Enhance performance and drive growth through open communication
By Stephanie Ramirez
“As a leader, you’ve been empowered with the responsibility and duty to communicate often and effectively with every stakeholder in the company.” – Clint McKinlay, co-founder, Halversen & McKinlay
“No matter how great we think we are communicating, we are not good enough.” – Paul Adams, owner and president, Adams Resource Group
“When communicating difficult information, it’s essential to focus on the impact rather than getting lost in specifics” – Shellie Sullivan, VP of Business Development, Boards
Trust is a fundamental driver of productivity and growth in any organization. One can just recall headlines over the past few decades to see where deceptive corporate practices not only damaged reputations and eroded community trust but also led to significant declines in sales and employee engagement.
“The Neuroscience of Trust,” a Harvard Business Review study suggests that organizations with high levels of trust experience greater productivity and significantly lower turnover rates. These examples underscore the urgent need for radical transparency. Fostering a culture of trust can enhance performance and sustain long-term growth.
The direct selling industry has not been immune to this epidemic of distrust. The lack of transparency has plagued the industry over the past several years. Reports of misleading practices and broken promises have led to skepticism, leaving many organizations riddled with distrust and struggling to maintain their foothold in the market.
As former GE CEO Jack Welch said, “Trust happens when leaders are transparent, candid and keep their word.”
Unfortunately, the lack of trust has manifested in disillusionment among direct selling representatives and customers alike, resulting in lost sales and tarnished reputations.
When trust erodes, it creates a ripple effect that destabilizes relationships, reduces collaboration, and ultimately hinders performance.
The foundation of any successful organization is built on trust. As Stephen M.R. Covey illustrates in his book The Speed of Trust, trust is not merely a soft, intangible quality but a critical asset that can either propel an organization to new heights or lead to its downfall.
There are companies in the channel that are doing it right though by creating communication strategies that are transparent. These companies are being honest about the things that could affect their field leadership, and they are seeing the positive ripple effect.
Many in the industry believe that keeping consultants informed about product developments, sourcing practices, technology changes, and potential crises as well as company goals can lead to higher morale, increased loyalty, and ultimately better performance.
In fact, according to a Gallup poll, organizations with a high degree of transparency report profit margins that are 21% higher than average.
By openly sharing information, decisions and challenges, organizations can cultivate an environment where trust flourishes.
Balancing Transparency and Strategic Communication
Transparency is often hailed as a crucial element of effective leadership, suggests Clint McKinlay, co-founder of consulting firm Halversen & McKinlay and former CEO of Ruby Ribbon, but the concept can be misinterpreted.
“Transparency is so important, but this doesn’t mean you invite the whole world to sit in on your C-suite meetings,” McKinlay says.
He sees openness as essential, but it must be tempered with discretion. Not every piece of information is appropriate for public or field consumption.
“You wouldn’t share sensitive financial information with the field just because you want to be transparent,” he adds. “There are limits to what should be disclosed. The challenge lies in striking that ‘sweet spot of candor,’ where home office leaders can have open dialogue with field leadership about strategy, trends, and priorities without compromising their organization’s integrity.”
It’s necessary to cultivate meaningful conversations, particularly between C-suite executives and field leadership, he asserts. And one way to do that is having the right kinds of conversations, and in the right way. Rather than relying on sound bites or social media snippets, McKinlay advocates for in-depth dialogues that allow for nuanced discussion on complex issues.
Reflecting on his experience as CEO at Ruby Ribbon, McKinlay recalls the structure he implemented to promote open communication: “Think podcast conversations vs. headlines.” Once a week he would give a small group of leaders at least 90 minutes of open dialogue. He would share what matters right now and then take any questions, concerns, challenges or doubts they had. He would then ask them to stay open and help create solutions.
“Some issues are complex and require a deeper dive to be adequately transparent, and to actually be helpful,” he says.
