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Why Organizations Fail

Featured » Organization
Jun 1 | By Ashish Tiwari | Views: 22 | Comments: 0
Why Organizations Fail

1. Fuzzy Vision - Corporate vision and mission don't inspire people; lack of strategic alignment; people don't know where the organization is going and what it is trying to achieve in the future.


2. Lack of Leadership Skills - Fear of change > Leaders lack entrepreneurial spirit; leadership style on the part of management is either too directive or too hands-off; managers do not lead and don't manage change, they just administrate and micromanage; weak leadership development program.


3. Discouraging Culture -  corporate culture does not >  inspire people; no shared values; employees are not energized; lack of trust; blame culture; focus on problems, not opportunities; people don't have fun at work; diversity is not celebrated; failures are not tolerated; people lose confidence in their leaders and systems.


4. High Bureaucracy - Bureaucratic organizational structures with too many layers; high boundaries between management layers; slow decision making; too close monitoring of things and subordinates; too many tools and documents discouraging creative thinking; bureaucracy is tolerated.


5. Lack of Initiative - Employees are not empowered; poor motivation and encouragement; people do not feel their contributions make a difference; management fails to engage the organization effectively; people work defensively and not creatively, they do their job, and nothing more.


6. Poor Vertical Communication - People have no clue of the big picture and do not feel that their contributions are important; too much uncertainty; people don't know what top-managers are thinking and planning.


7. Poor Cross-functional Collaboration - Functional mindset;  lack of cross-functional goals and cross-functional collaboration spirit; functional, no enterprise-wide business process management; no cross-functional management committees; lack of or powerless cross-functional teams.


8. Poor Teamwork - No organizational commitment to team culture; lack of shared and worthwhile goals; weak team leaders; team members who don't want to play as part of a team are tolerated; teams are too large; lack of shared rewards.


9. Poor Idea and Knowledge Management - Cross-pollination of ideas is not facilitated; no creativity, idea and knowledge management strategies and systems; "know-it-all" attitude; "not invented here" syndrome.



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