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Signs of Deteriorating Company Performance and Defensive Measures

Signs of Deteriorating Company Performance and Defensive Measures

The key is to establish measures that enable early detection and early treatment!

We would like to introduce our consulting theme "Signs of Deterioration in Company Performance and Defensive Measures." By analyzing past complaints and periods of performance decline, we will construct the symptoms and countermeasures related to signs of performance deterioration. By picking up issues related to signs of performance decline, we can promote the sharing of problems among all employees and enhance visibility, enabling early countermeasures. 【Implementation Themes】 ■ Explanation of bankruptcy trajectory ■ Improvement exercises for companies with actual performance decline ■ Considering signs of performance deterioration in our company ■ Examination and creation of defensive measures against signs of performance deterioration in our company ■ Explanation of signs of performance deterioration and defensive measures in our company *For more details, please download the PDF or feel free to contact us.

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[Column] Growth Trajectory of Small and Medium Enterprises 1: From Birth to Rapid Growth Period

[Column] Growth Trajectory of Small and Medium Enterprises 1: From Birth to Rapid Growth Period

I would like to introduce a column article.

Humans are born and go through a growth process that includes kindergarten, elementary school, junior high school, high school, university, and adulthood. At each of these milestones, there are encounters with people, entrance exams, and graduations. Additionally, significant life events such as coming of age ceremonies and employment also occur. Similarly, companies have their own fundamental growth trajectories. ■ Birth Stage First is the birth stage. This is the period shortly after a company is established, which every company experiences. The survival rate of a company is harsher than the survival rate of humans. It is said that the survival probability of a company that has been born to survive for 10 years is 20-30%. ■ Foundation Stage Once the birth stage is over, it enters the foundation stage. This is the period when the foundation of products and customers gradually begins to take shape. ■ Rapid Growth Stage Next, the company enters the rapid growth stage. This occurs when the selection of products, industries, areas, and customers is favorable, leading to an increase in the number of customers and work, resulting in rapid growth. The increase in the number of employees does not cause rapid growth; rather, it is the increase in the amount of work that inevitably leads to an increase in the number of employees. In this way, the company experiences rapid growth.

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[Column] Shedding the Rulebook for Managers

[Column] Shedding the Rulebook for Managers

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There are two main points regarding the management transformation of growing companies. The first point is that as work increases, the number of people will also increase. Therefore, it is necessary to establish rules and standards and to systematize processes. In other words, it is about creating the structure of the company. The second point is that the president must shed the role of a walking rulebook and promote a change in mindset to operate the company with all employees. When the entire company is changing, the one who must change the most is actually the management. It is required for the management to evolve from being a walking rulebook to creating a company that embodies its identity, meaning that the company should be operated as an organization. If the management does not build the necessary skills, the enthusiasm of the president alone will not be enough to overcome the barriers to growth. However, it is important to clarify that those who genuinely wish to expand the company in a healthy sense must develop management skills that correspond to that scale. A company is not good simply because it is large, nor is it bad just because it is small. The crucial point is what kind of company the management wants to create, centered around the management itself, in a way that fits its size. It is essential to clarify that intention.

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[Column] The Moment the President Leaves the Field is a Turning Point

[Column] The Moment the President Leaves the Field is a Turning Point

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The founder and president of the company, struggling to survive, suddenly realizes that the annual sales have reached 700 to 800 million yen. Up to this point, the growth has been centered around a sense of unity focused on the president's leadership. The key feature at this stage is the turning point where the president begins to step away from the frontline. In other words, it is also the time when the entrepreneur sheds the role of being the boss of sales and production and starts to challenge the responsibilities of being a manager. This turning point brings changes within the company, and the inability to adapt to those changes prevents them from breaking through the 1 billion yen (with 30 employees) barrier. The speed of a company's growth is significantly faster than the speed of individual growth. Moreover, the growth of the entrepreneur is notably faster than that of the employees, which creates distortions in a growing company. The president tries to challenge the core responsibilities of management but begins to have concerns about their vision and the capabilities of veteran executives. Various countermeasures are taken, but the entrepreneur becomes frustrated with the dilemma of things not going well. In summary, it is the desire of the entrepreneur to create a company that truly resembles a company, along with executives who cannot adapt to this and the internal systems and strategies that are not functioning well, that obstruct the barrier of 1 billion yen.

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