---
title: Business Strategy - How to Handle Confidential Information
description: Business Strategy - How to Handle Confidential Information
image: https://www.brainzooming.com/hubfs/Imported_Blog_Media/Secrets-4.jpg
---

# Business Strategy - How to Handle Confidential Information

[Guest author](https://www.brainzooming.com/blog/tag/guest-author), [Strategy](https://www.brainzooming.com/blog/tag/strategy), [Tools](https://www.brainzooming.com/blog/tag/tools), [Implementation](https://www.brainzooming.com/blog/tag/implementation), [Performance](https://www.brainzooming.com/blog/tag/performance), [Strategic Thinking](https://www.brainzooming.com/blog/tag/strategic-thinking), [Communication](https://www.brainzooming.com/blog/tag/communication), [Collaboration](https://www.brainzooming.com/blog/tag/collaboration)

*Last week's "Inside the Executive Suite" from [Armada Corporate Intelligence](http://www.armada-intel.com/exec-intelligence-system) featured ideas for how to handle confidential information. The business strategy focus revolved around how an executive can maintain confidences while employing confidential information to best benefit his or her organization. While [passing along confidential information was more in the news last week than this week](https://info.brainzooming.com/Uncertain-Times), it's a daily issue in business. *

*Here are ideas the Armada newsletter shared on how to handle confidential information:*

## Business Strategy - How to Handle Confidential Information via *Inside the Executive Suite*

Confidential information has been in the news recently. It is a topic relevant to any senior executive immersed in business strategy. While the nation wrestles over handling confidential information in a government setting with geopolitical implications, similar and dissimilar questions exist in private business. Beyond trade secrets and insider knowledge that could move markets, organizations consider a wide variety of information as confidential.

How should you go about handling confidential information within your business strategy?

What are the different varieties, the implications behind a confidential information designation, and the way executives are using it?

These questions drove a chat with a former Fortune 500 executive about how he navigated confidential information at senior levels. It was not a legal conversation (so don't take his comments as legal advice). His strategies suggest a real-world, pragmatic approach to protecting confidences while getting work done.

### One Executive's Take on Using Confidential Information

"Unless I'm too far removed from it to remember, I don't recall any extensive training in business school about confidential information. While we undoubtedly covered it in class, I learned the ins and outs of confidential information on the job. When I worked on the consulting side, that was largely client information. In the Fortune 500 world, it was dealing with our own business information. Honestly, ‘confidential’ was as much code for 'don't tell anyone this' as it was legally confidential information."

#### Market-Moving and Insider Information

"The first consideration is whether the information has legal implications. Information that moves markets, is insider knowledge, contains trade secrets, or has some other legal standing must be handled with the strictest confidence. In these cases, you sign legal documents with specific parameters. I read through what I'm signing and strictly apply the restrictions. If something is unclear to you, reach out to your legal staff for advice so you have a clear, actionable guideline to work with as you conduct business."

[![](https://www.brainzooming.com/hs-fs/hubfs/Imported_Blog_Media/Secrets-4.jpg?width=450&height=274&name=Secrets-4.jpg)](https://www.brainzooming.com/hubfs/Imported_Blog_Media/Secrets-4.jpg) Via Shutterstock

#### Handling Business Strategy

"Much of what I dealt with involved information that an organization does not want disclosed because it changes the business and competitive environments, typically for the worse. Maybe there is paperwork attached to disclosing this type of information. Sometimes someone passes along information and declares it confidential as they spill the beans to you about something. These are tricky situations because they center around your ethics and smart business practices.

"What I do in these situations is step back and think about what the information means for daily and longer-term business. For example, in a corporate parent role, one of our subsidiaries had to disclose a new service offering it was planning. When the new service reached the market, the staff of another, competitive subsidiary visited my office to try to understand the market implications. The plan had to remain confidential to protect business relationships. I applied my knowledge of the new service offering to prompt them with questions they needed to ask or service implications they might need to explore. The questions were what I might have suggested if a competitor outside our corporate family had made a similar move.

