In modern, contemporary and future-oriented corporate management, the two concepts of "communication" and "transparency" are inextricably linked. Especially in times when companies are facing change, need to realign themselves or adapt to market conditions, it is particularly important that everyone gets on board, rows along and knows the direction in which the compass is pointing. But how does transparent communication actually work and what challenges do companies face, especially in turbulent times?
We live in turbulent times. The pandemic, inflation, war, energy crisis and supply bottlenecks are affecting the markets of many companies and presenting them with major challenges. Right now, it is important to maintain the trust of your own teams, customers and business partners through a good communication strategy.
Perhaps you still remember the feeling of bringing home a bad grade. You knew that your parents might be disappointed and you put off signing it for a long time. To save trouble, you may have refrained from showing the mark altogether. However, the result is always the same: at the latest on the report card, it became clear that there was a discrepancy in the previous school year - and the disappointment over the lack of confidence probably weighed even more heavily.
Communication traps lurk at every turn, especially when companies are no longer on the beaten track. Often, certain developments or decisions at the top are supposed to be kept secret - but communication leaks are everywhere. Few things shake a company more in the end than when trust is lost internally due to such mishaps.
A negative example
On a Monday in May 2022, Manager Magazin officially reported that the Berlin delivery service Gorilla was planning to lay off employees en masse due to an economic crisis. Almost 300 of a total of 600 employees were affected. However, this news was spread even before the colleagues concerned were informed of the impending wave of layoffs. The Zoom meeting was only convened a day later - when the news had already spread.
The question is not only: What does such an approach do to the dismissed employees, but also to those who are (still) there? Do they still feel secure, valued and recognized in their jobs?
By definition, transparent communication means that information is provided promptly and completely to all parties involved - both internally and externally. But what does this mean in concrete terms? To prevent assumptions and rumors from circulating in the team canteen, those responsible should always maintain an open dialogue. Regular meetings or internal newsletters are a good way to keep the dialog going and create the opportunity to ask questions. Employees feel informed, valued and can build trust.
However, transparent communication is not just about emphasizing the difficult circumstances and justifying certain reactions to them. It is even more important to go one step further and describe the effects of these developments on your own company. It is therefore important to answer the following questions honestly and authentically: What changes are there? How is the company dealing with them? What does it mean for the individual?
What is often underestimated is the clear framework that needs to be created for communication. Employees and managers should be able to clearly identify which information is particularly important to them right now, what they need to pass on and what they should respond to amidst the flood of information in everyday life.
Far-reaching decisions in particular are rarely made in a company from one hour to the next. Every decision is always preceded by a development process and an exchange between different decision-makers. You should keep this aspect in mind when communicating decisions to employees in your team who were not directly involved in the decision-making process. Open and transparent communication makes decisions more comprehensible and gives employees the feeling that their role in the company is valued.
Ultimately, transparency does not mean that all information must be completely open. There are always data and facts that must remain confidential for legal, business or security reasons.
When communicating strategic decisions, those responsible have to decide individually when which information reaches which ear. On the one hand, it is important not to disclose any sensitive details that could compromise the company's competitive position. Nevertheless, communication should remain transparent and the aim must always be to pick up and involve everyone involved as quickly as possible.
The most important prerequisite for transparent, internal communication is an open-minded, authentic management level that is willing to learn. Managers exemplify the corporate culture and serve as an orientation and beacon for their teams. If they are transparent and open in their communication, they send a strong signal to employees and other stakeholders that transparency is valued in the company.
Managers are responsible for implementing an effective communication strategy. They define the objectives, identify the target groups and select suitable communication channels. Especially in turbulent times, it is important that they have the full trust of their employees.
Establishing a good information culture is not an additional time and cost factor, but a mandatory prerequisite for a positive, appreciative working atmosphere and the intrinsic motivation of employees.
At best, a good communication strategy is developed before the start of a change process. This is because non-transparent and inaccurate communication in times of crisis can have serious consequences for companies. If uncertainty grows, trust dwindles, which in turn has an impact on relationships within teams and with managers. Without trust, employees work to rule and can easily be poached by the competition at the first opportunity.
Poor communication encourages the spread of misunderstandings and misinformation. This goes hand in hand with the great risk of a loss of image and reputation. Conflicts and tensions arise more easily within the company. Dissatisfaction due to poor communication can lead to talented employees leaving the company. In the end, the loss of key personnel does not exactly contribute to acting more confidently and successfully on the market during a change process.
A very helpful tool for planning change processes is the so-called change matrix. Based on the theoretical considerations of the importance of transparency and communication in times of change, the question now is how to implement them in practice.
Transparent communication in everyday business life does not automatically mean that every piece of information will be accepted benevolently and gratefully. On the contrary: the deeper a change interferes with existing structures, the more resistance there will be.
One example:
The responsible management members decide to make greater use of AI technologies in the company - for example in service and marketing. They want to respond to the increasing competitive and price pressure and streamline processes and make them more efficient.
The employees concerned should be involved in such a strong and process-changing decision at an early stage. They should be involved in the decision-making process and understand why this step is necessary at this time in order to remain competitive. But even then, the impression can quickly arise that the company is simply trying to rationalize human resources without motivation in order to save costs.
Those responsible should be prepared for the fact that resistance will arise in the team and also know the reasons behind it. The change matrix method helps to take the perspective of the person who is resisting change. This makes it easier for everyone involved to look for solutions together. The change matrix method also includes actively asking about the advantages of the current situation and the disadvantages of the change. It is presented in the form of a square with four fields, two of which show the advantages and disadvantages of the status quo and two of which show the advantages and disadvantages of the change. This square then serves as a basis for discussion.
A question to a skeptical employee using this method could be:
"What do you like about the current situation and what disadvantages do you see in the change?"
In this way, you can minimize resistance from the outset of a conversation and strengthen the willingness to find a solution. In contrast to a pure pros and cons list, the method also takes into account the advantages and disadvantages of the current situation, i.e. maintaining the status quo. The Change Matrix is characterized by its simplicity and quick applicability, which distinguishes it from other techniques such as the TOC method.
For many years, companies relied on the top-down model. Decisions were made at the very top of management and then simply implemented unilaterally from the top down. At first glance, this may have been easier because those responsible did not have to deal with objections. However, this also means that valuable potential is lost - other points of view and expertise, particularly from certain specialist areas, which are not included in the decision-making process. Good and transparent communication always works in both directions.
Opportunities & tools for transparent corporate communication at all levels:
In an era affected by such far-reaching changes in the economy, politics and society, good and transparent communication at all corporate levels is a decisive competitive advantage. Transparent communication means that information is passed on to all relevant interest groups promptly and in full. This involves not only disclosing information, but also explaining the impact of changes on the company and its employees.
In an open information culture, potentially controversial topics are addressed directly. Those responsible provide clear answers to questions - even if there is resistance. The management level should set an example of openness and clarity in communication. In the end, transparent communication is not only an ethical obligation, but also a fundamental prerequisite for a positive working atmosphere, employee motivation and the long-term success of the company.
The Stage Academy offers special training and customized coaching on the subject of communication and transparency. In a protected space, you can work specifically on your communication skills and further develop your strengths.