Strategic change management addl analysis 090710

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Strategic change management addl analysis 090710

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

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