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Good companies listen to bad news

There are a number of management practices that really kill company performance … one of those is actively saying “I don’t want to hear about that” …
Building communication in a company is hard work and essential to making companies worthwhile.

Companies and partnerships only exist to extend the power of an individual. In economic terms they exist because they have lower friction inside the organisation than between organisations. (The friction here has nothing to do with the psychological term interpersonal friction - We are using the economic meaning of the word which refers to barriers to economic activity an example of this would be that you need to take special precautions when you share information between companies but fewer precautions are needed for internal sharing because of the assumptions of confidentiality)

Anything that increases internal friction makes the costs of running a company less worthwhile as companies bring overheads above the cost of individuals.

Reduced communication costs is one of the things that reduces friction. Failure to listen to bad news means important information for managing the company is lost. Refusing to listen to bad news has a chilling effect on communications.