Business
managers are constantly asked to assess if employees are performing to
expectations. If employees are not, managers must take steps to remedy the
situation.
But what
happens if lousy management is to blame for underperformance?
There are
obvious signs that a company is on the wrong management track, such as
declining sales and revenue, the loss of major customers and, with public
companies, a falling stock price. Yet some red flags go unnoticed. Whether the
warning signs are apparent or not, directly and aggressively addressing them is
the way out of company mismanagement.
Check for
these 7 tell-tale signs of leadership mismanagement:
Negative
Feedback From Customers
The most
important stakeholder in any business is the customer. Disgruntled customers
will find a way to complain, negative feedback is inevitable. Nonetheless, when
the negative feedback is on an upward trend, you are bound to lose business. If
you are unable to deliver improvements and address those concerns, this can be
detrimental to the reputation and business over time.
Management
should identify those improvements or make strategic moves to improve your
business processes and customer satisfaction.
Micromanagement
and Excessive Oversight
Micromanaging
is when a supervisor not only examines but also nitpicks everything, from the
tiniest tasks to day-to-day procedures. A manager who micromanages might stand
over employees’ shoulders as they work. Employees are regarded employees as
cogs in a machine instead of as members of a team who share a common goal – to
get the job done.
Positive
recognition and appreciation go much further than micromanagement, which
results in a lack of trust. People work best when managers trust them.
Stubbornness
and Unwillingness to Listen and Adapt
A manager who
is unwilling to listen to feedback and adapt to change isn't a manager who will
lead a thriving team. A willingness to evolve has always been important for
business – especially now, because technology moves forward faster than ever
before. Managers need to listen to employees’ suggestions and to be honest
about where the company needs to go. When managers have too much pride to
listen to their employees, then the business will lack innovation, and the
business will suffer financially, as innovation is the only way to move
forward.
The
Management Team is in Denial.
When managers
pretend a business is doing fine when it's not, that's a problem. It's
important to ensure issues are addressed and solved rather than playing
Pollyanna and ignoring the realities of business trends. This has a huge impact
on a public company if a management team is ignoring major issues presented by
investors and continues to underperform. Not only will near-term company
financials suffer, but an unrealistic management team can cause long-term
damage to reputation and trust.
New Ideas
are Dismissed.
When employees'
ideas and suggestions are ignored, it could be signs of a complacent and
unsupportive team. This could lead to stagnation in growth potential,
especially if management is saying, 'This is the way we've always done it.' Any
company, organization or manager that defaults to the past as gospel will get
hurt in the long run. You'll miss key changes in trends and lose out on new
opportunities.
Instead,
promote project innovation and new ideas. Set up a team focused on this
initiative. Encourage open dialogue across the organization, and reward staff
for new ideas. A company that does not do this could lose talented people who
feel their value isn't appreciated.
Employees
are Fleeing.
One big sign of
company mismanagement is low retention. Employees will occasionally quit even a
well-managed company, but if a company has difficulty keeping a full staff and
is constantly hiring, that's a sign there's a problem. High employee turnover
puts a massive drain on your internal resources. First, there's the monetary
cost of searching for, hiring and training new employees. Inexperienced staff
is also less efficient and more likely to make mistakes, so your overall
productivity drops if you're constantly needing to fill holes in the team
roster.
Your company
culture isn’t a one-and-done deal. Even after you address these 7 signs of bad
culture (mismanagement), you should routinely check in on your organizational
culture and see what improvements can be made. You can gauge the strength of
your company culture by measuring employee engagement and regularly asking your
team for feedback. Remember that your hard work will pay off in the long run,
so don’t shirk your company culture responsibilities.