Acknowledging that something isn’t working takes courage. Many organizations encourage people to spin things in the most positive light rather than being honest. This is counterproductive. Telling people what they want to hear just defers the inevitable realization that they won’t get what they expected. It also takes from them the opportunity to react to the information.
Source: Steve Berczuk in “97 Things Every Programmer Should Know – Extended”, Shirish Padalkar, http://leanpub.com/97-Things-Every-Programmer-Should-Know-Extended