Transparent touch

Michael Kaplan learned years ago that being transparent is the best way to lead. About 15 years ago, he was having trouble generating a return on a property. Instead of keeping the problem to himself, Kaplan, the founder and CEO of The M. Kaplan Cos. LLC, asked for some help.

“I just tried it because I was almost desperate because I had exhausted everything, and I just wasn’t getting where I needed to be,” says the leader of the property management firm, which posted about $25 million in 2008 revenue.

Instead of blaming it on marketing conditions, Kaplan simply admitted he was struggling and found an accepting bunch.

“It was so well received I just did it again and again and again,” he says. “Then, what I noticed is the more I’m open and tell my clients what I am doing and what my difficulties are, if I felt it was my screwup and said that, the better the relationships got.”

Smart Business spoke with Kaplan about how to lead with an open management style.

Build a team of honest employees. First off, the leader has got to have and has got to 100 percent subscribe to that same philosophy because a smart leader is going to hire people that will follow through in the same style and fashion that the leader is trying to lead the company with.

So, assuming that’s the leader’s position — when he interviews people, he is going to obviously check references and ask those types of questions in that interview and do more listening in the interview with strategic questions and listen to their answers.

He will start to get some insight if they have that in their gut, if that’s kind of their way, or are they just trying to be a corporate player and spin everything and pass the buck.

You need to be careful in the interview process. But even then, you can be really impressed in an interview and hire someone and think they are just great, and they don’t get it. When you notice it, you bring them in your office and that means a time commitment. You bring them in your office, and you sit them down and you discuss it openly. Not, ‘You’re screwing up.’ But, ‘Hey, tell me how you are thinking about this and can’t we do it this way?’ After a few of those meetings, they either get it, or if they don’t, the leader says, ‘This is the wrong guy to captain my boat or gal to captain my boat. I’ve got to find a different captain.’