As a risk and compliance manager, over time, I’ve found developing an informal network at the companies I’ve worked for has been invaluable. While formal processes and structured compliance programs are essential, it is often the informal relationships that provide the early insights and collaboration necessary to manage risk effectively. Why is an informal network so valuable? First, risk and compliance management is not a siloed function—it touches nearly every department, from finance and IT to operations and HR. Having an informal network allows for the flow of information in a way that a structured reporting system sometimes cannot. Colleagues are more likely to share emerging concerns, regulatory shifts, or operational challenges in casual conversations than in formal meetings. These early signals can help risk and compliance teams act proactively rather than reactively. Second, trust is a cornerstone of effective risk management. By building relationships across departments, compliance professionals can create an environment where employees feel comfortable raising potential issues before they become full-blown problems. A strong network fosters a culture of openness and cooperation rather than fear of repercussions. Third, an informal network enhances agility. When an unexpected compliance challenge arises, having established relationships across departments makes it easier to find solutions quickly. Instead of navigating bureaucratic red tape, you already know who to call for guidance or immediate action.
So, how can you build an effective informal network across company departments?
Engage Beyond Your Department – Attend team meetings outside of your immediate compliance function. Volunteering for cross-functional projects or committees provides natural opportunities to connect with colleagues in different roles.
Be a Connector – Introduce people across teams who could benefit from knowing each other. When colleagues see you as someone who facilitates communication, they will be more likely to turn to you when they need compliance guidance.
Leverage Common Spaces – Casual interactions in break rooms, hallways, or company events are excellent opportunities to engage with colleagues informally. A simple “How’s your project going?” can open the door to valuable insights.
Build Rapport Over Time – Relationships aren’t built overnight. Regularly check in with colleagues, whether it’s a quick chat about a shared interest or offering to help with a challenge they’re facing.
Use Technology to Stay Connected – With hybrid work environments becoming more common, digital connections are just as crucial as in-person ones. Utilize company chat tools, virtual coffee meetings, or internal social platforms to maintain and strengthen your network.
Be a Trusted Resource – Share relevant insights, industry updates, or compliance tips in an approachable way. When people see you as knowledgeable and helpful rather than purely as an enforcer of rules, they will be more inclined to keep you in the loop. Building an informal network doesn’t mean bypassing formal processes—it means complementing them with a human approach. In the fast-evolving landscape of compliance and risk, relationships can often make the difference between catching a risk early or dealing with a crisis too late. By proactively developing connections across departments, compliance professionals not only make their jobs easier but also contribute to a stronger, more resilient organization. A well-connected risk and compliance team is an effective one—so start building those bridges today.
In an era were having access to information and good information is critical in decision making, have you ever worked with a leader who seemed to keep crucial information to themselves? If so, you’ve likely encountered an insecure leader—one who sees knowledge not as a tool for collective success but as a form of personal power. Information hoarding is a silent form of sabotage within an organization. It erodes trust, slows down decision-making, and stifles innovation. Worse yet, it fosters a culture of uncertainty, where employees feel like they’re constantly missing key pieces of the puzzle. Without access to relevant information, teams struggle to align with organizational goals, and confusion replaces clarity.
The Impact on Teams and Organizations When leaders withhold information, productivity suffers. Employees waste time chasing down answers or making decisions based on incomplete data. Trust breaks down, and a culture of second-guessing takes hold. Instead of focusing on innovation and progress, employees become preoccupied with navigating office politics and decoding what their leader isn’t saying. Moreover, a lack of transparency can lead to disengagement. Employees who feel excluded from key conversations are less likely to feel invested in the company’s mission. When staff members do not trust leadership, turnover rates increase, and attracting top talent becomes harder. High- performing employees thrive in environments where they are trusted and well-informed; when that trust is broken, they often seek opportunities elsewhere.
How to Identify an Insecure Leader
Lack of Transparency – They rarely share the full picture and often provide vague or incomplete answers. You might find out about important changes through the grapevine rather than directly from them. This creates frustration and a sense of being undervalued.
