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CHAPTER 9: LEADERSHIP COMMUNICATION 265
Another important outcome of an open communication climate is that employees
understand how their actions interact with and affect others in the organization.
Open communication encompasses the trend toward open-book management,

which means sharing financial information with all employees to engender an
attitude of employee ownership. Recall from the previous chapter that when em-
ployees feel a sense of ownership in the company, they are more highly motivated
to achieve goals. In addition, when people have access to complete information,
they make decisions that are good for the company. At Tampa-based AmeriSteel,
opening the books and training all employees to understand the numbers helped
cut the cost of converting a ton of scrap steel into a ton of finished steel from $145

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to $127. The open-book management program helped workers understand how
every decision and action affects organizational success.
Communication across traditional boundaries enables leaders to hear what

followers have to say, which means the organization gains the benefit of all em-
ployees’ minds. The same perspectives batted back and forth between top execu-
tives don’t lead to effective change, the creation of a powerful shared vision, or the
network of personal relationships that keep organizations thriving. New voices
and continuous conversation involving a broad spectrum of people revitalize and
enhance communication. Leaders at Boeing, which was hit hard in recent years
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by a series of ethical and political scandals, are using blogs as part of their strat-
egy to create an open communication climate and rebuild trust among customers,
employees, and the public.

IN THE LEAD James F. Albaugh, Boeing Integrated Defense Systems
“I’ve always been a big believer in open and honest dialogue that gets the issues on
the table,” says James Albaugh, the chief executive of Boeing Integrated Defense
Systems. Yet Albaugh’s view hasn’t always been shared by other Boeing executives.
Indeed, defense contractors and aerospace companies in general aren’t known for
their openness. Yet after a series of scandals rocked the giant company, Boeing lead-
ers are embracing a new approach to communication.
One aspect of the once-secretive company’s attempt to build an open com-
munication climate is the use of both external and internal blogs. Randy Baseler,
vice president for marketing at Boeing Commercial Airplanes, for example, started a
public blog to share the company’s view on products and marketing strategies—and
comments are welcome. The blog has exposed Boeing to some stinging criticism,
but leaders believe the openness will lead to more constructive dialogue with cus-
tomers and the public. Employees, too, are seeing a more open approach to com-
munication. Internal blogs, such as one used by Albaugh, get conversations going
and enable people to raise issues or point out problems anonymously.
It’s too soon to say whether Boeing executives’ use of blogs and other strate-
gies will result in a more productive, open communication climate. Operating in an

industry built on security clearances and classified government projects, secrecy is

woven into the fibre of the organization. Some issues may always
require secrecy, yet leaders are making a sincere effort to break
As a leader, you can create an open
down walls where possible, be more open with employees and Action Memo
the public, prevent the kind of ethical lapses that have occurred in communication climate by sharing both
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recent years., and restore trust. good and bad information, and you can
departments, and hierarchical levels.
Leaders at Boeing, as at other organizations, want an open facilitate communication across groups,
communication climate, because it can help to alleviate tension and

conflict between departments, build trust, reaffirm employee commit-
ment to a shared vision, and make the company more competitive.