leadership transparency

Leadership happy talk is the propensity for leaders to paint a rosy picture of how the business is performing to their team when the business is struggling. 

Oftentimes, business owners and executives engage in leadership happy talk because they think it is the more mature thing to do. They’d rather hold onto the stress and frustration of business struggles and not put it on other people. 

This might seem like a laudable motivation: why stress out your team? But refusing to share and be vulnerable with team members ultimately creates missed opportunities for the team to tackle problems together. This leads to poor outcomes like surprise layoffs, outbursts from leaders, and misallocated priorities during crucial periods.

This article covers some of the causes of leadership happy talk, how to catch yourself engaging in leadership happy talk, how to overcome it, and why it is critical to not engage in this behavior. 

Leadership happy talk stems from pressures, both real and perceived, to show the world and one’s team that everything is going great. Many startups engage in this behavior because they need to put on a show and generate “buzz” so investors perceive their company to be the next hot business. Many business owners engage in this behavior because they fear their employees will leave if the business isn’t performing well. From a business owner’s perspective, they would rather wait and hope their business turns around. They’d rather risk a surprise layoff than inform their employees that the business is struggling and engage them in a potential solution. Many executives for large companies engage in this behavior because they have shareholders and quarterly goals to meet, and they would rather keep up an obvious charade rather than risk looking ineffectual. But only luck can save these leaders from near-certain failure if they aren’t willing to open up. 

There’s also the egotistical explanation: They want everyone to think they are a success. 

As a leader, you might be reading this and thinking to yourself, “what if the news of our business struggling has nothing to do with my employees’ work? How will that help?”

The answer: if this person is at risk of getting laid off, being asked to work reduced hours or for reduced compensation, or having their work impacted in any way at all, they should know about it.

Why? This initial worry assumes that your team can’t handle the truth or that they may leave upon learning the news. That risk pales in comparison to the possible reward from including them in a solution that saves your business. 

No business is going gangbusters all the time every day. Businesses tend to oscillate between up periods and down periods. As a leader, it may be tempting to paint the down periods with a rose hue because things could turn around. However, when leaders find themselves in a position of identifying some negative trends, the best decision is transparency and collaboration. 

By being vulnerable instead of stoic, leaders are communicating that they trust their team and that they value their perspective. Sure, some investors may choose not to invest, some employees may leave at the first sign of bad news, the stock price might go down temporarily, but leaders that engage in openness, transparency, and collaboration lead to healthier more resilient businesses. Strong, resilient businesses are much more likely to succeed long-term compared to businesses run by leaders that engage in leadership happy talk and can’t tell their employees the truth. Next time business is slow, take a chance and open up to your team. The solution could be right in front of your eyes, all you had to do was ask. 

 

Leadership "happy talk" is a term that refers to the practice of leaders sugarcoating the truth to their teams. They paint a rosy picture, reassuring their employees that everything is going well when, in reality, it might not be. While this approach may seem like a way to protect and motivate the team, it often leads to more harm than good.

Meet Sarah and Mark, both seasoned leaders in the tech industry. They're in charge of two different teams within the same organization, and they face a similar challenge—an impending product launch with multiple technical glitches.

Sarah, a proponent of leadership happy talk, decides to downplay the issues. She gathers her team and confidently declares, "Team, our product launch is on track, and everything is going smoothly. There are a few minor hiccups, but nothing to worry about. We've got this!" She avoids discussing the specific technical challenges, fearing it might demoralize her team.

Mark, on the other hand, chooses a different path. He believes in transparency as a fundamental leadership principle. He calls his team for a meeting and says, "Team, I want to talk about our product launch. We've encountered some technical challenges that are causing delays. It's important that we address these issues head-on. We're working on solutions, and your input is crucial in finding the best way forward."

Leadership happy talk is a common dilemma faced by leaders across various industries. It stems from the belief that team members may not be able to handle the harsh realities or challenges the organization is facing. Leaders may feel compelled to shield their employees from negativity, thinking that a more optimistic outlook will boost morale and productivity.

