When people in organizations feel too secure, it's because there aren't any significant outcomes as a result of what they do. Whatever you do, nothing much different happens. This also means there are no important pay-offs if you risk by innovating. As there are no rewards for taking risks, then there's no sense of push in that institution's culture.

In truth, it's usually failure, disappointment, and frustration that motivate people to reexamine that which they've taken for granted. It's rare to find big change without significant bad news. ... In that sense, the pain of failure creates the largest opportunities for progress.

Institutions which have too much security ... tend to become bureaucratic. They add layers of people and layers of rules in order to assure the security of not making mistakes.

When people in organizations feel too secure, it's because there aren't any significant outcomes as a result of what they do. Whatever you do, nothing much different happens. This also means there are no important pay-offs if you risk by innovating. As there are no rewards for taking risks, then there's no sense of push in that institution's culture.

Nothing creates more self-respect among employees than being included in the process of making decisions.

If the mood is overly anxious, then anxiety must be reduced by lowering uncertainty. Very simply, uncertainty is reduced when people are told what's going on and what will happen to them. In the vacuum of no news, people imagine the worst. Since disappointment is much easier to handle than anxiety, then, good news or bad, honesty is honestly the best policy.

The Psychological Recession is the cluster of feelings that the present is really scary and the future will likely be worse. It comes from the sense you have no control over what's happening to you and you don't see a way to get your life back under control. It's the feeling that life is unfair; you paid your dues, you worked hard, and you ended up naked and vulnerable. There is no comfort to be found in the dismissal of the Psychological Recession as being just an idea; it is a real phenomenon with real consequences, all of them bad.