Corporate degeneration is a situation that corrodes institutions from within, much like cancer, without initially making itself apparent. From the outside, this condition might be invisible but can sometimes reveal itself through a decrease in quality. The organization’s management and functions appear to be intact, fulfilling their duties and staying active, yet an inexplicable sense of dissatisfaction can be felt. This is an issue of quality over quantity.
An organization lacking new-generation leadership requirements, initiative-driven managers, and knowledge of the Kaizen philosophy (continuous improvement) may sustain itself out of necessity, but will inevitably suffer from internal decline. Weakening quality is a sign of internal degeneration... There’s a saying, “Quality is a cost issue!” as we explained in our previous article on profit versus quality.
Furthermore, the deficiencies in merit, vision, foresight, diligence, productivity, and innovation are unfortunately not visible in a blood test for an organization! These intangible soft issues, as they accumulate, become like worms eating away at the organization from within.
Due to decline in employee motivation, departure from core values, lack of transparency, in the medium term, ethical issues can also arise. Inefficiency and customer dissatisfaction will inevitably impact market performance. Eventually, this will be reflected in visible elements such as the balance sheet and service quality, making recovery traetment all the more difficult.
Institutional culture, strong leadership, employee engagement, commitment to vision and mission, communication and transparency, fostering innovation and adaptability, performance management, flexibility, and competent leaders are essential. Fulfilling the requirements of scientific management also addresses ethical issues. This is the perspective to be seen. However, seeing does not always mean understanding...
Look at the qualitative characteristics of your organization with fresh eyes, not just the quantitative ones!
– Dr. Bilinç Dolmacı
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