Do some leaders strive to prevent growth in companies?

May the reason for managers who strive to prevent growth in companies be a matter of insecurity or just blatant ignorance? Appointing people with less skill, qualifications or experience, may instill insecurity especially when you serve on a Board of Directors and cannot deliver what is expected.

A recent study showed that the following traits where common under leaders not performing to their full potential:

  • Lack of energy and enthusiasm. They see new initiatives as a burden, rarely volunteer, and fear being overwhelmed. One such leader was described as having the ability to “suck all the energy out of any room”.
  • Lack of interpersonal skills. They make sins of both commission (they’re abrasive and bullying) and omission (they’re aloof, unavailable, and reluctant to praise).
  • Lack of clear vision and direction. They believe their only job is to execute. Like a hiker who sticks close to the trail, they’re fine until they come to a fork.
  • Failure to develop others. They focus on themselves to the exclusion of developing subordinates, causing individuals and teams to disengage.
  • Accepting their mediocre performance. They overstate the difficulty of reaching targets so that they look good when they achieve them. They live by the mantra “under promise and over deliver”.
  • Resisting new ideas. They reject suggestions from subordinates and peers. Good ideas aren’t implemented, and the organisation gets stuck.
  • Poor judgment. They make decisions that colleagues and subordinates consider to be not in the organization’s best interests.
  • Don’t collaborate. They avoid peers, act independently, and view other leaders as competitors. As a result, they are set adrift by the very people whose insights and support they need.
  • Don’t walk the talk. They set standards of behaviour or expectations of performance and then violate them. They’re perceived as lacking integrity.
  • Don’t learn from mistakes. They may make no more mistakes than their peers, but they fail to use setbacks as opportunities for improvement, hiding their errors and brooding about them instead.

Could these be the reasons for some leaders striving to prevent growth?

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Think forward, think outsourcing

Outsourcing is no longer just a buzzword. Business leaders know its now more vital than ever before to understand, and utilize the benefits of outsourcing. Despite the fact that many companies today are outsourcing their products or services to 3rd party companies, other companies are still bias and precious about their structure and products.

Outsourcing benefits

  • Risk management: When your staff does not perform to standard you need to follow disciplinary action and at worst let this staff member go and recruit his/her replacement - this process can take months and you also run the risk of being challenged by the CCMA or Labour court.
    When the same performance issue is considered with an Outsourcing company its as simple as finding another Outsourcing company, or making the performance/quality issue theirs to address.
  • Quality assurance: An Outsourcing company is more likely to provide a better product/service than your in-house staff for the simple fact that the Outsourcing company is not part of your company culture and processes (or problems), but has to provide a high quality service regardless, which is governed by you, and Performance & Quality managed by its own Management based on your requirement.
  • Cost: Compare the Cost-To-Company of one of your employees vs a similar service provided by an Outsourcing company. You’ll find that you don’t have office space and infrastructure cost, no additional benefits costs like medical aid, parking etc. no cost whilst a staff member is on maternity leave or on strike, and no salaries or retrenchment payout’s during an unexpected economical crisis etc. - hence by outsourcing you only pay for the direct service or product, no hidden or unnecessary costs.

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