Analysis of degrees and causes for theft and sabotage

Analysis of degrees and causes for theft and sabotage

Bad faith management is a pressing issue of commercial and state companies, which owes to:

Characters of people

Corporate environment

Control system


Corporate theft – actions of employees that have not been approved by senior managers or the owner of the business, and that are aimed at misappropriation of the company’s assets and result in financial, information and intellectual losses and loss of property.


Deliberate sabotage – willful failure to perform, negligent performance or avoidance of performance of the senior managers’ instructions. Sabotage deprives the owner or the manager of power and makes the company unmanageable; it creates non-transparent work environment.


Unconscious sabotage – improper or poor performance by an employee of his/her duties, which is attributable to peculiarities of his/her character or state of health (neurotic disorder of a person, state of frustration and excessive anxiety, lack of self-confidence).

In case of corporate embezzlement the result is evident enough for the director: it implies increased expenses, shortage of goods in stock or fraudulent transactions.

Sabotage results in the failure to implement the company’s strategic plans. One may talk of the minimal level of sabotage or of its absence when the company’s plan is implemented by 70 and more percent.

Examples of the sabotage:

  • Full or partial disregard of senior managers’ orders, in particular, those related to strategic development plans. An example of such situation: meetings were held; tasks were set for Business Unit managers; these tasks were allegedly accepted. In a certain period of time it turns out that tasks have not been fulfilled, have been fulfilled later than planned, or have been fulfilled only to a formal extent.
  • A sales manager did not notify key customers of any changes in prices for the company’s services. As a result, the customer has lost confidence in the company and has declined its services. The manager’s error may be, of course, qualified as “accidental”. However, in majority of cases this it is the case of the unconscious sabotage.
  • The CFO of the company disregarded rules for custody of confidential documents in the financial department. As a result, very important documents were lost or were seized during the audit.
  • Sales managers fail to enter information about their work with customers into CRM-system. There exists a great deal of explanations why the information that is important to the company has not been entered into the database. In this case one can speak about the concealed blackmail against the employer. Each company is unique, that is why tools to diagnose a problem are determined based on specifics of a company, the tasks set before the management, and wishes of the Leader.

Answers to the following questions: Who? Where? How much? How? and Why? constitute findings of the analysis

Areas to be diagnosed:

  1. identification of employees’ personal inclination to theft and sabotage;
  2. employee background check using analytical and operating methods;
  3. assessment of the staff loyalty level;
  4. evaluation of performance of instructions of the management at different levels of authority;
  5. analysis of sufficiency and transparency of the management accounting and reporting system;
  6. analysis of corporate data bases;
  7. analysis of key business-processes and controlling functions.

The Service includes:

  1. Preliminary investigation. Main goals of the stage:
    • to develop hypotheses Who, Where and How is sabotaging orders of the management/ is stealing;
    • to draw up the implementation plan for Investigation stages.
  1. Investigating and identifying causes for theft/sabotage:
    • testing hypotheses developed at the stage of the preliminary investigation;
    • identifying causes for theft/sabotage;
    • preparing recommendations to eliminate causes of theft/ sabotage in the company at the following levels: personnel, corporate environment, performance control system. 

Your benefits:

  • understanding of the real situation in the company: getting the ideas of what is really going on and receiving the recommendations what to do;
  • understanding of how the team should develop to improve efficiency of business-processes. 

Service result:

  • a detailed report containing opinions and recommendations of specialists. 

You determine further steps yourself:

You can keep everything the way it is: you will receive a report and will terminate cooperation in order to carry out changes in the company on your own.

You can employ FSA services in order to minimize the bad faith management