Organizational transparency drives company performance

Purpose To explain the logic of value creation through increased organizational transparency of human capital. Design/methodology/approach The authors compare the status of today's organizations with other areas of life where transparency has been a fundamental driver of efficiency. Further, the authors break transparency down into logical steps of value creation. Insight is based on hands‐on experience working with several companies on these issues as well as designing software to support the logic. Findings Modern companies are taking steps to drive company performance through increased efficiency delivered by increased transparency but few take it all the way. No universal model is prescribed but a clear sequence of foundations that need to be in place is discovered. Research limitations/implications The paper is based on the authors' research and learning from working in this field. Further research in the field of organizational transparency as a means to drive company performance is suggested. Originality/value This paper takes a different angle than the traditional view.