Strategic change management addl analysis 090710
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LONDON • NEW YORK • WASHINGTON • SEATTLE •LOS ANGELES • SAN FRANCISCO • HONG KONG • DUBAI
STRATEGIC CHANGE MANAGEMENT
JULY 2010
INTERIM RESULTS
METHODOLOGY- INTERIM DATA
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S2
• 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• Finland, n=50• Norway, n=29*• Sweden, n=50
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
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
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
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
7© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S
STRATEGIC CHANGES ARE HAPPENING
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)?
47%
38%
15%
Yes, several
Yes, one
No
8
Relocations, closing of factories etc.
A crisis impacting the organization and its stake-holders
Brand repositioning (new name and identity)
Transformations of a specific business unit
Mergers & acquisition
New product launches
New Mission, vision or values
Leadership transition and development [e.g. CEO shift]
Implementation of new technology systems or processes
Downsizing
New strategic direction
Organizational restructuring
20%
20%
24%
29%
31%
32%
33%
33%
33%
35%
40%
50%
RESTRUCTURING AND NEW DIRECTIONS ARE MOST LIKELY CHANGES OVER THE LAST FEW YEARS
Q: What sort of strategic changes has your company been through?
• Additionally, over a third have downsized, most likely as a result of the recession
9
Among all
More Changes Neither more nor less Less changes
64%
29%
6%
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
More Changes Neither more nor less Less changes
52%39%
10%
10
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
Brand repositioning (new name and identity)
Mergers & acquisition
Transformations of a specific business unit
A crisis impacting the organization and its stake-holders
Relocations, closing of factories etc.
Leadership transition and development [e.g. CEO shift]
New Mission, vision or values
Implementation of new technology systems or processes
New product launches
New strategic direction
Downsizing
Organizational restructuring
24%
31%
29%
20%
20%
33%
33%
33%
32%
40%
35%
50%
26%
30%
31%
33%
35%
37%
38%
38%
48%
50%
53%
60%
Among those ex-periencing many more changes due to economic cli-mate
Among all
A crisis impacting the organization and its stake-holders
Brand repositioning (new name and identity)
Relocations, closing of factories etc.
Leadership transition and development [e.g. CEO shift]
Mergers & acquisition
New strategic direction
New Mission, vision or values
Transformations of a specific business unit
Downsizing
Implementation of new technology systems or processes
New product launches
Organizational restructuring
9%
10%
10%
13%
15%
16%
16%
17%
18%
20%
23%
27%
LOOKING FORWARD, DECISION MAKERS ANTICIPATE CONTINUED RESTRUCTURING, NEW PRODUCTS AND NEW TECHNOLOGIES
Q: What sort of changes, if any, do you anticipate the company experiencing in the next two years?
• A further 18% anticipate downsizing
12
Among all
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S
THE CHANGES WE’RE EXPERIENCING
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?
23%
58%
15%
3%
Very effectiveSomewhat effectiveNot very effectiveNot at all effective
14
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
18%
60%
19%
2%Very effectively
Somewhat effectively
Not very effectively
Not at all effectively
15
Q: When it comes to change, how effectively are the goals, scope and expectations of the change communicated throughout the business?
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S
Downsizing
Organizational restructuring
New strategic direction
Mergers & acquisition
New mission, vision or values
A crisis impacting the organization and its stakeholders
Leadership transition and development [e.g. CEO shift]
Implementation of new technology systems or processes
Brand repositioning (new name and identity)
Relocation, closing of factories, etc
New product launches
Transformation of a specific business unit
15%
16%
18%
19%
20%
20%
22%
22%
23%
23%
25%
25%
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)
COMPANIES SPEND MORE TIME AND RESOURCES COMMUNICATING INTERNALLY-DRIVEN CHANGES
16
• 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
Top 3 changes experienced most
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S
Downsizing
Mergers & acquisition
Organizational restructuring
Relocation, closing of factories, etc
Leadership transition and development [e.g. CEO shift]
Implementation of new technology systems or processes
New strategic direction
New mission, vision or values
A crisis impacting the organization and its stakeholders
Brand repositioning (new name and identity)
Transformation of a specific business unit
New product launches
44%
49%
49%
49%
50%
50%
53%
53%
53%
56%
56%
59%
Q: Were external consultants brought in to help advise and manage the change process? (% “Yes”, among those who have experienced a specific change)
LIKEWISE, EXTERNAL CONSULTANTS ARE MORE OFTEN BROUGHT IN FOR INTERNALLY-DRIVEN CHANGES
17
• External consultants are much less frequently brought in to help with organizational restructuring and downsizing
Top 3 changes experienced most
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
A crisis impacting the organization and its stake-holders
Downsizing
Leadership transition and development [e.g. CEO shift]
Relocations, closing of factories etc.
