"It is important to remember that in start-ups and small companies, the employees are often taking on as much risk as management by signing up to be part of the team, whether it be personal, financial or career-related. By committing to share somewhat sensitive information from time to time, it lets the rest of the team know that the leaders trust, respect and view them as equally important to the overall success of the company. This transparency breeds loyalty to the company’s success throughout the organization. Employees in transparent cultures worry less about trying to position themselves as part of the inner circle, freeing them up to tackle the challenges facing the company."
Read the full article by David Frankel on Harvard Business Review.