Creating A Transparent Environment For Innovation

Peeling Back the Layers: How Transparent Leadership Can Address the Full Spectrum of Organizational Challenges In the vivid illustration of an onion, we see a stark representation of problem awareness in companies: Executives see just 4% of the problems, team managers see 9%, team leaders see 74%, and staff sees 100%. This metaphor sheds light on the disconnect that can occur within the hierarchy of an organization. To bridge this gap, leaders must adopt strategies that foster open communication and active engagement at every level. Here's how: Flatten the Hierarchy: Encourage a culture where feedback flows freely up and down the organizational layers. This means creating more opportunities for staff to directly communicate their challenges to top management. Reduce Administrative Burdens: As leaders climb the corporate ladder, administrative tasks often consume their time. Streamlining these processes with technology or delegating effectively can open up more opportunities for leaders to engage with front-line challenges. Implement Regular Check-Ins: Team managers and leaders should schedule regular, informal check-ins with staff to understand the day-to-day issues that may not surface in formal meetings or reports. Lead by Walking Around: Executives should spend time on the ground, engaging with teams and individuals to observe the challenges firsthand. Foster a Safe Space for Reporting Issues: Ensure that there are no negative repercussions for staff who highlight problems. This will encourage a more transparent and problem-solving oriented culture. By peeling back the layers of hierarchy and encouraging a culture of openness, leaders can see beyond the 4% of problems visible from the executive suite, becoming more effective and responsive to the needs of their organization.

👀 What would happen if we eliminated the information asymmetry in our organizations? Erin Eatough, PhD and I had a chance to spend the day with Menlo Innovations, a software company in Ann Arbor, MI. At Menlo, transparency is woven into the very fabric of how they operate. Three practices stood out that challenge conventional thinking about what information should be "protected" vs. shared: 1. Complete pay transparency: At Menlo, everyone knows what everyone else makes. This eliminates the secrecy, politics, and inequities that often plague compensation systems. When a new role or promotion opportunity arises, the conversation isn't clouded by speculation about pay—it's clear what the position earns and why. 2. Open book management: Once a week, the entire team participates in estimating and discussing the company's metrics. Rich Sheridan, CEO, shared how this practice actually improved during their pandemic pivot—even when revenue took a hit in the wake of the pandemic, the team understood exactly why and could collaborate on solutions rather than being kept in the dark. 3. Customer relationships without gatekeepers: Developers directly interact with customers rather than having requirements filtered through multiple layers of management. High-Tech Anthropologists (HTAs) go directly to where the product will be used to observe real users, gathering unfiltered insights that drive product development. Their leadership philosophy is captured in a simple principle: "Make decisions at the lowest level possible." This isn't about abdicating leadership—it's about creating frameworks where more people can meaningfully contribute. Research consistently shows that psychological ownership drives engagement. When people understand the "why" behind decisions and have visibility into how the organization functions, they become invested in outcomes in ways that command-and-control structures can never achieve. It's one of the (many) ways the Menlo team designs for joy at work. My question for you: What information are you protecting that might actually create more value if shared? Where could increased transparency reduce politics and increase collective problem-solving in your organization? #RadicalTransparency #ParticipativeLeadership #OpenBookManagement #OrganizationalPsychology #FractionalInsights

