This. Although all of what the author wrote and jonnathanson wrote is perfectly sound, most human beings don't get it right because the temptation to hide relev

This. Although all of what the author wrote and jonnathanson wrote is perfectly sound, most human beings don't get it right because the temptation to hide relevant details is just too big. I've seen it happen time and time again, and anything but full transparency only works if everything goes well. But if things don't go well, which happens in the vast majority of start-ups, I've never encountered a CEO who could resist the temptation of hiding essential bits of truth after they already justified to themselves that they were "shielding employees from the emotional burden of the full truth". And when the shit does hit the fan, those employees will no longer trust the founder/CEO, with two consequences: a) If there is still an opportunity to save the company, the employees will choose to run rather than fight. After all, who fights for a leader they don't trust? b) When the ship does go down, they will not only never work for you again, they will tell all their friends and colleagues to avoid working for you. Trust is a fragile thing. Unless you know how to get it exactly right (which usually comes from getting it wrong a few times), don't mess with the truth. Hire people who can handle the truth.