Signals, we all like to avoid

In the current environment, I am reproducing some of the signals that indicate possible decline of organizations from my book - "Turnaround Excellence". I am amazed to observe them in virtually all the declining organizations irrespective of the industry in which they operate.

The signals are:

a) Increasing customer complaints

b) Customer mix drifting towards less preferred ones

c) Slow growth (often negative growth)

d) Autocratic one-man rule

e) Unbalanced top team

f) Sudden increase in the turnover of key personnel (especially the high performers)

g) Tolerance of incompetence

h) Inhuman treatment of people

i) Creative accounting

j) Liquidity problems

k) Scarcity of goals

l) Inferior technology

m) Cumbersome administrative procedures

n) Outdated organizational structure.

My studies suggest that we are likely to witness all the above signals in declining organizations. However, if we witness more than 9 out of above stated 14 signals, there is definite need to undertake concrete actions for the revival of organizations. 

Owing to loss of credibility under declining conditions, stakeholders turn hostile. The revival process requires changes at the top.