21/07/2024
Organizations with a rotten soul
An end of another major audit season, and as I usual, I share some few lessons from my audit.
When we audit, we are not only checking the books, we get to experience the soul of the organization.
In last year’s episode, I focused on the effect of the general economic downturn on corporate performance. This year, let me dwell on one performance killer, which you can control, as a business owner (manager)-*Organizations with rotten souls*
In this write-up, the soul of the organization represents the shared character, sentiment, moral nature, or guiding beliefs of the organizational members.
It is worrying that the *soul of most organizations is rotten to the core*
In this year’s audit, I encountered organizations where the employees are inclined to take more than their remunerations. We encountered three major arsenals at play:procurement fraud, revenue misappropriation and job diversion.
Among these three evil arsenals, the “oga” is is procurement fraud. Those in this unholy practice have advanced their arts of invoice inflation, and invoice creation. A grand scheme (involving employees across levels and functions) has been set in motion. The saying that “di fi w’adwumam (eat from where you work) has been taken to a height.
In one organization, an item which ordinarily should cost Ghs8,100 was purchased and paid for in cash at Ghs 24,000 to the quiet admiration of everyone in the organization. In another case, items which were declared as “damaged”, were reinstalled as new (part number of the damaged one same as the “new one”).
The gate-keepers in some of these organizations appeared compromised or maybe they are minding their own side businesses. Aww, the spirit of commitment and the high sense of responsibility that run in the blood of employees of old is at its ebb. For now, those who can loot are looting, and those who cannot loot are investing their positive energy elsewhere, leaving the business to its fate.
Recommendations:
a. Owners should try and increase the remuneration of the employees. Yea, the cost of living has gone up the roof. It is a miracle for an employee , with a family, to survive on a take home of Ghc1,000. The motivation for fraud is higher when the employees can’t genuinely meet the basics (food, transport and accommodation) from their legal pay. If you don’t give them, they will take it.
b. Spend a little on corporate retreat and attempt to renew your organizational culture. Truly, some organizations need *corporate soul retreat session.* Most of our employees appear religious, but do not manifest godliness (see my article of religiosity and ethics)
Your organization will benefit from a corporate retreat to revitalize the spirit of good faith, commitment and a sense of responsibility.
c. Invest in good control systems. Only God is omnipresent. While you are away, your systems should be designed to ensure efficient segregation of duties, peer-control, responsibility tracking and sound financial record systems. More importantly, invest in systems that ensure transparency and accountability.
Let me tell you an open secret, the systems you created to evade tax and other statutory responsibilities have become a wide hole through which some of your trusted employees steal from you. You said you won’t give anything to “Caesar”, but sadly, Antony and Brutus (Caesar’s close friend) are dining with you.
Commercials_
_Within a minimum budget, my organization (Excel Plus consult-0246547009) can organize a retreat session to renew the soul of your organization). We can also assist you in setting systems the enhance transparency and accountability
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