Want to know if a management team is in trouble? Listen to how they describe problems.
One pattern separates exceptional teams from those heading for disaster.
The pattern: Passive voice when discussing challenges.
"Headwinds were experienced in Q3."
Compare that to: "We lost three major clients because our product lagged competitors."
The first hides accountability. The second shows a team that owns reality.
Why this matters:
Great management uses active voice. They own problems directly. Poor management deflects through linguistic fog.
I've seen CEOs use passive constructions dozens of times in a single call.
'Challenges were encountered.' 'Difficulties were faced.' 'Opportunities are being explored.'
This pattern consistently appears in companies that struggle 6-12 months later.
Three phrases that trigger deeper investigation:
"Market conditions impacted results" = we failed to adapt
"We're exploring strategic alternatives" = we're in trouble
"Results were below expectations" = we missed our own guidance
Compare this to quality management: "We made three mistakes in Q2. Here's what we learned and how we're fixing them."
Specificity signals confidence. Vagueness signals problems management won't address.
The behavioral insight:
When executives distance themselves linguistically from bad news, they're distancing themselves mentally from accountability.
This shows up in financials 2-3 quarters later.
Your action step:
Track this in every earnings call you listen to. You'll be surprised how predictive it becomes.
Next time you hear passive voice dominating a call, dig deeper. The numbers usually follow the language.
Download the CEO Language Red Flags Checklist - 7 patterns that reveal management quality before it shows in numbers > [Get it here]
