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So here is a reference, 'Confronting Reality' by Bossidy and Charan [1] it's worth a read. (Their book on execution is better but they are both worth reading)

The core thesis is exactly what Paul writes about, successful enterprises are successful at confronting a reality which does not agree with their world view, or their desired world view. Fundamentally, if there is a problem, or more importantly a problem in a place where you won't look, it needs to be dealt with. If you don't deal with it sooner, then you will be forced to deal with it when it does so much damage that you cannot deny it any more.

People who can confront those issues fix them when they are small and thus don't waste any time on excess damage control.

[1] http://www.amazon.com/Confronting-Reality-Doing-Matters-Thin...

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