Comfort in pointing out issues is one side of transparency, and the other side of the coin is a willingness to drive workable solutions, he continues. Organizations need both sides for transparency to bloom. This approach not only enhances transparency but also creates a safe space for much-needed ongoing dialogue.
“Choose eight to 10 people for your top leadership council, not 200,” he notes. “This will help maintain intimacy in conversations and facilitate genuine engagement within these smaller groups.”
He adds that he also made himself accessible through frequent one-on-one conversations, as well as live sessions to larger groups where he could answer questions directly, prioritizing dialogue and solutions over mere disclosure.
“As a leader, you’ve been empowered with the responsibility and duty to communicate often and effectively with every stakeholder in the company,” he says. “And I like to think that high quality conversations are an ideal way to do that, not tweeting or just putting out little comments that can be misconstrued in so many different ways.”
In direct selling, straightforward communication delivered on a consistent basis is essential for building trust and fostering buy-in, according to Paul Adams, owner and president of Adams Resource Group, a growth strategy and organizational development consulting firm for the direct selling industry.
“I’m a giant fan of building trust and ‘buy-in’ via clear and consistent communications,” Adams says. “Every major initiative should be communicated from the top down.”
He insists that corporate executives must present a united front, and they must all be in agreement on the initiative so that they can build the same buy-in with their teams. This alignment is crucial for successfully engaging field leaders, he says. Then and only then can you begin to build the same support with field leaders.
“It begins with the CEO clearly casting a vision,” Adams says. “Here’s why we’re doing this. This vision must then be effectively communicated down through the corporate hierarchy, from the C-suite to the call center, ensuring that every level understands the purpose and benefits of the changes being made. You don’t want any dissenting voices or naysayers at the corporate level as this can create significant distrust among distributors.”
He says establishing a strong foundation of internal communication is essential to bridging the gaps between the corporate team and the field. Leaders must ensure that everyone is aligned and understands the rationale behind new initiatives.
This commitment to transparency requires active engagement from core leadership groups who will ultimately cascade the message down to their teams, he adds. By fostering a unified approach to communication, organizations empower their members to confidently support changes, reinforcing trust and collaboration throughout the entire organization.
Adams says organizations often underestimate the challenges of effective communication though.
“No matter how great we think we are communicating, we are not good enough,” he adds. “When I ask a group about communication practices, many express a need for improvement—an indication that transparency may be lacking.”
To enhance engagement, Adams emphasizes the importance of ensuring that field leaders feel their perspectives are valued during significant organizational changes.
While he acknowledges that these leaders may not fully grasp the complexities of running a direct selling company, he insists that they need to know their interests have been considered in the decision-making process, which should ultimately support the organization’s long-term objectives.
Corporate Transparency Boosts Field Performance
Transparency plays a crucial role in boosting field engagement and overall performance within direct selling organizations, according to former chief sales officer at Urban Retreat and ONEHOPE Wine, Shellie Sullivan. She is now vice president of business development for Boards, a technology solution designed to equip and empower direct sellers to be more transparent.
“When there’s a lack of transparency, the field knows it, and there is a lack of trust,” she asserts. “This erosion of trust creates significant distractions, causing team members to hesitate and question their roles and the direction of the organization. The resulting drama and misunderstandings can detract from their focus, ultimately undermining their ability to drive business success.”
Sullivan further emphasizes that when field leaders perceive a lack of openness—whether through miscommunication or withholding information—they become disengaged.
“If you’re holding back or you’re miscommunicating or you’re not being completely transparent about what’s happening, they know it,” she explains. “This distraction prevents them from fully optimizing the business opportunity at hand. Fostering a culture of transparency is not just beneficial but essential for enhancing performance in the field.”
Sierra Whitener, former chief sales officer of lifeRegen and CEO of Dujami Boutique, reinforces that transparency and effective communication with field leadership are crucial for building trust and enhancing overall company performance. Whitener recalls the outcome of a company product launch she was overseeing that highlights the importance of addressing field concerns.