Transformations of a specific business unit
New product launches
Brand repositioning (new name and identity)
Implementation of new technology systems or processes
Mergers & acquisition
Organizational restructuring
New Mission, vision or values
New strategic direction
19%
19%
24%
26%
29%
32%
35%
35%
40%
46%
50%
55%
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
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HOW TO EXECUTE A STRATEGIC CHANGE
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S
• Factors concerning the progress of the change, such as communicating progress, measuring progress, managing expectations or celebrating progress, are seen as less critical
TIMELY ENGAGEMENT AND COMMUNICATION ARE SEEN AS CRUCIAL
Q: In your opinion, how important are the following in ensuring any strategic changes are a success?
Celebrating progress
Managing expectations with respect to any company changes
Raising issues that affect various business units or functions
Measuring progress
Communicating progress
Prioritising change to ensure on-going success
Resolving issues that affect various business units or functions
Ensuring all business units and functions are involved in im-plementing major changes
Attracting and retaining employees
Responding to employees concerns
Setting measurable goals
Ensuring all business units and functions are aligned on company goals
Listening to employees concerns
Explaining the strategic direction of the company
Communicating goals
Engaging employees
Make strategic decisions in a timely manner
16%17%
20%21%
23%23%24%25%25%
27%28%28%28%29%
33%33%
36%
Critical to ensuring success
20
Celebrating progress
Managing expectations with respect to any company changes
Attracting and retaining employees
Communicating progress
Raising issues that affect various business units or functions
Resolving issues that affect various business units or func-tions
Prioritising change to ensure on-going success
Ensuring all business units and functions are involved in implementing major changes
Explaining the strategic direction of the company
Measuring progress
Listening to employees concerns
Responding to employees concerns
Ensuring all business units and functions are aligned on company goals
Engaging employees
Communicating goals
Setting measurable goals
Make strategic decisions in a timely manner
16%
17%
25%
23%
20%
24%
23%
25%
29%
21%
28%
27%
28%
33%
33%
28%
36%
21%
29%
32%
33%
33%
33%
34%
37%
37%
38%
38%
38%
40%
40%
42%
44%
50%
Among those who experienced very ef-fective change pro-cesses
Among all
Q: In your opinion, how important are the following in ensuring any strategic changes are a success? (% Critical to ensuring success)
THOSE WHO HAVE EXPERIENCED EFFECTIVE CHANGES ARE MORE LIKELY TO IDENTIFY ALL FACTORS AS DRIVERS OF A SUCCESSFUL CHANGE
PROCESS
21
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KEY ISSUES PREVENTING SUCCESSFUL STRATEGIC CHANGES
© P E N N , S C H OE N & B E R LA ND
• Just 19% say they are good at engaging employees on a day-to-day basis
COMPANIES DO NOT COMMUNICATE OR ENGAGE EMPLOYEES WELL ON A DAY-TO-DAY BASIS – THUS MAKING IT MORE DIFFICULT IN TIMES
OF CHANGE
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?
Celebrating progress
Managing expectations with respect to any company changes
Raising issues that affect various business units or functions
Measuring progress
Communicating progress
Prioritising change to ensure on-going success
Resolving issues that affect various business units or functions
Ensuring all business units and functions are involved in im-plementing major changes
Attracting and retaining employees
Responding to employees concerns
Setting measurable goals
Ensuring all business units and functions are aligned on company goals
Listening to employees concerns
Explaining the strategic direction of the company
Communicating goals
Engaging employees
Make strategic decisions in a timely manner
20%
20%
18%
22%
24%
21%
18%
20%
20%
18%
24%
21%
19%
22%
22%
19%
22%
16%
17%
20%
21%
23%
23%
24%
25%
25%
27%
28%
28%
28%
29%
33%
33%
36%
Critical to ensuring success
Company does very well
23
16%
50%
28%
5%1% Critically important
Very important
Somewhat important
Not very important
Not at all important
DECISION MAKERS BELIEVE A PLAN IS IMPORTANT
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S
• 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
HAVING A PLAN IN PLACE DRIVES EFFECTIVE CHANGE
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S
• 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?
Yes- there was a full plan in place in advance
of the change
Yes- there was a plan at the time of the change
No- the change happened organically
Don't know
37%44%
14%
5%
62%
31%
7%0%
Among all
Among those who experi-enced very effective change processes
25
HOWEVER, ONLY HALF HAVE CHANGE PLANS IN PLACE
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S
• About half have a communications plan in case of potential change• Companies are more likely to have plans for the changes that they initiate, rather than for
ones that are influenced by outside factors
52%31%
17%
Yes No Don't know
Brand repositioning (new name and identity)
A crisis impacting the organization and its
stakeholders
Leadership transition and development [e.g.
