Are you ready to get naked and rule the world?  In March 2007, Wired Magazine asked this question before introducing an article by Clive Thompson focusing on “radical transparency.”  Thompson described it as the move from “staged managed speeches” and marketing speak to “free-flowing, unscripted dialogue from company executives.”  And, somewhat unsurprisingly, they are using the soapbox of the moment to bare their souls – the Internet. 

Thompson believes this trend is far from the public relations nightmare some might paint it as, saying: “Transparency is a judo move.  Your customers are going to poke around in your business anyway, and your workers are going to blab about internal info – so why not make it work for you by turning everyone into a partner in the process and inviting them to do so?”

While Thompson trumpets the benefits of radical transparency, others, especially in the tight-lipped healthcare industry are far from enthusiastic about it.  For example, Paul Levy, president and CEO of Boston’s Beth Israel Deaconess Medical Center, said: “health is not a field that encourages open expression of feelings and positions.”

Yet, with patients, regulators, public officials and others scrutinizing and pontificating on the business of healthcare online, can the industry afford not to become more open?  Better yet, is it ready for radical transparency?

Ready Or Not, It's Here

While embracing radical transparency may be a stretch for most, a few powerful health industry players are taking steps to become more open.  Take Levy for example.  Although he doubts whether his industry is capable of transparency, he has launched a popular blog, Running A Hospital, that is redefining how health company CEOs communicate with their stakeholders.  In one of his early posts, he asked his readers to opine on whether he earns too much money.  He wrote:

“[M]y total compensation was about $1 million in fiscal 2005. Of this, $650,000 was the base salary. . . . What do you think: Do I get paid too much? Here is your chance to send a message to me, my board, or the community at large. I promise, all comments will be included (unless you use bad language!).”

Levy’s surprising post received 38 comments and was cited by numerous blogs and media outlets.  And, true to his word, Levy posted negative commentary from his readers, demonstrating that he has a very thick skin indeed.

Health giant Johnson & Johnson (J&J) has also taken steps to become more open.  In August 2007, the company drew the public’s ire when it decided to sue the Red Cross over the use of their shared symbol – the Red Cross.  Rather than relying on carefully crafted press releases to communicate its side of the story, the company turned to its new blog, JNJ BTW.  In one post, Ray Jordan, J&J's corporate vice president, Public Affairs and Corporate Communications, spoke candidly about the case:

“As a former journalist, I appreciated how undeniably juicy the story would be: Johnson & Johnson sues the American Red Cross and other parties over . . .  What?! . . . the use of the RED CROSS?!  It was almost too easy. . . . So, I've now lived a classic corporate public affairs nightmare: announcing a lawsuit against the American Red Cross. Would I have chosen this exercise as a reputation-building opportunity for Johnson & Johnson? No, of course not.”

Those Embracing Radical Transparency Must Tread Carefully

There are many other examples of how the healthcare industry is slowly beginning to embrace some of the tenets of radical transparency.  While it can be a powerful strategy, it is far from easy.  From a communications perspective, corporate executives must decide:

• How far should we open the hose?  Some advocates of radical transparency believe that companies should allow all employees start blogs where they can discuss the company and its competitors publicly.  This is not a good idea. Companies should think about how open they want to be online and how they will manage crises if and when they occur.

• Who will speak for the company?  Not everyone can manage the balancing act that comes with practicing radical transparency.  If companies want to be more open online, they will have to carefully select spokespeople who are prudent and flexible.

• What absolutely needs to be secret?  No company can survive for long if its competitors have access to information about its products, plans and weakness.  If corporate executives decide that becoming more transparent is a good business strategy, they need to decide what information needs to stay in-house. 

While radical transparency may not be for every health company, some believe it can be a powerful communications strategy.  Only time will tell how successful it will be. 

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