𝐇𝐮𝐦𝐚𝐧-𝐅𝐢𝐫𝐬𝐭 𝐋𝐞𝐚𝐝𝐞𝐫𝐬𝐡𝐢𝐩: 𝐀𝐥𝐢𝐠𝐧𝐢𝐧𝐠 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧 𝐰𝐢𝐭𝐡 𝐏𝐞𝐨𝐩𝐥𝐞 𝐚𝐧𝐝 𝐏𝐮𝐫𝐩𝐨𝐬𝐞 “Human-first” means approaching innovation, AI, and enterprise transformation in a way that prioritizes people at the center of every decision. It’s about creating systems and processes that enhance human potential, while ensuring technology serves as an enabler of trust, clarity, and empowerment. By leveraging ACT (𝐀𝐥𝐢𝐠𝐧𝐦𝐞𝐧𝐭, 𝐂𝐥𝐚𝐫𝐢𝐭𝐲, 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲), this approach ensures that innovation is guided by leadership principles that respect, elevate, and embolden the workforce. 𝐀𝐩𝐩𝐥𝐲𝐢𝐧𝐠 𝐭𝐡𝐞 𝐀𝐂𝐓 𝐌𝐨𝐝𝐞𝐥 𝐭𝐨 𝐚 𝐇𝐮𝐦𝐚𝐧-𝐅𝐢𝐫𝐬𝐭 𝐀𝐩𝐩𝐫𝐨𝐚𝐜𝐡: 1. 𝐀𝐥𝐢𝐠𝐧𝐦𝐞𝐧𝐭: • Innovation must align with both individual and organizational goals. • Ensure AI and automation integrate seamlessly with workflows, enabling employees to do their best work by focusing on higher-value, creative tasks. • Align ethical and cultural values with technological progress to maintain trust and engagement across teams. 2. 𝐂𝐥𝐚𝐫𝐢𝐭𝐲: • Simplify the adoption of new technologies by making processes, roles, and AI capabilities clear and accessible. • Provide employees with clear paths for training and development, enabling them to confidently work alongside AI systems. • Communicate the “why” behind changes, ensuring everyone understands the vision and purpose of the innovation. 3. 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲: • Make AI systems explainable, visible, and accountable, building trust in their outputs and decisions. • Foster an open culture where employees can give feedback on how technology impacts their roles. • Create transparency in leadership, ensuring employees see how decisions about technology benefit them and the organization. 𝐄𝐧𝐚𝐛𝐥𝐞, 𝐄𝐦𝐩𝐨𝐰𝐞𝐫, 𝐄𝐦𝐛𝐨𝐥𝐝𝐞𝐧: • 𝐄𝐧𝐚𝐛𝐥𝐞: Provide employees with the right tools, frameworks, and training to embrace AI and innovation with confidence. • 𝐄𝐦𝐩𝐨𝐰𝐞𝐫: Let people take ownership of how technology integrates into their work, fostering creativity and innovation. • 𝐄𝐦𝐛𝐨𝐥𝐝𝐞𝐧: Create a culture where people feel supported and inspired to take risks, explore new ideas, and challenge the status quo. A human-first approach, guided by the ACT model, ensures that introducing new ideas, innovations, and AI systems strengthens the workforce rather than displacing it. It’s about crafting a path forward where leadership and technology serve as partners in empowering individuals and driving enterprise success. 𝗡𝗼𝘁𝗶𝗰𝗲: The views within any of my posts, are not those of my employer. 𝗟𝗶𝗸𝗲 👍 this? Feel free to reshare, repost, and join the conversation. #humanfirst #leadership #people Gartner Peer Experiences Forbes Technology Council Theia Institute™ VOCAL Council InsightJam.com Solutions Review PEX Network IgniteGTM

Innovation is the key to transformation and growth. Organizations must actively dismantle barriers to innovate while fostering a culture of shared ownership and accountability. True innovation stems from empowering employees to see themselves as contributors to the company’s growth and success. This requires more than words; it demands action. It starts with leadership modeling behaviors that promote open communication, fail-fast culture, continuous learning, and improvement. We need to ensure that the systems and processes we design actively support, rather than hinder, the free flow of ideas. Here’s how leaders can operationalize innovation: • 𝐄𝐥𝐢𝐦𝐢𝐧𝐚𝐭𝐞 𝐁𝐮𝐫𝐞𝐚𝐮𝐜𝐫𝐚𝐭𝐢𝐜 𝐇𝐮𝐫𝐝𝐥𝐞𝐬: Review decision-making processes and workflows to ensure they encourage experimentation. Streamlined approval pathways can accelerate the development and implementation of bold ideas. • 𝐁𝐮𝐢𝐥𝐝 𝐚 "𝐓𝐞𝐬𝐭-𝐚𝐧𝐝-𝐋𝐞𝐚𝐫𝐧" 𝐂𝐮𝐥𝐭𝐮𝐫𝐞: Encourage teams to pilot initiatives, take calculated risks, and learn from failures. Transform setbacks into strategic learning moments that inform the next iteration of growth. • 𝐄𝐧𝐚𝐛𝐥𝐞 𝐂𝐫𝐨𝐬𝐬-𝐅𝐮𝐧𝐜𝐭𝐢𝐨𝐧𝐚𝐥 𝐂𝐨𝐥𝐥𝐚𝐛𝐨𝐫𝐚𝐭𝐢𝐨𝐧: Breaking down silos isn’t optional - it’s essential. Innovation flourishes when diverse perspectives come together, leveraging insights from across the organization to solve complex challenges. • 𝐋𝐞𝐚𝐝 𝐰𝐢𝐭𝐡 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲: Establish open feedback channels that empower employees at all levels to voice their ideas without fear of judgment. Leaders who listen actively and act on input foster trust and engagement, amplifying the collective creative potential. When innovation becomes a shared responsibility, its impact extends beyond incremental improvements. It creates a foundation for sustained, transformative growth. I’m curious to know what practical steps your organization has taken to empower teams and drive meaningful innovation. Let’s learn from one another. #InnovationLeadership #StrategicCollaboration #ChangeManagement #BusinessTransformation #ExecutiveLeadership #Hackathons

