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Transparency
How Leaders Create a Culture of Candor
Warren Bennis, Daniel Goleman, James O’Toole
with Patricia Ward Biederman
©2008 by Warren Bennis, Daniel Goleman and James O’Toole
Adapted by permission of Jossey-Bass
ISBN: 978-0-470-27876-5
Reviewed by Amity Noltemeyer
Introduction
In today’s world, transparency – acting with candor,
disclosure, integrity, and honesty – is increasingly
linked to both survival and success. Driven in part
by the emergence of technological capabilities allow-
ing faster and easier communication than ever before,
transparency has brought both clarity and confusion
to our society.
In Transparency, authors Warren Bennis, Daniel
Goleman, James O’Toole, and Patricia Ward Bieder-
man use three essays to explore the complexities of
transparency. Drawing on both theory and experi-
ence, the authors reflect on becoming a transparent
leader, working within a transparent organization,
and thriving in an increasingly transparent world.
Business Book Review® Vol. 25, No. 26 • Copyright © 2008 EBSCO Publishing Inc. • All Rights Reserved
®
SM
Volume 25, Number 26
Creating a Culture of Candor
Although claims and aspirations of transparency in
today’s society abound, actually behaving transpar-
ently is much rarer. According to Bennis, Goleman,
and Biederman, “…you can say you believe in trans-
parency without practicing it or even aspiring to it.”
Although a lack of transparency plagues many organi-
zations in the United States, it is far more problematic
in other nations.
According to the authors, transparency and a culture
of candor are terms that refer to, “…the free flow of
information within an organization and between the
organization and its many stakeholders, including
the public.” When the information flow is healthy,
Transparency Warren Bennis, Daniel Goleman, and James O’Toole
the result is an enhanced capacity for organizations
to compete, innovate, and achieve. In order for infor-
mation to flow freely within an organization, two
prerequisites must be met: (1) followers must feel free
to speak openly, and (2) leaders must accept such open
communication. Essentially, information flow means
that the right information is given to the right person
at the right time for the right reason. Far too often, the
devastating consequences of not having a free flow
of information are discovered and broadcast by the
media. For example, executives of Guidant continued
to sell their defibrillators even after they learned that
electrical faults resulted in at least seven deaths. With-
holding this information and remaining silent on the
issue caused outrage among the company’s consum-
ers.
Obviously, complete transparency may not always be
in the best interests of an organization. For example,
it may be critical to protect national security, original
processes, or select corporate strategies. However,
even when transparency would be beneficial, organi-
zations often fail to capitalize on it. This is evidenced
by the wide variations in how U.S. Presidents have
treated classified information. For example, while Bill
Clinton classified only 3.6 million documents during
his 8 years in office, George W. Bush classified six
times that amount in 2006 alone. The secrecy created
by such high levels of classification may impede gov-
ernmental functioning and collaboration.
In organizations where a lack of transparency results
in the containment of secrets that cause harm – such as
unethical practices or faulty products – these secrets
are often revealed to the public by whistleblowers.
Whistleblowers are those individuals who expose
an organization’s secrets. Unfortunately, doing so
puts the whistleblower at considerable risk for suf-
fering through ostracization, being fired or demoted,
or receiving other punishment. For example, as a
result of exposing the Abu Ghraib prison abuse scan-
dal in Iraq, U.S. Army Specialist Samuel J. Provance
was demoted and lost his security clearance. In some
countries, whistleblowers may even put their lives
at risk, as evidenced by the murder of Antonio Siba-
Siba Macuacua, a bank official in Mozambique who
exposed government corruption. Unfortunately, the
threat of these types of retaliation often keeps indi-
Business Book Review® Vol. 25, No. 26 • Copyright © 2008 EBSCO Publishing Inc. • All Rights Reserved
Key Concepts
According to the authors, several forces serve to
stymie transparency within organizations:
1. Hoarding information- In a move that is
detrimental to both efficiency and morale,
leaders often cling to information, prevent-
ing it from flowing to those who need it.
2. Structural impediments- Can prevent the
free flow of information, as evidenced by
flawed decision-making resulting from
structures preventing the flow of informa-
tion within the two divisions of the CIA.
3. The shimmer factor- Because leaders tend
to be perceived as invincible, followers often
hesitate to reveal uncomfortable truths or
challenge questionable behaviors.
How organizations can develop a culture of
transparency and candor:
1. Analyze the entrenched cultural rules gov-
erning behavior among its members.
