Why Bad Managers Will Hurt Your Business

By Peter Boolkah, an award-winning business coach and business owner. He is also the author of a series of management and business courses. 

We’ve all had at least one terrible manager and probably many more than that during our work life to date. That bad manager could be someone who micromanages, never listens, or plays office politics. However, when it comes to naming the good managers who have inspired and supported us, you can usually count them on one hand. So why is that? 

I have been a business owner and coach for over twenty-five years and it boils down to a hard truth: not everyone is cut out to be a manager. Just because someone excels at their job doesn’t mean they’ll automatically excel at managing people. The reality is that very few of us have the learnt skills to be good managers and help a business succeed. Being a great manager isn’t something you inherit by spending enough time at a company or being really good at spreadsheets. It’s about developing a specific set of skills like delegation, motivation, conflict resolution, and strategic thinking; these aren’t skills that people magically pick up along the way. Those skills are learned through training, watching other successful managers, practice, support and a willingness to improve.

Unfortunately, businesses often miss these important factors when choosing their management structure. The CIPD/YouGov UK Working Lives/Good Work Index 2022 survey found that nearly 10 million people in the UK are line managers. That’s about a third of the workforce! But here’s the question: how many of those 10 million actually have the tools to manage effectively? I would say that in my experience, not enough.

As a coach, I help businesses scale up. As part of that, I spend a lot of time dissecting leadership structures, and more often than not, I find the wrong people in charge. The consequences of that are that productivity takes a nosedive, staff turnover skyrockets, and businesses bleed money. When I talk to employees about their managers, those who feel unsupported often tell me the same things. They say their manager gives unclear instructions, doesn’t listen to concerns, micromanages instead of empowering them, and sometimes even shows personal bias. If you’ve been on the receiving end of bad management, you will know how demoralising it is. Instead of addressing the real issue which is poor management, companies often shift the blame to employees. This creates a toxic environment where trust erodes, and it ultimately ruins the business from within.

The question is, what separates a good manager from a bad manager? Good managers are great communicators. They give clear instructions, set expectations, and make sure everyone is on the same page. It is also about supportive leadership. They are there for their team through thick and thin, offering guidance and encouragement even when things get tough. They don’t play favourites or let personal biases creep into their decisions. Instead of micromanaging, they trust and empower their team to make decisions and learn from their mistakes. They tackle challenges head-on and find solutions to problems without creating unnecessary drama. It might seem like these qualities are straightforward and obvious, but many managers simply don’t possess them, those that do are indeed rare. You may well have these qualities but be unable to convey them as a manager when you are also under scrutiny and you are relying on your team to deliver.

Cultivating these traits requires ongoing effort, training, and self-awareness, something many managers and their companies neglect. The solution is simple: invest in your managers. CEOs and decision-makers need to prioritize management training. I’m not talking about a one-and-done workshop. I mean regular management training and refreshers. Many of these programmes are affordable and accessible online, so there’s no excuse not to. When businesses invest in their leadership teams, they don’t just get better managers, they get stronger teams, higher productivity, and a better workplace culture. 

It matters more than ever at the moment because we are already operating in a tough economic climate. Companies can’t afford to lose talented employees because of bad management, nor can they afford the cost of high turnover or plummeting morale. Businesses that fail to address poor management will struggle but it’s completely avoidable. Fixing the problem starts with a willingness to change. It starts with companies recognising that good managers aren’t born, they are made. And it starts with understanding that investing in your leaders is one of the best business decisions you can make.

If you’re a CEO, HR professional, or business owner, it’s time to take a hard look at your management team. Are they equipped with the skills they need to lead effectively? If not, what are you doing to change that? Because bad managers don’t just hurt your employees, they hurt your entire business. The few good managers I come across are transformative. They inspire their teams, solve problems, and drive success. Imagine what your business could achieve if all your managers were like that.