You don't need to answer every question with a detailed accounting of your deepest, darkest business secrets.

I'm always impressed at the basic honesty of good people.  When asked a difficult business question they want to be helpful and answer it.  You would be surprised at the amount of information you can obtain simply by phoning your competitors and asking the receptionist direct questions about their business operations.

An age-old probing question asked by business leaders everywhere is, "So, how is your business?"  To which smart leaders, not wanting to explain or share corporate financials, most often reply, "Good, and yours?"  With the current challenging business climate the truth meter has escalated and you do hear an occasional, "It is tough out there."  Or some other reference to the pain many are feeling. 

As leaders of organizations we need to consider when to talk and when you don't need to answer every question with a detailed accounting of your deepest, darkest business secrets.  I'm all for transparency but it is often best to remain positive and upbeat as it is difficult to explain complex business problems in five- to fifteen-second sound bites, and you want to make certain that information your company is discussing isn't negatively misinterpreted.  It is best to remember that just because I am asked a question I am not required to answer it and provide confidential information.

People enjoy being helpful and most often that is a good thing.  But as the leader there is some information you may wish to train your staff to retain as confidential.  For example, the amount of money your customers spend with you is generally considered confidential by many businesses.  You may not care if people know how much someone spends with you, but your customer might for competitive reasons. 

So if by chance a customer asks, "How much do your other customers spend with your company and where am I in the financial pecking order of your clients?"  That type of question can cause an awkward moment.  I am always amazed at the number of people, driven by basic honesty, who answer and release the confidential information.  As if they have been given some type of truth serum.

In most cases it is okay, and even desirable to say, "I'm sorry, that information is confidential.  I would never release your sales figures and I hope you understand why we are so careful with your confidential sales figures."  Truth is, if you had answered his question he would have known that you would release his sales figures to a competitor if the situation were reversed.  So by maintaining confidences you may have gained the respect of a valued client. 

It is best to remember that World War I slogan that 'loose lips can sink ships.'  But you can also turn tough questions around so that you appear as a thoughtful leader.