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Verizon's CEO Dan Schulman rejects sugarcoating bad news. He believes employees are adults who already sense problems and are waiting for leadership to acknowledge reality. His approach is to state the unvarnished truth—for example, "we are losing"—to build the credibility needed to lead a difficult transformation.
Leaders often project strength during turmoil, but this can create distance. Being vulnerable—admitting uncertainty—builds connection faster. When leaders show they trust employees with their own concerns, employees reciprocate that trust. It's an emotional, not logical, process.
Dara Khosrowshahi believes that for a CEO to receive honest, unfiltered information, they must first be radically transparent. He views this as a self-defense mechanism; if leaders sugarcoat reality, employees will do the same, starving the CEO of the hard truths needed for good decision-making.
To combat complacency, Supercell's CEO opened an all-hands meeting by showing an animated slide of their declining global ranking year-by-year. This act of transparent and painful self-critique from the top created the psychological safety and urgency needed to rally the team around a new strategy.
A high-intensity, disruptive turnaround environment isn't for everyone, and leaders shouldn't pretend it is. Verizon's CEO embraces this polarization, stating that the intense focus on winning is "heaven" for some but "hell" for others. This clarity attracts the right talent and naturally filters out those who won't thrive.
A.G. Sulzberger advises against the "misguided parental instinct" to shield employees from bad news. Instead, leaders should share the most "crushing statistics" about performance. This creates a shared sense of urgency and empowers employees to contribute ideas to a well-understood problem.
Dan Schulman prioritized fixing Verizon's risk-averse, hierarchical, and inwardly-focused culture as the first step in its turnaround. He believed that fostering a "play to win" mindset was the necessary foundation before any strategic or operational changes could succeed, moving the focus from the network to the customer.
Companies decay through an accumulation of 'white lies' told to maintain harmony. A leader's critical function is to relentlessly prioritize objective truth over feelings, even when it's uncomfortable, to keep the organization grounded in reality.
A leader's most difficult but necessary task is to be truthful, even when it hurts. Avoiding hard realities by "fluffing around" creates a false sense of security and prevents problems from being solved. Delivering honest feedback empathetically is critical for progress and building trust, distinguishing effective leaders from ineffective ones.
Leaders often avoid sharing negative news to "not scare the children." However, this creates an information vacuum that teams will fill with the "darkest ideas available" from other sources. Leaders must compete with misinformation by providing clear, honest context, even when it's difficult.
Horowitz recounts how legendary Intel CEO Andy Grove physically brought a roll of toilet paper to a meeting with an underperforming team. He told them to "clean up your bullshit" and get the facility up to code, a stark example of the psychologically difficult, confrontational leadership required for turnarounds.