Watch for the Warning Signs

by Arthur Cooper

Published on this site: January 31st, 2006 - See more articles from this month

If you work for a large company, one that has been around for a few years, one that appears to be well established, watch out! Watch out for these three warning signs.

If you don't see them, then be thankful that you are in one of the better companies. There are without a doubt some excellently run large businesses. Indeed, some of the very best run companies are large ones. Unfortunately there are also many badly run companies that have lost their way somewhere along the line. Badly run small companies soon fall by the wayside, but larger enterprises can struggle on for years before finally collapsing or falling victim to a predator.

So what are the warning signs I am referring to?

The first sign is perpetual talk of `consolidation' but very little talk of `change'.

Change is disturbing to many people, but necessary in today's business world. I don't mean change for its own sake (that is another warning sign) but directed, meaningful change. The world of commerce evolves rapidly and constantly. New and rival products and companies emerge all the time. If your company does not adapt it will be left behind to whither and die. Change should therefore be almost constant, whereas consolidation should be nothing more than a brief interlude between changes. `Consolidation' in other words should not be an excuse for inactivity.

A second warning sign is a string of half implemented changes and abandoned innovations.

This is always a danger of change for changes sake. Change is a part of daily business life, but it must be well thought out and for a good reason. Change for the sake of change is not good and what it leads to is a sort of dilettante hopping from one new idea to another. It usually follows from a desperate clutching at straws. Everyone knows that something must be done but nobody knows exactly what. A series of half implemented and abandoned changes is the result.

A third and common warning sign is too many consultants.

This is closely linked to the jobs half done scenario. When the top management has exhausted its own ideas it turns in desperation to outside consultants to tell them what is wrong, what to do, and where they should be heading. Few would disagree that consultants advising on well-defined and specific aspects of a business can provide valuable insights, and advice, and guidance. That is certainly true. But when you see a company thick with consultants advising on every little aspect you know that there is a real and fundamental problem with that company. When you see a company with consultants advising on basic strategies and the overal direction in which the company should be going, then you know that the top management has lost its way. It has in effect admitted that its own ideas have dried up. It is abdicating from its own primary function.

Watch out then for these three tell-tale signs. If the company you work for is showing them, start getting worried. If you are in a position to do something positive about it, then do so. If you are not, then think about taking your talents elsewhere.

Arthur Cooper is a business consultant, writer and publisher. For his mini-course 'Better Management' go to:
http://www.barrel-publishing.com/better_management.shtml