The Transparency Trap

Ethan  Bernstein

Article | Harvard Business Review | October 2014

The Transparency Trap

Abstract

To get people to be more creative and productive, managers increase transparency with open workspaces and access to real-time data. But less transparent work environments can yield more-transparent employees. Employees perform better when they can try out new ideas and approaches within certain zones of privacy. Organizations allow them to do that by drawing four types of boundaries: around teams of people (zones of attention), between feedback and evaluation (zones of judgment), between decision rights and improvement rights (zones of slack), and for set periods of experimentation (zones of time). By balancing transparency and privacy, organizations can encourage just the right amount of "deviance" to foster innovative behavior and boost productivity.

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Citation:

Bernstein, Ethan. "The Transparency Trap." Harvard Business Review 92, no. 10 (October 2014): 58–66.

Makena Lane has a gift for producing results, even in the challenging retail context of the 2010s, but she also has a knack for “ruffling some feathers” in the process. Recruited to a Fortune 500 grocery and pharmacy retailer after climbing to Associate Principal in McKinsey & Company’s retail practice, she successfully grew their high-margin yet highly competitive beauty category beyond anyone’s expectations. Yet then she was passed over for promotion, receiving the feedback that her “concerning” and “abrasive” interpersonal style had made it impossible to promote her. Instead of a promotion, Lane is offered an executive coach.

The case offers a uniquely in-depth (and intimate) view of how Lane approaches the one-year coaching engagement and the outputs from it, including her pre-coaching self-reflection, agreed-upon purpose and outcomes, 360 feedback, the coach’s advice to her, an in-depth coach’s final report, and Lane’s one-pager of lessons learned.

At the end of the year of coaching, Lane’s boss unexpectedly departs, leaving Lane with a direct path to promotion. Senior leadership now once again faces the difficult decision of whether to promote Lane, this time based on their assessment of whether Lane has authentically transformed through coaching or just taken superficial steps to check off boxes on the way to promotion.

In early 2020, the world began what is undoubtedly the largest work-from-home experiment in history. Now, as countries reopen but COVID-19 remains a major threat, organizations are wrestling with whether and how to have workers return to their offices. Business leaders need to be able to answer a number of questions to make these decisions. Primary among them is “What impact has working from home had on productivity and creativity?”

Case | HBS Case Collection | June 2020

RBC: Transforming Transformation (A)

Ethan Bernstein, Francesca Gino and Aldo Sesia

In 2017, the Royal Bank of Canada (RBC), a Canadian financial icon, mandated a swat team of “enablers of collaboration” (their job description) to support the personal and commercial bank in the enterprise-wide RBC Cultural Transformation initiative. Historically, personal and commercial banks (P&CB) maintained long relationships with their clients who tended to do most if not all of their banking with one bank. However, by 2017, industry-wide change was well underway as switching costs had become negligible if not non-existent. New entrants were disrupting the banking industry as digitization allowed upstarts to break through long-standing barriers to entry. RBC’s Cultural Transformation, intended to reposition the enterprise for the “new normal” in the financial industry, included the creation of this team of collaboration enablers (called Operations Transformation or OT) to drive efficiencies across operations within the current fulfillment operating model and importantly to envision and enable a new digital operating model where people only intervened in a transaction when there was an exception, i.e., a transaction that fell outside the technology’s capabilities. OT was tasked with enabling—through collaboration and without radical surgery—the day-to-day optimization of P&CB fulfillment activities and facilitating major change in the way work was done. At the time of the case, eighteen months in, the team was seeing mixed results, which deeply troubled its leadership. Questions abounded: Was it foolish to try to enable major change through collaboration without upending the traditional RBC organization with more radical approaches? Or was the OT group not structured correctly to enable it—and if not, what changes should be made? Was a different collaboration model needed? Internally, some questioned whether the group was optimally located within the organization (as part of the back office organization structure), since the back office was often viewed as more of a servant to the front office. Others wondered if OT’s internal structure was getting in the way of its purpose. The case examines three major transformation projects that OT is collaborating on with colleagues from Banking Operations and Risk Operations to understand what contributed to less than hoped for results. With this information OT leadership needs to think about changes, if any, moving forward from a structural, organizational, and capability perspective.

Keywords: Service Delivery; Technology; Transformation; Change Management; Collaborative Innovation and Invention; Innovation and Management; Decision Making; Human Resources; Management Systems; Organizational Design; Organizational Structure; Groups and Teams; Management Teams; Banking Industry; Financial Services Industry; Canada;

Citation:

Bernstein, Ethan, Francesca Gino, and Aldo Sesia. "RBC: Transforming Transformation (A)." Harvard Business School Case 920-008, June 2020. View Details

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