January 11, 2008, Newsletter Issue #35: How Transparency Goes Beyond Human Relations

Tip of the Week

Cognos.com Tip: The subject of transparency is a critical component of HR reporting. Transparency refers to that level of openness in business or organizational operations to ensure that government regulations and ethical standards are met and adhered to. But transparency also transcends the HR world, as discussed by business strategist Don Tapscott, in “The Naked Corporation” in an interesting discussion in a white paper published by the Cognos Corporation in 2005, entitled “Performance Management in the Age of Transparency, Why Performance Management Now, How to Make It Happen.”

Tapscott, a renowned business strategist, observes that since we are in a new era of transparency, all companies are “going to be naked.” So, he concludes, if you are going to be naked, it’s better to be buff! If you are wondering how the need for transparency affects HR, consider the four major transparency drivers.

·Technological drivers: Information is more readily available because of advances in data and voice communications that promotes improved human interaction through free-association and self-organization.

·Economic drivers: The warps and wefts of functional and transactional business networks are replacing traditional vertical integration models. Company-to-company transparency is, thereby critical to reducing transaction costs and encouraging performance-based functioning of networked business models.

·Demographic drivers: Recent generations are superior to their parents as information users and processors. Furthermore, they are accustomed to interacting with technology and information rather than serving as passive recipients.

·Socio-political drivers: “People don’t turn to their governments to solve problems. They self-form,” observes Mr. Tapscott. They often appear to be organizing against government. Although recent legislation (such as Sarbanes-Oxley) is old-school regulation, some aspects aimed at delivering greater transparency is, therefore, reflective of this driver.

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