CEO shift]
Transformations of a specific business unit
New strategic direction
New product launches
12%
13%
16%
16%
17%
21%
21%
24%
25%
27%
28%
28%
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?
26
Top 3 changes experienced most
22%
36% 38%
13%9%
MOST OFTEN, EMPLOYEES TOLD OF CHANGE ONCE IT IS HAPPENING WITH LITTLE FOLLOW UP OR DIALOGUE
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S
• 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?
27
Among all
External consultants
General media
Industry press
Policy influencers, e.g. NGOs
Government
Business partners
Shareholders
Key stakeholders
Heads of business units
Heads of business functions
All employees
Board of Directors
7%
11%
13%
13%
17%
22%
26%
26%
30%
30%
36%
43%
% saying critical
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
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S28
• Though it is critical that communication quickly flows down the ladder
COMMUNICATION SHOULD FOCUS ON CREATING A PROACTIVE DIALOGUE
• Staff meetings, briefing, workshops, on-going talks are highlighted as key ways to communicate
Word of mouth
Via social media
In one-to-one meetings
Via individual email
In seminars/workshops
On corporate website
In small-group- meetings/workshops
Via all office email
Staff newsletters
Announcement from the CEO/Management
On-going communications from middle managers / line managers
On the employee intranet
In all staff meetings / briefings/workshops
14%
7%
14%
16%
18%
23%
22%
32%
32%
37%
32%
39%
40%
5%
8%
17%
17%
21%
23%
30%
31%
34%
38%
39%
42%
47%
How SHOULD your company communicate change
How DOES your company communic-ate change
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
• Changes tend not to be communicated effectively when information is held closely amongst leadership
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S
Top management are not always involved in the process
The company does not invest enough resources in making the change a success
Top management are unable to explain the rationale for the change
The company goes through so many changes, employees no longer pay attention
Strategic change processes are rest at the top management level and never became relevant for other levels or functions of the
business
All necessary business functions are not always involved
Middle management are not always involved in the process
There is often a lot of resistance to change within the business
Top management don't always share information throughout the business
There isn't enough communication during change processes
Employees are not always involved in the process
9%
17%
17%
17%
17%
22%
23%
29%
31%
31%
38%
Among those who feel change is not com-municated effectively
Q: If the changes are not communicated effectively, why is that? (Among those who feel change NOT communicated very effectively)
DECISION MAKERS CITE LACK OF COMMUNICATION AS KEY BARRIER TO SUCCESSFUL CHANGE
30
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BURSON-MARSTELLER:NEXT STEPS
© P E N N , S C H OE N & B E R LA ND
This is where we envision BM to include their 10-pt plan
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APPENDIX
© P E N N , S C H OE N & B E R LA ND
LONDON • NEW YORK • WASHINGTON • SEATTLE •LOS ANGELES • SAN FRANCISCO • HONG KONG • DUBAI
ADDITIONAL ANALYSIS- STRATEGIC CHANGES BY MARKETS
© P E N N , S C H OE N & B E R LA ND
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
Base Denmark Finland France Germany Italy Norway* Spain Sweden Switzerland* UK
Yes, several 47% 63% 56% 38% 41% 40% 52% 36% 60% 39% 46%Yes, one 38% 24% 26% 44% 47% 46% 38% 46% 22% 47% 40%No 15% 14% 18% 18% 12% 14% 10% 18% 18% 14% 14%
*Low base size
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
Base Denmark Finland France Germany Italy Norway Spain Sweden Switzerland UK
Organizational restructuring 50% 70% 58% 55% 31% 55% 48% 36% 50% 39% 56%
New strategic direction 40% 57% 49% 40% 45% 34% 19% 50% 31% 29% 47%
Downsizing 35% 46% 33% 36% 47% 23% 26% 32% 48% 19% 36%
New Mission, vision or values 33% 46% 33% 36% 24% 19% 30% 23% 31% 42% 44%
Leadership transition and development [e.g. CEO shift] 33% 50% 30% 24% 24% 32% 22% 36% 29% 45% 36%
Implementation of new tech systems or processes 33% 30% 49% 19% 24% 36% 26% 45% 37% 26% 38%
New product launches 32% 28% 37% 31% 49% 21% 15% 30% 29% 45% 36%
Mergers & acquisition 31% 33% 21% 26% 18% 36% 41% 32% 29% 35% 36%
Transformations of a specific business unit 29% 26% 37% 19% 41% 38% 26% 32% 19% 26% 27%
Brand repositioning (new name and identity) 24% 24% 26% 33% 35% 19% 11% 23% 17% 29% 29%
Relocations, closing of factories etc. 20% 28% 23% 24% 14% 13% 7% 14% 27% 10% 40%
A crisis impacting the org. and its stakeholders 20% 35% 19% 17% 16% 15% 22% 18% 21% 13% 27%
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?