Sarah's Approach: In the short term, Sarah's team is relieved. They believe that everything is under control. However, as the launch date approaches, the technical glitches become apparent. Team members start to feel that their concerns were not taken seriously, and they become increasingly anxious. Morale drops, and some employees begin to disengage, feeling disconnected from the reality of the situation.

Mark's Approach: Mark's team, while initially concerned, appreciates his honesty. They recognize that their leader trusts them enough to share the challenges openly. Team members start brainstorming solutions together, and a sense of collective ownership emerges. While the product launch still faces hurdles, the team is more motivated, engaged, and determined to overcome them.

While leadership happy talk may offer short-term relief, it often leads to long-term problems, including mistrust and disengagement. On the other hand, embracing transparency, as Mark did, fosters trust, encourages problem-solving, and enhances team adaptability.

Transparency isn't about dwelling on problems or creating unnecessary panic. It's about respecting your team's intelligence and their ability to contribute to solutions. As a leader, you can strike a balance between acknowledging challenges and outlining plans for addressing them, just as Mark did. In the end, it's not about telling the team what they want to hear but equipping them with the truth they need to succeed.

Transparency is the antidote to leadership happy talk. Leaders should strive to be open and honest with their teams, even when the news is less than favorable. Here are some reasons why transparency is crucial:

While transparency is essential, it's important to strike a balance. Leaders should communicate openly without causing unnecessary panic or anxiety among team members. Effective communication involves not only sharing challenges but also outlining plans and strategies for addressing them.

Leadership happy talk, though well-intentioned, is not a sustainable or effective approach to leading a team. It can lead to mistrust, missed opportunities, and disengagement. Instead, leaders should embrace transparency as a guiding principle, recognizing that honesty and openness are essential for building trust, fostering innovation, and ultimately benefiting the team and the organization as a whole. In the end, it's not about telling the team what they want to hear but equipping them with the truth they need to succeed.

There are many ways to lead a company, but most leadership styles tend to be either transactional or transformational.

Transformational leadership is characterized by leaders who inspire and motivate their teams to achieve beyond the expected, encouraging innovation and fostering a sense of collective purpose. These leaders are visionaries, capable of articulating a compelling vision for the future and instilling a sense of passion and commitment among their followers.

Steve Jobs, co-founder of Apple Inc., exemplifies transformational leadership. Known for his visionary approach, Jobs inspired his team to create groundbreaking products, shaping the technological landscape and setting new industry standards.

Transformational leaders often require a support system to help them navigate the complexities of their role and maintain their innovative edge. Mastermind groups, consisting of like-minded individuals who collaborate and share insights, play a crucial role in fostering creativity and providing valuable perspectives.

Mastermind groups serve as a forum for transformational leaders to exchange ideas, challenges, and experiences with peers who understand the unique demands of visionary leadership. Ambition in Motion Mastermind Groups, in particular, offer a structured platform where leaders can engage in thought-provoking discussions, receive feedback, and gain fresh perspectives from a diverse group of professionals. This collaborative environment empowers transformational leaders to refine their strategies, overcome obstacles, and stay at the forefront of innovation.

In addition to mastermind groups, mentorship is another crucial element for transformational leaders seeking to enhance their skills. Mentors provide guidance based on their own experiences, offering valuable insights that can help leaders navigate complex challenges. Ambition in Motion, recognizing the importance of mentorship, facilitates connections between experienced mentors and transformational leaders, creating opportunities for personalized guidance and knowledge transfer.

On the other hand, transactional leadership is characterized by a more structured and task-oriented approach. Leaders employing this style focus on the day-to-day operations, using a system of rewards and punishments to motivate their teams. Transactional leaders ensure that tasks are completed efficiently, and they are often concerned with maintaining order and adherence to established procedures.

Jack Welch, former CEO of General Electric, is a notable example of transactional leadership. Welch was known for his emphasis on performance metrics, setting clear expectations, and implementing a system of rewards for high-performing employees.

Transactional leaders thrive in environments where efficiency and productivity are paramount. However, this style may lack the innovation and long-term vision associated with transformational leadership. While transactional leaders excel in managing routine tasks and achieving short-term goals, they may benefit from a broader perspective to adapt to changing business landscapes.