Control Over Decision-Making – They make unilateral decisions and resist delegating authority, fearing that others having full context could undermine their position. By keeping critical details to themselves, they maintain control but at the expense of efficiency and collaboration.
Resistance to Questions – Instead of welcoming curiosity and discussion, they dismiss or deflect questions that probe deeper into their decision-making process. This can make employees feel hesitant to speak up or challenge the status quo, limiting the team’s ability to grow and improve.
Fear of Being Outshined – They may avoid recognizing the contributions of others and hesitate to mentor or develop their team members, worried that their own importance will diminish. A strong leader understands that lifting others up does not diminish their own worth, but an insecure one sees it as a threat.
Gatekeeping Information – Critical insights, data, or even meeting invitations are selectively shared, creating an environment where only a chosen few have access to essential details. This leads to unnecessary silos and inefficiencies in workflow.
What Great Leaders Do Differently In contrast, strong and secure leaders operate with transparency and trust. They understand that empowering others doesn’t diminish their own value—it enhances the entire team’s success. They share knowledge freely, create open channels of communication, and trust their teams to act with intelligence and integrity. Great leaders recognize that an informed team is an effective team. They encourage open dialogue, actively listen to concerns, and create a culture where employees feel safe asking questions. They also ensure that decision-making processes are clear and inclusive, fostering a sense of shared purpose. When information flows freely within an organization, collaboration improves, innovation thrives, and employees feel more engaged. A culture of trust and transparency strengthens morale, leading to higher performance and better business outcomes. If you want to assess leadership health in your organization, start by looking at how information flows. Is it open and accessible, or does it feel locked behind invisible walls?
Have you experienced working under an information-hoarding leader? How did it impact your team?
In my last posting, I talked about why leaders need to create a psychologically safe environment for followers to be able to be them selves, to feel welcomed and appreciated. However, leading a team means you are part of a larger team, and needing to work together.
So, leadership isn’t just about making decisions at the top of your team, it’s about other teams and bringing people together, leveraging their insights, and creating a culture where everyone feels valued. That’s the essence of participative leadership, also known as democratic leadership.
Instead of a leader making decisions in isolation, participative leadership encourages collaboration, open communication, and shared responsibility. Employees aren’t just told what to do—they have a voice in shaping the decisions that impact them.
What Makes Participative Leadership Effective?
At its core, this leadership style is built on a few key principles:
✅ Collaboration – Leaders actively seek input from their teams and other teams, fostering teamwork and shared decision-making. ✅ Employee Involvement – When employees have a say, they feel more valued, engaged, and committed to success. ✅ Mutual Respect – Leaders recognize the expertise of their team members and other team members and trust them to contribute meaningfully. ✅ Transparency & Trust – Open discussions create an environment of trust, where employees feel safe to share ideas. ✅ Innovation & Growth – A culture of participation between teams encourages creative problem-solving and continuous improvement.
Why Should Leaders Adopt a Participative Approach?
📈 Higher Employee Morale – People work harder when they feel heard and valued. 💡 Better Decision-Making – More perspectives lead to smarter, well-rounded choices. 🚀 Increased Productivity – Employees who take part in decisions are more motivated to see them succeed. 🎯 Stronger Team Dynamics – Encouraging input from other teams fosters collaboration and unity.
Of course, this leadership style isn’t without its challenges. It can slow down decision-making and requires skilled facilitation to balance input with efficiency. However, when applied correctly, participative leadership can transform an organization’s culture, unlocking innovation and driving sustainable success.
The best leaders understand that they don’t have to have all the answers—they just need to create an environment where great ideas can thrive.
Have you experienced the benefits of participative leadership in your workplace?
