Whether leading a nation or managing a company, the lesson is the same: ignore reality and it will come back and smack you in the face. It’s very important to prevent this from happening in your company.

There are a number of things you can do to ensure that you are not protected from reality.

First, surround yourself with people who tell it like it is. Strange as it seems, this is not an easy task. For one thing, most people know that telling the truth can be politically dangerous and many, like the manager mentioned earlier, are terrified of political fallout.

You need at least a few people around you who aren’t afraid of you and who aren’t concerned with politics. This is where detached and objective outsiders (consultants and directors) are invaluable. You also need honest people inside— people who are so honest and direct they are almost uncomfortable to have around. You don’t have to like them. You just need to listen to them.

Churchill, for example, felt so strongly about this that he created a separate department whose sole responsibility was to root out and present the naked truth about pressing issues. Leaders of great companies never hesitate to reward what Thomas J. Watson, Jr. called “those sharp, scratchy, harsh, almost unpleasant individuals who see and tell you about things as they really are.”

Second, personally stay in touch with what’s happening. Don’t rely solely on status reports or quarterly reviews, and other formal reporting methods for information. Use your company’s products. Listen directly to employees at all levels. Talk to customers. Read consumer reports about your products. Personally answer customer complaints. In short, do whatever you can to keep in touch with reality.

Third, never punish people for telling the truth. We all know the story of how Peter the Great responded to the messenger who brought him news of defeat: he executed him.

Each truly effective leader cultivates his or her mastery in a way that communicates to us something certain and vivid. It’s as if we trust leaders only when they’ve proven to us that they’ve opened more doors than we have, seen round more corners than we have, dived deeper than we have, taken themselves more seriously than we have. We trust the seriousness of this. We trust its predictability. We are drawn to its specialness. We sense its authenticity. We are attracted to the beautiful clarity of great ability, the brief moments of awe. We ignore everything else.

The stories we tell ourselves from a few scant pieces of evidence are often flat-out wrong, especially when we’re in the Pit. Nine times out of ten, the other person is not out to get you. Your coworkers don’t think you’re an idiot. And, yes, you deserve this job.

When a negative story takes hold of you, step back and question whether your interpretation is correct. Are there alternative views you’re not considering? What can you do to seek out the truth?

Instead I reminded myself of what I often tell leaders throughout Netflix:

When one of your people does something dumb don’t blame them. Instead ask yourself what context you failed to set. Are you articulate and inspiring enough in expressing your goals and strategy? Have you clearly explained all the assumptions and risks that will help your team to make good decisions? Are you and your employees highly aligned on vision and objectives?

The first rule is not to fake anything. You have to be humble, and you can’t pretend to be someone you’re not or to know something you don’t. You’re also in a position of leadership, though, so you can’t let humility prevent you from leading. It’s a fine line, and something I preach today. You have to ask the questions you need to ask, admit without apology what you don’t understand, and do the work to learn what you need to learn as quickly as you can. There’s nothing less confidence-inspiring than a person faking a knowledge they don’t possess. True authority and true leadership come from knowing who you are and not pretending to be anything else.