The Stockdale Paradox states that you must never lose faith that you will prevail over the difficulties—whatever they may be— but you also must never shy away from the most brutal facts of your current situation.

When Procter & Gamble entered the paper-based product competition in the 1960s, Scott Paper voluntarily relegated themselves to second place instead of vying to become the industry’s leader, even though they had been on top for years. Kimberly-Clark, another company in the industry, decided that P&G’s competition was not an impediment to success but would be the making of it. The competition would sharpen them instead of destroying them. Both the management at Kimberly-Clark and Scott Paper faced the tough facts: Procter & Gamble was far bigger and had tremendous resources and great minds on its side. But where Scott concluded that the obstacles were insurmountable, Kimberly-Clark held to the belief that it would prevail regardless of the obstacles.

This expectation to prevail coupled with courage to face facts is not just relevant in business but any kind of organization. Former Prime Minister of England, Winston Churchill, is a towering exemplar of this dual-mentality.

Winston Churchill once wrote, “There is no worse mistake in public leadership than to hold out false hopes soon to be swept away.” He didn’t shy away from the brute facts. To avoid his strident personality becoming an impediment to the flow of information, Churchill created the Statistical Office, where facts would be delivered in their most raw, pointed form. Even in England’s darkest hours, when France and Poland had surrendered to the Nazis, the United States was still insisting on its glorious isolation, and most Britons themselves had abandoned hope of beating the Nazis, Churchill insisted on hearing it straight, but he also remained completely confident that England would “rid the earth of [Hitler’s] shadow.” And they did.

Good-to-great companies squarely face harsh realities, but end up making more apt decisions because they’re based on reality. Charisma can be an asset, but it can also dissuade people from volunteering honest feedback. The companies that succeed also don’t waste time trying to “motivate” the troops. If a company has taken the time to bring on the right people and kick out the wrong people, they will already have motivated workers. Instead of motivating, make sure you don’t do anything that would de-motivate or demoralize the team. Nothing destroys momentum like empty promises that don’t take tough facts into account.