There are many reasons why companies fail. Lack of cash flow, unable or unwilling to hire the necessary people, and a lack of understanding of the dynamics of the marketplace. This post will deal with the biggest things that I have noticed why companies fail.
1.) Companies must become more diverse- This is the number one reason that companies fail. They do not take advantage of a diverse population pool and hire a diverse staff. It is surprising what people from different backgrounds can bring to the table. Companies need to be more open minded and seek diversity in race and even in age, particularly doing times when there are many baby boomers with a wealth of talent and could be mentors t0 an up and coming younger staff. They can be used in the same was as an older, near retirement age athlete who is picked up to help the younger players learn the ends and outs of the game.
2.) If you have managers, who deliberately hold talented people back, as a CEO, you need to identify this behavior and stop it. Often in corporations, the leadership is simply a click. Clicks are made to be broken. Break them up and let it be known that all voices in the company will be heard and that you will not tolerate someone deliberately holding another worker back for whatever reason.
In order for this to work, as CEO of the company, you need to personally get to know all employees, so that you can hold your managers accountable. Question your managers and don’t take everything they tell you as gospel. Talk to front line workers about an idea. You will ALSO DISCOVER FOR YOUR SELF THE REALLY TALENTED PEOPLE THAT SHOULD BE IN A DIFFERENT POSITION.
Finally give credit when and where it is due. Always recognize the people who really are making a difference even the ones who don’t do it the way you do, but are equally effective. Most of all realize the different way to accomplish a specific goal.
3.)Hire managers who have actually done the job that the people they are managing are doing. Nothing is more frustrating than to have a manager making decision having never done the job or being successful at it. If you don’t fully understand the dynamic of a job you cannot effectively manage those who do it. A simple concept.
4.) Do not follow the leader in your industry. Be out in front and be a trendsetter. Be proactive in your thinking. Do not ever, ever, react to competitors. If anything, your competitors should be reacting to you. Shame on you if you let your competitors get a competitive advantage on your company.
5.)Finally search out opportunities and seize the moment. Capitalize on opportunities before your competitor does. How well you execute this concept will determine the success of your company.