Here’s a very good article about tough business times and candid, transparent management and communication, written by Simon Baker on his blog. Check it out !
I can imagine that it is not always easy to be transparent. If you give direct information, you should be prepared for direct questions and be able to answer them honestly. You’d better not have messed up anything yourself!
This all being said, I like the idea, and I actively apply transparent communication in my web agency company VAlain SA . For instance, the monthly financial reports are published to our team Google Docs account as soon as they’re available, so that the whole team has a very open and clear view about the company’s financial situation. They can even see if and when I take cash out of the company – which I haven’t done so far. Let’s keep the baby growing a bit…