The health of an organisation can be determined by the level of transparency
Q: In an environment that is both increasingly competitive unforgiving toward secretive organisations, how do leaders identify the level of transparency that balances good public relations with strategic privacy?
– Nicolas Rodriguez, Lima, Peru
A: When it comes to transparency, leaders don’t need to pull off a balancing act as much as they need to stick to four rules. Two of these rules are easy. One should be easy but constantly gets messed-up, while the fourth one is just plain hard truth. No picking and choosing though. In today’s “unforgiving” environment, to use your apt term, you need to do them all. The first rule: When it comes to communicating about financial information with the external world of investors, analysts and the media, public companies just can’t be transparent enough. Every piece of disclosed data increases the market’s insight, and, ultimately, builds trust. That dynamic is a no-brainer. Despite the overheated carping of shareholder activists, most companies get it right.
For Complete IIPM Article, Click on IIPM Article
– Nicolas Rodriguez, Lima, Peru
A: When it comes to transparency, leaders don’t need to pull off a balancing act as much as they need to stick to four rules. Two of these rules are easy. One should be easy but constantly gets messed-up, while the fourth one is just plain hard truth. No picking and choosing though. In today’s “unforgiving” environment, to use your apt term, you need to do them all. The first rule: When it comes to communicating about financial information with the external world of investors, analysts and the media, public companies just can’t be transparent enough. Every piece of disclosed data increases the market’s insight, and, ultimately, builds trust. That dynamic is a no-brainer. Despite the overheated carping of shareholder activists, most companies get it right.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
No comments:
Post a Comment