2. Set a precedent by sharing information and
welcoming unsettling information. By prais-
ing employees who speak truths, employers
will change the behaviors of employees.
g g g g
Information about the author and subject:
www.danielgoleman.info/blog/
www.jamesotoole.com
Information about this book and other business titles:
www.josseybass.com
Related summaries in the BBR Library:
The Transparency Edge
How Credibility Can Make or
Break You in Business
Barbara Pagano, Elizabeth Pagano
The Speed of Trust
The One Thing That Changes Everything
Stephen M. R. Covey
Page 2
Transparency Warren Bennis, Daniel Goleman, and James O’Toole

viduals from exposing such secrets. persuading. Blogs are uniquely powerful tools for
promoting products, brands, and ideas, but they can
As the use of blogs continues to increase, today’s whis-
also be ruthless and all but unstoppable in punishing
tleblowers have more tools at their disposal to expose
what they disapprove of. And as their numbers soar,
the wrongdoings of organizations than ever before.
blogs will only get more powerful.”
For example, whistleblowers can now make their
claims anonymously and distribute them throughout Why are blogs so powerful? Perhaps most notably,
cyberspace very rapidly. Despite these new technolo- they are able to be accessed worldwide by more
gies, and with the U.S. Whistleblower Protection Act than a billion Internet users. As a testament to the
of 1989, whistleblowers continue to risk their profes- far reaching impact of the Internet, a recent YouTube
sional status by exposing company secrets. video was viewed 9 million times, in contrast to a
successful cable television program which averages
What is the role of blogs in transparency? The authors
about 800,000 viewers. In addition, Internet access is
report that by mid-2007, approximately 70 million
very difficult for governments to control. Although
blogs existed. Blogs have the potential to cripple com-
China has attempted to do so through its cybercops, it
panies as well as individuals. For example, within a
is nearly impossible to completely control the digital
few days of a cyclist revealing on a web site that a
community.
Kryptonite bicycle lock could be
easily opened with a pen, the blog Blogs are uniquely powerful tools for promoting products,
version was seen by 1.8 million
people. Faced with the ensuing
brands, and ideas, but they can also be ruthless and all but
outrage, Kryptonite announced unstoppable in punishing what they disapprove of.
within a week that it would
replace the locks, a move which cost the company The companies who will succeed in such a digital
almost half of their projected earnings for that year. environment are those who strive for transparency
from the outset. Unfortunately, there often exist bar-
From the Kryptonite example, it is clear to see that
riers that prevent full transparency. For example
blogs have the potential to influence companies in
– in a move that is detrimental to both efficiency and
profound ways. As the authors suggest, “…every
morale – leaders often hoard information, preventing
leader needs to keep in mind that the blogosphere
information from flowing to those who need it. Also,
is always there, waiting, watching, opining, and
structural impediments can prevent the free flow of
information, as evidenced by the flawed data lead-
ing to the commencement of the Iraq war, which was
About the Authors a result of organizational structures preventing the
flow of information within the two divisions of the
Warren Bennis, Distinguished Professor of Busi-
Central Intelligence Agency. A final barrier to trans-
ness Administration and founding chairmen
parency is the shimmer factor. Because leaders tend
of the Leadership Institute at the University of
to be perceived as invincible, followers often hesitate
Southern California, has authored many busi-
to reveal uncomfortable truths or challenge question-
ness books including On Becoming a Leader.
able behaviors. In order to avoid this state of affairs, it
Daniel Goleman, author of Emotional Intelli-
is important for leaders to actively seek and listen to
gence and Primal Leadership, is codirector of the
the counsel of others.
Consortium for Reasearch on Emotional Intel-
ligence in Organizations. James O’Toole, the How can an organization develop a culture of transpar-
Daniels Distinguished Professor of Business ency and candor? First, it is important to analyze the
Ethics at the University of Denver has authored deeply entrenched cultural rules governing behavior
seventeen books. among its members. For example, in previous years
NASA has been criticized for creating a culture where
engineers are deeply afraid to raise safety concerns to

Business Book Review® Vol. 25, No. 26 • Copyright © 2008 EBSCO Publishing Inc. • All Rights Reserved Page 3
Transparency Warren Bennis, Daniel Goleman, and James O’Toole
their managers. This unspoken cultural rule may have
contributed to several shuttle disasters. Second, man-
agers need to set a precedent by sharing information
and welcoming unsettling information. By praising
employees who speak truths, rather than those who
avoid the hard topics, employers will begin to change
the behaviors of their employees.
