Detect the 7 Silent Business Killers

High blood Pressure is a silent killer. Combined with other risk factors it can lead to death. Similarly' in business, there are seven silent business killers that, if combined, can lead to the death of a business.

Here are the warning signs the health of a business maY be at risk, according to consultant Steve Blue:

1. tife Is Great

Things have been going well for a long time now. You hardlY ever hear of any problems. The numbers look good, though lately they've been getting a little soft. You're not too worried because your people will tell you if something is wrong-although they didn't the last time You lost a customer. You found out bY accident. Right about now you feel like You have this c.e.o. thing down cold!

Maybe it's finally time to work on that golf game. Think again. When you feel like this, it's time to be on your guard. Dig hard into your operation to see what's wrong. Peel back the onion of your financials and find out where the issues are.

Do a deep dive of everY dePartment. Remember, you're not trying to determine if you have problems-you do. You're trying to find out where they are.

2. Everyone Makes Nice

When your people have a meeting. they look more like an oil Painting than an engaged team. Your meetings are oh-so-nice. No disagreements, no lively debates. If things do start to get a little heated, someone offers to "take it offline." In any discussion, people look to you to see what Your view is before they take a position. They're more concerned with being nice than moving the business forward.

But you can't move a business forward without conflict. The absence of conflict should not be your goal. Productive conflict should be. Encourage, insist and even demand that PeoPle engage in conflict. Make clear that the absence of conflict is not okaY' But just be sure it is the productive kind.

Conflict needs to be managed, measured and meaningful-or it turns destructive in a hurry. Train everyone in conflict management skills.

3.Innovation Is DOA

Product development has been a little slow for a while. You used to introduce new products all the time. These days, most of your launches are minor enhancements that don't yield better margins. But that's okay, because the customer expects product improvements. Still, it bothers you that while they expect improvements, they won't pay for them. You are on a death trajectory, just waiting for the competition to make you irrelevant.

Make innovation Your number one goal. And just don't make it a goalmake it an absolute requirement. Don't restrict this to new products. It can and should include internal and external processes and procedures.

Innovation is a Process that can be learned and applied by everyone' not just the "creative" tYPes. Throw a challenge down for an annual innovation award. Whoever comes uP with the most innovative product or process gets a large cash award.

4. Your Sales Team Works for Your Customer

When conflict arises between Your company and a customer, does Your salesperson side with the customer? When it comes time for a Price increase, do your salespeople make it happen or do they sandbag You until you give up? Ever hear "customers pay the bills"? How about "the customer is always right." These are signs of salespeople who are on Your PaYroll, but who work for your customer.

If you think that's a good thing, think again. Customers will put you right out of business by squeezing your margins to nothing if they can get away with it. Your customers are constantly advising your competition about how they can deliver better quality or lower price than you can. Your customers will abandon you in a minute for a better deal somewhere else. So why on earth would you want salespeople who work for your customer? If this sounds like your sales team, here is what you should do:

Salespeople develop deep relationships with their customers-so deep they're afraid to offend them, give them bad news (like a price increisel, or otherwise irritate them. Shake them up. Change account assignments. Change incentive plans to include whatever it is you've been trying to get done, but couldn't because they were working for the customer.

Develop a new model for the salesperson of the future. You'll need it, because some of the old guard won't make the trip.

5. Your Toxic Employees Are Killing Off Your iusiomers

Ever meet a rude flight attendant or an unsympathetic front desk clerk? Ever walked into a restaurant and been ignored by the hostess? One toxic employee can destroy years of customer loyalty and chase dozens of customers away every day. Imagine how much business they can destroy in a year. Don't let his happen to you.

Go toxic employee hunting. Take one organization layer at a time and start asking who the toxic people are. And don't buy the excuse that no one knows who your toxic employees are. Someone knows. Once you've identified them, tell them they must change their behavior immediatelv or thev can't stay. Fire those who don't come around. Don't wait too long on this, because your customers aren't waitins around for you.

Set a new standard of behavior for the entire company. Once you have cleaned house, be mindful that weeds always grow back, so be prepared to prune the garden often.

6. Costs Are Under Control

Your manager has been cranking out widgets for what seems like forever. He knows exactly how to run the operation. He does a great job in scheduling the work, purchasing mate- rials, and shipping the product out. However, it seems like a lons time since he talked about cost reduitions. He tells you costs are under control. Under control is not good enough.

Set a goal for improving productivity by lOVo a year. You'll either need to raise the top line or reduce the workforce. Invest in capital equipment to automate, create work cells, and implement lean methods.

7. Hiding in the U.S.

You know the U.S. market well, as do your people, because it's your only market-even though your products could be used intemationally. Margins are getting thin in the U.S. You were surprised recently to learn that a foreign competitor took some business away from you. You'd never heard of this company before. Your salespeople were dumbfounded. Now you're worried that they are after the rest of your business. They probably are.

Don't wait around to find out. Hire an international consultant who's an expert in your industry. Get a passport. Go to the federal government for help (no, really!). The commercial service has excellent countrv/industrv guides from all over the woild.

By Wayne Rivers