5 Ways Transparency Helps Companies Succeed

Of all the principles that have sprung up in business over the past few decades, the concept of transparency has become a priority. While companies operate inside offices and hallways of various buildings and complexes, taking the time to let internal and external customers, investors, and employees know what is going on helps keep everyone informed and on the same page. Transparency provides some insight into how the company is doing, what the long and short-term goals are, what threats and opportunities it is facing, what trends have been identifies, and what the action plan of executive management is.

What the Company is Doing

Executives like Clarence Gooden do a great job of communicating how a company is doing financially. Since a number of financial indicators play into the direction of a large corporation, simplifying complicated terminology and complex business operations into everyday language so that investors, employees, and others can easily gauge the performance of a company is a major part of transparency. When everyone understands that a company is fit financially, the future becomes that much brighter.

What the Goals Are

Another important aspect of transparency is making goals visible to the population. While companies will not completely reveal strategies and tactics, communicating general goals in terms of growth and revenue help investors make informed decisions. Often the goals of a company can help boost a stock price or even increase confidence to create a stronger organization.

Threats and Opportunities

When stakeholders realize that a company is aware of specific threats and opportunities that exist in a given market, the result is a higher degree of confidence outside the organization and a sense of morale inside in the company. Since external forces can change quickly, companies that communicate an awareness of those forces present a complete face to the world. In short, the process reveals that the business has the right people in the right places to handle any threats or take advantage of any opportunities.

Trends

The modern business world moves fast, and companies that reveal negative and positive trends that could affect the bottom line are helping stakeholders realize the ability of the organization. That ability can be different relating to the specific trend, but just the knowledge that companies are aware of trends developing in the market can result in a high degree of faith outside and inside the organization. After all, nobody likes to be taken by surprise.

Action Plans

While particular details about a plan of action a company will be taking are not likely to surface because of proprietary concerns, communicating general overviews of how a business plans to operate in the future are valuable information. This element of transparence helps everyone with a stake in the company stay on the same page and work as a team to accomplish the specified goals.

In the end, transparency lets investors, employees, and customers know that a company is aware of threats and opportunities, has identified trends in the market, how the company is performing, what the goals of the organization are, and what the company plans to do to accomplish those goals. Transparency helps an organization succeed by letting the world know the business is prepared for what is coming and that a suitable plan is in place to keep the company on the right track.

Article by Kyle

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