Why Your Best People Give You The Worst Information

The $25 Million Perfect Presentation

Picture this: You're in a conference room with 23 executives, everyone has perfect PowerPoint presentations, engineering milestones are ahead of schedule, and you're about to sign off on a $25 million bet that feels like a sure thing.

That was the scene at HP when we were developing the Envy 133—the world's first 100% carbon fiber laptop. Everything looked perfect: engineering was ahead of schedule, we projected a $2 billion market opportunity, and the presentations were flawless.

Six weeks after launch, Apple shifted the entire thin-and-light laptop market, and our "sure thing" became a $25 million cautionary tale about decision-making.

The Information Filter Problem

Here's what I discovered: Your people aren't lying to you—they're protecting you. Every layer of management unconsciously filters out inconvenient truths. We had two massive blind spots:

1. Competitive intelligence about Apple's roadmap had been sanitized before reaching decision-makers
2. Manufacturing complexity of carbon fiber production was presented as routine when it required entirely new processes

Information in organizations goes through more filters than an Instagram photo. Each management layer edits out inconvenient truths—not from malice, but from basic human psychology. People want to be helpful, to be problem-solvers, to avoid being bearers of bad news.

The Three Information Temperature Checks

I started treating information like a scientist treats data, using three temperature checks:

1. Emotional Temperature: Real market insights carry emotional weight. If presentations feel sanitized and emotionally flat, you're getting processed information.
2. Granularity Temperature: Can people provide specific names, exact dates, and direct customer quotes? "Several customers" should become "Show me the Austin focus group transcript."
3. Contradiction Temperature: Market reality is messy. If everything points in one direction, someone edited out the complexity.

Five Battle-Tested Truth-Telling Techniques

Technique 1: Pre-Mortem Confessions

Anonymous submission of biggest fears before major decisions. Read aloud without attribution to remove personal risk and stress-test plans against criticisms.

Technique 2: Messenger Reward System

Formally reward people who bring bad news, not just problem-solvers. Recognition in leadership meetings and promotion consideration. Within six months, intelligence quality improved dramatically.

Technique 3: Devil's Advocate Rotation

Assign someone to formally challenge assumptions in every major presentation. Rotate among team members to institutionalize dissent and make doubt safe to express.

Technique 4: Customer Voice Channel

Spend 25% of time with direct customer contact. This included executive briefings but also weekends in retail stores watching real customer behavior. The gap between what customers wanted and what product teams assumed was staggering.

Technique 5: Failure Story Requirement

Every presentation must include one failure story—not dwelling on failures, but incorporating lessons from setbacks into decision-making.

The Truth-Telling Scorecard

I developed a six-factor scorecard (1-5 scale) to measure information quality:

• Signal Clarity: Specific details vs. high-level summaries
• Emotional Authenticity: Genuine weight vs. sanitized presentations
• Contradiction Comfort: Acknowledging messy reality vs. clean narratives
• Bad News Frequency: How often you get genuinely concerning information
• Messenger Diversity: Multiple organizational levels vs. hierarchical channels only
• Speed of Uncomfortable Truth: How quickly market shifts reach you

Review quarterly—scores below 3 signal information silos are forming.

Five Questions Every Leader Should Ask

1. When did someone last challenge my assumptions with specific, verifiable data?
2. Are my presentations carrying emotional weight or feeling sanitized?
3. What contradictory information am I not seeing?
4. Who am I rewarding—problem-solvers or truth-tellers?
5. How many management layers are filtering my market intelligence?

Key Takeaway

Building a truth-telling culture isn't about finding better people—it's about creating better systems for handling difficult information. The market will always contain signals that contradict your plans. The question is whether those signals can survive the journey to your desk.

This Week's Challenge: Try one technique—run a pre-mortem confession on your next major decision or assign a devil's advocate to your next presentation. Small changes in how you handle information can prevent million-dollar mistakes.

For the complete Truth-Telling Scorecard and detailed frameworks, visit Phil's Studio Notes on Substack. For the full backstory on the HP Envy 133 project, including all the details, check out the complete article there.

Subscribe to the Killer Innovations Podcast | Watch on YouTube