When a significant revenue miss or operational failure reaches the CEO or board, the explanation that "my people didn't tell me" often surfaces. But according to executive coach and former Paramount Pictures senior executive Joel Berman, that answer reveals a deeper leadership failure. "It's your fault because you didn't know about it," Berman said. "Yes, it's their fault too, but it's on you."
Berman, who spent years as President of Worldwide Television Distribution at Paramount before becoming an executive coach, has seen the dynamic from both sides of the desk. Employees often withhold bad news for understandable reasons: fear of the boss's reaction, reluctance to be the bearer of bad news, or a genuine belief that handling the problem themselves is what they were hired to do. "They're thinking, 'This is my responsibility. I'm supposed to fix it,'" Berman said. "They want to be viewed as somebody who has a good handle on the business and gets things done."
To a point, that instinct is healthy. No organization benefits when every minor issue is escalated up the ladder. But the problem arises when "I'll handle it" becomes "I'll wait to tell anyone until I've handled it"—because sometimes it never gets handled. By the time the leader learns the truth, the available options may have narrowed dramatically.
Berman draws a critical distinction between keeping a leader informed and handing over responsibility for solving the problem. Ideally, the conversation sounds less like "Here's what's wrong, what do you want me to do?" and more like "Here's the issue, here's what we're doing about it, and here's what I think we should do next." That approach lets the leader ask questions, challenge assumptions, and offer resources without stripping ownership from the person responsible for execution. "You want someone to solve problems, you want them to come in with a plan, but you also want to know far enough ahead," Berman said.
Timing changes everything. If revenue is likely to fall short and leadership learns early, expenses can be adjusted, resources reallocated, and expectations managed. The CEO or board can be prepared. "If I would have known about this earlier, we could have taken some steps to try to mitigate it," Berman said. "You would have had an opportunity to fix it, and you would have had an opportunity to communicate it. But if you find out after the fact, there's nothing you can do." In effect, bad news becomes more expensive as the window for response closes.
That reality places uncomfortable responsibility on the executive. When someone reaches the upper levels of an organization, knowing what is happening is not a passive expectation—it is part of the job. Leaders cannot simply leave the door open and assume people will walk through it. They must examine their own reactions. Berman admits he wasn't always consistent. "I'd like to think I was the kind of leader that people could bring problems to, but I don't think I always reacted in a consistent manner," he said. Employees notice when bad news is met with reproach, and they adjust accordingly. An open door can coexist with a culture of silence.
To counter that, Berman advocates regular, structured communication—weekly or biweekly one-on-ones, meaningful dialogue in staff meetings, and a rhythm that fits the organization. "You want to create a structure and a culture that encourages open communication," he said. That includes making it just as natural for employees to share successes as concerns. The goal is not to push every development upward, but to ensure the people closest to the work understand what leadership needs to know and feel safe communicating it before circumstances make the conversation unavoidable.
For leaders seeking to close the information gap, Berman offers guidance through his work as he coaches executives navigating these pressures. The implication is clear: "They didn't tell me" is not an acceptable final answer. It raises a more uncomfortable question—why didn't you know?
