We often hear that transparency is the hallmark of great leadership. “Communicate everything!” “No secrets!” “Radical candor!”
Well……..
I’m of the school of thought that thinks unfiltered transparency is possibly more damaging than opacity. And let me share a few extreme examples to illustrate my point.
- The CEO who shares every board concern creates organizational anxiety that paralyzes decision-making.
- The manager who broadcasts every piece of unconfirmed information creates chaos instead of clarity.
- The leader who reveals confidential compensation details “in the spirit of openness” violates trust and creates resentment.
Yikes, right?
Real transparency isn’t about sharing everything. Nobody ever claimed being an oversharer was a goal to aspire to. It’s about sharing what empowers people to do their best work and protecting them from noise that doesn’t.
Oversharing creates three problems:
It breeds unnecessary fear. When you share every rumor about potential layoffs, market shifts, or strategic pivots before decisions are made, you don’t build trust; you create paralysis. Your team spends more time worrying than working.
It violates confidence. Some information isn’t yours to share. Personnel issues, board discussions, and confidential partner negotiations require discretion, not disclosure. Leaders who can’t hold appropriate boundaries lose access to the information that matters most.
It shifts the burden without benefit. Dumping uncertainty onto your team without context or a path forward isn’t leadership, it’s anxiety transfer. “I don’t know what’s happening either” might feel honest, but it leaves people more lost than before.
So, what’s a conscientious, honest, ethical leader to do?!?!?
How does this sound? Selective transparency with strategic intent.
Share the “why” behind decisions. When you announce a reorganization, don’t just explain what’s changing, explain why it matters and what problem it solves. People can handle hard news when they understand the reasoning.
Be transparent about trade-offs. “We’re prioritizing customer retention over new acquisition this quarter because our churn rate increased 12%. That means some of you will see project delays.” This builds trust because it’s honest about resources and choices.
Admit what you don’t know, then provide a timeline. “I don’t have answers on the merger yet, but I’m meeting with leadership Thursday and will share what I can Friday afternoon.” Uncertainty is tolerable when people know when clarity is coming.
Default to sharing context, not anxiety. Instead of “There’s talk of budget cuts,” try “Our office needs to show ROI by Q3 to secure next year’s budget. Here’s how we demonstrate value.” Same reality, different framing.
Before you share critical information, ask yourself three questions:
- Does this information empower people to act differently and/or more positively?
- Am I violating someone else’s trust or confidence?
- Am I creating clarity for others or sharing my anxiety?
Transparency isn’t a virtue by itself, and therefore, it shouldn’t be wielded like a sword. It is, however, a tool. And like any tool, its value depends on how skillfully you use it.
Be honest. Be clear. But be strategic.
Want another perspective on this topic? Read the Thought Partner, As Suze Says…