Although transparency is certainly enhanced when
organizational leaders are committed to achiev-
ing it, transparency is also becoming increasingly
inescapable in today’s world. As Bennis, Goleman,
and Biederman noted regarding the candidates for
President of the United States – although it could be
applied to virtually anyone – “Whether the candi-
dates like it or not, a culture of candor has been thrust
upon them.”
The best way for leaders to start information
their organizations is to set a good example.
even welcome, unsettling information.
Speaking Truth to Power
Most people are familiar with the stories of whistle-
blowers such as Enron’s Sherron Watkin’s, WorldCom’s
Cynthia Cooper, the FBI’s Coleen Rowley, and ex-
Army chief General Eric K. Shineski. These individuals
all courageously spoke truth to powerful officials, at
considerable personal risk. Although readers have
likely not faced situations of the same magnitude,
most individuals have experienced some degree of
risk and retaliation associated with confronting those
in power with the truth.
Speaking truth to power is perhaps one of the world’s
oldest ethical dilemmas. As far back as the fourth cen-
tury B.C., Sophocles raised the issue as a theme in his
play Antigone. In the play, a messenger realizes that
if he speaks the truth to King Creon he will likely be
killed. The king stubbornly refuses to hear any advice
or truth, resulting in the ultimate demise of his family
and country. The ethical dilemma associated with
speaking truth to power has been re-emphasized
in themes of other dramas throughout the years,
including T.S. Eliot’s Murder in the Cathedral, John
Osborne’s Luther, and Robert Bolt’s A Man for All Sea-
sons. Together, the themes of these dramas serve as a
Business Book Review® Vol. 25, No. 26 • Copyright © 2008 EBSCO Publishing Inc. • All Rights Reserved
reminder that a culture of candor is an ethical duty in
the best interest of individuals and organizations.
Over the past thirty years, James O’Toole has been
struck by the number of times he found ethical issues
within the corporations he consulted with similar to
those raised by Sophocles. Through his experiences,
he realized that although managers in healthy compa-
nies engage in rethinking their assumptions through
constructive dissent, managers in unhealthy compa-
nies find themselves in difficult situations because
they refuse to do so.
The failure to examine these assumptions can result
in groupthink, characterized by collective self-decep-
tion, which is associated with negative business and
ethical outcomes. It is likely that all organizations
harbor some unexamined assump-
flowing freely in tions. Although these may serve to
bind a group together, when the
They must accept, assumptions are toxic, it can lead
to the group’s demise. Healthy
organizations will challenge and
rethink assumptions to avoid this state of affairs. One
example of achieving the latter is Motorola under CEO
Robert Galvin in the 1980s. During his reign, manag-
ers were rewarded not for maintaining the status quo,
but for challenging assumptions.
Speaking truth to power can be particularly difficult
when it entails admitting one’s own mistakes to a
superior. Fear of admonishment may lead individuals
to avoid admitting such mistakes. These risks associ-
ated with speaking the truth appear to be particularly
poignant among lawyers, accountants, and consul-
tants who quickly realize that providing candid and
objective feedback runs the risk of losing clients. For
example, it takes courage for consultants to reveal to
a CEO that they are being paid too much, because the
CEO is the gatekeeper who determines whether or
not the consultants continue to be employed.
It is clear that today’s society is characterized by
increasing calls for transparency and speaking truth
to power in order to minimize unethical behavior.
However, results of a recent survey suggested that
although over two-thirds of American employees
have witnessed unethical behavior in the workplace,
less than one-third reported the behavior to a supervi-
Page 4
Transparency Warren Bennis, Daniel Goleman, and James O’Toole

sor. What accounts for this discrepancy? Essentially, score. In 2005, the United States was the fourth most
employees avoid reporting the behavior because they transparent nation, edged out by the United King-
do not trust that their employers will respond appro- dom, Finland, and Hong Kong. In contrast, the most
priately. opaque nations included Nigeria, Lebanon, Indone-
sia, and Saudi Arabia.
