Blog · Leadership and management · 10.02.2020

When a company is unwell: 12 warning signs

When a company is unwell: 12 warning signs

Like any living system, a company moves through stages of birth, growth and ageing. At every stage it can become “unwell”: normal functioning is disrupted, performance deteriorates and unresolved problems eventually threaten profit or trigger a crisis.

Organisations often cope with minor difficulties on their own. More serious patterns, however, require timely professional attention. If early warning signs are ignored, the condition becomes harder and more expensive to correct.

Twelve signs that an organisation is seriously unwell

  1. Employees increasingly describe the company as stagnant and see no development.
  2. A development strategy, if one exists at all, lives only in senior leaders’ heads and changes repeatedly in conversation.
  3. The same problems move from meeting to meeting and from project to project without being resolved.
  4. Employees drown in routine, see no prospects and leave—either for another part of the organisation or altogether.
  5. Critical work depends on a handful of “key people”. Losing any one of them would create major disruption because knowledge exists only in their heads.
  6. Management avoids training because trained employees might leave, the investment might not pay off, or people are expected to learn during delivery. The resulting errors remain in the project and are often repeated.
  7. Discipline and hierarchy dominate purpose. Department heads cannot make reasonable decisions independently, while approvals from above are chronically slow.
  8. The management style demotivates: ideas and initiatives are heard, but people see neither progress nor results.
  9. Leaders avoid meaningful change because they fear the situation could become worse.
  10. People are promoted into management as a reward without considering leadership capability or fit with the role. The promotion then predictably fails.
  11. Employees receive instructions over their manager’s head. This creates conflicting priorities, weakens the direct manager’s authority and accelerates burnout.
  12. Departments that should be working towards the same objective compete or isolate themselves from one another.

If even a third of these symptoms are visible, organisational change should not be postponed. The earlier the system is treated, the greater the chance of recovery without a prolonged crisis.

Time matters. Act while the organisation can still change deliberately.

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