People at McDonald’s get trained for their positions, but people with far more complicated jobs don’t. It makes no sense. - Ben Horowitz

If you investigate companies that have failed, you will find that many employees knew about the fatal issues long before those issues killed the company. If the employees knew about the deadly problems, why didn’t they say something? Too often the answer is that the company culture discouraged the spread of bad news, so the knowledge lay dormant until it was too late to act. A healthy company culture encourages people to share bad news. A company that discusses its problems freely and openly can quickly solve them. A company that covers up its problems frustrates everyone involved. The resulting action item for CEOs: Build a culture that rewards — not punishes — people for getting problems into the open where they can be solved.

Being a good company doesn’t matter when things go well, but it can be the difference between life and death when things go wrong. Things always go wrong. Being a good company is an end in itself.

One interview technique that I’d used to sort the good from the bad was to ask a series of questions about hiring, training, and managing sales reps. Typically, it would go like this: Ben: “What do you look for in a sales rep?” Candidate: “They need to be smart, aggressive, and competitive. They need to know how to do complex deals and navigate organizations.” Ben: “How do you test for those things in an interview?” Candidate: “Umm, well, I hire everybody out of my network.” Ben: “Okay, once you get them on board, what do you expect from them?” Candidate: “I expect them to understand and follow the sales process, I expect them to master the product, I expect them to be accurate in their forecasting. . . .” Ben: “Tell me about the training program that you designed to achieve this.” Candidate: “Umm.” They would then proceed to make something up as they went along.