The default reaction to poor performance is to become defensive. Instead, managers should establish a baseline of extreme transparency during good times. This builds the relational trust required for LPs to remain supportive during inevitable rough patches.

The natural tendency is to share good news and hide during bad news. True alpha and trust are built by doing the opposite. Proactively engaging clients and partners during difficult periods is uncomfortable but demonstrates integrity and solidifies relationships.

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.

To earn credibility, product leaders must communicate upwards consistently. Upon joining the Financial Times, the speaker's first move was to establish a regular cadence of updating the board, repeating, "This is what we said we would do. This is what we did."

Facing a senior leadership exodus and slowing growth, Mario Schlosser took the counter-intuitive step of asking his board to interview his team and assess his performance. This act of extreme transparency validated his strategy, re-energized his team, and stopped most of the key leaders from leaving.

During difficult periods, such as a failed clinical trial, the worst action a company can take is to cease communication. Continuously talking to investors, even when the news is bad, maintains trust and demonstrates resilience. Transparency in tough times is crucial for long-term investor relationships.

During a crisis, transparency is more valuable than certainty. It's better to communicate early and often with the information you have, even if that means admitting you don't have all the answers. People value truthfulness, and saying "we don't know yet" is a valid and crucial update.

To maintain morale during painful budget cuts, the UN agency's leadership adopted a strategy of extreme transparency. This meant constant communication, not only to share updates but also to be honest about uncertainties. Acknowledging what you don't know builds more trust than projecting false confidence.

During crises like mergers, trust grows through predictability, not volume of information. Frequent, short check-ins—even to say there is no new information—are more effective than infrequent, dense downloads. This regular cadence creates a calming rhythm of clarity.