The importance of data transparency and its role in management.

As business leaders and managers, we have access to a range of data. From employee key performance indicators (KPIs) to sales, this information allows us to view the business from a holistic perspective. The inner workings of our business can be encapsulated in intricate detail, offering us key information to ensure we make the right decisions. But why is it that some businesses choose not to share this data with their teams? In this article, I will explain how data transparency can improve your workplace culture and productivity.

Working with businesses and consulting for over 20 years, I saw firsthand how data can exponentially transform a workplace and empower teams. In my current position as General Manager of Future Markets at Pierlite, my team and I have been working to shift management and workplace processes to ensure data is transparent across the business. By removing information silos and expanding individual’s access to key data, we have seen significant positive change – not only in our productivity, but how our different teams interact. We now function as a combined team not operating within individual sectors, like sales versus engineering. Our drive has been, and is, for everyone at Pierlite to work collaboratively. This rapid transformation has allowed innovation to prosper.

A lack of transparency can increase the risk of misunderstandings and ineffective communication. There is no sense of team or cohesion in a business that operates with closed-off and limited data. This can create an environment in which employees lack a sense of connection and fulfillment in their jobs, ultimately impeding their efforts and desire to work to their full potential.

You can’t have transparent data without effective, open communication. If the leaders in your business are not approachable or accessible, transparent data will not be as effective or transformative. Employees need to understand and recognise what the data means as well as have the opportunity to discuss ideas and innovations with leaders.

With information accessible to everyone, each employee can become an innovation hub. This is why open communication is so important. Restricted access to leaders and ideas can cause businesses to stagnate. Businesses need to maintain agility and adaptability to thrive. They should also be looking to constantly improve. Transparent data supports improvement endeavours because it ensures that no one is left in the dark regarding what is happening across the business. Data transparency and open communication go hand-in-hand.

Transparent data can also help flatten the workplace hierarchy. It removes the trickle-down decision-making process, creating an environment where all employees can make decisions. I’m not advocating that every decision can and should be made through employee consensus. However, transparent data can remove some of the responsibilities of key decisions from a sole leader to the team. This may sound frightening for some, but it can actually help empower your business to make better decisions.

Business decisions that affect different departments should involve the employees in that area. You hired these employees for their expert knowledge and experience in that role and it’s okay to recognise that they may know more about a topic than you do – that’s why you hired them. These are the decisions that should be actualised through expert consensus and collaboration. This not only benefits your business as a whole, but it also helps to build stronger team bonds and a connection to the business helping to elevate productivity.

A company in Iowa (Midwestern USA state) called The Sky Factory, implemented this strategy and documented the results. They created a workplace that favoured transparent data, flat management, and decision-making by consensus. Not everyone had to agree with the decisions being made but they all had to consent to them, which helped to instil a feeling of collaboration and connectivity. The study found that decisions were easier to make and that their employees felt more included and respected.

From my firsthand experience, transparent data can revolutionise a business and its employees. I’ve seen it happen in my own businesses, businesses I have consulted for and more recently here at Pierlite. But don’t take it just from me. Numerous studies, and research affirm the effectiveness of data transparency. Recently, an employee engagement survey by Tiny Pulse found that transparency was the number one factor contributing to employee happiness. Although data transparency needs to be implemented strategically, it can be one of the defining reasons for your businesses long-term success.

Transitioning your business to be more data transparent can be a daunting process. It may go against what you believe is regarded as information that managers and leaders should keep to themselves. But this belief inherently impacts the business negatively. How can your business make informed and strategic decisions if people can’t see the entire picture?

Having a strong digital backbone is the cornerstone of data transparency. Ensuring that information is integrated into all systems and teams seamlessly will improve workplace productivity and efficiency. There shouldn’t be data divides between teams, sectors, or management. If you truly want to build a strong and resilient business, that succeeds for the long-term, you need to adopt not just data transparency, but also a digital-first approach.

Transparent data facilitates a positive workplace, greater collaboration and fosters an environment where innovation can flourish. Maybe it’s time to open the flood gates and offer your employees and stakeholders the information they’ve been missing.