Decoding belonging: B – Bravery Encouraging voices to challenge the status quo, surface truths, and advocate for necessary change. Speaking up against harmful practices and behaviors. E – Equity Recognizing that different people have different needs, removing barriers that have disadvantaged historically excluded groups, and designing systems where everyone can access information, resources, and opportunities they need to succeed. L – Leaning In Engaging with curiosity, confronting discomfort, and being willing to learn and unlearn rather than retreating into defensiveness. O – Openness Fostering a transparent, trust-based environment where information flows freely and where vulnerability is not seen as a weakness. Openness is also about sharing decision-making power, encouraging feedback, creating space for honest dialogues across all levels of the organization, and holding ourselves accountable. N – Nurturing Committing to the long-term development of individuals and teams by investing in their growth, well-being, and potential. G – Growth Embracing learning, innovation, and change as continuous processes. Seeing mistakes as opportunities rather than character flaws. I – Inclusion Ensuring that every individual, across every identity and experience, feels valued, respected, and heard (except racist, misogynistic, homophobic, transphobic, ableist, and other oppressive narratives and behaviors.) N – Normalizing Making belonging practices part of everyday life instead of a one-time initiative or a special program. Embedding inclusion into hiring, meetings, leadership, evaluation, and decision-making until it becomes “that’s how we work together.” G – Grounding Rooting actions, policies, and practices in shared values. Grounding reminds us that organizational culture needs a steady foundation where decisions are not only strategic but also aligned with who we say we are and who we aspire to be. —— [Image description] The image features the word “BELONGING” in bold, capitalized letters at the center. Each letter in the word is vertically connected by dotted lines to a corresponding value or concept that elaborates its meaning.

How transparent should we be with our people insights? This is a question I hear from leaders all the time, and, like any good social scientist, my answer is: it depends. Let’s put aside the non-negotiables—those bound by law or confidentiality. Beyond that, there’s a wide spectrum of how companies handle sharing people data insights, and there’s no one-size-fits-all approach. Here are a few key things I always consider: 1️⃣ Data Source Matters: If employees are giving feedback through engagement surveys or focus groups, it’s crucial to share those insights back with them to increase trust, accountability, and future participation. 2️⃣ Know Your Audience: Even if you’re talking about the same metric, you should communicate about it differently to different audiences. Executives often want to know about the high-level trends and strategic insights while the company at large may want to hear about how it directly affects their day-to-day work. You can also consider sharing the information with leaders first, so they are equipped with extra context. 3️⃣ Consider Sensitivity: If the data touches on delicate issues—like potential layoffs, some diversity metrics, or areas where the company isn’t performing well—it’s essential to approach these topics with care. Consider the risks and who needs to know in order to act on the information. Transparency doesn’t mean sharing everything; it means sharing thoughtfully. 4️⃣ Look at Precedent: Consistency in communication builds credibility. Suddenly withholding information you’ve shared in the past can raise red flags. On the other hand, if transparency is new to your organization, you might start by sharing smaller insights and gradually build up to more comprehensive data. 5️⃣ Clarify the Purpose: Is it to inform, to spark action, or to inspire change? Being clear on this will help you decide how much to share, with whom, and how to frame it. 6️⃣ Anchor to Usefulness: A lot of what we study in People Analytics can be helpful for employees to know. How can managers increase psychological safety? How can employees get higher quality feedback from their colleagues? How can distributed teams collaborate best? Whenever possible, I like to share these learnings with employees so they can benefit from our data-informed wisdom. My default? Lean into transparency. In the absence of data, human nature is to make up a narrative—and the stories we create are often far worse than the truth. When appropriate, sharing our knowledge broadly can empower employees and leaders alike to work with a greater shared understanding of reality. Being transparent doesn’t mean sharing everything with everyone, but it does require being purposeful, considerate, and consistent about what you share.

