I often observe how social groups tend to fill information gaps by making up the data. This is the foundation of gossip. It begins with a factual foundation and then grows organically.

Most often, groups of colleagues, acquaintances and co-workers   begin with the kernal and fill in the gaps arriving at conclusions which are passed on as completedly factual.

For Example

An organizations leadership decide to be candid and communicate accross the organization that spending has reached unsustainable levels and cost cutting must ensue.

The work of identifying the best approaches begins but this is where the transparency disappears.  Large groups of the organizations human resources have no insight into the detailed planning.

The result is speculation, assumptions and sadly the new reality is arrived at.  Although there is probably little alignment with the actual plans developed by the organizations leadership (and known to few) the majority come to believe what they made up to fill the information gap.

Of course, this commonplace organizational behaviour can have very negative impacts.  For example, strong capable resources the organization needs to retain, depart.  Largely because they are convinced the layoff axe is imminent (although that might not be the case at all).

The unfortunate fact is this type of scenario is totally avoidable.  The mistake of not holding broad open disccussions about the detailed cost cutting strategies, sharing plans and ideas ongoing as they develop, leads to people creating their own answers.

Without the benefit of accurate information this answers can be far off reality and lead to unwanted consequences.