

Ask HN: How much transparency should there be in a startup culture? - AndrewJ

When a company is in a growth phase (start-ups or expanding companies), how much transparency should there be?<p>How much transparency have some of you seen in your experience?<p>When I say transparency I refer to cash flow, operations, etc. as well as creating a corporate culture of mutual respect instead of a domineering hierarchy of leadership.<p>From my perspective I see growing companies having a need to be open and honest with their stakeholders since they're being asked to embed work into their lives to a much greater detail then usual.<p>Thoughts?
======
TrevorJ
What dimension of transparency you are talking about?

It sounds as if you are speaking about internal transparency between the
founders and staff, as well as asking about the relationship between the
startup and VC/investors. These are two very different things - Investors are
going to have a pretty rigid set of expectations that will probably vary from
firm to firm - there are probably also certain legal requirements that need to
be fulfilled depending on how the startup is structured legally. I can't speak
to that specifically because I'm not on the biz side.

Internally, my personal opinion is that a (traditional)startup is built with
blood sweat and tears. You can't afford to have a hierarchy of haves and have-
nots when it comes to buy in. Everybody needs to have a voice, and everyone
needs to be enabled to invest emotionally in the process. You can't buy the
kind of passion that comes from being personally invested in a company or
project. Lack of transparency internally creates an economy of knowledge
power, and puts up walls that don't need to be there. Of course, there are
times when some specifics can't be common-knowledge, but I do believe that
there should be a culture of openness at a basic level.

~~~
AndrewJ
Absolutely referring to internal transparency.

The area I work in rarely has companies that offer employees that emotional
connection.

It's horrid when a company can have the upper-ups say the start-up is low on
funds but afford a very affluent lifestyle.

------
wpeterson
You should share everything but individual salaries.

If there's good or bad financial news, the best thing you can be doing is
having public discussions about it.

If you're making decisions about the direction of the company, everyone should
get to have their say (not that you have to be a democracy).

~~~
AndrewJ
thanks (:

------
malandrew
Here's my basic maxim:

"Share as much as you can. Not as little as you must."

What matters most is not what you share, but how you share it.

For example, you can be transparent with bad news, but it's best to present
that bad news as an opportunity or at worst a challenge to be overcome.

------
limedaring
I'll agree with the anecdote of sharing as much as possible, but be aware that
if an employee has access to monthly revenue and a good idea of profit, you
can't get away with paying less than market rate. Experience from being an
employee at my last company. ;)

