To misquote Billy Shakespeare: “To disclose or not to disclose, that is the question.” Troy recently received an email from someone expressing concern about the practice of companies “buying leaders.” I’ve written in the past about the practice of companies offering special sweeteners for top performers. In the video below, Troy says the lack of transparency creates “an integrity issue” and cites a book on Integrity by Henry Cloud. Troy says when there’s a lack of information, the “integrity of the whole” is questioned, which threatens to undermine the reputation of the industry we all fight hard to protect.
Under the video, I list 5 reasons why Troy is wrong and why more disclosure IS A TERRIBLE IDEA!
(be prepared for sarcasm)
5 reasons why more disclosure IS A TERRIBLE IDEA!
1. It gives prospects an extra factor to consider when making a decision
When you need people to buy into the character of the leader before joining, opening the door for questions on motive is a non-starter.
2. Prospects will reach crazy conclusions
If there’s a “special deal” that’s available only to certain people on stage, prospects might say, “He’s not here for the product, he’s here for the money!” Prospects should never engage in this line of thought.
3. It casts a cloud
When the leader is talking about the amazing properties of product X, prospects might naturally be distracted with the fact of the “special deal” they’re never going to get.
4. It’s nobody’s business!
Leaders drive the numbers, build the communities and should be allowed to enjoy the fruits of their labor. So for all the whiners that want more transparency, go build a bigger business and negotiate your own deal!
5. It’s the law
And laws are boring.
Take the “special” out of “special deal.” Instead, publish a unique reward whereby ANYONE can qualify if they hit certain metrics within a certain timeframe. As an example, create a bonus whereby someone that climbs the charts fast i.e. Diamond in two months, give them a continuing reward i.e. pay them an extra 2% on the gross revenue they generate. Make these rewards public. And since they’re available for everyone, and they’re fully disclosed, they’re no longer “special.” Once the company is seeded with enough talent, they can shut off the reward and honor the terms with their top leaders.
The word “Transparency” should be more than a buzzword designed to foster trust. Instead, it should be part of a broad commitment to excellence and integrity. When there’s trust in the marketplace, it creates synergy that benefits everyone. When there’s a flavor of distrust, the “integrity of the whole” is compromised, which affects everyone. Until we realize that we’re all playing in the same sandbox, we’ll never be in a position to improve the state of the industry.