A Joosr Guide to… The Hard Thing about Hard Things by Ben Horowitz

Remember that trying to radiate false positivity will actually have negative implications for your company: a lack of trust, an inability to problem solve, and the creation of a culture that discourages sharing. Take a look at the message you are sending to your employees. Are you flashing bright, false smiles while inwardly panicking about problems that could break the company? If so, cut the act now. Not only will your employees thank you for it, you’ll thank yourself when you actually begin solving the issues that you once feared.

Ideally, from day one you should have a performance and compensation review plan in place and make sure all employees are aware of theirs. This will help improve performance all around, and quiet the political lobbying and jockeying for status in your company.

Rather than dealing with performance issues and compensation on a case-by-case basis, you should set up regular performance reviews for all staff members. These can happen as often as you deem necessary throughout the year, and the results of these reviews can help determine whether a raise is forthcoming.

Remember that trying to radiate false positivity will actually have negative implications for your company: a lack of trust, an inability to problem solve, and the creation of a culture that discourages sharing.

Stunted communication caused by false positivity and a reluctance to share problems frustrates everyone and only makes for an unpleasant workplace.

Trust is one of the most important reasons to always be honest about your company’s state of play. If you are transparent about company problems, you are encouraging effective communication with your employees and they will therefore trust you to protect their interests. Another good reason to be open about problems is because they will get solved faster. The more people who know about a problem, the more there are to work toward a solution.

Honesty and a willingness to admit to complications are the keys to effective morale management.

Be accountable for job losses caused by your mistakes

wrote the book in order to prepare every would-be entrepreneur for the realities of the tough choices and situations involved in building a business.

Many top executives forget to mention the truly tough stuff when offering business advice, hints, and tips.