Mistakes Leaders Make: Hoarding Or Withholding Information

Withholding Information

Withholding information refers to the deliberate act of a leader or manager intentionally not sharing relevant or critical knowledge with their team or colleagues. This practice often stems from a belief that retaining exclusive control over information equates to greater power or authority. Such leaders selectively distribute information on a strict “need-to-know” basis, creating a hierarchical barrier where they remain the sole gatekeepers of knowledge.

This approach can lead to a work environment where team members are left ‘working in the dark”. Unable to fully understand or engage with the broader picture of the organisation’s goals, strategies, or decisions. Consequently, this lack of transparency hinders the team’s ability to make informed decisions.  It fosters a culture of mistrust and uncertainty and often leads to decreased morale and productivity. In essence, withholding information is a counterproductive leadership strategy that prioritises control over collaborative success and organisational well-being.

Here we dive into this subject and examine why it happens and what leaders can do instead.

Why Leaders Withhold Information

1. Control and Power

Many leaders adhere to the notion that ‘knowledge is power”.  By withholding information, they believe they can maintain strategic control over their team members. Thus effectively positioning themselves as indispensable gatekeepers of knowledge. This approach can create an organisational hierarchy heavily reliant on the leader for direction and insight. This potentially stifles independent decision-making and innovation within the team. Employees in such environments may feel under-informed and overly dependent, leading to a lack of empowerment and reduced initiative.

2. Fear of Losing Authority

Some leaders harbour a fear that sharing information could undermine their perceived authority. They are concerned that transparency could open their decisions and capabilities to scrutiny and debate. This fear can stem from a lack of confidence in their leadership skills or the belief that authority is maintained through information asymmetry. In such scenarios, team members may feel undervalued and mistrusted, as they are not considered capable of handling or contributing to important discussions, which can significantly hamper team morale and cohesion.

3. Avoiding Panic or Stress

In certain circumstances, leaders choose to withhold information to shield their team from potential panic or stress. This is particularly prevalent when the information is sensitive, alarming, or potentially disruptive. While the intention might be to protect the team, this approach can inadvertently lead to a lack of preparedness when teams face unexpected challenges or changes. Moreover, it can foster an environment where rumours and speculation thrive, often leading to greater anxiety and uncertainty among team members than if the information had been openly shared.

4. Uncertainty or Lack of Clarity

Occasionally, leaders themselves may be grappling with uncertainty or a lack of clarity regarding certain information. In such cases, they might opt to withhold information until they have a clearer understanding or confirmation. While this approach can be prudent in ensuring the accuracy of information disseminated, it can also lead to delays in sharing critical updates, leaving the team operating with incomplete or outdated information. This lack of timely communication can hinder the team’s ability to respond effectively to evolving situations, potentially affecting their performance and decision-making capabilities.

Implications of Withholding Information

1. Erosion of Trust

Trust is the cornerstone of any effective team. When leaders consistently withhold information, it erodes this fundamental trust. Team members may start to question the motives and integrity of their leaders, leading to a significant decline in confidence in leadership. This erosion of trust can have far-reaching effects, including decreased employee engagement, lowered morale, and an overall decline in the commitment to organisational goals. Teams thrive on open and honest communication, and when this is compromised, it can create an environment of scepticism and doubt, making it challenging to maintain a positive and productive workplace.

2. Reduced Team Cohesion

Transparency is crucial for maintaining team cohesion. Withholding information can lead to the creation of information silos, where only certain individuals or groups within the team have access to key knowledge. This practice can breed feelings of exclusion, inequality, and mistrust among team members. It disrupts the sense of unity and collective purpose, as members may feel they are not being treated fairly or are being kept out of the loop. In the long term, this lack of cohesion can weaken the team’s ability to work effectively together, hampering overall team performance and cooperation.

3. Impaired Decision Making

Access to relevant and timely information is essential for teams to make informed decisions. When leaders withhold important information, it can severely impair the decision-making process. Team members may be forced to make decisions based on incomplete or outdated information. This can lead to errors, inefficiencies, and suboptimal outcomes. This can affect not only the immediate tasks at hand but also the long-term strategic direction of the team and organisation. Furthermore, it can diminish the team’s confidence in their decision-making abilities. This is because they are not equipped with the necessary tools and information to make sound judgments.

4. Increased Rumors and Misinformation

In environments where official information is scarce, rumours and misinformation can quickly take root and spread. This often occurs because team members, in the absence of factual information, resort to speculation and guesswork to fill in the gaps. Such rumours can be damaging and lead to confusion, misinterpretation of situations, and a toxic work environment. This atmosphere of uncertainty can be highly demotivating and stressful for employees, potentially leading to decreased productivity and increased turnover. A culture where misinformation is prevalent undermines the foundation of trust and reliability which is critical for a cohesive and effective team.

