What is a "struggling company"? 1

[jmw]

In the "Career in Focus" thread, the TICK points out that it is no fun working for a strugging company.

The problem is, how do we recognise a struggling company?

What are the key indicators we need to identify if we are to stay in control of our careers?

Many companies appear to be struggling because they have lost the plot. Some companies are strugggling simply because of the prevailing economic climate. In the short term this may amount to the same thing but as economic conditions change, how do we know we are with a good company?

I'm sure there are many clues in how the management are behaving e.g. watching the profitability and cash flow very carefully they may make more short-term decisions.

So does anyone have some good pointers?

JMW

http://www.viscoanalyser.com

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[IRstuff]

Oh, oh, I have one...

Our fearless leader decided that we were wasting too much electricity keeping our copiers warmed up, so installed timers to shut them off after about an hour of inactivity. Then, it was supposed to take about 30 seconds to warm up, but actually took two minutes.

Only problem was, our engineering time was billable at $120/hr or $4/2-minutes, which was enough to pay for the electricity for the copier for DAYS.


TTFN

 

[profengmen]

Good point, TheTick.

A struggling company is not defined as one that has a “blip” in one year. It is a company that can have its poor performance tracked back through time, and a trail of problems can clearly be seen. Many companies go through small down times, some pear shaped problems here and there…. most do; but that does not mean they are struggling.

A company that has a proactive purchasing department; and changes vendors to lower cost, and/or consolidates vendors is not necessarily “struggling”; it may be they have a good CEO that likes to improve on good performance.

A company that “all of a sudden” has many meetings with a lot of people may just be responding to a small crisis. To say that “nothing was accomplished” in these meetings indicates that you were there, and since you are not helping solve the problem, you might be part of the problem?

Things are not always as they are perceived. Certainly using the one or two examples of Enron or Tyco does not represent the rest of the hundreds of thousands of honest companies that have financial statements in order. Also, if you know something about your business, and read something in the financial statements that can not be true; is this not a good indicator??? It seemed to work for the people that TheTick mentioned that steered clear of Enron.

No, I say used fact based indicators, facts are facts…. Observations are subject to wonder; which must be investigated and solved with facts. Someone asked how to identify the signs of a struggling company… well; it’s all there in black and white… read it.

 

[PSE]

Struggling Company

Has unsuccessfully used the "energy" created by a challenge or crisis, it is gone and people are going through the motions. Communication begins to ebb as management ensconces itself behind closed doors. "Teams" become groups of self interested individuals not willing to assist others. Vendors stop doing things on a sample basis and may begin requiring up front payment for work.

A few symptoms I have seen anyway.

Regards,

 

[MintJulep]

Profengmen,

Of course, if what are presented as facts are in fact lies...

 

[epoisses]

Struggling Company:

An unmotivated workforce
and the rest comes naturally!

Unmotivated people cut productivity in half and turn black numbers red.

A company that is led by poor people-managers is doomed to fail and if, miraculously, it doesn't, it could have been twice as well-performing.

 

[profengmen]

MintJulep,
Then they are not "Facts" are they? In fact, that is a good indication of a struggling company, and therefore valid.

Nevertheless, concentrating on the very, very small percentage of "lying" statements is hardly conclusive as an argument.

But then again, TheTick already addressed that.

 

[profengmen]

I'm changing my answer:

How do you feel?
Are you unhappy?
Are all those around you negative? Are they grumpy and complaining all the time?
Is the only exciting part of your day the office gossip?
Do you feel, and do your co-wookers feel- like they don't make a difference?
Is the dark cloud of doubt hanging over your head?

If yes, Then you work for a struggling company.

 

[ChrisConley]

My best indication of a struggling company is the number of employees that spend their lunch hours polishing their resume.

I worked at one company (briefly) that people actually passed around their resumes and cover letters looking for tips from fellow employees... I took the hint.

**If you are not part of the solution, then you are part of the precipitate.**

 

[RDK]

Number one indicator.

Your paycheque bounces.

Rick Kitson MBA P.Eng

Construction Project Management
From conception to completion

http://www.kitsonengineering.com

 

[MadMango]

Good point. I worked for a architectural design firm right out of high school. Things were going great, as we mostly worked with general contractors and did residential work. We started to branch into the commercial jobs, doing apartment complexes, medical facilities and school board projects.

As soon as we got into the commercial things, we began getting paid (as a company) at certain milestones of the projects. This was something new for the architect that I worked for, and it almost ruined the company. It got so bad, he would go to each employee (6 of us) and ask, “Can I pay you 60% today and make up the other 30% next pay day?” After being asked this question 3-4 times, I got the hint and got out.

Ray Reynolds
"Computers in the future may weigh no more than 1.5 tons."
Popular Mechanics, forecasting the relentless march of science, 1949
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