I spent the last two days speaking with founders in Seattle and heard multiple stories about dysfunctional cultures that pushed them to leave their companies and start their own.
One story stood out.
A highly competent doctor, a Black woman working in a major city hospital, was treated like an outcast by the nursing staff. Her patients loved her and her performance was strong, yet she was the only female doctor in a group of four. The nursing staff routinely supported the other three white male doctors, but neglected her basic needs, such as providing patient supplies. She was forced to step away from patient care each day, just to gather what she needed.
When she addressed the issue directly and later escalated it, the problem was not resolved. Instead, she was labeled as “disruptive” and terminated shortly afterward.
Unfortunately, stories like this are not uncommon.
In another example, a senior operations executive shared that he negotiated a highly favorable, but complex real estate deal for a new manufacturing site. Before final approval, the corporate real estate team was asked to review it. They delayed their work, and rather than admitting they would miss the deadline, they misrepresented their findings and blocked the deal.
When I asked what he planned to do, he said the culture was one where you “get on board or get out of the way.” He admitted he was trying to find a way to escalate the issue without being exposed and said it was one of several reasons he was considering leaving.
In both cases, the root issue was the same. Employees did not feel safe speaking up.
When candor is absent, people quickly learn that raising concerns comes with risk. Over time, they stop pointing out inefficiencies, challenging bad decisions or offering ideas that could improve performance. Instead, they spend their energy navigating political landmines.
The result is predictable. Problems persist, performance suffers and attrition increases.
This is why a culture of candor is not a “nice to have.” It is a business necessity.
Candor Starts at the Top
Many organizations delegate culture to HR. While HR plays a critical role, culture cannot be owned by one department. For employees to trust that candor is truly safe, the message must be consistently reinforced by senior leadership.
This begins with clarity. Leaders must define that speaking up is not optional, but part of how the organization operates and improves.
You can often spot a lack of candor in employee forums. A senior leader asks for feedback, and the room goes quiet. HR may have communicated that it is safe to speak up, but until leaders consistently demonstrate it through their actions, employees will not believe it.
Candor is not created by policy. It is created by behavior, reinforced through consistent communication and follow-through.
How to Build a Culture of Candor
If you are a senior leader, here are three ways to begin building candor into your culture:
1. Set the tone early and reinforce it often
Make it clear from day one that speaking up is expected. Introduce this in new hire sessions and reinforce it consistently. Clarity creates alignment and sets the foundation for trust.
2. Make candor part of the job
Integrate open dialogue into regular one-on-one meetings. Ask employees what is not working, what is slowing them down and what could be improved. This strengthens connection and builds commitment to shared outcomes.
3. Create real accountability
Establish zero tolerance for retaliation at any level. Employees must believe that if they speak up, they will be heard and protected. Without accountability, trust erodes quickly.
The Performance Impact
Organizations that embrace candor unlock something powerful. Employees become more engaged because they know their voice matters. They begin identifying inefficiencies, improving processes and contributing ideas that leaders alone would never see.
Toyota is a well-known example. Through its culture of continuous improvement, employees generate an average of one improvement idea per person per day. That level of contribution is only possible in an environment where open communication is expected and valued.
The Bottom Line
Candor is one of the foundational elements of transformational leadership.
In any effective leadership system, it enables alignment, strengthens communication and drives continuous improvement.
Without it, leaders operate with incomplete information, and organizations miss opportunities to improve.
When candor is present, employees feel safe to speak up, share ideas and challenge what is not working. Performance improves, trust strengthens and the organization moves forward together.