The Trust Equation: Communication and Transparency for Business Leaders

What qualities does one need to be an effective leader? A question that has been asked by so many. The qualities that set successful leaders apart go beyond strategy and decision-making. Effective leaders cultivate environments rooted in trust, clear communication, and empathy, ensuring that their teams are motivated and resilient. Insights drawn from an interview that our CEO Walter Scremin had with Carlton Football Club’s Senior Assistant Coach, Ash Hansen, reveals that encouraging transparency, maintaining strong relationships, and delivering supportive feedback are essential practices that create thriving organisations. This blog delves into key leadership lessons that emphasise these principles, offering practical approaches for leaders and stakeholders to drive meaningful progress and build strong, cohesive teams.

The Power of Transparency in Leadership 

Transparency is an important pillar of effective leadership. As discussed in the recent conversation, it was noted that “transparency is a great default position to hold in any company, organisation, or leadership position, because you want to own the trust of the people that you’re leading.” This insight underlines the value of openness in fostering trust. When leaders are transparent, their teams gain clarity, feel more secure in their roles, and are better able to align their efforts with organisational goals.

However, the level of transparency shared is not exactly black and white. Not every situation warrants complete openness, especially when sensitive information is involved. Ash highlighted this balance: “There are some conversations that you don’t need to know because of confidentiality, whether it be medical or personal matters.” Respecting these boundaries while maintaining a general culture of transparency can enhance trust without compromising ethical standards.

Balancing Communication and Empathy 

Communicating clearly, especially when delivering difficult news, is a skill that leaders must develop over time. Ash mentioned, “I’ve got better at them. It’s certainly a skill. The more you do, the better you get.” Yet, no amount of experience can make difficult conversations easy. Effective leaders recognise that clarity, timing, and tone are critical when approaching such discussions. “The setting that you’re in is important,” as one leader noted, emphasising that the environment where feedback is given can affect how it’s received.

Moreover, empathy is essential when delivering tough feedback. As they explained, acknowledging the difficulty of the conversation upfront can help set the tone: “Pre-facing the point straight away by acknowledging this is going to be a difficult conversation … and then determining what level of detail we need to go into” can ensure that the message is both heard and understood. This approach helps team members process initial reactions before focusing on actionable plans, reinforcing that the feedback comes from a place of care.

The Importance of Follow-Up and Support

Initial conversations often trigger an emotional response, which can make absorbing details challenging. As pointed out, “We can’t underestimate the impact of the initial shock of any communication, what it does for our minds, our brains, but then how important follow-up is.” Secondary conversations and support systems are vital for reinforcing the initial message, offering clarity, and demonstrating that leadership genuinely cares about employee wellbeing.

Leaders must take responsibility for ensuring this follow-up. Whether it’s through a personal note, a text message, or a face-to-face follow-up, showing that the conversation was not a one time event but part of a continuous support system can solidify trust and commitment. 

The Role of Relationships in Effective Leadership 

Relationships are fundamental in leadership, especially when navigating difficult situations. “The stronger the relationship, the easier the conversation,” Ash stated, highlighting that trust built over time can make even the hardest discussions more palatable. This trust ensures that messages are not misinterpreted and that feedback is received in the intended spirit.

A strong relationship framework prevents messages from becoming distorted. “Messages then don’t get lost in interpretation,” Ash noted. The trust established over time ensures that team members understand that difficult conversations come from a place of care and strategic intent.

Clarity in Communication Techniques

 Ensuring that messages are clear and understood is a constant challenge. Ash shared a practical technique: “What are you taking out of this conversation, or what did you hear?” This strategy helps confirm that the main points were understood as intended. Using tools such as performance diaries where team members can jot down key takeaways also creates clarity.

Feedback loops are important. In collaborative environments, leaders often need to verify that their messages align with what their teams have comprehended. “We’ll start the conversation with, ‘Okay, what did you get out of your conversation?’” explained Ash. This step ensures that communication is effective and opens the door for additional follow-up if needed.

Empowering Leaders with High Standards and Humility 

The mark of a great leader lies not just in their communication skills but in their dedication and humility. Leaders who set high standards and put in the work earn the admiration and trust of their teams. “He protects that quite aggressively,” said Ash about their peer’s commitment to maintaining a high-performance environment.

Equally important is the humility to value every team member. “He wants to do it for others,” noted one speaker, reflecting on a leader’s dedication to fostering shared successes and memories. This humility ensures that leadership is viewed as a supportive role rather than a position of authority, encouraging others to model these traits in their own practices.

Leadership in business, much like in other fields, requires a balance of transparency, empathy, strong relationships, and clear communication. Embracing these principles creates an environment where trust thrives, difficult conversations become opportunities for growth, and teams feel valued and empowered. These leadership lessons remind us that true leadership is built on continuous improvement, mutual respect, and unwavering commitment to the well-being and success of the team.