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Watch for the Warning Signs by Arthur Cooper (c) Copyright 2006

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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.

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