In the early days of a small company, communication is often direct, decisions are swift, and market realities quickly expose flaws. There’s a certain raw honesty driven by the imperative to survive and grow. However, as businesses evolve and scale, a new dynamic can emerge, one that has less to do with market share or profits, and everything to do with internal dynamics: politics.

While no organization is entirely free of it, the stifling effect of internal politics, where people tell superiors what they want to hear rather than the unvarnished truth, can be particularly damaging, leading to missed opportunities and poor strategic decisions.

The Danger of “Ostrich Syndrome” and Filtered Realities

In environments where open dissent is discouraged, or where staff fear repercussions for sharing difficult truths, a dangerous “ostrich syndrome” can take root. Projects are reported as “yellow” when they are clearly “flaming red.” Flawed ideas from senior figures may proceed unchallenged. Emerging disruptive trends are ignored because they threaten established norms or powerful internal interests.

Lower-level staff often see the reality clearly but may stay silent, fearing for their careers or dreading uncomfortable confrontations. History is littered with cautionary tales of once-great companies (think Kodak’s initial dismissal of digital photography, or RIM’s delayed response to the smartphone revolution) that faltered because internal politics or entrenched views prevented them from seeing and acting on critical truths.

The Leader’s Role: Making it Safe to “Walk the Fence”

Politics, to some extent, is a natural human behavior. People are often protective of their positions. However, it is incumbent upon leadership to actively build a culture that minimizes detrimental politics and encourages open, honest dialogue; even when it’s challenging.

Most executives I know are smart individuals who achieved their positions by listening and making good decisions. The breakdown often occurs when the channels for candid feedback become clogged by fear or expediency. As leaders, we need to make it safe for our teams to “walk the fence”: to balance self-preservation with the courage to share reality.

Consider your own SMB environment:

• Do you genuinely encourage contrary feedback in meetings and public forums?
• When there’s unspoken disagreement with your position, do you proactively inquire and press for different viewpoints?
• Are your teams structured and led in a way that values dissenting thought as a vital part of robust decision-making?

As a fractional CIO, I often find myself in a position to offer an objective, external perspective, helping to bridge communication gaps or present data-driven realities about technology initiatives that might be difficult for internal teams to voice. But the most sustainable solution is a healthy internal culture.

Cultivating a Truth-Telling Culture

Your staff are often happy to engage in direct communication and share critical insights, as long as you, the leader, make that unequivocally okay. If you stifle uncomfortable conversations, you inadvertently invite stagnation or even failure.

Screaming “YES!” into a cavern will only return echoes of agreement, but those echoes eventually fade, often along with the company’s vitality. A consensus culture built on unexpressed fears rather than open debate will similarly wither.

What’s Next

Fostering an environment where strategic truths can be spoken, where assumptions are challenged respectfully, and where data trumps politics, is not just “nice to have”; it’s a profound competitive advantage. It allows your SMB to adapt, innovate, and truly “Succeed Sooner.”

Is your SMB cultivating a culture of open dialogue and strategic honesty, especially around critical technology and business decisions? If you’re looking for a partner to help you assess your operational realities and facilitate more effective, truth-based strategic planning, Succeed Sooner Consulting can help.

For a further powerful perspective on this topic, I highly recommend Margaret Heffernan’s TED Talk, ‘Dare to Disagree,’ (embedded below) which brilliantly illustrates the power of constructive conflict.