Bad News Must Travel Fast.

Currently I am reading a book "Business @ the speed of thought". below are few excerpts from the book.

Some experts say that companies struggle with the need for chaange because they havn't designed for change. Hierarchy gets in the way. The corporate culture sees innovation as risky and suspect. "worthy failure" (experimentation) is punished. A similar reaction can set in against bad news. lower level staff may hesitate to bring bad news forward and many managers don't want to hear it.
corporate structure and culture can be real road block. no question.
The bearer of bad tidings should be rewarded not punished. Business leaders have to listen to sales people, product developers and customers. you can't just turn off the alarm and go back to sleep. Not if you want company to survice.
The leader need to create an environment in which people can analyze situation and develop a good response.
I thinks Managers most imporant job is to listen for a bad news, if you dont act on it, your people will eventually stop bringing bad news to your attention. And that's the beginning of the end.