How transparency turns leaders into game-changers

It was a crisp fall morning in 2011 when a top executive at a leading tech company received a call from a senior manager who had just uncovered a significant data breach. The company was at risk of losing millions, and the news spread quickly. The usual reaction would have been one of anger, finger-pointing, or rushing to cover up the issue. But not this time. The executive did something rare: they took the team into confidence. Within hours, emails went out to all employees, sharing the situation, the immediate steps taken, and the company’s transparent approach to fixing the problem. The response? Employees rallied together, not out of fear, but because they trusted their leaders and felt included in the resolution. Transparency not only solved the issue, but it also cemented a culture of collective responsibility and problem-solving.

“Leaders who share challenges and vulnerabilities openly build trust and inspire others to step up and act.”

This story illustrates a truth that many leaders overlook: great leadership isn’t about shielding the team from tough realities; it is about showing them the whole picture, good and bad. Leaders who share challenges and vulnerabilities openly build trust and inspire others to step up and act.

While many leaders shy away from showing weakness, transparency in leadership doesn’t mean vulnerability to failure; it means building trust, creating accountability, and fostering a sense of shared purpose. Research from the Harvard Business Review has shown that employees who work under leaders who practise transparency are 50 percent more likely to report higher levels of job satisfaction and engagement. Transparency, when executed with intention and clarity, cultivates an environment where teams thrive and collaborate, rather than merely following directives. Yet, according to a 2025 Gallup report, less than 40 percent of leaders openly share key information with their teams, creating a dangerous gap in trust.

This week’s article dives into why the best leaders embrace transparency, how it can strengthen team dynamics, and the strategic moves that can make it a cornerstone of your leadership style.

A 2024 McKinsey study revealed that organisations with transparent leadership practices outperform competitors by an average of 18 percent in both innovation and employee retention. Not only do employees feel more engaged, but they’re also empowered to act, knowing the broader context of the company’s challenges.

In the wake of a financial scandal in 2001, Johnson & Johnson CEO James Burke took immediate steps to rebuild the company’s reputation. Burke made the decision to publicly share the company’s internal communications, revealing the full extent of the issues at hand. By being transparent, Burke demonstrated integrity and the importance of ethical responsibility. Johnson & Johnson’s commitment to openness not only recovered their brand image but also set a gold standard for corporate responsibility.

Read also: Industry players harp on transparency, inclusive policy-making to stimulate economic growth

Take Patagonia, a company whose founder, Yvon Chouinard, has long embraced transparency. Known for his blunt honesty about the company’s environmental impacts and the challenges it faces, Chouinard’s openness about financial struggles during tough times allowed employees to understand the company’s values and mission on a deeper level. Patagonia employees feel deeply aligned with the company’s purpose, which translates into their dedication to both innovation and social responsibility. In fact, it’s become one of the most admired companies in terms of employee loyalty and brand trust.

So, what actionable steps can leaders take to demonstrate transparency?

Leaders often hold back information, thinking it is best for the team not to worry. But withholding information can create an environment of mistrust. Instead, share your vision for the company, as well as the challenges that lie ahead. A simple practice could be starting each weekly meeting with a “state of the union” update, where you share the highs, lows, and anything in between. This simple act signals to your team that they are trusted to understand the realities of the business.

You don’t have to have all the answers, and pretending you do can backfire. When things go wrong, acknowledge the failure openly. A great example is Airbnb, where CEO Brian Chesky has publicly admitted mistakes, like underestimating the importance of user feedback in the company’s early days. Vulnerability can humanise you and create an atmosphere where mistakes are seen as learning opportunities rather than failures to avoid. Your ability to admit shortcomings opens the door for your team to do the same.

Transparency is a two-way street. Make sure your team feels comfortable sharing feedback without fear of retribution. Implement feedback loops, whether through anonymous surveys, open-door policies, or regular team check-ins. Leaders who ask for feedback and show they act on it create a feedback-rich environment where ideas flow freely and innovation thrives. For example, at Spotify, the management team continuously holds “listening tours” where they engage directly with employees at all levels, soliciting input on everything from strategy to office culture.

You may be thinking, “But what if transparency exposes weaknesses or disrupts operations?” The truth is the very transparency you are afraid of will create a stronger foundation for your leadership. Trust is not built through perfection; it is built through honesty and shared responsibility. In fact, when employees know the full picture, they are more likely to offer creative solutions and contribute to the organisation’s success.

Next time you are faced with a difficult situation or decision, try this: instead of hoarding information, share it openly. Invite your team to help solve the problem.

You may find that the power of collective problem-solving leads to greater innovation and deeper loyalty than you ever anticipated.

“True leadership isn’t about being perfect; it is about being human. When leaders embrace transparency, they invite others to do the same, fostering a culture of trust, accountability, and innovation.”

Dr Toye Sobande is a strategic leadership expert, lawyer, public speaker, and trainer. He is the CEO of Stephens Leadership Consultancy LLC, a strategy and management consulting firm offering creative insight and solutions to businesses and leaders. Email: [email protected]