2021-12-27T12:24:00+00:00\",\"dateModified\":\"2022-01-10T20:56:23+00:00\",\"description\":\"Transparency lets everyone see everything. 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