In their recent book, Transparency, this trio of authors - each famous in leadership circles in their own right - point out that the higher up the organizational ladder you get, the less likely people are to speak the truth to you. It's not that they lie. They just tell you what they think you want to hear. Speaking truth to power is one of the most difficult things in a hierarchy for large numbers of people.
Bennis, Goleman and O'Toole say you need to apply four key principles in how you lead to ensure transparency - that you and others see the truth of your organization.