There are three reasons why being transparent is better than hoarding information – especially as it relates to shitty situations and bad news.
- More heads are better than one. If you have a problem, get help to solve it. This will require you read people into the situation. Give them the information and ask for their help. People can’t help you unless you let them.
- It builds trust. Much has been said about the importance of trust in an organization. Communicating bad news demonstrates trust and helps to build a cohesive team.
- People already know. If people don’t already know the bad news, they have at the least heard rumors, or they’ve noticed the lack of good news. People aren’t stupid. And they also aren’t as delicate as you think. Horowitz realized this when it occurred to him as the founder and CEO of a company, shitty news was going to affect him worse than anyone else.
Most important out of those three reasons, I think, is that transparency is a mechanism for building trust.