How Teams are Impacted

1. Decreased Morale and Motivation

When teams are kept in the dark and not provided with important information, they can begin to feel undervalued and marginalised. This lack of inclusion in the informational loop can lead to a significant decrease in team morale and motivation. Employees who feel that they are not being kept informed are likely to feel less committed and connected to their work, leading to reduced engagement and a lower level of contribution. This situation can be particularly demoralising in environments where team members are expected to meet goals and objectives without being given the full context or understanding of their tasks. Over time, this can lead to a dispirited workforce with diminished enthusiasm for their roles.

2. Insecurity and Job Dissatisfaction

Regularly withholding information can foster an atmosphere of insecurity and job dissatisfaction among team members. When employees feel they are consistently kept out of the loop, it can create a sense of being undervalued or untrusted. This feeling can lead to questions about their place and future within the organisation, causing anxiety and uncertainty about their job security. Dissatisfaction may arise from not understanding the full picture of their work or the direction of the organisation, leading to frustration and a potential decrease in job performance. In such an environment, employees might start looking for more transparent and communicative work cultures, potentially increasing staff turnover rates.

3. Resistance to Leadership

A lack of transparency from leadership can result in resistance to leadership directives among team members. When teams feel that they are not receiving the information necessary to perform their tasks effectively or to understand the rationale behind certain decisions, they may begin to question and resist directives from leaders. This resistance often stems from a perception that leadership is not considering their input or keeping their best interests in mind. As a result, there can be a breakdown in the leader-team member relationship, leading to conflict, reduced compliance with instructions, and an overall decrease in team cohesion and effectiveness.

4. Decreased Innovation and Creativity

Withholding information can have a stifling effect on creativity and innovation within a team. When team members do not have access to all the necessary information, their ability to think creatively and propose innovative solutions is hindered. Innovation often requires a holistic understanding of the situation, including the challenges and opportunities that the organisation faces. Without this information, employees are less likely to take risks or suggest novel ideas, leading to a culture that is less dynamic and more risk-averse. This can be particularly detrimental in industries where innovation is key to staying competitive and relevant, potentially leading to a decline in the organisation’s market position and ability to adapt to changing conditions.

What Effective Leaders Do Instead

In contrast to the detrimental effects of withholding information, effective leaders adopt a more transparent and inclusive approach to information sharing. This approach not only enhances team dynamics and performance but also fosters a culture of trust and collaboration. Here’s how effective leaders manage information differently:

1. Promote Open Communication

Effective leaders prioritise open and transparent communication within their teams. They understand that keeping team members informed fosters a sense of belonging and trust. These leaders regularly share updates, welcome questions, and encourage open dialogues, ensuring that information flows freely in all directions. By doing so, they create an environment where team members feel valued and informed, leading to increased engagement and a collaborative team spirit.

2. Empower Team Members

Rather than hoarding information, effective leaders empower their team members by sharing knowledge and insights. They recognise that informed employees are better equipped to make decisions, take initiative, and contribute meaningfully to the organisation’s objectives. This empowerment leads to a more proactive and self-sufficient workforce, capable of operating effectively even in the leader’s absence.

3. Foster a Culture of Trust and Inclusivity

Trust and inclusivity are foundational to the philosophy of effective leaders. They strive to create an environment where all team members feel they have a stake in the success of the project or organisation. By being transparent about their decisions and the rationale behind them, these leaders cultivate a culture of mutual respect and understanding. This inclusivity extends to acknowledging and incorporating feedback from team members, making them feel genuinely heard and valued.

4. Encourage Collaboration and Innovation

Effective leaders understand that innovation thrives in an environment where information is shared openly. They encourage collaboration by ensuring that all team members have the necessary information to contribute creatively to projects and discussions. This approach not only leads to innovative solutions but also fosters a sense of collective achievement and satisfaction among team members.

5. Handle Sensitive Information Responsibly

While advocating for transparency, effective leaders also recognise the importance of handling sensitive information responsibly. They strike a balance between openness and discretion. Sharing what is necessary for the team’s functioning while protecting confidential and sensitive data. This responsible management of information further reinforces the trust and integrity within the team.

Effective leaders approach information sharing with a mindset that values transparency, empowerment, and collaboration. By doing so, they create robust teams that are well-informed, motivated, and capable of achieving great results.

In Summary

There may be legitimate reasons for leaders to withhold certain information at times. However, a consistent pattern of information hoarding can significantly damage team dynamics. It can also damage trust and performance. Leaders must carefully consider the impacts of their communication strategies on their teams. They must strive for a balance that promotes a healthy, informed, and cohesive work environment.