It can be argued that there are only two true states for any company or organisation; they are either growing or declining.
A status quo, with the balance sheet holding steady can often in reality be a sign of decay. If there is no investment in the future, then that future is going to leave the complacent struggling to catch up.
But in a turbulent world with markets in flux, how can a business owner or director identify when a commercial event horizon is being approached? This isn’t Hollywood with an executive rushing into the boardroom to reveal incipient calamity that can be avoided with a masterstroke or two before celebratory cocktails are served.
A customer is poached by a competitor; don’t worry says the sales team, we have many more in the pipeline. A supplier changes their terms, but again the team explain how the supply chain is merely being adjusted and not to worry. Then a key employee leaves to work elsewhere, and in a quiet chat at the leaving do, reports widespread dissatisfaction in the workforce that has gone unnoticed by HR, who you find are struggling to recruit quality talent. Another quarter passes by, and in a general crack-down on costs, that investment program is trimmed or put on hold for a little longer… and then the cash flow starts to give concern, and with all the little issues aligned into a perfect storm the business is looking down the barrel.
In the real world, the symptoms of corporate weakness are often so slight and so so gradual that they are simply accepted as the new normal, rather than being recognised as harbingers of doom.
So get back to basics. Don’t accept departmental or board room hot-air when reviewing management accounts and if any aspect of how the business is operatiing gives you pause for thought, don’t prevaricate, do something about it.
It is only natural for company leaders to be protective of their own teams and defensive about possible outcomes. Is your own vision clouded by personal investment in the structure? Clarity is required, and you know where this is going…
Get an independent review from Kingpin Advisory. We'll come to you, we won't judge and we understand the need for absolute discretion. All the initial contact will cost is your time and a little courage.
