Transparency: The Latest Buzz Word in Business

Pronunciation: tran(t)s-'par-&n-sE
Function: noun
Inflected Form: plural -cies
: thequality or state of being transparent
: easily seen through, recognized, or detected
: manifest; obvious
: open; frank; candid

Considering my youth in terms of professional experience, I am unaware of how businesses conducted themselves decades ago. What I do know though is how important transparency has become. In the years since I first attended Ohio State, the term transparency hasn't been used when discussing business as much as it has been the last 6-18 months. One of the main reasons why I believe it has become the latest buzz word in business/marketing is because of consumer expectations. As consumers, we are tired of companies promising one thing and following through on another. We are sick of hearing about internal company problems when externally, we are led to believe something else. Lastly, it gets old when companies are too secretive about the business they are in and the need they will serve.

I first heard the buzz word in late 2007. I realize that it was probably being used before that but it was very refreshing for me to hear. In fact, it was used by Path101.com, a yet to launch start up website focused on helping people figure out their career path. You can read about the site below. I was drawn to them because they were not afraid to document their experience securing funding, hiring the team and working towards an actual launch date - which happened to be last week. It is no surprise that this transparency helped them gain an audience - whatever the size - and has put them in a better position to succeed. In a time when most start ups are secretive until they launch, it was just the surprise I needed to learn what type of company I want to work for.

Another reason why transparency has become so important is Social Media. Social Media tools have allowed companies and consumers alike to develop stronger, deeper, more fulfilling relationships where honesty is necessary. These tools require that companies are open and honest because if they are not, consumers can and will call them on it. Here are three simple ways a company can become more transparent:

Step 1: Use your company blog to have a discussion with consumers - First off, I really hope your company is blogging. It is the easiest and possibly, best way for consumers to truly understand what goes on behind the scenes at your business. This is important because it helps develop a personality for your company, making it less of just a brick and mortar business and more a neighborhood hangout (if you will). Its also important to have a presence on other industry blogs and association websites, making sure your presence is known on the Internet.

Step 2: Develop a strategy for Social Media - Earning respect and trust takes time. If it didn't, it wouldn't be that important. With that said, setting up an account on every social media site doesn't make sense. Your Social Media strategy should fall in line with who your target consumer is. If for instance your business is geared toward grandparents, don't build a fan page on Facebook that is targeting your audience, rather focus on the grandparent, grandchild relationship and build trust with the grandchild. This will undoubtedly, albeit in a small way, help make your business more authentic.

Step 3: Be Inclusive - I understand that it doesn't make sense to try to beat a dead horse. That is why if you have multiple conversations with consumers who can't seem to understand your brand, it may be time to move on. But it IS important to try. Find your "haters" and try to help them understand the value in your business. Don't necessarily try to convert them into customers but rather develop a conversation about why they feel the way they do about your brand. Remember, an angry consumer can be as important as a happy customer.

Transparency is also important on an individual level. It is one of the qualities that I am most proud of. As always, I am interested in hearing your thoughts on transparency and its place in business today.