Early in my career, someone told me that innovation only comes from the top. Years of leading transformations across Fortune 100 companies have taught me otherwise: ➡️ true innovation emerges when we create an environment of trust where every voice matters. I was reminded of this during a recent work dinner discussing LEGO's remarkable turnaround. In 2004, when Jorgen Vig Knudstorp became LEGO's first non-family CEO, the company was losing nearly $1 million daily. What fascinated me wasn't just the financial transformation, but how he achieved it: by fostering a culture of "two-way trust." Three key lessons stand out that I've seen proven time and again: 1. Create psychological safety for continuous learning. When people feel safe to experiment and even fail, innovation flourishes. 2. Break down silos to encourage cross-pollination of ideas. Some of the most powerful solutions come from unexpected collaborations. 3. Build an idea-rich environment where testing and learning is celebrated, not just tolerated. These principles aren't just theory - they're fundamental to sustainable transformation. At Humana, I've seen firsthand how creating space for diverse perspectives and encouraging calculated risk-taking leads to breakthrough solutions in healthcare delivery. Organizations don't transform - people do. And people only transform when they feel valued, heard, and safe to innovate. https://lnkd.in/eMR92bWf

Lean Community:  Knowledge-Sharing.  In The High-Velocity Edge, Steve Spear explores how top-performing organizations achieve continuous learning and improvement through deeply embedded knowledge-sharing mechanisms. High-velocity organizations—such as Toyota, Alcoa, and parts of the U.S. Navy—excel by creating environments where learning is constant, fast, and widely distributed. Highly Recommend ⭐️⭐️⭐️⭐️⭐️ -------------------- Spear identifies four key capabilities enabling these organizations to prevent knowledge from being siloed and instead drive systemic learning: 🏆 Seeing Problems as They Occur:  High-velocity organizations empower employees at all levels to detect abnormalities immediately. This real-time problem identification ensures issues are visible and actionable rather than hidden or ignored. 🏆 Swarming and Solving Problems Immediately: Once problems are seen, teams swarm to resolve them collaboratively. This mechanism accelerates learning and ensures that solutions are shared widely, rather than hoarded by a few. 🏆 Spreading New Knowledge Rapidly: Companies like Toyota standardize successful solutions and disseminate them across the organization. This avoids reinvention and ensures best practices are embedded into processes. The use of common tools, shared language, and simple documentation supports this rapid transfer. 🏆 Leading by Teaching: Leaders in high-velocity organizations serve as coaches, reinforcing learning principles and modeling behavior that encourages inquiry and continuous improvement. They create a culture where asking questions, experimenting, and sharing results—both successes and failures—are expected and valued. To prevent knowledge from being siloed, these companies institutionalize learning into routines and structures, making it a core part of daily work. Continuous feedback loops, process transparency, and decentralized problem-solving all contribute to a culture of shared learning. Ultimately, The High-Velocity Edge illustrates that sustainable competitive advantage comes not from one-time innovation but from an organizational system that learns faster and spreads knowledge more effectively than the competition. -------------------- Questions: 1. Is a culture of decentralized problem-solving more effective than centralized expertise for sustained organizational learning? 2. Can standardized processes for sharing knowledge limit innovation by enforcing conformity? 3. How can organizations balance speed in knowledge dissemination with ensuring the accuracy and quality of the information being shared? Looking forward to your comments! https://a.co/d/gwIBSYD #ContinuousImprovement #CultureMatters

