Thursday 24 May 2018

Typical symptoms of poor management practices in (SME) Organizations?


Whether small, emerging medium  or large size organization, most of them have common  macro-level challenges like

1. Improving profitability
2. Sustaining the growth & Future fit
3. People Engagement towards growth

However, small and emerging organizations have other typical challenges apart from the macro level challenges. Those challenges arise due to lack of proper management practices and business / functional processes.

Let us list down some of the symptoms of poor management practices or processes that result in mediocre performance or survival challenges.

1. Struggle to meet the given delivery schedule on time and qty. This will be regular scenario every month
2. There is no structured planning on customer's orders. Most of the time, serving the customer based on the urgency of the customer on a daily / weekly basis.'
3. One of the complaints or frequently listened word (FLW) is " our planning person is not effective, or are planning is very difficult in our industries.
3. Inventory (RM+WIP+FG) accounts for more than a monthly requirement, still manufacturing lines come to a halt for want of material
4. Rework / segregation is part of daily activities  and those  are considered as  essential activities for delivery
5. For any quality problems, quality executive or quality manager  is expected to own and solve it
6. Quality is ensured through Inspection 
7. Making the operators to run the machines. Checking the quality aspects and taking actions are considered as idealistic and impossible
8.A permanent imbalance between feeder shop and final assy line. Neither aware of the imbalance nor the actions to improve
9. Typically the first week would be low production achievement and gradually increased to last week. During month end, all are busy.
10. Sometimes, previous month billing execution would continue even after first 5~7 days of the month and this continues forever
11.No clarity and communication about monthly billing/production target and actual at any point of date. That information restricted to the senior management team only
12 No performance drive on improving business / functional deliverables.
13.No structured reviews mechanism between the business head and the next level
14 Functionally I am right; but as an organization, we fail mentality across the level 
15 No Monthly business performance review by the business head
16 ERP system is either tried  or hold  for correction
17.Thinking that  ERP system will solve all our today's communication issues
18 No structured  HR policy on recruitment and compensation
19. New product development is given least priority. No structured cross-functional team reviews
20. No time for a celebration of small success and always  firefighting mode to serve the customer

The point is to relook at your organizational symptoms and work on eliminating or reducing the intense to prosper!

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