Numerous leaders learn a tough lesson about transparency. When they conceal details—like the company’s condition, the reasons behind the CFO’s departure, or the purpose of an all-day executive retreat—employees often concoct their own versions of the story, typically dark tales driven by rumors and fear.
This underscores the importance of not merely being honest but proactively transparent for effective CEOs. They preemptively address rumors by openly discussing company-related matters, whether good or bad.
Withholding information doesn’t prevent people from making judgments; it simply ensures those judgments are grounded in speculation.