As O’Toole asserts, “When leaders are candid, open,
consistent, and predictable in their dealings with fol- In China and India, the digital revolution is break-
lowers, the result will almost always be a condition of ing down previously widespread opacity. As Bennis
trust.” In essence, when leaders treat their followers points out, “…the potential power of a billion Chinese
with respect – via treating them with integrity, includ- citizens with Internet access and cell phone cameras
ing them in decision-making, and providing them cannot be ignored, even by a government that has a
with important information – trust is a likely result. long history of holding information close.” Over the
According to O’Toole, “…trust is hard to earn, easy to past two years, China has required the online post-
lose, and, once lost, nearly impossible to regain.” ing of public data such as land use and public health
investigations. In India, farmers are now able to
Speaking truth to power can result in many different
access their land deeds through government-owned
outcomes, both positive and negative. In order for the
computer kiosks, essentially bypassing a previously
act to be virtuous, it should meet several criteria in
corrupt system for obtaining this information. Despite
addition to being truthful. For example, it should do
the promise of these practices, some countries remain
no harm to innocent people, must be the product of
so opaque they could not even be accurately assessed
moral reflection, and must have the potential to result
by the Opacity Index. For example, Myanmar previ-
in positive change. In addition, an individual should
ously shut down the nation’s two Internet providers
not be prompted to speak truth to power out of self-
and disrupted international phone capabilities as a
interest, anger, or revenge. Finally, the message should
means of thwarting protesters.
be revealed by a messenger who
is aware of the potential price he More and more companies are choosing transparency for two
or she may pay for exposing the
reasons: they have less and less choice - and it works.
truth.
Research has shown that collegial collaboration results
The New Transparency
in enhanced transparency, which ultimately results in
In past decades, the degree to which leaders – ranging
enhanced outcomes. To understand the influence of
from CEOs to government officials – behaved trans-
transparency on outcomes, consider the results of a
parently depended largely on their own will to do
2005 international study of corporate transparency.
so. Since the late 1990s, however, the digital revolu-
Researchers discovered that the 27 U.S. companies
tion has caused leaders to realize that transparency
that were listed among the world’s 34 more trans-
is inevitable. In previous eras, an organization’s or
parent companies beat the S&P 500 by 11.3 percent
government’s secrets were safe unless a courageous
during a 12 month period.
whistleblower decided to take incur considerable risk
to expose them. Today any anonymous blogger can Although the digital revolution has left companies
expose such secrets to millions of people in seconds less choice in the matter, an increasing number of com-
with virtually no fear of repercussion. panies are also actively choosing transparency given
such positive outcomes. However, it is important to
It is useful to consider Joel Kurtzman’s Opacity Index,
remember that although the outcomes are worth-
launched in 2001, in order to understand how the dig-
while, the process is not always easy. Transparency
ital revolution has enhanced transparency. Although
requires time, patience, and courage among leaders
transparency is difficult to measure, Kurtzman argued
and followers alike.
that quantifying its opposite – opacity – was feasible.
The index provides numeric ratings of fifty countries Unfortunately, there are also potentially negative out-
in five areas of concern as well as an overall opacity comes associated with transparency. According to

Business Book Review® Vol. 25, No. 26 • Copyright © 2008 EBSCO Publishing Inc. • All Rights Reserved Page 5
Transparency Warren Bennis, Daniel Goleman, and James O’Toole
Bennis, “…there is a downside to the instantaneous
access to all kinds of information that is making
organizations more transparent. The same forces
are fast making privacy a thing of the past.” As an
increasing amount of personal information finds its
way online – whether credit card numbers, health
data, or purchase history at the grocery store – it will
become increasingly difficult to protect it. Not only
can this lack of privacy be embarrassing, but it is also
potentially dangerous. For example, there exist con-
troversial websites that post the names of “rats” who
testify against other people in court cases, and these
individuals live in constant fear of retaliation and
harassment.
However, the same technology that threatens indi-
viduals’ privacy also has the potential to tap into
previously unthinkable levels of collective wisdom.
For example, individuals can now rate restaurants and
hotels online, and these collective ratings have a sig-
nificant impact on commerce. The only problem with
this is that as a consumer of these ratings, it becomes
difficult to differentiate real from bogus reviews and
to distinguish those with true expertise from those
without. The authors assert that although blogs and
other internet sources of information are worthwhile,
in order for them to provide the same quality of infor-
mation as newspapers they need to commit to high
standards of accuracy, fairness, and conduct.
In today’s digital age, it is becoming increasingly
important for individuals and organizations alike to
embrace transparency. Consider the fact that anyone
with a cell phone can now take a picture and trans-
mit it to millions of people around the world within
a matter of seconds using internet-based technology.
