The High Cost Of Bad Management
Understand the outcome of bad management in companies.
Talk about the ‘Passing Parade.’
I was with one of my client organisations this week reflecting on the passing parade of staff not just in their organisation but in companies generally. Bad management is one of the root cause why people leave.
People leave for all sorts of reasons:
- Get pregnant
- Get married and partner moves interstate
- Get a way better offer from a competitor or another company
- A new manager comes in and realises the performance of the person is not up to scratch and the person realises ‘the game is up.’
Also there is the situation where a new Manager comes in and puts in higher levels of accountability
like ‘how many calls are you doing each day?’ or ‘let’s take a look at
the quality and quantity of quotes or proposals you are doing?’
Or, ‘let’s sit and listen in on the phone calls you are doing and see if you’re doing an A Grade job with the leads
or a B Grade job with those precious leads..’
Some people don’t necessarily want to get that degree of accountability.
Sometimes they then define this degree of accountability as ‘micro- management.’
Usually by the time they call it micromanagement they are already looking for another job where they hope there won’t be that degree of accountability or micromanagement.
Invariably the B Grade business athlete blames everyone else for their B Grade results.
The A Grade business athlete looks fairly and squarely in the mirror and look for what they can do to take their game to the next level.
YOU CAN CALCULATE THE COST
International Recruiter Drake even has a Calculator on their web site to work out the Cost of Staff Turnover in your business. https://au.drakeintl. com/hr-news/cost-of-turnover- calculator.aspx or Google ‘Drake Turnover Calculator’
But that doesn’t take into account the Cost of the Bad Manager or B Grade team member :
- Burning good leads
- Burning good customers
- Losing good customers
- Not following up leads
- Not having good systems in place for teams to be efficient and effective
- Poor morale and motivation leading to below average team performance
- Other team members catching the B Grade players poor attitude because the manager hasn’t taken action or given feedback
- etc etc
If you’re a Business Owner or CEO you might want to do a Management Audit at some point just to check how good or bad your managers are.
Your staff turnover and the pattern of answers you get in Exit Interviews will be a very good barometer. Especially if the people who are leaving are good performers.
You may not like what you hear, but best you hear it before it costs you even more.
In most cases, when they are leaving, the exiting employee doesn’t have anything to fear, so they won’t hold back.
Yes, they may feel a little bitter or angry so listen with careful ears.
Where there is smoke there is fire.
Listen for the patterns.
If three exiting employees are saying roughly the same thing, there’s a very good chance there is a smouldering issue there to be dealt with.
As with all issues and problems, they don’t get better by burying them.
Investigate. Take action.
There is a high cost in consistently losing good people.
There is also a very high cost in keeping toxic managers who poison and disempower employees.
Leave the Bad Bosses for the movies – you don’t want them in your business.
CONFIDENTIAL BAD MANAGEMENT DISCUSSION SESSION
If you want a confidential meeting to discuss what to do about Bad Management (or suspected Bad Management) in your business, contact me via the CONTACT US form or CLICK HERE.