Can Management Stop Failure?

Not all companies will succeed magnificently. Can you tell if a company is circling the drain? If you are on the management team you want to be on your toes. You’ve got to read the tea leaves and know what is coming.
In management you can encounter some elements that will surely lead to failure. Management that tries to be fair and bends over backwards often makes it worse. What happens is the company learns to live with poor performance. They avoid rocking the boat and the sloppy work can progress. Instead of firing poor performers, additional workers are hired to compensate. Innovative managers or problem solvers take the back seat and are not welcomed. Competition will eventually capture the edge.
Most employees think they know the business in which they work. But companies can drift away from their mission statement and no one even notices. They begin engaging in unnecessary activities using resources they can ill afford. Additional staff is brought on for tasks not connected to the mission. Often more advanced technology is purchased that is not necessary. As a management team member you will want to take a look and evaluate the operation against the mission statement. If the mission statement needs to change, fine, but you need a clear direction for the company.
Engaging in excessive changes is another sign the company is headed for failure. Changes made to claim control over events or circumstances unrelated to the mission can prove fatal. Constant changes do not let the company settle into a productive working environment. Switching managers incessantly to try to bolster profits is not a good idea. Employees don’t know how long they will be employed and will go into survival mode.
Early warning signs are available for a keen management team to notice; if the team is astute and paying attention to the pulse of the company.
Sources cited: RHR International, Volume 23, Number 2. 2010. Print

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