Organizational Effectiveness: The Seven Deadly Diseases


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With regards to organizational effectiveness, what are the signs that a business is in trouble? What are the symptoms of a company that has lost its way? Based on the ideas of W. Edwards Deming, “The Seven Deadly Diseases” are the things you need to look for whether you’re managing a company or simply investing in it. (1 page)

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Seven Signs of Poor Organizational Effectiveness

1. Lack of constancy of purpose:

  • Purpose of business is to stay in business, grow, create jobs, and create value.
  • Does the company have a clear strategic foundation – and the discipline to stick to it? (See related tool: “The Six Rings Strategic Planning Model”.)

2. Emphasis on short-term profits:

  • “Paper entrepreneurs” only take a bigger piece of the pie, don’t make the pie bigger.
  • Does the company show steady growth in sales, revenues and profitability?

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