Accurate data is essential in any system–for diagnosing problems, guiding decisions, and driving improvement. But when leaders react poorly to uncomfortable data, the message often gets buried, and the system loses its ability to learn.
When the truth becomes dangerous to report, people stop sharing it. That's when improvement stops too.
We've seen this on a grand scale throughout history:
When Reporting Reality Became a Crime
Stalin's USSR
Soviet statisticians who documented agricultural shortfalls were imprisoned–or worse. Fear discouraged honesty. Data was doctored. The famine that followed wasn't a result of bad measurement–it was the result of suppressing the truth.
Mao's Great Leap Forward
Local officials, under pressure to report inflated crop yields, sent fictitious numbers to the central government. The false narrative led to catastrophic food shortages. Tens of millions died–while charts and graphs showed progress.
Zimbabwe's Hyperinflation
During its economic collapse, the government silenced economists who tried to publish real inflation figures. Price increases became obvious to everyone–except in the official data.
Argentina's Statistical Gag
At one point, the government fined independent economists for publishing their own inflation estimates. The message was clear: political comfort mattered more than economic accuracy.
These are extreme examples, yes. But the behavior–punishing the truth to protect appearances–is something we still encounter in more subtle ways today.
Just recently, a senior government statistician in the U.S. was abruptly dismissed following the release of a disappointing jobs report. The data was valid. The revisions were routine. But the report didn't support the preferred narrative. So the messenger was blamed.
The outcome wasn't surprising to anyone familiar with Brian Joiner's timeless warning, which Dr. W. Edwards Deming often cited:
“When you put a numerical goal on a process, people will do one of three things:
- Improve the process
- Distort the process
- Distort the data”
Improving the process is the hardest of the three. When fear and pressure replace safety and support, distortion becomes the default.
The Antidote: Psychological Safety and Constructive Leadership
This is where psychological safety comes in–not as a nice-to-have, but as a prerequisite for learning and improvement.
And this is where leaders like Larry Culp, CEO of GE and former CEO of Danaher, provide a striking contrast.
During a fireside chat at the 2022 AME conference, Larry spoke candidly about the challenge of making it safe for bad news to reach the top.
“Bad news does not typically travel fast. People can be overly deferential.”
He didn't just acknowledge the problem–he owned his role in changing it.
At one point in his career, during a company acquisition, someone told him, “We no longer talk about bad news. It has been deemed bad for morale.”
That was a red flag. But Larry saw an opportunity. As he told the story, “We'll let the bad news in. We'll deal with that reality. We'll work those problems.”
That's the mindset of a leader who builds–not breaks–trust.
Later, Larry described a pivotal moment: someone on his team, visibly nervous, came forward with bad news. It was hard to hear. But Larry listened, engaged, and helped solve the issue. And most importantly, the team saw that it was safe to speak the truth.
“That was the moment of truth. Do you shoot the messenger, or do you listen, even if you are unhappy?”
It's Not Just a CEO Thing
As Larry wisely noted, culture change doesn't rely solely on the CEO. Anyone–at any level–can create a pocket of psychological safety. When someone speaks up, do they get support or skepticism? Do they feel heard or hurried?
“Any of us have the opportunity to create that environment where people want to bring forward an issue and know they're going to get help.”
That's leadership. That's respect for people. That's the foundation of Lean.
So How Do We Improve?
If punishing the truth leads to fear and distorted metrics, then the path forward is to build systems and cultures where people feel safe to speak up–and where leaders are equipped to listen.
Here are five practical actions leaders can take to improve:
1. Respond, Don't React
When someone brings bad news, your first reaction sets the tone. A calm, curious response invites more honesty. A defensive or emotional reaction shuts down the conversation.
Instead of saying:
“Why didn't you fix this sooner?”
Try:
“Thank you for bringing this to me. Let's understand what's really happening.”
This shift alone can change the culture over time.
2. Celebrate Transparency, Not Just Results
Recognize and reward people who surface problems, even if the metrics are off-track. Focus praise on behaviors–like honesty, learning, and initiative–not just outcomes. People will repeat what they're recognized for.
A Lean-minded leader might say:
“We didn't hit the target–but we found a real issue and we're working it. That's a win.”
3. Use Tools That Promote Understanding, Not Judgment
Instead of chasing every fluctuation in performance, use tools like Process Behavior Charts to understand variation and trends. This helps teams (and leaders) distinguish between common-cause variation and true signals that require action.
PBCs shift the conversation from “Who's to blame?” to “What's changing in the system?”
4. Make It Safe, Then Make It Worthwhile
As Amy Edmondson and others have emphasized, psychological safety is foundational. But safety without action can still lead to disengagement.
Ethan Burris's research reminds us of the second “F-word” in organizational life: futility. People might feel safe to speak up–but if nothing happens, they stop trying.
Make sure ideas, data, and concerns flow to a place where something can–and will–be done.
5. Model the Behavior at Every Level
As Larry Culp showed in his leadership at GE and Danaher, leaders must consistently walk the talk. That means:
- Asking for the bad news
- Handling it well, even when it stings
- Shifting into collaborative problem-solving mode
- Showing that honesty leads to progress–not punishment
It only takes one bad reaction to undo months of effort. But it also takes just one strong, visible example to begin changing the culture.
Start with This Question
As a leader, try asking this in your next team meeting:
“What's something we're not seeing–or not saying–because it might make us uncomfortable?”
Then pause. Listen. Thank whoever speaks.
That's how the shift begins.
Because in a culture of continuous improvement, bad news isn't the enemy–it's a gift.
And the people who bring it to you? They're not troublemakers. They're your best allies.
Let's make it safe. Let's make it count. Let's get better–for real.
Please scroll down (or click) to post a comment. Connect with me on LinkedIn.
Let’s work together to build a culture of continuous improvement and psychological safety. If you're a leader looking to create lasting change—not just projects—I help organizations:
- Engage people at all levels in sustainable improvement
- Shift from fear of mistakes to learning from them
- Apply Lean thinking in practical, people-centered ways
Interested in coaching or a keynote talk? Let’s start a conversation.
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