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Strategic change management addl analysis 090710 Presentation Transcript

  • 1. Strategic Change Management
    July 2010
    Interim results
  • 2. METHODOLOGY- INTERIM DATA
    PSB is targeting 550 online interviews with HR and Communications decision makers across 10 markets. This interim presentation has the results for the initial 467 interviews:
    France, n=50
    Germany, n=51
    Italy, n=50
    UK, n=50
    Spain, n=50
    Switzerland, n=36*
    HR and Communications decision makers are defined as:
    Aged over 25,
    Full time or self employed/business owner,
    Have final or significant decision making power in their business, in particular relating to HR, Communications, or across the organisation as a whole
    The interviews were conducted from 7 May 2010 – ongoing
    The margin of error for the interim data is +/- 4.6% for the total sample and greater for subgroups
    *Due to the nature of these smaller markets, the maturity of their market research market, and the amount of professionals and companies that match our screeners, fielding has been slower. We are continuing to with our sampling departments and external vendors to reach a full sample
    • Denmark, n=51
    • 3. Finland, n=50
    • 4. Norway, n=29*
    • 5. Sweden, n=50
    ©Penn, schoen & berlandassociates
    2
  • 6. Executive summary
    85 percent of companies have experienced a strategic change in the past 5 years
    Nearly 50% have experienced several changes over that same period
    Top 3 types of change experienced are: organizational restructuring, taking a new strategic direction, and downsizing
    The economic climate is having a significant impact on number of changes companies are experiencing and over half of companies anticipate changes to continue
    For those who are feeling the effects of the recession most, they are much more likely to be experiencing more difficult changes (e.g. downsizing, relocations, crisis)
    Not all decision makers agree on what strategic change means, which ultimately affects the way that they approach the change (e.g. the way they plan, communicate, and follow through on the change)
    Internally initiated changes, such as new strategic direction, missions or values, are most likely to be seen as strategic changes, not downsizing
    Only 1-in-5 see downsizing as a strategic change, though it is the third most common change amongst those interviewed
    3
  • 7. Executive summary
    Most companies are not handling their change processes very effectively
    Around 1 in 5 say their change process was not effective, and only a similar amount say very effective
    The majority of decision makers feel goals, scope and expectations of changes are not effectively communicated
    Decision makers think it is most important for strategic changes to be communicated internally, starting with leadership, but lack of communication with all employees throughout change process continues to be a key barrier to success
    Employees are most often told of change once it is happening
    Less than a quarter are engaged in the earliest goal setting and scoping phases of the strategic change, and even fewer are engaged post-execution
    While decision makers also believe having a change plan in place in advance of strategic changes is important, only half have one
    Those who have been through effective change processes in the past were twice as likely to have had a plan in place before the change process started
    4
  • 8. Executive summary
    Companies identify key requirements for effective changes, but have trouble executing them
    Timely decision making and strong employee comms are considered critical to ensuring changes are successful, though decision makers admit their companies are not very good at these things on a day-to-day basis
    Just 18% say they are good at engaging employees on a day-to-day basis
    Factors concerning the progress of the change, such as communicating progress, measuring progress, managing expectations or celebrating progress, are seen as less critical
    However, those who have been through effective change processes are more likely to see the value in setting goals, measuring progress and true employee engagement/dialogue
    5
  • 9. Executive summary: Implications
    There is a clear opportunity to help companies…
    Improve internal communications and dialogue on a day-to-day basis, before they are facing a strategic change;
    Better identify strategic changes that they are experiencing and those potentially on the horizon;
    Prepare a comprehensive plan to ensure that the strategic change is successful start to finish (not just at the point of execution)
    6
  • 10. ©Penn, schoen & berland associates
    Strategic Changes are Happening
  • 11. Companies are experiencing strategic changes
    Nearly 50% have experienced several changes in the past five years
    Q:Has your company experienced a strategic change in the last 5 years (even if that precedes you working there)?