“We had concerns regarding a compensation plan that required a substantial minimum for just one product,” Whitener explains. “By actively engaging with both the compensation team and the CEO, I insisted that the field’s voice needed to be heard and considered.”
After gathering this valuable feedback, the team decided to adjust the compensation structure to better align with the needs expressed by field representatives, she adds.
“We were able to go back and say, ‘you spoke, we heard you,’” Whitener recalls. “This acknowledgment not only reassured the field but also strengthened their trust in the organization. As a result, engagement levels rose, leading to improved motivation and performance across the board. The organization grew by 1,000 in a short time frame.”
This example highlights how transparent communication and active listening contribute to meaningful performance improvements.
“When team members feel that their input is valued and addressed, their commitment to the organization grows,” Whitener adds. “The act of listening and making necessary changes based on feedback is vital for achieving success in direct selling. By fostering a culture of openness and responsiveness, companies can build stronger relationships and ultimately drive sustained growth and enhanced overall performance.”
Communicating Difficult Information with Empathy and Transparency
Effectively communicating crises to field leadership requires a careful balance of transparency and empathy. As Sullivan notes, corporate leaders must navigate the complexities of sharing information without compromising sensitive details.
“When communicating difficult information, it’s essential to focus on the impact rather than getting lost in specifics,” she states. “You don’t need to share every detail. Instead, help them understand what to expect. For instance, if the website is down, clearly communicate that their numbers may be incorrect for a few days and that manual fixes are on the way. Managing their expectations is crucial, as it prevents fear and rumors from taking root, even if the news is hard to deliver.”
Balancing the need for confidentiality with the demand for transparency comes down to understanding what your field needs to know, she explains. This approach not only fosters trust but also empowers field leaders to make informed decisions during challenging times.
Sullivan recalls a significant crisis in one of her previous roles when she witnessed firsthand the detrimental effects of a lack of transparency.
Initially, the leadership hesitated to be transparent, which only heightened anxiety among the field, she shares. However, by stepping in to craft clear messaging, she helped facilitate open discussions with field leaders, alleviating fears and rebuilding trust.
That’s why Sullivan advocates for a team-oriented approach in decision-making about what to communicate.
“These decisions should never be made by one person,” she said. “Alignment within the corporate team is crucial. Ensuring that everyone is on the same page minimizes the risk of mixed messages and reinforces a unified front during a crisis.”
By prioritizing empathy and transparency in their communications, leaders can strengthen trust within their organizations, ultimately fostering resilience and commitment even in the face of adversity.
Technology plays a crucial role in maintaining transparency between leadership and field representatives, especially during a crisis or when announcing big changes, opines Sullivan.
Using tools that offer real-time communication, access to consistent, accurate information and two-way communication with the field are vital at this time, even more so when sharing difficult news.
Measuring the Impact of Transparency
Measuring the impact of transparency in communications is essential, yet it can be challenging, shares Adams. Often, the field expresses strong enthusiasm, claiming “they love it” and “they are all in,” but this optimism frequently lacks supporting data.
“A confused mind often resorts to inaction rather than seeking clarity,” Adams says.
To truly assess the effectiveness of transparent communication, he suggests company executives should ask critical questions: How have sales and recruiting been affected? Did our messaging provide momentum, or did it create confusion and stagnation?
Additionally, monitoring customer service logs and tracking common topics can provide valuable insights into the effectiveness of a company’s communication strategies.
Transparency Builds Relationships
Trust is a foundational element for any successful relationship or organization. Being transparent can significantly enhance trust between corporate leaders and field representatives. By fostering an environment of openness, organizations not only empower their teams but also drive performance and engagement.
By prioritizing transparency in their communication strategies and openly sharing information, decisions, and challenges, organizations can cultivate an environment where trust flourishes. Embracing radical transparency not only enhances accountability and engagement but also serves as a cornerstone for building lasting relationships in the direct selling industry.