From someone who has been “the boss” for 20+ years, you are spot on. My many bosses are our clients, and I have used your sage advice there, as well, and achieved the same results.
Clients come back again and again to us because we tell the truth, admit when we screw up or don’t know a solution immediately. This is particularly true in an industry like ours where the client is at a severe knowledge disadvantage to us. Of course this only works because we are right most all of the time, screw up very seldomly, and find solutions very quickly.
As a boss, I treat my employees just like we are treated as a firm. It makes for a very good and transparent working environment. All based on truth.
Great advice!