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Building Trust with Transparency

By: Kermit PattisonMon Nov 17, 2008 at 12:30 PM
Fast Interview: The co-author of "Tactical Transparency" on how companies can use authenticity and social media tools to reinforce their brands and create relationships with customers.

EnlargeJohn C. Havens



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What's an example of company that caught out in fake transparency?

There's a term called astroturfing--that's a formal public relations campaign designed to look like a grassroots or spontaneous outpouring of support. That's Wal-Marting Across America.

What happened there?

Edelman, the world's largest independent PR agency, created Walmartingacrossamerica.com. It followed the adventures of a couple going cross country in a recreational vehicle, stopping at various Wal-Mart parking lots. The trip was funded by Working Families for Wal-Mart, without full disclosure of the fact that the trip was funded by Wal-Mart. Richard Edelman, the CEO for Edelman, eventually apologized for the campaign.

We've talked mostly about transparency in relation to the outside world. What's an example of a company reaped benefits from internal transparency?

There's a guy named Paolo Tosolini, who works in Microsoft and heads up their Academy Mobile program, which I talk about in the book. Internally, they gave employees audio and video podcasting tools to easily create content where they could talk about what they're working on. From a return on investment standpoint, an empowerment standpoint, a time management standpoint, a product supply chain standpoint, it was brilliant. That's what led to SharePoint, going from B2B to B2C, because they proved this could bring such value.

What hangups do companies typically have about being more transparent?

Certainly, legal is a big one. It's not like the social media landscape has changed legal or HR restrictions within a company. Now you have to expand them to the digital world. You need a pretty extensive digital version of your HR protocols, or you'll get burned because you won't have thought of it before something happens.

In the book we put a link to IBM's social computing guidelines, which is one of the richest and most in-depth. At one point, they were doing a lot of international training in Second Life. They have a pretty expansive thing about your behavior representing IBM when you're in the body of an avatar online, which is really funny and surreal--if you're an IBM representative and come in contact with a Gorgon... I'm being silly, but the point is they are very extensive. No IBM person, in my opinion, would read that and say, "I guess I can go to a sex island and do whatever."

You were an actor in your previous life. What lessons are transferable to business?

The one thing you learn as an actor that is directly relevant to business is what is your niche? What is your role? It's not how I perceive myself, it's how they perceive me and how I fit in. When you find that niche as an actor, you're gold. As an actor in New York, I was a cop, I was doorman, I could made a pretty good living off the types of roles where I knew I'm not going to Tom Hanks, I'm going to be his funny friend.

So the lesson is to know your niche and establish an identity, and obviously social media helps you do those things?

Your niche is not just "we're a supply chain company that does this and we sell bolt A"--I don't care, it's boring. That's your sales sheet. Part of your niche is being memorable. Your niche is "we deliver to your house, we're customer-centric." If you have a personality, that's why you're memorable.

Finish this sentence: if you take away nothing else from this book, it should be that...

Authenticity leads to value. Working to be more open is not just desirable but is an inevitable business need today.

November 2008

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November 23, 2008 at 3:52pm by Jeffrey Krasney

When one talks about transparency and accountability, I recall the cartoon Charlie Brown and Lucy. Good ol’ Charlie Brown was absorbed target shooting, one lonely afternoon. Charlie was practicing his target shooting with his bow and a few arrows. As Charlie Brown would pull the string on his bow as far as he could, the arrows would fly into the fence. Once the arrows stuck into the fence; then, Charlie Brown would run over to the fence and with a piece of chalk, draw a target around where the arrows had stuck into the fence.
Naturally, after a few of these sessions when Snoopy was not around; Lucy found out and saw what good ol’ Charlie Brown was doing. Immediately, Lucy started screaming at Charlie Brown. Seemingly, Lucy shrieked at the top of her lungs toward Charlie Brown, “That’s not the way you are supposed to do it.” As Lucy yelled further, “You’re supposed to draw the target first; and then shoot the arrows at the target.”
However, good ol’ Charlie Brown rejected Lucy’s advice; instead calmly telling Lucy, “I know that, but, if you do it my way, you never miss.”
In today’s business culture, business leaders operate in an environment that increasingly demands greater transparency and far more levels of accountability. As a result, many leaders are often chagrined at the increased degree of transparency; since it represents far less freedom to maneuver; and as such many businesses might choose to engage in fewer risks (documented failure can be viewed as an unkind and an inappropriate gambit; especially when such an exercise is available for all to see).
I submit the potential costs of inaction, omission or fudging the balance sheets (or targets); similar to Charlie Brown’s rebuttal to Lucy is misplaced. Although the business literature has often neglected to portray, describe and summarize the potential costs of acting honestly and respecting the message to do the right thing; the transparency issue does demand a harsh recipe of reality. Such reality may be painstakingly difficult; nonetheless, taking advantage of carefully hidden struggles; often leads to reticent embarrassment, which similarly to Charlie Brown’s target shooting creates an increasingly; and paradoxical-like intense downfall. Gee, I would ask rhetorically -- should such conduct been presciently clear -- who would have predicted -- might Lucy?