Transactional leaders, too, can benefit from mastermind groups as a resource for professional development. Ambition in Motion Mastermind Groups provide transactional leaders with a platform to connect with peers facing similar challenges, enabling them to share best practices, streamline processes, and enhance their leadership skills within the context of their operational focus.

Mentorship is equally valuable for transactional leaders looking to expand their leadership capabilities. Ambition in Motion recognizes the diverse needs of leaders and offers mentorship opportunities tailored to the specific challenges faced by transactional leaders. Through personalized guidance, mentors help transactional leaders refine their operational strategies, adapt to changing circumstances, and foster a more collaborative and dynamic team environment.

Understanding the differences between transformational and transactional leadership is crucial for effective decision-making. While transformational leaders inspire innovation and vision, transactional leaders excel in managing day-to-day operations. Recognizing the unique demands of each leadership style, Ambition in Motion Mastermind Groups emerges as a valuable resource, providing a platform for leaders to connect, collaborate, and grow.

Whether one leans towards transformational or transactional leadership, the support systems offered by Ambition in Motion, including mastermind groups and mentorship opportunities, present invaluable resources for leaders seeking to refine their skills, overcome challenges, and stay ahead in an ever-changing business landscape. By leveraging these resources, leaders can cultivate a more comprehensive skill set, ensuring success in their respective leadership roles.

Communicating layoffs to employees is a tough situation that requires considerable thought and compassion. Layoffs can have a dramatic effect on the organization and steps must be taken to help preserve workplace culture when relaying such changes. When informing employees about these difficult decisions, creating a strong communication plan can assist in lessening the emotional turmoil resulting from layoffs. 

Here are 4 steps to developing a strong initial communication plan: 

Employee response to layoffs is largely determined by the perceived fairness and transparency utilized throughout the decision-making and communication processes. Clear messaging regarding why the decision was made, alternative solutions considered, and the future of the organization will help prevent employees from creating their assumptions. Increased transparency works to build trust with employees and reduces damage to company morale. 

2. Include Employees in the Process

During the process of determining layoffs, all possible solutions are often exhausted prior to reaching a decision. However, if appropriate include employees from all levels in identifying solutions. Motivations for layoffs are most often to take cost cutting measures.  Engaging with employees to gather feedback and consider alternative areas to reduce costs can help empower employees and increase collaboration. Inclusion within the problem-solving process also helps to gain a better understanding of the process that was utilized to come to the solution of laying off employees. 

3. Consider Word Choice

An important, but often overlooked, consideration is word choice. Being sensitive to nuances will avoid a negative tone. Phrases that sound voluntary such as “leaving” or euphemisms like “restructuring” detract from the situation at hand and can diminish the hard work contributed by the employees who are laid off. Consider the feelings of the employees who are being let go and develop a tone that is sensitive to these emotions. 

4. Consistent Messaging

Regardless of whether a message is intended solely for employees, information may get leaked to media outlets or other outside sources. When developing internal and external messages, messaging should be consistent. Conflicting information will increase confusion and cause distrust among stakeholders. All messages should be crafted with the idea that any stakeholder may see the information. Additionally, all stakeholders should be addressed when communicating the news of layoffs. Since, likely, all stakeholders will eventually hear about the layoffs, creating specific content for each audience can ensure that no group of stakeholders is left out of the loop

Transparency, inclusion, word choice consideration, and consistency are key elements that can guide the communication process across all stakeholders. Since employees are personally being impacted by layoffs, increased consideration of how to approach communication with this group of stakeholders is vital. Whether the employee is being laid off or one of their peers is being let go, all employees will feel the effects of the organizational change.  

When communicating with laid-off employees and remaining employees, here are some important considerations to best support both groups: 

Conducting one-on-one meetings with laid-off individuals is an empathetic approach to communicating the difficult news. Individual meetings communicate respect for the employees who are laid off and serve as an opportunity to support their emotional needs. During this time, laid-off employees can feel heard and ask questions that will help them get a better understanding of reasoning and future steps. 

When initially receiving the news that they are laid off, employees may not fully process the news and may have questions they fail to ask during the individual meeting. Providing additional support resources for employees following these meetings is a key way to address concerns and continue to demonstrate empathy. Support resources may include a contact within the company that can be used to answer further questions regarding the layoffs or details about benefits and severance packages.  

