20th November 2025

The 5 Organisational Red Flags We Keep Ignoring

There’s a set of recurring issues or ‘red flags’ that continue to drag down organisational performance, and frankly, it’s exhausting to see them persist.

These aren’t new problems, and they’re not hard to spot. But they remain stubbornly embedded in many businesses, often because no one wants to call them out directly. So here they are.

1. Ill-defined jobs: the root of confusion and mediocrity

When roles aren’t clearly defined, people spend more time guessing than executing. You get duplication, gaps, and a whole lot of “I thought that was someone else’s job.” It’s not just inefficient, it’s demoralising. I’ve seen teams where no one could explain what success looked like in their role, and unsurprisingly, no one was hitting it.

Example: A client’s operations team had overlapping responsibilities across three roles. Everyone was busy, but nothing was getting done. Once we mapped the actual work against the job descriptions, it was clear the structure was broken, not the people.

2. Managers with low standards who can’t manage performance or facilitate development

This one’s brutal. A manager who avoids important conversations, doesn’t set clear expectations, and fails to develop their team, is a liability. They create environments where underperformance is tolerated, and high performers leave out of frustration.

Example: A senior manager I worked with refused to give feedback because they “didn’t want to upset anyone.” Their team stagnated, and the best talent quietly exited over six months. The cost to the business? Significant.

3. Weak candidate pipelines: hiring becomes a scramble, not a strategy

If your talent pipeline is reactive, you’re already behind. Organisations that don’t invest in building relationships with future candidates end up hiring whoever’s available, not who’s best. It’s a short-term fix that creates long-term pain.

Example: A tech firm I advised had no succession planning and no passive candidate engagement. When a key leader resigned, they spent four months trying to fill the role, losing momentum and market share in the process.

4. Cultures that tolerate ‘average’ instead of challenging norms

This is the silent killer. When “good enough” becomes the standard, innovation dies. Teams stop pushing boundaries, and mediocrity becomes the norm. Worse, it’s contagious. People who want to do great work either burn out or leave.

Example: In one organisation, a high-performing team was told to “slow down” because they were making others look bad. That’s not culture, it’s sabotage.

5. HR’s lack of ability to implement true business process change

HR should be a driver of transformation, not just a compliance function. But too often, HR lacks the capability or influence to lead real change. They get stuck in policy and process, while the business needs agility and impact.

Example: A global company I worked with had brilliant HR strategy on paper, but no execution muscle. Their change initiatives died in committees, and the business kept running on outdated models.

We all know the line, “Culture eats strategy for breakfast.” But I’d argue that poor structure, weak leadership, and passive HR eat culture before it even gets to the table.

Justin Miles

Justin Miles

Manager Partner, Melbourne at Generator Talent
Justin is the Managing Partner of our Melbourne office, an outcome focused leader with a track record of driving business performance through proven talent and organisation development practices. Justin’s methods and skills have been shaped by working with performance oriented leaders in great companies including PepsiCo, The Campbell Soup Company, Diageo, Rip Curl, Fonterra and Wesfarmers, in Australia, the USA and Latin America.
Justin Miles

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