We decided that rather than putting more rules and procedures in place, we would continue to do two other things:

1. We would find new ways to increase talent density. In order to attract and retain the best people, we would have to make sure that we offered the most attractive methods of compensation.

1. We would find new ways to increase candor. If we were going to remove controls, we would need to make sure that our employees had all the information they needed to make good decisions without management oversight. This would require increasing organizational transparency and eliminating company secrets. If we wanted employees to make good decisions for themselves, they would have to understand as much about what was going on in the business as those at the top.

I went back to the office and, at our next all-employee meeting, did the same thing I’d done in the boardroom. I outlined my mistakes in detail and expressed my regret for having hurt the company. This time, not only did I feel more relief and build trust with my staff, but also people began telling me about all sorts of mistakes they made, mistakes they’d been previously sweeping under the rug. That offered them relief, improved our relationships, and gave me more information so I could do a better job managing the business.

But with our culture of candor at Netflix, people get loads of feedback every day. Before any employee is let go, he should have heard clearly and regularly what he needs to do in order to improve.

[Carly] Fiorina, who in fact had done such an in-depth study of the company and the situation that she had many of the answers, probably meant to reassure people by her knowledge. But by not asking questions and by not failing to have some answers, she scared many of the employees. Fortunately, when this feedback was delivered and received, Fiorina adapted her active listening and allowed her natural gift for communication to flourish. This increased her credibility and at the same time deepened her insights into the company, its challenges, and its opportunities.

Whether criticism or praise, it’s a leader’s job to give their team feedback all the time. But every person on the team should be hearing more about what they did well than what they could do better, or they’re going to feel deflated and unmotivated. And if you can’t find more compliments to deliver than criticism, that’s a failure in leadership—either you’re not coaching the person sufficiently, or you’ve tried and it’s not working, which means they should no longer be on the team.

These rules help your team to feel safe—especially if you practice them consistently. Consistency is one of the most important and underrated aspects of being a leader. A person can’t feel safe at work if they’re apprehensive about what version of their manager they’re going to encounter on any given day. So if you’re the boss, you need to be steady, controlling your moods so you don’t end up taking out that morning’s squabble with your spouse on a server with a wrinkled shirt.

This is the ideal—but let’s be honest: every once in a while, you’re going to mess up. When you do, apologize. There’s an inherent intensity that comes with being passionate about what you do, and on occasion, it can get the better of you. I’ve certainly expressed exasperation and disappointment in ways that weren’t textbook illustrations of how to handle a correction in the workplace. But every time, I’ve made sure to apologize—not for the feedback itself, but for the way I delivered it.