Red flags that leaders ignore

Good results. High sales turnover. Low employee turnover. Award for the best performing company. Lead organization in HR development. What else do you want? This is a response I often hear from companies, when I suggest that may be what appears is not what really is. From the organization’s point of view, it makes sense. You need some “numbers” as evidence to make a case of the “not so good” picture you are trying to present. It cannot be just “what you feel and see”.

That being true, organizations must also acknowledge that before the cysts appear on the surface, it grows underneath. In health, we say that early diagnosis is key to early recovery. Regular health checks help in looking at some symptoms and signs that are not taken seriously. Without them, many times, the invisible malignant growths may be fatal. Similarly, organizations need to develop the RFDs i.e. red flag detectors to prevent these disturbances in the cultural health of the company from becoming disastrous.

RFDs are the safeguards of the culture of the organization. They exist in not just HR but in the basic cultural values and behaviour patterns in the organization. The leader has to purposefully design these patterns. He has to ensure that the shiny exterior of the “numbers” are not taking the eye away from the brewing issues within. In recent times we have seen a lot of “successful” companies go through sudden nose-dives. Scandals of misreporting, harassment and mistreatment are rife in the corporate world. And, they are about some of the biggest names in the business world. These companies that seemed to have unbeatable results are beaten hollow when these things surface. That is why the visionary leader is not only looking ahead, he is all looking within. He needs to understand that the culture he wants to create is not accidental but intentional. He needs to acknowledge that intent alone is not enough. He needs to beware of the fact that if systems and processes are not in place to catch the red flags, the cultural rot may turn to cultural riot. Leaders need to be on the lookout for the following red flags:

Red Flag No. 1 - The lack of dissent - Beware of the quiet assent. Many companies feel that when meetings and conversations are frictionless and smooth it is an indicator of the team being on the same page. In fact, it may be the opposite. When meetings are held and most people either choose to agree or abstain, it can be an indicator of apathy, fear, or disengagement. Many times managers hold meetings and very proudly proclaim how they have reached the decision quickly and seamlessly. While, their team members sometimes confide in me and say “It is pointless to give your opinion, as it is not valued, in fact sometimes held against you.” Such a culture indicates a quiet resentment that if not dealt with may lead to more serious consequences.

Red Flag No. 2 - Core values are decorative - Another fluttering red flag is how the company and leaders value the values. The value of the values is proven by its non-discriminatory application company-wide. The biggest test is how the top guys are following the company values. If the company says its core value is merit, and people see lobbies and favourites getting away with violations, they will feel bitter. In one company when the production faced a shortfall, the issue was traced to a slack supplier. The committee that was formed made a recommendation of the change of supplier. The supplier was changed. However, people discovered that the supplier was brought back a few weeks later to supply something else. That shook the trust level in the company’s core values.

Red Flag No. 3 - High performers are not judged on behaviour - “He is a genius”. “What a performer”. “What would we do if he was not heading sales?” These are the accolades people pay to the guy who brings in numbers. Rightly so. Businesses need such go getters. The only problem is that sometimes these high performers are low on attitude. They may have massive egos. They exploit company dependence on them. They violate rules. They ignore warnings. They play politics. Despite all these issues the company tolerates them as they are money spinners. This is a red flag for spreading the malignancy of uncertainty, distrust and fear.

Red Flag No. 4 - Only few get recognized - Leaders must have teams that observe and talk to people. Feel the pulse. One of the commonest complaint I hear from people is that they are not recognized. They feel that they are like a cog in the machine that runs 24 hours but is not even noticed. They also feel that while most people go unnoticed, a few are over-noticed. They will tell me, “He is given a chance in every meeting. She is appreciated in most projects. We may work more, but they get all the recognition”. This is not a red but a crimson flag. The feeling of not being seen and noticed is an engagement killer.

Leaders need to watch out. These are signs of trouble in making. These may seem minor irritants at the moment but may turn out to be the termite that erodes the culture silently.

What the leaders need to ensure are the 2 green flags:

Green Flag No. 1 - Develop a CPT team i.e. Culture Protection Team - Develop a Culture Protection Team that is empowered to do a pulse check on values adherence, promotion of open culture and engagement levels. They then make a Red Flag list for the leader to address in the strategic meetings.

Green Flag No. 2 - Course correction from the top - Whenever the behaviour needs attention and correction, the leader must start with himself. If, for example, he is not giving time to some people, he should in a meeting acknowledge the finding in the CPT report and announce his personal corrective action. This will make it easier for the rest of the senior team to be answerable to the CPT.

Early detection is early correction. Forewarned is forearmed. Culture is the only ultimate competitive advantage. With rare products, companies buy patents to protect them. To protect culture the red flag detection teams are key to preventing toxic cultures. Culture deserves this preservation initiative. As Patrick Whitesell said, “You can have all the right strategies in the world; if you don’t have the right culture, you’re dead”.

Copyright Business Recorder, 2026