Tuesday 5 November 2013

The Cost of Bad Bosses

I see a lot of articles on leadership and giving feedback.  I see far fewer on the cost to an organisation of a “bad boss”.  This is my own “ten cents worth”.

Although most organisations are fairly effective at rooting out poor performing employees, they show less ability when it comes to spotting bad bosses.  This often takes much longer, and costs the organisation more. Three quarters of employees report that they work for a “bad” boss, but how do they define “bad”?  You need to distinguish between ineffective leaders and “bad people”.

Bad bosses may not be obvious for a number of reasons:

·      They’ve been promoted to their current position, so the feeling is that “they must be good” (logical);
·      They’re often adept at “office politics” – presenting a very different face to their bosses compared to their direct reports (I’ve seen this myself);
·      They may be good at disguising or hiding their tracks;
·      Even if senior management know they’re “bad”, they don’t want to admit their mistake in promoting them;
·      Subordinates may not say anything for fear of reprisals (very true).

The costs or signs of a bad boss show up in a number of different ways, for example in a:

·      Higher degree of absenteeism (e.g. sick leave) in the team/department compared with others;
·      Higher degree of errors than might be expected in the department;
·      Higher level of departures or transfers compared to other departments;
·      High level of staff replacement costs.

Whatever the sign (or signs are), you have a problem and need to fix it before productivity becomes seriously ruined, your product or service is affected and your organisation’s reputation lost forever. A bad person or leader can bring down a business very quickly, as countless examples in history show.

Once you’ve spotted these signs, what do you do?  I recommend several approaches:

·      Look for evidence to confirm your suspicions – is it really a case of one individual or a team setting out to make an effective (but unpopular) boss “look bad” for their own reasons?

·      Observe and talk to team members and to peers of the boss concerned.  How people react around the individual or when talking about them?

·      Ask yourself if it’s a leadership or personal issue.  If leadership, it can be changed.  Personal ones may be more difficult (but not insurmountable).  For example, has something recently happened in the individual’s personal life (e.g. loss of a loved one, divorce) that has changed their behaviour?

·      If there’s a real problem, speak to the individual concerned (not as easy as it sounds).  Depersonalise any criticisms, but make it clear that behaviour has to change.

·      Use facts or examples, don’t generalise. Point to specific instances of behaviour and their impact on others.  This may mean you have to keep a closer eye on the person concerned.

Some ask whether a good boss can “turn bad”.  As I mentioned above, if something bad has happened in their personal life or professional life (e.g. being passed over for promotion), they may react in a way that damages relations with their team without even realising it. 

Make sure that you realise that a “bad boss” isn’t necessarily a “bad person”; they may just be an ineffective leader.  Can this be changed with the right coaching?

I have spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With more than 20 years in the world financial services industry running different service, operations and lending businesses, I started my own Performance Management Consultancy to offer solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.


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