My interpretation is he's simply advocating that if someone is aware of an issue that will set a project deadline back, don't keep it a secret and surprise everyone when the deadline isn't met.
Instead of "management by fear", build a culture where missing meeting deadlines is OK as long as a valid reason was communicated to the stake holders BEFORE the due date (no surprises). If a someone who's a project dependency had a family member pass away which will likely lead to a project delay, Blank is suggesting that's something that can be communicated honestly + transparently to a superior (and very much understandably - should be no fear involved). The upside is the superior can potentially reallocate resources to keep the project on track while not be getting caught off guard with a project unexpectedly derailed.