Some Warning Signals you may want to know
Wednesday, November 6, 2013 at 12:27PM
erich stolz in Board, Healthy Company, Troubled Company, accountability, culture, ethics, falling, focus, goals, productivity, turnover rate, warning

Some Warning Signals you may want to know:

  1. Are you running low on Cash?
  2. Is your A/R and/or your A/P raising consistently?
  3. Are financial reports or key performance indicators prepared only for and by a few people?
  4. Are your financial and management reports inaccurate, late, and not pertinent?
  5. Are you consistently missing operational targets?
  6. Have operating expenses grown too high?
  7. Have you experienced an excessive inventory level?
  8. Do you get calls from creditors asking for their money?
  9. Do you make excessive end-of-year adjustments?
  10. Do you know where you can make some healthy restructuring on your balance sheet with a positive impact?
  11. Does your management team focus on events rather than processes and goals?
  12. Are you afraid to bruise a few egos and therefore being late in taking actions?
  13. Do you hear too many excuses?
  14. How are your key contributors being motivated, recognized, and rewarded?
  15. Are the sales trend and / or gross margins going in the wrong direction?
  16. Does your Banker show an unusual interest in your operation?
  17. Is your management team over-extended?
  18. Has your revenue declined beyond industry average?
  19. Is your employee turnover rate excessive or too low?
  20. Are any key client relationships deteriorating?
  21. Is the operation able to win new business at expected levels?
  22. Are markets and competitors being properly analyzed?
  23. Is the C-level team visiting at least one customer per week? (Hopefully not always the same customers)
  24. Is management making faulty assumptions and rationalizations?
  25. Are you spending too much time on short-term perspectives?
  26. Is there a lack of critical information?
  27. Are you neglecting early warning signs?
  28. Are you receiving proper and accurate key management indicators?
  29. Are your controls in the areas of operations, planning, and procurement poor?
  30. Is there a lack of focus and ownership of results?
  31. Does accountability really work within the ranks of management?
  32. Is procrastination is part of your Company’s culture?
  33. Are you complaining of the work ethics within your management ranks?
  34. Is employee productivity declining?
  35. Have you checked up on employee morale lately?
  36. Are goals clearly articulated and agreed upon?
  37. Is your board providing you with adequate guidance and help?
  38. Does your board merely act as a “rubber stamp for approval?”
  39. Do you have a “What-If” Emergency or Disaster plan and do your key player know exactly the details?
  40. Do you have a successor plan in place?
  41. When was the last time you called an outside professional for a “Health Check up?”
Article originally appeared on erichstolz (http://www.erichblog.com/).
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