You Know Something Is Wrong in the Company, But Don’t Really Know What? 7 Steps on How to Find Out

Sometimes, a business feels off. The numbers might look fine, the processes appear to be in place, but something still isn’t working. Employees are frustrated, productivity is lagging, and small inefficiencies seem to be piling up. If you suspect something is wrong in your company but can't quite put your finger on it, here are some practical ways to diagnose the issue.

1. Analyze Performance Metrics Beyond the Surface

On the surface, key performance indicators (KPIs) might seem steady, but are they truly reflecting the health of your organization? Look for subtle warning signs:

• Plateauing Growth – Are sales or engagement numbers stagnating despite ongoing efforts?

• Employee Turnover – Is there an increase in resignations, especially among top talent?

• Project Delays – Are teams consistently missing deadlines without clear explanations?

Dive deeper into data by segmenting performance reports and identifying trends that might not be obvious at first glance.

2. Listen to Employees (Beyond the Surveys)

Most employees know when something isn’t working, but traditional feedback mechanisms often fail to capture their concerns. Instead of relying solely on annual surveys, try:

• One-on-One Conversations – Ask employees at different levels what’s frustrating them.

• Anonymous Feedback Channels – Give employees a space to share candid insights.

• Observation – Pay attention to body language and workplace interactions. Are meetings tense? Are employees disengaged?

  
  

3. Follow the Bottlenecks

Issues often manifest in the form of repeated delays, approval roadblocks, or unclear decision-making. Identify:

• Processes that take too long – Is bureaucracy slowing things down?

• Conflicting priorities – Are different departments working against each other?

• Resource Constraints – Are teams lacking the tools or information they need?

  
  

4. Check for Silent Cost Sinkholes

Sometimes, inefficiencies bleed money in ways that aren’t obvious. Hidden costs could be:

• Redundant tasks that multiple departments handle separately.

• Underutilized technology or software subscriptions.

• Vendor contracts that are no longer providing value.

A comprehensive financial review can reveal these silent drains on resources.

5. Assess the Decision-Making Process

Are decisions being made effectively, or does everything feel slow and reactive? Warning signs include:

• Decisions taking too long – If approvals go through multiple unnecessary layers, agility is lost.

• Constant firefighting – If the team is always dealing with urgent issues, strategy may be lacking.

• Lack of ownership – If no one is accountable, problems persist without resolution.

  
  

6. Identify the Communication Breakdown

Many business issues stem from poor communication. Are messages getting lost between departments? Are expectations unclear? Consider:

• Are meetings productive or repetitive?

• Are employees receiving contradictory instructions?

• Are important updates communicated clearly and on time?

Mapping out the company’s communication flow can highlight where breakdowns occur.

7. Look at the Company Culture

Culture issues are harder to quantify but have a massive impact on performance. Watch for:

• Low morale or disengagement.

• High absenteeism or burnout.

• Lack of innovation or risk-taking.

If employees don’t feel valued or heard, motivation and efficiency decline.

Taking Action

Once you've identified potential issues, the next step is structured problem-solving.

• Prioritize the Problems – Focus on the ones that have the biggest impact.

• Create a Plan – Define clear actions and assign ownership.

• Implement Small Changes First – Quick wins build momentum.

• Monitor & Adjust – Keep tracking progress and iterate as needed.

If you feel something is wrong in your company, don’t ignore that instinct. By taking a systematic approach to diagnosing the issue, you can prevent small inefficiencies from becoming costly crises.