Additionally, individuals now possess the potential
to cripple a company by revealing its dirtiest secrets
anonymously through a blog worldwide. As a result of
these and other technological capabilities, companies
who have resisted transparency are being thrust into
an age where they have little choice in the matter.
Not only is transparency becoming increasingly
unavoidable, but it is also essential for organiza-
tional health and success. As Warren Bennis notes in
the preface, “Organizations need candor the way the
heart needs oxygen.” It is critical for organizations
to maintain a healthy flow of information within the
Business Book Review® Vol. 25, No. 26 • Copyright © 2008 EBSCO Publishing Inc. • All Rights Reserved
organization and to the general public. Although cer-
tain information, such as trade secrets, is better left
confidential, companies often fail to be candid with
even the most public and benign information, let
alone embarrassing or unethical secrets. To avoid
the inevitable embarrassing exposure of such secrets,
the authors encourage companies to be upfront and
candid with the general public.
It is clear that our society is becoming increasingly
transparent, and it is equally clear that there is no
turning back. The technologies that have facilitated
this change are here to stay. They may become more
complex, but never less so. As a result, it is easy to
anticipate only a further emphasis on transparency.
Given this state of affairs, individuals and organiza-
tions who create a culture of candor are going to have
that increasingly needed “edge” to survive and thrive
in today’s world.
g g g g
Features of the Book
Reading Time: 6-8 Hours, 130 Pages in Book
In Transparency, authors Warren Bennis, Daniel Gole-
man, and James O’Toole explore multiple facets of
transparency, including becoming a transparent leader,
creating a transparent culture, and living in a transpar-
ent world. Although the authors view transparency as
becoming increasingly mandatory in today’s techno-
logical world, they also question why organizations
and individuals must be forced to embrace something
that is so clearly beneficial for success and vitality.
Thus, their intention is for readers to use their work to
understand these benefits.
The book is arranged in three essays, each of which
addresses a unique issue related to transparency. The
first essay, written by Bennis, Goleman, and Ward Bie-
derman, explores how to create a culture of candor.
According to the authors, this is an urgent dilemma
for leaders to consider given the positive relationship
between transparency and organizational health. The
second essay, written by Jim O’Toole, analyzes one of
the oldest ethical challenges – revealing the truth to
those in power who may not want to hear it. Finally,
in the third essay, Warren Bennis explores both the
Page 6
Transparency Warren Bennis, Daniel Goleman, and James O’Toole

positive and negative outcomes of technology-induced Contents

transparency on our world. Preface
Because of the pervasiveness and relevance of the topic Creating a Culture of Candor
in our society, Transparency is relevant for leaders in
a variety of fields ranging from politics to business to Warren Bennis, Daniel Goleman, and Patricia Ward
education. David Gergen, professor and director of Biederman
the Center for Public Leadership, Harvard Univer- Speaking Truth to Power
sity, noted in his praise of the book, “After watching
James O’Toole
so many American presidents derailed by a culture of
secrecy – Richard Nixon and George W. Bush are only The New Transparency
the most recent – one might imagine that transparency
Warren Bennis
would become the watchword of leaders everywhere.
Alas, it has not…Warren Bennis, Daniel Goleman, and Notes
James O’Toole urge leaders of every stripe to create ‘a
The Authors
culture of candor’ around them. Please give this book
to anyone heading toward the front office, especially
if it is oval.” Because of the impact of transparency on
both leaders and followers, the book also has relevance
for followers, who can learn how to follow better and
speak truth to power when appropriate.
If you are seeking a how-to-manual or step-by-step
guide, this may not be an appropriate book. Although
it does contain practical recommendations, and is sol-
idly based on real-world examples, the authors do not
provide a recipe for becoming transparent. Rather, they
encourage the reader to consider their own capacity to
lead transparently, as well as that of their organization
and the broader culture around them.
The authors recommend that readers follow up on
this work by discussing transparency within their
organizations. This will uncover whether or not their
companies behaves transparently, the structures and
individuals that facilitate and impede transparency,
and a specific action plan for enhancing transparency.

Business Book Review® Vol. 25, No. 26 • Copyright © 2008 EBSCO Publishing Inc. • All Rights Reserved Page 7
Transparency Warren Bennis, Daniel Goleman, and James O’Toole

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