How can you tell when a business is in trouble?

It starts counting pens! It's an old joke that organisations normally start looking at the little picture when times start getting a bit rough for them; and they start doing stupid things in a desperate bid to stave off the wolves at their metaphorical, and sometimes real, doors. 'Counting pens' is a joke often told by consultant types, but if any of you have ever worked at a place where the stationary cupboard has been locked, and a guardian appointed to protect it, you'll be aware of how depressingly true the old joke about counting pens truly is. I've seen companies implode in this way from the outside, and indeed from the inside. They start attributing their woes to external sources, or not enough micro-management. When the going gets tough in the corporate world, quite often it's the stupid that get going.

Companies do dumb, counter-intuitive things when times start getting a bit tough for them. Rather than asking serious questions about why it is the case that the companies bottom line sucks, or the KPI's are going in the wrong direction, because that would be wise and sensible, they plough ahead, just faster. Nope, they tend to assume that if they do more of the same, just better, things will improve. Rarely will someone ask the sensible question "hey, guys, is trying to sell fridges to Eskimos such a great business idea?". Nope, they appoint stationary cupboard guardians, and set researchers off to assess KPI's in minute details, everything becomes too close to view properly and nobody can see the bigger picture anymore. When that happens companies start making rash decisions that are counter-productive and expose themselves to even more risks.

I think it is part of human nature when in such a company to never want to ask whether actually you are doing a good job yourself. Not if you are working hard enough, just asking whether what you do is needed, or indeed efficient. Everyone is on edge, and people do feel besieged and vulnerable; people put their heads down and motor on, thinking blood, sweat and tears will win the day. So where am I heading with this. Well I'm going to talk about our hobbies favourite topic again, Games Workshop. Over the past few months they've done some pretty dumb things haven't they? I might not have commented on the online sales embargo, or their restriction on free trade for independents; and despite sharpening my pen over their claim to own all literary uses of the words 'Space Marines' I've stayed silent.
Read more �