Leading with Transparency: Sharing the Right Things at the Right Time (and so on...)
Daily, I find myself in looping conversations about transparency—what it really means in a start-up and how much is too much.
Some broad themes that have come from these discussions are:
Transparency can create more questions and distractions than necessary.
Being a transparent leader doesn't mean giving people a play-by-play of your every move.
There's a fine line between transparency and over-explaining—cross it, and you frustrate others.
Leaders are often told that transparency builds trust, but many struggle with how much and what to share. Over-explaining can lead to frustrations; too much information can be overwhelming, while too little information leaves people guessing.
The challenge? Striking the right balance between openness and clarity—without feeling like you owe everyone an explanation for every decision.
Based on the countless hours spent discussing (and debating) with clients, partners, my team, and personal networks, here is where I have landed so far and what I have seen work in a start-up environment.
Share the 'Why,' not just the 'What'—transparency doesn't mean sharing everything; it's about sharing what matters.
Start-up teams thrive on information, but transparency doesn't mean giving everyone access to every detail—it means sharing the information that truly matters. Leaders should explain the reasoning instead of just announcing decisions to build trust and alignment. For example, rather than simply stating, "We're shifting focus to B2B," frame it with context: "We've seen higher retention and revenue from this segment, so we're doubling down on what works. X and X will lead the effort." This approach helps employees connect the dots between strategy and execution, reducing resistance to change and ensuring everyone understands the bigger picture.
When people know the why, they're more likely to stay engaged, feel valued, and contribute meaningfully to the company's goals.
If people don't understand the context, they will feel disengaged, their sense of ownership will be impacted, and they will struggle to make informed decisions.
Make financial and business metrics understandable—because employees care more than you think.
Start-up teams are (typically) deeply invested in the company's success, and transparency around financial performance isn't just a nice to have—it's a critical driver of motivation and alignment. While financial updates are often reserved for Founders, C-level, and investors, employees also benefit from understanding key metrics that shape the company's future.
They (should) want to know:
How is the business really doing? Are we on track for growth? What do investors care about? What are they asking in board meetings? How did the board meeting go? How is our fundraising progressing?
Keeping people informed about these aspects helps them feel like stakeholders, not just employees. Instead of shielding financials as "executive-level" information, break down key metrics in a way that's relevant to everyone. Revenue, burn rate, runway, hiring plans, and profitability (when relevant) milestones should be part of regular company-wide updates.
Transparency with the numbers doesn't mean sharing every detail—it means giving people enough information to understand the broader picture.
Make your calendar visible (but not completely open)
In a fast-moving start-up, people need to know when you're available without feeling like they're guessing or interrupting.
Keep your calendar visible to your team so they can see when you're in meetings, deep work, or personal commitments—but set clear boundaries on what can be booked and when.
Set boundaries while staying accessible – Visibility doesn't mean availability 24/7. Block out strategic work sessions, family commitments, or breaks so people understand when not to interrupt.
Encourage smart scheduling – When your team can see your availability, they can schedule meetings more effectively without needing to ask, "When is a good time?" every time. It won't always work, but it should empower your team to be self-sufficient.
Make key meetings open where possible—Not every leadership meeting needs to be private. Where feasible, consider making some meetings open to relevant team members so they can listen in and gain insights into decision-making. This helps foster transparency without requiring constant check-ins. Having people observe meetings is a valuable way to include them in the discussion and give context without having to do the extra step of sharing a follow-up.
Balance privacy with transparency – Some meetings are sensitive (HR discussions, investor talks, performance reviews) and should remain private. But when everything is hidden, it creates a closed-door culture that fuels uncertainty. Make a conscious decision about which meetings should be visible and which must remain confidential.
Wrapping up...
Transparency in leadership, particularly in start-ups, isn't about overexplaining or overwhelming people with every detail—it's about sharing the right information at the right time in a way that fosters trust, alignment, and ownership.
In a start-up, we look for people comfortable with uncertainty, but that doesn't change the fact that employees crave clarity on company direction, key decisions, and financial health.
When we can strike the right balance between openness and discretion, we can empower teams to operate confidently rather than hesitate. The goal isn't to eliminate every question or doubt but to create an environment where people feel informed, engaged, and trusted to contribute. It won't always work, but it definitely can't hurt.
Need help navigating communication at your start-up? Get in touch - kate@cultivate.asia
