The third sector needs a dose of cautious optimism

What do you feel when you hear the words accountability and transparency? I fear that to some ‘being accountable’ is the feeling of sheer panic that sets in when you realise there is only one week remaining to submit your return to the Charity Commission (I’m sure very few of you do this, of course). And ‘being more transparent’ is something that is demanded of an organisation that has been up to no good. Yet to many the whole process is about setting out your stall and shouting ‘look what we’ve done!’

It’s the latter attitude that underpins the work of the ImpACT Coalition, a positive ethos of openness and honesty. The Coalition takes the view that third sector leaders should seek to embed accountability and transparency practices into the culture of their organisations as a matter of routine, and that we should dispense with the narrow view of accountability as a process that happens once a year.

Clearly, this is a lot easier said than done. Being accountable implies responsibility to another party, and, like any responsibility, it is often accompanied by the fear of failure. It therefore follows that many well intentioned leaders are reluctant to improve accountability and transparency because of a fear of failure.

But what are we really afraid of? I think it breaks down into two broad concerns: one internal to the organisation and the other external. Firstly, to make an organisation more transparent one must review internal processes, and this could mean, among other issues, uncovering poor performance. How would you explain this to your colleagues and to the board? How would you tell your longest serving employee that his project has been underperforming for the past 10 years? It doesn’t take long for the objections to stack up.

Second is the fear of exposure, or more precisely, the fear of being judged too harshly. When you open up your organisation to greater scrutiny what will people think and say? What if others think what you consider to be a success a failure? What if people criticise your strategic plan? Worse still, what if you actually have bad news to deliver? Such concerns accumulate to create a feeling of a loss of control over your organisation’s reputation, and who wants that?

These concerns are well founded. I would suggest that any responsible leader would - indeed should - have similar concerns, but simply being concerned about the right issues is not enough. The most adept leaders reframe concerns as challenges and overcome them by adopting an attitude of cautious optimism.

So how would a cautious optimist go about improving accountability and transparency? Well, when it comes to the possibility of uncovering poor performance, she would first communicate to the staff and board that it’s about a collective effort to improve communication with stakeholders, she would emphasise that it’s about asking what we can learn, and would not rush to ascribe blame (of course, if the poor performance continues once identified, then action needs to be taken!).

Building an atmosphere of openness is absolutely critical to the success of improving accountability and transparency: external transparency is a reflection of internal transparency.

And what about exposure? It must be understood that the choice on offer are not limited to zero transparency one day and absolute transparency the next; we’re not out to expose poor practice for the sake of it (this should be reserved for persistent offenders!). The cautious optimist would commit to improving accountability over a period of time to mitigate potential fallout, with the ideal goal being the highest level of transparency in the shortest time possible. It would be unfair to expect an organisation with, say, limited resources and a modest turnover to expose every aspect of its operations at the drop of a hat without first allowing it to make improvements.

We do, of course, actively encourage organisations to share what they have learned from their failures, but such lessons are learned in the months spent reflecting after a failure, not in the midst of it. Demanding absolute transparency at such an early stage for the sake of it makes people defensive, exacerbates fears, and ultimately makes organisations less likely to be transparent.

This isn’t to suggest that we shouldn’t aim to be completely transparent, we should, and we should hold ourselves accountable to the highest standard. But if we want others to take up the challenge, we must be sensitive to the fears that accompany increased transparency, and understand that the first steps are often the most daunting; they are certainly the most critical.

The ImpACT Coalition wants third sector leaders to make a genuine commitment to improve accountability and transparency and not just a token gesture (a ‘commitment’ to improve over a five year period holds no weight). Improving accountability and transparency should be driven by a genuine desire to communicate more effectively with stakeholders, not just because it looks good.

It is this cautious yet optimistic approach to accountability and transparency in the early stages that ultimately dictates its success, and the ImpACT Coalition exists to support organisations on this journey. Is it daunting? Yes. Is it challenging? Yes. It is worth it? Absolutely!