Transparency = Competitive Advantage

How can transparency become your competitive advantage?
We’ve broken it down to three areas that you can bring in transparency into your company so that you can transform it into your competitive advantage and why.

Transparency in:

  • How much your colleagues are earning: Transparency on the cost structure of your company can prove to create an incredible bond of trust within the organisation. This not only shows how much each position earns but clearly explains why. No one is left out and there are no hidden deals behind closed doors, which gives employees a sense of clear direction and certainty.
  • What your colleagues are doing: This helps employees keep track of where they are personally on a project but also what areas their colleagues are tackling, how much time they’re spending on it which holds people accountable to certain tasks. “In addition to sharing daily learnings and progress, everyone on the team also shares where they struggled and how they’re trying to improve.” This can be used to help people become more efficient and part of the team.
  • What your business goal is: Having a clear business goal that is apparent to both your internal customers and your external customers makes a statement about your company. Not only does the world know that, Google’s company mantra is “Don’t be evil”, but it is something that they will be held accountable for. Similarly, you will have to stand by your business goal and this gives your company a great amount of transparency and therefore trust in your brand.

“When you’re treating employees well, transparency is a very simple proposition–it’s just telling people what you do…it’s as easy as telling the truth.”

Read more on transparency in your business here. 

Why Companies get Strategy Wrong

In an interview with Business Insider, P&G’s Ex-CEO A.G. Lafley explains the main reasons people get strategy wrong.

Businesses and people don’t like to make choices
If people don’t make choices to change at all, how do they expect to make a difference? Lafley mentions that “choices are the core of strategy.” However, most people fear decision making because it is difficult and requires a lot of risk taking. This stops them from bringing their company forward with an efficient strategy. 

Companies go halfway and don’t fully develop a strategy
Rather than of not making choices at all, some companies have decided with a strategy but don’t fully fulfill it. Lafley suggests that companies go all or nothing when it comes to carrying out a strategy and explains that “strategy is five choices…What is winning; where am I going to play to win; how am I going to win where I play; where are my core competencies that are going to enable me to win where I play; and what management systems and measures are going to help me execute my strategies?”

Companies have to define an ideal future in strategic terms, limit the field rather than try to please everybody, decide on the best strategy for that market, discover and use what they’re best at, and determine how to support and measure its people as they carry out the strategy.

Companies must identify their ideal strategy that is best for their market, what their strongest points are and work specifically on those.

Strategy requires the on boarding of everyone in an organization. It is in a sense, a cultural change where staff is onboard and working together to make those difficult choices together and completely act on them to move forward.

Read the full article here.