Transparency - Marketing CEO Dave Balter on achieving the corporate full Monty - Sun and Planets Spirituality AYINRIN

 Transparency  - 

Marketing CEO Dave Balter on achieving the corporate full Monty - Sun and Planets Spirituality AYINRIN

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Summary.   

The founder and CEO of BzzAgent, a word-of-mouth media company, believes strongly in radical corporate transparency. In practice that can mean frank self-examination in his blogs, publicly posting his company’s sales presentations, and rotating an executive office space among employees at every level.

Dave Balter, the founder and CEO of the word-of-mouth media company BzzAgent, wants you to see his company naked—even the ugly bits. His problem: Achieving that wind-on-bare-skin feeling gets tougher as the company becomes better established. With 90 employees in Boston, New York, Chicago, and London—and clients including Philips, Dunkin’ Donuts, and Barilla—the firm marshals nearly 500,000 volunteer “buzz agents” to talk up products in exchange for perks and gifts. Balter is passionate about the power of word of mouth and equally so about what might be called radical corporate transparency.

What’s an example of your firm’s extreme transparency?

A guy outside the company called me something that would be unprintable in HBR, and I wrote about it in a blog that anyone can read. I said something like “Maybe he’s right; maybe I am what he called me.” That post really took off—it got lots of comments. Another time, someone in the company blogged about an awkward moment over whether he or I would pick up the tab for lunch. His perception was that I was being cheap. I love that kind of post. Clearly, some things are off-limits to transparency—certain types of personal and financial information, anything related to a nondisclosure agreement we’ve made. But my view on blogging is if the writer is getting the chills—hovering over the mouse and thinking, Should I really send this?—then it’s probably going to be a good post.

Our attempts at transparency go beyond blogging. Most companies consider their internal presentations confidential; we publicly post our PowerPoint decks about sales presentations, for example. If a competitor wants to see our slides, so what?

What’s the logic behind this mind-set?

For one thing, I’m fascinated by the petri dish that is corporate life, and I like to blog about it and experiment with it to better understand it. For another, there are practical reasons why a marketing company like ours should be provocative: Members of the press read the blogs, and the posts generate publicity.

But there’s much more to it. We’re trying to change how corporations operate. I once worked for a consulting firm where even though I was doing a great job, I was reprimanded for breaking unwritten rules about who was supposed to communicate with whom. I never forgot that. I realized that companies put rules into place to hide their ideas. They think the rules give them control over people and markets. But that’s totally untrue today. There are so many communication routes that you can’t possibly control the information flowing through them. Furthermore, attempts at secrecy prevent the company from making use of those information flows. You can’t always foresee the benefits of letting ideas out into the world, but they often far outweigh any harm that may result. Comments on some of my posts have given us valuable answers to questions we’ve raised, such as what type of person we should hire at this point in our growth as a company.

Is extreme transparency a luxury that only a small firm can indulge in? Will you be able to keep it up as the firm grows?

It definitely gets more challenging for me to stick to my transparency vision as the firm expands. More and more, I have to balance the ideas in my head against the wants and needs of people around me. For example, when the company had to use the corporate blog to communicate with the volunteer agents about a technology change that would affect them, the blog became, in effect, a forum for agents. They steered it away from the subject of the company’s internal workings and insisted on writing about such things as agent rewards. That was really frustrating. But I’m finding other ways to explore transparency. For example, when one of our executive office spaces opened up, we decided to offer it on a weekly basis to any employee, no matter his or her role, level, or tenure. I’m interested in understanding how offices motivate or demotivate people—some employees feel lonely in them—and how the status of having an office affects the occupant’s interactions with others. Even if the doors are glass, there’s something inherently nontransparent about offices. So are they good or bad for a company? We’re trying to find out. 

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