Training News
Tuesday, 02 February 2010 11:55
Underperforming organisations fail to manage change effectively, says report
A new research report from Roffey Park has found a link or correlation between the way organisations manage change and their financial and strategic success.
The report says that more successful organisations allow client need, efficiency and quality to drive change as opposed to simply cost and are better able to deliver change fast and effectively.
The annual Management Agenda – a survey of over 900 managers – highlights the way in which companies that are underperforming financially have responded to the recession in the last 12 months. According to the survey:
- 56% of underperforming organisations are focusing on core business compared with 45% of outperforming organisations
- 30% of underperforming organisations have worked in partnerships compared with 49% of outperforming organisations
- 23% of underperforming organisations are investing in leadership development compared with 49% of outperforming organisations
- 25% of underperforming organisations are investing in sustainability compared with 49% of outperforming organisations
- 7% of underperforming organisations have been very successful at delivering their strategic plan, compared to 62% of outperforming organisations
Jo Hennessy, director of research at Roffey Park, said: "The relationship between change management and performance suggests organisations should pay more attention to both the drivers and process of change to maximise performance. Organisations should avoid change that is driven by internal politics or driven solely by cost and focus on changes driven by customer needs.
"The relationship between change management and performance suggests organisations should pay more attention to the strategies that they adopt at this time. Organisations should avoid strategies simply driven by short term cost savings - battening down the hatches in the face of the current storm. Organisations seem to be better served by continuing to innovate and looking for new market opportunities.
"With the pace of change accelerating, success depends on leaders making sound decisions and implementing change quickly. Organisations with good leadership tend to be more strategically and financially successful - by identifying and investing in high quality leadership organisations will be able to drive performance."
