I think idea boils down to know enough of your companies and subordinates' work and working to smell any bullshit they try to peddle. If founder does that, it trickles down as all under them will have to know enough about things below them to keep up.

In Joel Spolsky's blog about his Excel review by Bill Gates. Gates knew enough about Excel/123 and company to make sure if the person knows what he is talking about. Same can be said for 6-page memo culture of Amazon.