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The Dark Side of Transparency

Mckinsey & Company explores the pros – and now- the previously overlooked cons of organizational transparency within the business world. When thinking of buyers and sellers rating each other on eBay, Airbnb, and Uber – transparency (sharing information freely) in the business world is generally considered a good thing insofar as accelerating information gathering and helping along smooth coordination. However, there is also a “dark side” to transparency that ought to be considered. For instance, problems in the form of information overload and the creation of endless debate and second-guessing of senior executive decisions. High levels of visibility can also reduce creativity as people fear the watchful eye of their superiors, and the open sharing of information can backfire in more ways than one…

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