Article 2: The Transparency Trap: How Most CEOs Misunderstand the Radical Openness That Fuels Corporate Success Transparency in leadership is the latest darling of corporate jargon, but let's get one thing straight: Most leaders are doing it wrong. The common notion is that being transparent means sharing just enough to keep everyone on the same page. The reality? Radical transparency requires an entirely new playbook, one that many CEOs are hesitant to adopt, often to the detriment of their businesses. Transparency vs. Radical Transparency: The conventional model of transparency is about sharing some data and processes. On the other hand, radical transparency dives deep. It means throwing back the curtain on all facets of business, from salaries and performance metrics to strategic decisions and even failures. The Benefits: Trust: Knowing that nothing is hidden fosters an environment of trust, both internally and externally. Accountability: When everything is out in the open, people are more inclined to be accountable for their actions. Innovation: Open sharing of information leads to cross-pollination of ideas, encouraging innovation. Why CEOs Hesitate: The usual excuses range from concerns about proprietary secrets being leaked to fears about how employees will react to sensitive information. However, the truth is, the primary hurdle is often the CEO's ego. No one likes to admit their failings, least of all those at the top. But this vulnerability is precisely what radical transparency demands. Implementing Radical Transparency: 1. Start Small: You don't have to reveal everything all at once. Start with a few critical metrics or strategic insights and gauge the reaction. 2. Involve the Team: Employees should be involved in the process, ensuring they are prepared for the change and understand its implications. 3. Be Consistent: Once you start, don't go back on your word. Continually update and share new information as it becomes available. 4. Prepare for Backlash: Not everyone will be comfortable with this level of openness, and that's okay. Prepare for some initial pushback but stick to your guns. 5. Assess and Adjust: Once implemented, regularly assess the impact. If something isn't working, be open about it and adjust your approach. Conclusion: Radical transparency isn't just a leadership strategy; it's a business imperative in the digital age. Failing to adopt this approach could mean falling behind in an increasingly competitive market. Remember, the cornerstone of radical transparency is openness at all levels, starting with the CEO. When executed well, it can transform not just your work culture but also your business metrics. So, let's stir the pot: Are you brave enough to adopt radical transparency, or will you stick to the half-measures that could be undermining your business? #RadicalTransparency #CEOInsights #BusinessImperatives #TrustInLeadership

“Innovation leaders ‘have a tolerance for failure—but an intolerance for incompetence.’ Innovation requires freedom to flourish, but boundaries and conditions in order to thrive.” Boston Consulting Group (BCG) on creating an innovative culture with practical examples from leading innovators: - If innovation “hardware” is the strategies, governance, processes, org structure, metrics, etc., then an innovative culture is the “software” that runs on it—the way people interact in an organization to develop and market new products and services to customers. Companies with “hardware” alone are 35% more likely to be innovators, and those with only a strong innovation culture are 60% more likely. But those with BOTH are 90% as likely to be world class innovators, and do it with (on average) 10% fewer FTE’s in innovation roles. - BCG identified four aspects of innovative culture:  (1) What do you celebrate, reward, promote? 3M gives employees the time and space to think beyond their day jobs by letting them spend 15% of their time on side projects. (Post-It notes were an outcome of the “15% rule.”) It created the Tech Forum, an informal forum where employees can collaborate on a project. Mentoring, teaching, and developing others factor into performance reviews, and are requirements for promotion. (2) How do you get new ideas, create, get outside input/customer insights? Unilever relocated its Foods R&D Center to a university campus regarded as one of Europe’s foremost food and agricultural research centers, and partnered with other universities to augment its own expertise and research, expanding access to talent while reducing costs. (3) How do you lead, who makes decisions? EDP, a Portugal-based green utility, balances empowering teams with providing the right level of direction with a process that prioritizes the most promising ideas and vets a large number of ideas through the filters of feasibility and impact. It focuses on solutions first, rather than technology. (4) How do you team, create an inclusive environment that allows everyone to participate and leverages diverse perspectives?  When Rakuten, a Japanese e-commerce company, got bogged down translating documents from Japanese to English, the CEO announced that all company communications going forward would be in English; only those who learned English (via company-provided training and tools) were promotable. By having one common language, the company was able to access global talent and facilitate collaboration. - Culture leaders: (a) clearly articulate the specific behaviors critical to innovation success, such as balancing freedom with accountability, empowering risk-taking, and playfulness with company standards, (b) provide the “hardware” to support the culture and have leaders who model the desired behaviors, (c) embed the core behaviors in how they hire and incentivize employees. #innovation #innovationculture #insights #teams #empowerment #innovators #culture #collaboration