As a management consultant focused upon assisting my clients to higher measurable levels of profitability, productivity and stakeholder value, I am often confronted with organizations that have fallen into disarray, much to the chagrin of owners, stakeholders and discouraged clients /customers.
Here is a checklist of 10 ways to ruin a perfectly good business that might prove helpful as you consider your own firm and the efforts you make to create an annuity for your life. I have presented the checklist in reverse order; see how you do!
No. 10: Failure to develop subordinate levels of leadership.
Understand the reason for this, the benefits and the personal commitment to let go, teach others and benefit from their work.
Comment: Leaders and owners are often the primary bottleneck within an organization's growth and profitability.
No. 9: Failure to focus upon the few critical factors necessary for success.
Know what these factors are, specifically relating to fiscal, customer, process and learning.
Comment: Proverb: "If you chase two rabbits, both will escape."
No. 8: Slow or absence of decision making.
Without strong executive decision making, employees will make decisions as they see fit, unsure regarding corporate value.
Comment: Sticking your head in the ground exposes your rear end.
No. 7: No performance management.
Know the goals / objectives. Know the timelines. Take corrective action to become more aware.
Comment: What gets measured gets accomplished.
No. 6: No planning and implementation of succession.
Invest in yourself, in others, in the company. Protect the company through wise competency growth!
Comment: Dying on the job is not fashionable.
No. 5: Failure to plan, strategically and tactically.
The highest percentage of failed businesses had no plans. Strategy without action (tactics) is dead. Planning is your roadmap.
Comment: If you don't know where you are going, then any road will get you there.
No. 4: Low trust, cooperation and teamwork within the management team.
Trust, cooperation and teamwork are imperative not only between the executive and his/her team, but within team members themselves!
Comment: Our role as leader is to develop trust, cooperation and teamwork within the organization.
No. 3: Leadership is more involved in "doing" vs. leading and oversight!
It is common to need to be needed. A leader's first accountability is to develop his / her leadership team.
Comment: It is not uncommon for leaders to shy away from this in favor of operating. Oversight allows a view of the big picture!
No. 2: Poor organization structure - duties, responsibilities and performance measures are not clear.
All positions, duties, functions within the organization should point toward the ultimate goal - alignment.
Comment: Without alignment, everyone is on their own, many working in contradiction to others!
No. 1: Lack of vision, mission, values and principles.
Vision is about the organization as you perceive it to become. Mission is purpose and provides the screen through which opportunities are screened - whether they contribute toward accomplishment of the vision. Values and principles communicate the underlying moral and ethical makeup of the organization.
I have found that those organizations that consider these ten ways to ruin a business, and game plan to overcome do quite well indeed, even in tough economic and market scenarios.
Bill LaMarche is a principal of the Kirkland-based management consulting firm, The LaMarche Group. He is a certified management consultant and a certified professional behavior analyst. For more information, see www.lamarchegroup.com.[[In-content Ad]]
