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4 Signs of A Dysfunctional Company

Leadership is the most important asset that a company has in its arsenal. The management team is the ones that plan, organize, lead, and control. They are the ones that formulate the strategy the business will use to fulfill its vision, build its resources, and make sure that everyone in the boat is rowing in the same direction.

While great leadership is a company’s most valuable asset, dysfunctional leadership is an organizations most detrimental liability. Here are the four signs of dysfunctional company.

High Turn- Over Rate – This is usually a sign of a weak business culture and poor leadership. A revolving door of employees means there is an area that hasn’t been addressed, and management keeps placing a band-aid on a problem that requires surgery. This is usually coupled with a high rate of absenteeism –and makes for a stressful environment.

Narcissism, Division, Politics, and Miscommunication – These four things usually coexist and are a plague to a business. Leaders that are obsessed with individual success are a great destruction to a company. Division occurs as politics start to take place – with one group battling another group – making it all but impossible to communicate effectively. A healthy leadership team communicates early and often. They serve those on the front line, not their own individual gain.

Morale Deterioration – Morale deterioration can occur due to a number of factors: 1) The existence of unequal workload distribution between departments: 2) Too many layers of management making it harder than necessary to communicate. 3) Plans that are discussed, but not executed – or strategies that change from one day, week, or month to the next are signs that dysfunctional leadership is tearing down the morale of the organization.

Resource Mismanagement – This takes the form of budget allocations to departments that are well liked, and not where it is most needed. It also comes into play when management spends time and energy on internal attacks, instead of using that energy to innovate.

If your company has any of the above symptoms, then you must take immediate actions to transform. These symptoms do not simply disappear, they increase in severity – first crippling, and then destroying the company as a whole. You must appoint an objective entity to do a complete audit of the systems and put the necessary scorecards in place.