Is not it a sound idea to check time to time how sound is the long term health of the organization, you are serving or managing? If yes, top management as well as employees could do well to make following reality checks and then seek a change or solution:
- Top rated performers leave organization earlier than 10 years for better prospects or serve it for more than 10 years in same unit or hierarchy.
If an organization can’t offer challenging and attractive roles to its top performers and can’t retain them for at least 10 years, either its management lacks sparks or policies are not solid!
But the problem could be much more serious, if top performers continue to serve in the same unit or hierarchy beyond 10 years! Either top performers are not truly top ones and it is a faulty appraisal system or they were top rated in earlier years and have got into comfort zones or become lax in recent years!! If someone is a strong performer, it is unlikely that he/she would not seek a change within or outside of the company.
Every organization’s dynamics demand that role of their high performers remain dynamic!
- Under-performers have not improved in max. of 5 years.
If such employees do not better their performance within 5 years, then company is heavily short of leaders and strong human resource manager. It also shows lackadaisical practices of the organization to accept under-performers (with no sign of change) and less effective bosses or supervisors, who are unable to inspire improvements!
- In good times, organization is growing only vertically.
In boom time of sales or profit or both, if a company confines its growth in same business segment or product range and does not carve out forays into adjacent areas or horizontal growth, it spells faulty business strategy. It is bound to become vulnerable and top heavy in the ensuing years, only to get toppled!
- In bad times, company does not or has constraints to invest in inorganic growth.
A well-managed company has to have contrarian or opportunistic approach. Be bold when going is bad! Grow when time is grim!!
In a bad economy, bargain buys are possible. If companies do not convert challenges into opportunities, it signifies lack of foresight by management or weak financial muscles even after having had good times.
- Management cadre does not visit customers, who don’t have currently new projects or business proposals.
Most company executives chase fruit of business, when it is ripe, rather than investing time and efforts to sow seeds of business, when ground is fertile and customer would plan to plough his profit. Such companies miss competitive advantage and lose firm feet to walk away with business.
- CEO or head of unit is not among first few to come to work in morning.
Top bosses are trend setters for their employees. If they do not practice what they preach, employees are unlikely to take them seriously.
So, organizations, where bosses do not lead by examples, do become laggards!
- Human Resource Manager (HR) believes in penalizing rather than promoting employee values.
In many companies, what HR advocates, it does not administer, especially when it comes to empathy, addressing grievances or development of weaker performers.
It is important for HR to act like a promoter of compliances, rather than administrator of rules and regulations. Its primary focus should be to develop employees, rather than making efforts to retain. Will it not serve as a terrific tonic for company’s health?
- More than 10% of employees on an average work for 2 hours beyond normal work hours on any day.
Does not it imply that company rewards extra work hours more than smart work? It is also an indicator of skewed work-life balance of employees.
- More than 5% of supervisors perennially evoke their position or lung power to get things done rather than encouraging employees to be passionate in discharging their duties.
Practically speaking, even 5% supervisors in this category can make company’s water muddy; but it is hoped that they can be mentored to change their style.
- More than 20% of employees do not wear natural smiles on their faces!
Natural smile reflects satisfaction level among employees and enviable environments of company!!
- Management has no bent of mind to ensure that company premises and utilities are kept up-to-date.
- Ex-employees do not feel enthusiastic to pay visit to company; nor management shows any care or concern about them.
Good news is that above indicators are fully reversible. It is imperative for management and employees to comprehend these in time and have courage to make corrections! This would then raise company’s credibility and make it a happy and healthy family like!!