    8
  • 12. Restructuring and new directions are most likely changes over the last few years
    Additionally, over a third have downsized, most likely as a result of the recession
    Q: What sort of strategic changes has your company been through?
    Among all
    9
  • 13. the recent economic climate has and will continue to create an influx of changes
    And over half of companies anticipate changes to continue
    Q: Would you say your company has experienced more or less changes in the last 2 years due to the economic climate? (Among All)
    Q: Do you expect to go through more or less changes in the next 2 years due to the economic climate? (Among All)
    Experienced more/less changes due to economic climate in the last 2 years
    Expect more/less changes due to economic climate in the next 2 years
    10
  • 14. Those experiencing the recession most are much more likely to be going through forced changes – DOWNSIZING, relocations, CRISIS
    Q: What sort of strategic changes has your company been through?
    11
  • 15. Looking forward, decision makers anticipate continued restructuring, new products and new technologies
    A further 18% anticipate downsizing
    Q: What sort of changes, if any, do you anticipate the company experiencing in the next two years?
    Among all
    12
  • 16. ©Penn, schoen & berland associates
    The changes we’re experiencing
  • 17. most decision makers admit not handling these changes very effectively
    Around 1 in 5 say their change process was not effective, and only a similar amount say very effective
    Q: In your opinion, how effective was your company’s strategic change process?
    14
  • 18. in a change, majority feel goals and scope of change are not effectively communicated
    Just 18% consider the goals, scope and expectations of changes to be very effectively communicated throughout the business
    Q: When it comes to change, how effectively are the goals, scope and expectations of the change communicated throughout the business?
    15
  • 19. ©Penn, schoen & berlandassociates
    COMPANIES SPEND MORE TIME AND RESOURCES communicating INTERNALLY-DRIVEN CHANGES
    • Goals, scope and expectations for product launches or transformation of a specific business unit are most effectively communicated - while downsizing and organizational restructuring least so
    Q: When it comes to change, how effectively are the goals, scope and expectations of the change communicated throughout the business? (% very effectively by those who have experienced a specific change)
    Top 3 changes experienced most
    16
  • 20. ©Penn, schoen & berlandassociates
    Likewise, external consultants are more often brought in for INTERNALLY-DRIVEN CHANGES
    • External consultants are much less frequently brought in to help with organizational restructuring and downsizing
    Q: Were external consultants brought in to help advise and manage the change process? (% “Yes”, among those who have experienced a specific change)
    Top 3 changes experienced most
    17
  • 21. There is a disconnect between changes experiencing and what they consider a strategic change
    Only 18% see downsizing as a strategic change, though it is the third most common change amongst those interviewed
    This will ultimately affect the way in which companies approach a change and their internal communications
    Q: Thinking about a business strategic change, which, if any, of the following do you consider a type of strategic change?
    Top 3 changes experienced most
    18
  • 22. how to execute a strategic change
    ©Penn, schoen & berland associates
  • 23.
    • Factors concerning the progress of the change, such as communicating progress, measuring progress, managing expectations or celebrating progress, are seen as less critical
    Q: In your opinion, how important are the following in ensuring any strategic changes are a success?
    Timely engagement and communication are seen as crucial
    20
  • 24. Those who have experienced effective changes are more likely to identify all factors as drivers of a successful change process
    Q: In your opinion, how important are the following in ensuring any strategic changes are a success? (% Critical to ensuring success)
    21
  • 25. Key issues preventing successful strategic changes
    ©Penn, schoen & berland
  • 26. companies do not communicate or engage Employees well on a day-to-day basis – thus making it more difficult in times of change
    • Just 19% say they are good at engaging employees on a day-to-day basis
    Q: In your opinion, how important are the following in ensuring any strategic changes are a success?
    Q: How well, if at all, do you feel your company does each of the following on a day-to-day basis?