While layoffs are particularly difficult for employees losing their jobs, the remaining employees also endure emotional hardship. The remaining employees are tasked with the ramifications of the layoffs and will need to navigate the new environment. Providing specific operational changes that will be implemented can help to reduce the uncertainty for remaining employees. 

 

Following layoffs, it is common for teams to work at a lower capacity. This lower productivity can result from increased workloads for remaining employees as well as the emotional toll from losing team members. While it may seem effective to continue to motivate employees to work at 100% efficiency, allowing employees time and space to grieve these changes will provide more significant benefits. Allowing time for positive adjustments to change will work to strengthen employee morale and engagement as they will be able to better process these changes. 

When undergoing layoffs, there will be increased fear of future layoffs for the organization. While assuring there won’t be future layoffs certainly shouldn’t be done if there are plans for continued layoffs, if there aren’t plans for additional layoffs that should be communicated to the remaining employees. It is natural for employees to stress about their jobs when they see peers losing their jobs. Offering support to team members through open communication and availability for questions can help ease the minds of remaining employees. 

Anytime a company has to lay off employees there are a lot of hardships. Ultimately, effective communication with all stakeholders is important to best navigate the changing environment. While layoffs have many negative implications on the employees leaving the company, consistency, honesty, and empathy must be utilized through all phases of communication to prevent the company image from being damaged and best guide the company toward future success.  

We all have life events that distract us from work from time to time: an ailing family member, a divorce, the death of a friend. You can’t expect someone to be at their best at such times. But as a manager what can you expect? How can you support the person to take care of themselves emotionally while also making sure they are doing their work (or as much of it as they are able to)?

Emily, a dedicated team leader, found herself facing a challenging situation. One of her team members, Charlie, was grappling with personal turmoil, juggling the complexities of an external affair leading to a divorce that was tearing apart his family. Balancing the demands of the workplace while carrying such a heavy emotional burden, Charlie was struggling to meet performance expectations, leaving Emily in a delicate position as a leader torn between empathy and professionalism.

Understanding the delicate nature of Charlie's situation, Emily knew that leading with empathy was crucial. However, maintaining a professional work environment was equally important. Striking the right balance required a thoughtful and nuanced approach.

First, Emily decided to initiate a private conversation with Charlie. She wanted to create a safe space for him to share his struggles without judgment. Instead of immediately addressing performance concerns, she began by expressing concern for his well-being and acknowledging the challenges he might be facing outside of work.

During their conversation, Emily demonstrated active listening skills, allowing Charlie to open up about his personal life at his own pace. This approach helped build trust and allowed Emily to gain a deeper understanding of the emotional toll Charlie was experiencing. In doing so, she learned about his fears, uncertainties, and the difficulty he faced in separating personal issues from his professional responsibilities.

Understanding that Charlie might find it challenging to communicate openly in a face-to-face setting, Emily subtly introduced the idea of using AIM Insights, a platform designed for non-face-to-face communication among team members. This platform served as an online forum where employees could share their personal struggles, ambitions, and non-work-related goals in a comfortable and confidential manner.

Emily emphasized the benefits of AIM Insights, explaining how it could provide a supportive space for team members to express themselves freely. The platform allowed individuals like Charlie to share their experiences, offering insights into their lives outside of the office, making it easier for leaders like Emily to comprehend the challenges faced by their team members.

Without explicitly revealing Charlie's personal situation, Emily encouraged the team to use AIM Insights as a channel for open communication about their non-work-related struggles and aspirations.

These 3 tips are also used to ensure that the workplace is a confidential, empathetic and supportive environment. 

When you speak to an employee about their current struggles, listen first instead of immediately advocating for some particular course of action. They may just want a sounding board about the difficulties of caring for a sick relative or an opportunity to explain why a divorce has affected their attention span. If you immediately suggest they take a leave of absence or adjust their schedule, they may be put off if that’s not what they were thinking. Instead, ask what both of you can do together to address the issue of performance during the difficult period. 