I came across a really interesting concept recently that voices what I believe should be a core belief for any leader. As leader, one of our most important responsibilities is fostering an environment where team members feel safe to express themselves, take risks, and grow—without the fear of judgment or retribution. This concept, known as psychological safety, is foundational to building trust, collaboration, and innovation within teams. The hard part is being a Risk Manager and trying to build a psychological safe compliance culture. There are many reasons for this, at another time.
But how do we, as leaders, create a psychological safety net for our followers? Here are some practical steps to consider:
Model Vulnerability: Leadership is not about projecting perfection; it’s about being authentic. Share your own experiences of failure and what you learned from them. When you show that it’s okay to make mistakes, your team will feel more comfortable taking calculated risks and sharing their challenges.
Encourage Open Communication: Create multiple channels for feedback and dialogue. Regular one-on-one meetings, team check-ins, and anonymous feedback tools can all contribute to a culture where people feel heard. Ensure that every idea or concern is met with respect, even if it’s not immediately actionable.
Recognize Contributions: Celebrate successes, both big and small. Acknowledge the effort your team members put into their work, even when outcomes don’t go as planned. Recognition reinforces positive behaviors and shows that you value their input.
Be Accessible: A leader’s presence can significantly impact psychological safety. Be approachable and available. Whether it’s through an open-door policy or regular casual check-ins, make sure your team knows you’re there to support them.
Address Conflict Constructively: Conflict is inevitable, but it doesn’t have to be destructive. Set ground rules for respectful disagreement and guide your team in resolving conflicts in ways that strengthen relationships rather than fracture them.
Provide Growth Opportunities: Encourage professional development and provide opportunities for team members to stretch their skills. When people feel they are supported in their growth, they’re more likely to step out of their comfort zones.
Monitor and Adjust: Psychological safety isn’t a one-and-done effort. Regularly assess the team’s environment and adapt as needed. Seek feedback on what’s working and what isn’t, and be prepared to make changes.
Building psychological safety takes time, consistency, and intentionality, but the rewards are immeasurable. Teams that feel safe are not only more engaged and productive but also more innovative and resilient.
So, how are you fostering psychological safety within your organization? Let’s share ideas and experiences—because leadership is a journey best traveled together.
More now than ever we need to understand the difference between authentic leadership and crafty leadership. Leadership styles shape the way we guide and influence others. In today’s complex business and political world, understanding the difference between authentic leadership and crafty leadership is crucial. Authentic leadership builds trust through openness and integrity, while crafty leadership often relies on façades and manipulation. By exploring these contrasting approaches, you can gain valuable insights into effective leadership practices and their impact on organizational success.
In this article, you’ll discover the foundations of authentic and crafty leadership styles. You’ll learn about their differing communication strategies and how they shape relationships within teams. We’ll also examine how each approach measures success and affects long-term outcomes. By the end, you’ll have a clearer picture of these leadership styles to help you develop your own authentic leadership skills and build trusting relationships in your professional life.
The Foundation of Leadership Styles
Origins of authentic leadership
Authentic leadership has its roots in ancient Greek philosophy, where the concept of “knowing thyself” was highly valued. The idea of authenticity in leadership emerged in the 1960s, focusing on how organizations could reflect authenticity through their leaders. This concept draws from existential philosophy, emphasizing the importance of making authentic, self-motivated choices, especially during times of social change, like our current social environment.
Evolution of crafty leadership tactics
While authentic leadership emphasizes transparency and integrity, crafty leadership has evolved to focus on strategic manipulation and impression management. In today’s digital age, leaders often develop carefully curated personas on social media platforms, which may not fully align with their private selves. This approach allows leaders to manage their perceived authenticity by presenting specific aspects of themselves to the right audience at the right time.
Psychological underpinnings of each approach
Authentic leadership is grounded in self-awareness, unbiased self-relevant cognitions, and self-determination in behavioral and relational choices. It involves aligning one’s internal sense of self with outwardly displayed behaviors. On the other hand, crafty leadership often relies on creating impressions and managing perceptions, which may lead to discrepancies between a leader’s actions and professed values. This incongruence can cause cognitive dissonance among followers and create uncertainty about organizational norms.
