“Leaders have talked about transparency for a long time, but it's never been more important than it is now,” says Quint Studer, author of the new book Straight A Leadership: Alignment, Action, Accountability. “Remember, we share information with employees for a couple of reasons: One, it's the right thing to do; and two, it's good for business. And most companies can use every possible edge these days.”

Companies with cultures of openness and free-flowing information fare better in difficult economies. That's because (among other benefits) transparency helps employees stay connected to financial big picture, reduces complacency, sparks creative solutions, creates organizational consistency and stability, and leads to faster, more efficient execution.

Here's how you can create a more transparent organization:

* First, make sure senior leadership is aligned. Does everyone see the external environment the same way? Does everyone understand organizational goals and plans? Does everyone agree on what success looks like? If not, it's time to remedy the situation. “Alignment is most important at the senior level because all information cascades downward from it,” Studer says. “If one senior leader is out of sync with the others, then everyone under her is going to be out of sync. In a big organization, that could be hundreds of people.”

* Close the perception gap between senior leadership and middle managers. Senior leaders generally have a pretty clear grasp of the real issues facing the organization. They are steeped in these issues every day. Mid-level managers — who, after all, are busy managing — don't always see things the same way. The only solution is for senior leaders to relentlessly communicate the issues to them. “ If you're a senior leader, it's critical to make sure the people under you understand the big-picture issues and their implications,” Studer says. “It's one of the most important parts of your job.”

* Help people understand the true financial impact of decisions. Get comfortable framing all major decisions in economic terms. If a manager wants to spend money on something — a new piece of equipment, a new employee, a salary increase — she needs to be prepared to explain in financial terms how it will pay off for the company. Employees, too, need to understand the real cost of mistakes or lapses in productivity as well as the potential positive impact of doing things in a new way.

* Put mechanisms in place for communicating vital issues to frontline employees. People aren't going to pick up on what leaders want them to know by osmosis. You need to tell them clearly, succinctly and often. That means putting in place a system, or a series of systems, to ensure that the transparency value gets translated into action.

* Prepare managers to answer tough questions. If a manager tells his employees the company is cutting back on overtime, he'll almost certainly hear questions such as: “If money's so tight, how can the company afford the new construction project?” Or “I depend on my overtime hours as part of my salary. Will everyone's salary be cut?” The manager needs to know ahead of time exactly how to answer so that he won't blurt out a we/they perpetuator such as: “Sorry, that's the orders from the top.”

“Anticipating tough questions, formulating the right key words, and sharing them with leaders at all levels allows everyone to answer them consistently," Studer says.

* When you have bad news, treat employees like adults. Once a tough decision has been made, share it with everyone immediately. Don't sneak around behind closed doors and certainly don't lie. “Knowing what's happening, and what it means, is always better than not knowing," Studer says. “And often, what people are imagining is worse than what's really happening.”

* Keep people posted. When something changes, let them know. This builds trust between leaders and employees and keeps them connected to the big picture.

“Be sure to share any good news you get,” Studer says. “Transparency doesn't mean ‘all bad news, all the time.'”

Quint Studer formed Studer Group, an outcomes firm that implements evidence-based leadership systems that help clients attain and sustain outstanding results. For more information, visit www.studergroup.com.