"That kind of upfront exploration may suggest that activities currently underway might be more important, or less important, based on confidential information. In these cases, try to offer guidance or manage priorities to foster smart business decisions without disclosing confidential knowledge. Provide context to others so they think about their activities in a bigger or slightly different way that better fits a future outcome. Do this by finding a relationship between current, publicly-known strategies and what will happen as you implement confidential information.

"This happens with branding changes. Executives cannot disclose exact branding moves to their teams before public announcements. However, waiting to tell employees until after the market has learned the information leaves employees ill-equipped to support the change. I suggest finding ideas you can share with employees to prepare them for change without disclosing confidential information. If a rebranding will more heavily emphasize an aspect of a brand that exists today, ramp up the emphasis ahead of time. This is not necessarily easy, but savvy executives find ways to apply confidential information to maximize the impact as early as possible without compromising confidentiality."

#### When You Can't Say, or Don't Know

"When there's a buzz about something confidential in a company, it creates questions about what the secrets are. Some questions are point blank; others are more subtle. If you are in the know and receiving those questions, how do you handle it? It is important for me to never lie to people. I suggest executives develop an answer to questions about confidential information that they use in every instance, whether the person asking is on the right track or not. One example might be, 'I can't and don't speculate about rumors.' Rather than lying to someone accurately asking about a confidential matter (by telling them an emphatic 'no' to correct information), using a non-committal response is truthful and protects your own reputation.

"On the topic of consistency, in some cases, you may not know confidential information but have to continue your work. I'd analyze these situations after the fact to understand what the indicators were for the confidential situation. For example, when our company considered M&A activity, I'd receive certain questions about competitors' market positions. The questions were always about multiple competitors, never one. The questions surfacing became a signal a deal might be in the works. That consistency helped me be more effective for the company without ever having to know the specifics of a confidential matter."

#### Only One Point of View

These suggestions are from one individual. They are not legal advice about confidentiality. But they do suggest the importance of creating the policy and practices that work best for your organization.   *– via “Inside the Executive Suite” *

## [![Download Your FREE eBook! Figuring Out Your Direction in Uncertain Times](https://no-cache.hubspot.com/cta/default/462042/0e5910e2-1bf2-47b6-99df-ef8f8af36209.png)](https://cta-redirect.hubspot.com/cta/redirect/462042/0e5910e2-1bf2-47b6-99df-ef8f8af36209)

[![](https://www.brainzooming.com/hs-fs/hubfs/Imported_Blog_Media/Cover-Cropped-May-25-2022-01-54-13-81-PM.jpg?width=150&height=190&name=Cover-Cropped-May-25-2022-01-54-13-81-PM.jpg)](https://info.brainzooming.com/Uncertain-Times)Things aren't getting saner and more calm. Are you ready to pursue an implementation strategy that works in uncharted waters?

The Brainzooming eBook [*4 Strategies for Implementing in Uncertain Times*](https://info.brainzooming.com/Uncertain-Times) will help you examine your strategy foundation, insights, profitability drivers, and decision making processes when few things ahead are clear. We share suggestions on:

- Using your organization’s core purpose to shape decisions when things are changing
- Reaching out to employees with valuable insights into what to watch out for and what to expect
- Sharpening your command of cost and profit levers in your organization
- Implementing processes to focus and sharpen decision making

### [*4 Strategies for Implementing in Uncertain Times*](https://info.brainzooming.com/Uncertain-Times) is a FREE, quick read that will pay dividends for you today and in the uncertain times ahead.

### [![Download Your FREE eBook! Figuring Out Your Direction in Uncertain Times](https://no-cache.hubspot.com/cta/default/462042/0e5910e2-1bf2-47b6-99df-ef8f8af36209.png)](https://cta-redirect.hubspot.com/cta/redirect/462042/0e5910e2-1bf2-47b6-99df-ef8f8af36209)

 

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Date published: 05/24/17

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- [March 2008 (19)](https://www.brainzooming.com/blog/archive/2008/03)
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