    23
  • 27. Decision Makers Believe a plan is important
    ©Penn, schoen & berlandassociates
    • Almost 2-in-10 say a change management plan is critical, with a further 1-in-2 saying it is at least somewhat important
    Q: How important is it to have a change management plan in your company?
    24
  • 28. having A PLAN in place drives EFFECTIVE CHANGE
    ©Penn, schoen & berlandassociates
    • By almost two to one, those who said they had experienced a very effective change process had a full plan in place before the change started
    Q: Did your company manage the change process using a strategic plan?
    25
  • 29. However, only half have Change plans in place
    ©Penn, schoen & berlandassociates
    • About half have a communications plan in case of potential change
    • 30. Companies are more likely to have plans for the changes that they initiate, rather than for ones that are influenced by outside factors
    Q: What type of strategic changes does your company have plans in place to address? (Among those with plans in place)
    Q: Does your company currently have a change management preparedness/ communications plan in case of a potential change?
    Top 3 changes experienced most
    26
  • 31. most often, Employees told of change once it is happening with little follow up or dialogue
    ©Penn, schoen & berlandassociates
    • Less than a quarter are engaged the earliest goal setting and scoping phases of the strategic change, and even fewer are engaged post-execution
    Q: For the following types of strategic changes, at what stage would all employees typically hear about the change?
    Among all
    27
  • 32. Q: In your opinion, how important is it for your company to communicate with each of the following groups about strategic changes?
    Internal communication is most important—starting at the top
    ©Penn, schoen & berlandassociates
    • Though it is critical that communication quickly flows down the ladder
    28
  • 33. Communication should focus on creating a Proactive dialogue
    • Staff meetings, briefing, workshops, on-going talks are highlighted as key ways to communicate
    Q: How, if at all, does your company usually communicate strategic changes throughout the business?
    Q: In your opinion, how should your company communicate strategic changes throughout the business?
    29
  • 34.
    • Changes tend not to be communicated effectively when information is held closely amongst leadership
    ©Penn, schoen & berlandassociates
    decision makers cite Lack of communication as key barrier to successful change
    Q: If the changes are not communicated effectively, why is that? (Among those who feel change NOT communicated very effectively)
    30
  • 35. Burson-marsteller:next steps
    ©Penn, schoen & berland
    This is where we envision BM to include their 10-pt plan
  • 36. Appendix
    ©Penn, schoen & berland
  • 37. ADDITIONAL ANALYSIS - Strategic changes by markets
    ©Penn, schoen & berland
  • 38. Companies are experiencing strategic changes
    Q45:Has your company experienced a strategic change in the last 5 years (even if that precedes you working there)?
    34
    *Low base size
  • 39. Restructuring and new directions are most likely changes over the last few years
    Q47: What sort of strategic changes has your company been through? (*low base size across markets)
    35
  • 40. the recent economic climate has and will continue to create an influx of changes
    Q46: Would you say your company has experienced more or less changes in the last 2 years due to the economic climate?
    Q125: Do you expect to go through more or less changes in the next 2 years due to the economic climate?
    36
    *Low base size
  • 41. most decision makers admit not handling these changes very effectively
    Q55: In your opinion, how effective was your company’s strategic change process? (*low base size across markets)
    37
  • 42. Not all decision makers agree on what strategic change means
    Q43: Thinking about a business strategic change, which, if any, of the following do you consider a type of strategic change?
    38
    *Low base size
  • 43. Timely engagement and communication are seen as Critical
    Q82 – 100 : In your opinion, how important are the following in ensuring any strategic changes are a success?
    39
    *Low base size
  • 44. companies do not communicate or engage Employees well on a day-to-day basis – thus making it more difficult in times of change
    Q25 - 41: How well, if at all, do you feel your company does each of the following on a day-to-day basis?
    40
    *Low base size
  • 45. Decision Makers Believe a plan is important
    ©Penn, schoen & berlandassociates
    Q131: How important is it to have a change management plan in your company?
