Another one from Decker Marketing, this article is pointing at the Dando Advisors site, but i couldn’t find the original article on the Dando site.

At any rate, here’s a list of “business health” indicators. I’m loving this one. I recently had an experience in a company in which every single one of these red flags was flying. Ugh.

Read on for the list…

Dando’s Top 10 Watch List for Growing Companies

Wrong people in key positions. These include friends, family members or long-term loyal employees who are not qualified to occupy key positions.

Poor communications. Senior management feels it is losing control as a result of having less direct contact with day-to-day operations.

Vague hierarchy. Watch out that the leader’s role is appropriately defined considering the company’s size and leadership needs and the leader’s skills.

Bloated hierarchy. Too many people reporting to the president and/or other senior staffers. Thus, the senior management team really does not operate as an aligned team to guide, plan, lead and manage the company.

Management deficiency. There is not an aligned executive leadership and management team that is staffed with individuals who are proven and skilled at getting desired results with efficiency and quality; developing people to successfully do their jobs; identifying operating inefficiencies, overcoming obstacles and implementing the needed systems and structure to correct the inefficiencies.

Imprecise accountability. There is a lack of clarity for management accountability and design of specific data needed for creating accountability.

Poor rewards. There is lack of an appropriate middle and senior management compensation process that is tied to accountability and results.

Old habits. Accounting, financial performance reporting and control systems have become obsolete for the size of the company, and the complexity and level of information needed to operate a more sophisticated company. Sometimes old processes limit the ability to make hard decisions on a timely basis.

Careful growth. Diversification into products or businesses do not fit the company’s expertise and market experience, or acquisitions are made prior to the company being properly structured to integrate them.

Precise balance. The company is not properly balanced between marketing and sales. There is increased competition and a lack of planning to effectively react to the competition and the market.