Abu Dhabi – February 07, 2011 – companies around the world are shifting priorities towards growth and away from cost reduction and other survival mode strategies, according to new research published by the Economist Intelligence Unit (EIU) and sponsored by Celerant Consulting.
Of the 288 senior executives surveyed this year from around the world, the top two objectives for change management initiatives were increasing revenue (55 percent) and preparing their organizations for the future (52 percent). Last year, 66 percent of respondents cited cost reduction as the primary goal.
To ensure success, companies are planning to increase both the amount of time and overall spending devoted to change management. 63 percent of respondents report that more senior executive time was devoted to change management initiatives this past year and 47 percent cited that their organizations increased spending on change management.
Antoine Dionis du Sejour, Executive Vice President, MENA, said:
“Strong signs of economic recovery are on their way. Companies are positioning themselves much more for top and bottom-line growth. Most companies and executives have realized that as much of the excess costs as possible have been squeezed out and future improvement is dependent on a return to growth now.”
“No two initiatives are the same. Companies need to realize that change programs differ from company to company and across market sectors. Successful change management must be based on implementation and engagement—from the technical and logistical aspects all the way through winning the hearts and minds of everyone across the organization, from the Executive Board to the front line worker.”
Why are companies emphasizing change now? A Celerant-commissioned report from the EIU entitled “Leaders of change: Companies prepare for a stronger future” and published today alongside the survey, reveals that companies are increasingly turning to change management initiatives to stay ahead of external pressures and challenges. 60 percent of the survey respondents stated that the main forces driving change at their company were competitive and cost pressures (60 percent) and customer demands for better quality and service or different products (36 percent).