    41
    *Low base size
  • 46. Only a third overall had a full plan in place in advance of the change
    ©Penn, schoen & berlandassociates
    Q54: Did your company manage the change process using a strategic plan? (*low base size across markets)
    42
  • 47. only half have Change plans in place now
    ©Penn, schoen & berlandassociates
    Q126: Does your company currently have a change management preparedness/ communications plan in case of a potential change?
    43
    *Low base size
  • 48. Q72-82: In your opinion, how important is it for your company to communicate with each of the following groups about strategic changes?
    Internal communication is most important—starting at the top
    ©Penn, schoen & berlandassociates
    44
    *Low base size
  • 49. How companies are communicating…
    Q121: How, if at all, does your company usually communicate strategic changes throughout the business?
    45
    *Low base size
  • 50. How companies should communicate…
    Q122: In your opinion, how should your company communicate strategic changes throughout the business?
    46
    *Low base size
  • 51. ADDITIONAL ANALYSIS- company size - expectations for growth in coming year - Sector
    ©Penn, schoen & berland
  • 52. METHODOLOGY- sector definitions
    For the purposes of data cuts, industry sectors have been grouped as follows:
    Service Industry (Consulting, Finance, Hospitality, Insurance, Legal Services, Public Relations, Real Estate);
    Public and NGO (Civil Service (Local/City/Town Office / Police / Postal / etc.), Education (pre-University education), Government (Local or national level), Healthcare, Higher Education, NGO/non-for profit);
    Manuf + Industrial (Logistics/Warehousing, Manufacturing, Resources Extraction (energy, mining, logging));
    Tech +  R&D +  Retail (Consumer Electronics (Retail / Manufacturing), Engineering, Pharmaceuticals, Retail, Telecommunications)
    ©Penn, schoen & berlandassociates
    48
  • 53. Companies are experiencing strategic changes
    Q45:Has your company experienced a strategic change in the last 5 years (even if that precedes you working there)?
    49
  • 54. Restructuring and new directions are most likely changes over the last few years
    Q47: What sort of strategic changes has your company been through?
    50
  • 55. the recent economic climate has and will continue to create an influx of changes
    Q46: Would you say your company has experienced more or less changes in the last 2 years due to the economic climate?
    Q125: Do you expect to go through more or less changes in the next 2 years due to the economic climate?
    51
  • 56. most decision makers admit not handling these changes very effectively
    Q55: In your opinion, how effective was your company’s strategic change process?
    52
  • 57. Not all decision makers agree on what strategic change means
    Q43: Thinking about a business strategic change, which, if any, of the following do you consider a type of strategic change?
    53
  • 58. Timely engagement and communication are seen as crucial
    Q82 – 100: In your opinion, how important are the following in ensuring any strategic changes are a success?
    54
  • 59. companies that expect substantial growth are much more likely to communicate and engage Employees well on a day-to-day basis
    Q25-41: How well, if at all, do you feel your company does each of the following on a day-to-day basis?
    55
  • 60. Decision Makers Believe a plan is important
    ©Penn, schoen & berlandassociates
    Q131: How important is it to have a change management plan in your company?
    56
  • 61. Only a third overall had a full plan in place in advance of the change
    Q54: Did your company manage the change process using a strategic plan?
    57
  • 62. only half have Change plans in place now
    Q126: Does your company currently have a change management preparedness/ communications plan in case of a potential change?
    58
  • 63. Q72-82: In your opinion, how important is it for your company to communicate with each of the following groups about strategic changes?
    Internal communication is most important—starting at the top
    ©Penn, schoen & berlandassociates
    59
  • 64. How companies are communicating…
    Q121: How, if at all, does your company usually communicate strategic changes throughout the business?
    60
  • 65. How companies should communicate…
    Q122: In your opinion, how should your company communicate strategic changes throughout the business?
    61