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The things that are exposed should still be work-related. Be honest about why deadlines were missed, what failures were in designs, etc, and basically work against just everybody putting on a "Yes everything is great!" facade.

That facade breeds distrust and low morale. Even if things aren't going great, being honest about it keeps motivation up better than the alternative.

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Do retrospectives at regular intervals and encourage everyone in the team to bring up (almost) any issues, large or small, in those meetings, and discuss them, with a solution-focused outlook - what can we actually try in order to address this problem?

An essential feature of retrospectives is that upper management, and internal/external customers, are not invited - and do not get to see the raw whiteboard, but only - if they see anything from it - a sanitised summary that's relevant - and diplomatic - for them. This all helps to encourage openness.

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