On the Road to Find Out… Transparency and Just Culture Offer Significant Return on Investment

M any contemporary management approaches call for an increase in transparency in the activities of management and staff. This is a dramatic shift from the days when the carrot-and-stick approach to management was an executive’s most reliable tool to move an organization forward. But how much transparency is needed, and at what point can such transparency compromise the organization in terms of its competitive position—or its liability exposure? How will efforts in transparency be rewarded for the healthcare executive who has the courage to become the champion for change? The numerous issues that come to bear on this matter call for leaders to approach transparency with caution, diligence, and, ultimately, compassion. Embracing transparency enables an organization to conform to market expectations while satisfying the demands of regulators. However, there’s a better reason to make this commitment. The single greatest argument for increased transparency is that it reveals improvement opportunities in the organization. If hospital executives don’t identify these opportunities, they risk a false sense of security and a blind spot to emerging threats. An organization that fully embraces transparency can undertake the important work of performance improvement—not only doing things right, but doing the right things. Calls for transparency are not limited to the healthcare industry; Federal Reserve Chairman Ben Bernanke conducted the first press conference in the bank’s history on April 27 of this year. Unfortunately, many healthcare cultures aren’t prepared for a shift to transparency. Transparency exposes both good and poor performance, and employees who fear punishment will not readily heed the call for increased reporting of performance measures. Moreover, employees will be reluctant to expose their peers if it leads to scrutiny of performance. How do healthcare executives overcome these barriers?