Contrasting Communication Strategies
Transparency vs. strategic information sharing
To build trust, you need to strike a balance between transparency and strategic information sharing. While 86% of leaders believe more transparency leads to greater workforce trust, the relationship is more complex. Transparency can drive trust, but mishandling it can severely undermine it. You should adopt a principle-based approach to transparency, identifying core guidelines for what to share based on relevance, impact on morale, and ethical considerations.
Building genuine connections vs. networking for gain
Relationship building involves establishing authentic connections through meaningful conversations and active listening. It’s an ongoing process requiring consistent effort to maintain and strengthen bonds over time. In contrast, networking focuses on expanding professional contacts, often driven by self-interest and potential career benefits. While networking can be more superficial, relationship building creates long-lasting connections based on shared values and mutual support.
Handling conflicts and challenges
To handle conflicts effectively, you should create an atmosphere of openness and problem-solving. Start by describing the conflict objectively and expressing your emotions professionally. Identify potential points of agreement and generate possible solutions that benefit everyone involved. Remember, authentic leadership involves considering both rational arguments and lived experiences. By acknowledging emotions and sharing ideas in a non-dominating way, you can lead with courage and empathy.
Measuring Success: Authentic vs. Crafty Approaches
Key performance indicators for each style
To measure the success of leadership styles, you need to focus on key performance indicators (KPIs) that reflect the impact on both people and organizational outcomes. For authentic leadership, consider KPIs that emphasize people-centric metrics. These include employee engagement, trust in leadership, and the level of open communication within the organization. Authentic leaders often see improved work engagement and higher motivation among their team members.
In contrast, crafty leadership might prioritize KPIs centered on short-term gains or impression management. However, it’s crucial to recognize that people are the heartbeat of an organization, and even the most advanced technology requires human intervention to function effectively.
Long-term organizational health
Authentic leadership contributes significantly to long-term organizational health. By fostering transparency, fairness, and ethical behavior, authentic leaders create a positive work environment that enhances productivity and employee well-being. This approach leads to stronger institutional integrity and a more consistent curriculum in educational settings.
To assess organizational health, consider using tools like the Organizational Health Inventory (OHI), which measures seven dimensions including institutional integrity, resource support, and academic concern. These metrics can help you gage the overall health of your organization and identify areas for improvement.
Employee satisfaction and retention
Employee satisfaction and retention are crucial indicators of leadership effectiveness. Authentic leadership has been shown to negatively predict employee turnover intention. This style of leadership is positively associated with perceived supervisor support, which in turn reduces the likelihood of employees leaving the organization.
To measure employee satisfaction, focus on metrics such as job satisfaction rates, employee morale, and the level of trust between leaders and team members. Authentic leaders who demonstrate strong ethical values and show concern for their followers’ well-being tend to create higher levels of trust and job satisfaction.
Remember, effective leadership in any field, including healthcare, is critical for strengthening the quality and integration of care. By consistently monitoring these KPIs and focusing on long-term organizational health and employee satisfaction, you can assess the true impact of your leadership style and make necessary adjustments to ensure sustainable success.
Conclusion
Understanding the differences between authentic and crafty leadership styles has a significant impact on organizational success and employee well-being. Authentic leaders build trust through openness and integrity, leading to improved engagement, motivation, and long-term organizational health. On the flip side, crafty leadership, which relies on strategic manipulation, might yield short-term gains but often falls short in creating a positive work environment and fostering genuine relationships.
To wrap up, the key to effective leadership lies in aligning your actions with your values and prioritizing transparency and ethical behavior. This approach not only boosts employee satisfaction and retention but also contributes to sustainable organizational success. Be on the lookout for crafty leaders who might prioritize short-term gains over long-term health. By embracing authentic leadership principles, you can create a more trusting, productive, and fulfilling work environment for everyone involved.
