Corporate Transparency And Efficient Resource Allocation

1606 Words7 Pages
Introduction A successful organization depends on a solid strategic plan that includes how it intends to handle transparency. In his article, (Champy, 2008) emphasizes several principles he discovered while researching organizations for his book, the one that resonates with both my personal and professional life is to be completely open and transparent. He further goes on to outline the needs of a culture that embraces and values transparency. Indeed, many experts and professionals agree that corporate transparency and efficient resource allocation are closely related. The transparency, or essentially the clear picture, as it relates to resource allocation allows organizations to regularly direct their assets in the right directions, making it easier for them to be allocated in more productive and useful areas of the organization. The rationale for this strategy is fairly simple; having a clear picture means additional assurance for the investing parties Francis et al., (2009). Using the roadmaps created from the strategic plan, smart leaders easily figure out the risks involved, and take necessary measures to eliminate or ameliorate them. Similarly, organizational transparency on a whole is equally important for all the organization’s stakeholders, especially potential investors. This allows investors to easily weigh their options by evaluating any critical information, and also the fact that the doings of the organizations are there to be seen by everyone
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