Recognising Bad Management

Recognising Bad Management

Bad management can cost your business a fortune, but it can be very difficult to recognise how and why it is occurring. In a big business, there are many people who are responsible for different areas of management, and many of them will have worked for you for a long time. If things start to decline or simply aren’t achieving what they should be, this can be very hard to even recognise. This article considers how to recognise bad management before it sucks your business into liquidation by wasting your resources.


If your company turnover is high, you are likely to think that this is a good thing, but it all depends on the comparative level of the profits. If you have a very high turnover and a relatively small profit each month, then you are probably making some mistakes in business.

Your turnover should only get higher in proportion with your profits, and if this is not the case,you may have bad management to blame. Turnover increases if operation costs go up,because you will need to charge more to do the same thing. A disproportionate turnover can thus be a clear sign of inefficient management.

HIGH TURNOVER - upload article


Cash flow management is a vitally important part of business and it is essential that you get it right. Cash flow enables you to make expenses that will, in turn, allow you to make a profit. If your cash flow gets too low, then you may not even be able to operate and may need business loans to help you meet your orders and get back on track. A fluctuating cash flow fund is another sign of potential bad management since your managers should always have this factor at the forefront of their minds to avoid a dangerous shortage of cash.

FLUCTUATING CASH FLOW - upload article


Another key element of management is the management of staff, and the feelings that staff have is a crucially important indicator about their managers. It can be difficult to get the necessary information from staff because they have their own agendas in looking for a promotion and they may be unwilling to badmouth a boss too.

Carrying out a staff survey, however, can allow you to identify non-personal problems that could be sourced back to bad management. If staff regularly eat at their desks and work, for example, then this suggests in-built inefficiencies, as staff should be able to take a break and get the work done as well.

STAFF FEELING - upload article


One other key indicator of management standards is found with the customers. If there is a low interest in services, this is likely a reflection of poor management and a failure to engage potential customers through marketing strategies. You can also look at feedback from customers to see whether or not people who have engaged with the services thought that they were offered well. If customers are dissatisfied, then there is a clear management problem, even if this may not seem to be directly the manager’s fault.



In order to recognise bad management, it is important to assess the entire business. Looking at different departments and talking to members of staff is essential in identifying why there are problems and what their source is. Replacing a bad manager can turn your business around within months and your profits can begin to soar. For this reason, assessing the business closely and on a regular basis is important. Simply making the effort to look will also help to spur lazy workers and managers into action and this may increase performance.


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