Lane4 research shows only 9% of businesses truly successful at managing change

Lane4's global survey has revealed that 88% of businesses had experienced substantial change over the last two years but only 9% said they had been truly successful at managing this change. Of the diverse barriers that stifled change in these organisations, people factors and leadership ability were the most significant.

Firms are operating in a state of continual flux. While some are managing this quite successfully, the majority are struggling to achieve the results they strive for. The report titled Emerging Stronger: Strategic Insights for Leading in Tough Times revealed that 51% of companies had experienced some success, leaving 40% whose change initiatives had failed to achieve their intended objectives.

Senior managers, CEOs, directors and partners from organisations ranging from small businesses to large corporations across the globe were asked what were the most challenging barriers to change. These included people factors (36%), leadership factors (34%), practical factors (25%) and external factors (5%).

People factors:

• Employee resistance accounted for 53% of the barriers that related to people factors. Respondents talked about uncooperative staff who were hostile to change.
• People-related cultural constraints - 22% talked about a culture of caution and bureaucracy.
• Lack of necessary skills accounted for 15% of the people barriers.
• Lack of engagement accounted for the final 10% of the people component.

Leadership factors:

• Leadership accounted for 32% of the leadership barriers. 
• Respondents said that leaders lacked the knowledge and skill to lead change effectively.
• Inadequate communication - 30% said messages were unclear and communicated too formally, preventing employees from really understanding what the change was about.
• Lack of consultation - 14% said that change was too top-down and that leaders failed to involve the people who would be impacted by the change.
• Other leadership barriers included lack of vision and lack of alignment. 

Practical factors:

• Change is too rapid explained 23% of the practical barriers. The sense that there will be another change along in a minute meant that initiatives were rarely embedded before the next one was launched.
• Too much change - 21% talked about the amount of change as overwhelming.
• Lack of time to implement change properly accounted for 16% of responses.
• Other practical concerns related to the size and structure of the organisation, lack of money and ineffective processes for change. 

External barriers to change:

Finally, 5% of the barriers to change related to external factors and the economy. Respondents said that turbulent market conditions made it difficult to commit to change initiatives and to find the necessary funds to invest in them properly.

Katie Warriner, Research Consultant at Lane4 commented, "To succeed at the change game, leaders must manage a multitude of challenging barriers.  By failing to handle change properly, a firm can face reduced employee productivity particularly during large-scale change. In addition, poorly managed change causes reduced profitability and competitiveness, loss of talent in the short-term and attrition in the long-term, low levels of employee engagement and compromised management credibility."

She added, "Our survey findings indicate that people factors require the most attention. This is critical because successful change is virtually impossible without people engagement. Successful leaders through change consider engagement as a mindset rather than a stage on a project plan. By developing and communicating a compelling story for change, shaping an effective process and enabling the people, leaders can ensure that people understand the reasons for change, care about initiatives being a success and are equipped to make it a success."

To find out more about the report contact kelly.walsh@lane4.co.uk

 

| 2010-09-30