Why CEOs hear bad news too late?

On January 5, 2024, an alarming incident occurred when an Alaska Airlines Boeing 737 MAX 9 experienced a door blowout mid-flight. Investigations highlighted significant communication lapses between the production floor and senior management (source: New York Times, Jan 6, 2024). This incident underscores a universal risk that startup founders also face: blocked flow of critical information.

Founders, are you often among the last to hear when problems arise? Here are practical steps to help you detect issues early and prevent escalation:

Firstly, as Bill Gates pointed out in “Business @ the Speed of Thought,” leaders should proactively look for bad news instead of waiting for it to surface naturally. A mindset of vigilance keeps leaders connected to ground realities.

Secondly, equip your teams to deliver constructive criticism effectively. It’s essential to teach your staff not just to identify issues, but also to communicate them positively. Equally vital is training your management team to accept this feedback openly, without defensiveness.

Thirdly, lead by example by openly sharing your own challenges during regular team meetings. Demonstrating transparency yourself encourages your team to follow suit, creating a culture of openness.

Finally, reward transparency explicitly. Recognising and appreciating those who bring issues to your attention strengthens trust and reinforces the behaviour you wish to see consistently within your organisation.

By adopting these strategies—aligned closely with principles discussed in “Radical Candor” by Kim Scott—you can avoid critical oversights like those experienced in the Boeing incident, ensuring you’re well-informed and responsive at all times.

Watch my short reel below, where I discuss these insights further:

 

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About Venkatarangan

Venkatarangan Thirumalai is a Technology Visionary, Author, and Keynote Speaker on Generative AI with 30+ years in software. An Honorary Microsoft Regional Director since 1999, he advises CXOs on tech-driven growth.

Founder of Vishwak Solutions and co-founder of a US AI fintech startup, he predicted mobile computing in 2003 and built an ML news app long before GenAI. He mentors startups and promotes responsible AI through his book The Founder Catalyst.

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