2. Know What You Can Offer

You may be more than willing to give a grieving employee several weeks of leave, or to offer a woman with a high-risk pregnancy the ability to work from home. But the decision isn’t always yours to make. If you have the leeway to get creative with a flexible schedule, an adjusted workload, or a temporary work-from-home arrangement, do what you think is best. But also be sure you understand your company’s restrictions on short- and long-term leave, and what, if any, bureaucratic hurdles exist before promising anything to your employee. Explain that you need to check what’s possible before you both commit to an arrangement.

If the employee needs counseling or drug or alcohol services, there may be resources provided by your company’s medical insurance that you can recommend. But investigate the quality of those resources first. The last thing you want to do is send a suffering employee to avail themselves of a program or supposedly helpful people who then fall short.

3. Consider Workload

You also have to consider whether prolonged absences will adversely affect clients or team members. If so, mitigate those risks by easing the person’s workload. If there are people who are willing and able to take on some of the individual’s projects, you can do that temporarily. Just be sure to reward the people who are stepping in. And then set timelines for any adjustments you make. If the person knows that their situation will last for 6-8 weeks, set a deadline for you to meet and discuss what will happen next. Of course, many situations will be open-ended and in those cases, you can set interim deadlines when you get together to check in on how things are going and make adjustments as necessary. Whatever arrangements you make, be crystal clear about your expectations during this time period. Be realistic about what they can accomplish and set goals they can meet.

Sarah is leading a team of 700 talented individuals toward success. However, the winds of change bring a daunting task: she must trim down the team by 300 members, nearly half its size. The question is large: how does one execute such a significant reduction in workforce effectively?

Sarah ponders over various strategies. Does she opt for a series of gradual layoffs, minimizing the shock but prolonging the uncertainty? Or does she choose the bold approach of a single, decisive cut, akin to ripping off a bandaid? Each path presents its challenges, but Sarah knows that communication and trust will be the cornerstones of her approach.

One option is to stagger the layoffs over several months, allowing individuals to prepare emotionally and financially. However, this method risks creating a sense of instability and anxiety among the remaining employees. Sarah worries about the toll it may take on morale and productivity.

On the other hand, a swift and decisive action could minimize prolonged uncertainty and allow the organization to swiftly realign its resources. However, the shockwave from such a move could erode trust and breed resentment among the workforce.

Sarah recognizes the importance of transparency and honesty in navigating this delicate situation. 

First, she starts with identifying what metrics are not being met and what needs to be changed for the organization to right the ship. She realizes that it can be anxiety-inducing if there isn’t a clear goal or metric that everyone is working towards as if there isn’t a clear goal or metric being worked towards, it is unclear whether or not anyone’s job is safe.

By clarifying those metrics and where the team has fallen short, and giving them a few months to try and turn things around, she can start to make the reductions in force.

The reason she chose this mode of decision-making versus just announcing the layoffs was that it gave clarity to her team as to what metrics needed to be hit for the company to succeed. Even if the metrics were vastly different from where they were when she first announced the metrics, there is still clarity as to why a change like a reduction in force is necessary. Essentially, her team felt less blindsided when they knew they were underperforming.

As the months pass, Sarah maintains open lines of communication, offering regular updates on progress and addressing any concerns or questions that arise. She fosters a culture of transparency and inclusivity, inviting feedback and suggestions from her team members.

Throughout the process, Sarah remains steadfast in her commitment to building trust and maintaining morale. She acknowledges the challenges and uncertainties but instills confidence in the team's ability to get through this together.

By the end of the period in which performance is being evaluated, Sarah still needs to lay team members off. She decides to do the layoff in one big bandaid rip-off strategy. She then reinforces that everyone after the layoff is safe and why they are safe - e.g. the metrics they were achieving were aligned with the metrics she set at the beginning.

Being clear is kind and having clear expectations from the very beginning, allowing team members the time to change their behavior and attempt to turn their performance around, and following through on the unfortunate need of laying people off for those that aren’t performing creates the best outcome from a tough situation. By prioritizing the well-being of her team and fostering a culture of transparency, she ensures that even in the face of adversity, they emerge stronger and more resilient than before.