LMW Blog

Monthly Archives: June 2014

Published by .

What is transparency and why is it so important that your organization have clear communication with your investors? You investors need to know that your organization is open and honest about where the money goes that they are giving. If the investor has designated his/her money for a specific project, then there should be clear and regular communication to that investor about how the money is being spent.

The essential characteristics of being transparent are:

  1. Investors should be given the information they need to clearly understand the relationship between the investor and the organization.
  2. This will avoid any needless surprises.
  3. Any concerns that do exist can be easily dissuaded.
  4. All communications must be consistent both content and process.
  5. Expectations are created that will in turn build trust.

People in particular dislike surprises and investors in an organization like them even less!  There should be no hidden agendas and all communications should be accompanied with the information required for full disclosure to the investor. Accurate information will indicate to the investor that there is open clear collaboration and a collective decision making process.  All of this lends itself for free and open exchange that creates trust towards the organization. For any organization to be successful, they must ensure that there is clear line of communication and insight into the organizations strategy and performance whether the news is good or bad.

Communications should be consistent, honest, and a clear indication of where the organization stands at any given point in time. Inviting your investors to be a part of the your organization by providing them with interesting and compelling content id essential.  There are times when less is better; however, to have full transparency, more is better.  Make the time and effort to really give your investors all the necessary information they need to really become a part  of your organization and eventually have them become ambassadors for your organization.  This provides a Win/Win for everyone.