Gospel According to GaaS (4/25): The Trinity — Transparency

There are three people in one: who you are, who you say you are, and who they say you are. They are never the same.— Nonso Okpala.

When I was around ten years old, my dad, of blessed memory, told me it takes courage to stand naked before others and that courage comes in two forms.

He described two forms of nakedness. The first is when you have nothing to hide and open yourself up completely, allowing the world to see you as you truly are and compare you to the image you have presented. This is a metaphorical kind of nakedness. The second form, which he called the madness of illusion, is when you do not even realize you are exposed, standing there in complete delusion. It reminds me of the story of the emperor who wore no clothes, surrounded by people who were too fearful to tell him he was naked.

As I grew older, my father’s words stayed with me and became a guiding principle. Am I brave enough to show who I really am? Are you? Can you let people see your true self, especially when that self may not match the image you project, the one shaped by applause, crowds, and approval?

We are all, to some degree, performing. This is something I came to understand as a kid from his dark humour. Whatever your situation in life, you must first be accountable to yourself. The truth becomes clearer with time: you cannot outsource your sense of self. No one will fault you for being authentic, but people will surely blame you for living a false life. The person you are away from the applause, the crowd, and the lights — that’s who you truly are.

I navigate the world guided by a few simple yet crucial questions:

• Do you have the courage to stand naked before others?
• Can you afford to be fully transparent?
• Can you let people see you for who you truly are?

Our previous article identified “Fairness” as the cornerstone of GaaS and a defining aspect of accountability. Fairness means being true to those who act on your definition of self. For instance, if you promise a thirty per cent return on equity and investors commit to you based on that promise, you cannot consistently deliver subpar results.

Assessing fairness is challenging because it requires a view from both perspectives. Our actions, whether as individuals or organisations, affect others in ways we might not fully understand, and our sense of fairness may not always align with our stakeholders’ expectations. This is why it is essential for stakeholders to have visibility into our objectives and actions.

This level of transparency fosters dialogue, helping us understand stakeholders’ needs, the impact of our actions on them, and the best ways to serve their interests. It also allows stakeholders to verify that promises made have indeed been kept.

The true test of accountability lies in transparency. When you define who you are, you create an expectation, and with that expectation comes an obligation. If you meet your stakeholders’ expectations, you gain the trust and association of people who believe in your promise. That is the complete cycle of accountability. But there is more.

Not every aspect of an obligation is visible, auditable, or easily verified, so it is essential to reveal the full scope of your commitments. People need to have unwavering faith in you and your organisation, and the best way to build this trust is to “show your work.” No shortcuts. No excuses.

The goal is to exceed your obligations — to go beyond the standards set. You need to be seen, trusted, and open to engaging with stakeholders on multiple levels to ensure that their interests are genuinely served.

Now, here is my first step towards being in a nude colony: At VFD Group, we have not yet fully implemented this core principle of GaaS, partly due to our previously limited understanding of its significance and the closely integrated stakeholders we initially served. However, with our recent move to go public and the involvement of more sophisticated stakeholders, we have, as part of our GaaS commitment, begun implementing the necessary framework for its administration.

Although the costs are high, the benefits are disproportionately more significant. For VFD Group, this commitment strengthens stakeholders’ trust, ensuring them that the company will consistently act in their best interest. This reduces conflicts, allowing management to focus on its core objective of creating value for shareholders.

The test of transparency within an organisation rests on several key questions:

• Do stakeholders understand their rights, entitlements, and obligations to the company?
• Can stakeholders hold management, the board, and majority shareholders accountable?
• Is there a framework to resolve conflicts between management, the board, and majority shareholders?
• Can stakeholders influence decision-making when it fundamentally impacts their interests?

From my perspective, several key levers can enhance transparency within an organisation. My top five considerations are as follows:

1. Are stakeholders granted access to relevant information that allows them to evaluate whether their interests are being served? This includes the ease of access to such information, with the most restrictive end being an outright refusal to provide qualifying stakeholders with essential details.
2. While the first consideration focuses on access to information upon request, the second emphasises voluntary disclosures by the company. Beyond mandatory disclosures, transparency is elevated when the company voluntarily shares material issues or matters it deems, in good judgment, to be of interest to stakeholders.
3. Effective communication is often two-way. When management encourages this type of exchange, it achieves two key objectives. First, it improves the quality of information, as feedback can be readily integrated. Second, it fosters an emotional connection, registering genuine care for stakeholders. This is often critical in building trust.
4. The dissemination of information to stakeholders should be free of favouritism, ensuring that neither major nor minor shareholders receive preferential treatment. The process must be unbiased, providing equal access to disclosures for all.
5. Effective record-keeping and information retrieval are essential. No one person can hold all company knowledge, but a strong record-keeping system allows stakeholders to access necessary information when needed. Additionally, robust record-keeping is fundamental to an effective audit process, enhancing transparency and accountability.

The cost of transparency is substantial, but the discipline required to achieve it is essential for building a world-class, potentially great company. I often remind my colleagues: “Don’t just tell me; show me!”

It is not enough to define yourself with words; demonstrate who you are. Can I independently audit your actions and validate your self-definition?

Who you are behind the scenes is critical to who you are when you stand in front of stakeholders. Now, as cliché as it sounds, if the person you claim to be is not reflected in the mirror, then you have not passed the test of transparency. But if it does, congratulations, you have met the standard of the “holy trinity”: Fairness, Accountability, and Transparency.