36
Experienced more/less changes due to economic climate in the last 2 years
Base Denmark Finland France Germany Italy Norway
* Spain Sweden Switzerland * UK
More changes 64% 65% 68% 64% 75% 76% 59% 38% 62% 64% 76%Neither more nor less 29% 31% 26% 32% 25% 22% 31% 46% 24% 31% 24%
Fewer changes 6% 4% 6% 4% 0% 2% 10% 16% 14% 6% 0%
*Low base size
Expect more/less changes due to economic climate in the next 2 years
Base Denmark Finland France Germany Italy
Norway*
Spain Sweden Switzerland * UK
More changes 52% 45% 46% 56% 51% 56% 45% 54% 54% 61% 48%
Neither more nor less 39% 47% 46% 38% 45% 40% 45% 38% 28% 31% 34%
Fewer changes 10% 8% 8% 6% 4% 4% 10% 8% 18% 8% 18%
Q125: Do you expect to go through more or less changes in the next 2 years due to the economic climate?
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
Base Denmark Finland France Germany Italy Norway Spain Sweden Switzerland UK
Very effective 23% 24% 2% 7% 33% 53% 4% 32% 21% 19% 33%
Somewhat effective 58% 65% 60% 69% 63% 34% 70% 50% 58% 58% 56%
Not very effective 15% 11% 30% 21% 4% 9% 19% 14% 19% 19% 11%
Not at all effective 3% 0% 7% 2% 0% 4% 7% 5% 2% 3% 0%
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
Base Denmark Finland France Germany Italy Norway* Spain Sweden Switzerland* UK
New strategic direction 55% 73% 78% 46% 47% 34% 59% 48% 54% 47% 64%
New Mission, vision or values 50% 63% 54% 42% 51% 42% 45% 50% 48% 53% 54%
Organizational restructuring 46% 63% 48% 38% 35% 48% 34% 58% 46% 33% 60%
Mergers & acquisition 40% 39% 52% 34% 35% 32% 31% 40% 40% 44% 50%
Brand repositioning (new name and identity) 35% 20% 46% 38% 35% 24% 24% 36% 40% 36% 46%
Implementation of new technology systems or processes 35% 37% 36% 34% 25% 34% 38% 56% 36% 22% 36%
New product launches 32% 22% 26% 38% 37% 34% 21% 44% 30% 33% 40%
Transformations of a specific business unit 29% 22% 22% 24% 41% 28% 21% 30% 30% 39% 34%
Relocations, closing of factories etc. 26% 31% 46% 30% 31% 10% 21% 18% 32% 11% 30%
Leadership transition and development [e.g. CEO shift] 24% 22% 28% 12% 29% 30% 10% 18% 32% 19% 44%
A crisis impacting the organization and its stakeholders 19% 25% 18% 10% 25% 10% 31% 18% 12% 11% 26%
Downsizing 19% 24% 18% 20% 24% 12% 14% 6% 26% 14% 38%
*Low base size
TIMELY ENGAGEMENT AND COMMUNICATION ARE SEEN AS CRITICAL
39
Base Denmark Finland France Germany Italy Norway
* Spain Sweden Switzerland* UK
Make strategic decisions in a timely manner 36% 53% 42% 14% 33% 42% 34% 40% 32% 39% 26%Communicating goals 33% 53% 48% 16% 33% 30% 34% 32% 14% 36% 32%Engaging employees 33% 67% 16% 10% 20% 42% 52% 44% 38% 11% 30%
Explaining the strategic direction of the company 29% 39% 46% 12% 29% 34% 24% 22% 12% 31% 40%Setting measurable goals 28% 35% 26% 6% 27% 34% 38% 36% 20% 28% 32%
Ensuring all business units and functions are aligned on company goals 28% 41% 30% 10% 25% 36% 24% 34% 18% 28% 36%Listening to employees concerns 28% 20% 38% 18% 24% 34% 28% 32% 18% 25% 42%Responding to employees concern 27% 29% 26% 16% 25% 34% 24% 34% 14% 22% 40%
Ensuring all business units and functions are involved in implementing major changes 25% 35% 38% 12% 18% 32% 17% 26% 16% 22% 36%Attracting and retaining employees 25% 33% 18% 8% 16% 36% 21% 26% 32% 22% 34%
Resolving issues that affect various business units or functions 24% 27% 30% 8% 20% 24% 24% 38% 18% 22% 30%Communicating progress 23% 24% 34% 8% 24% 24% 24% 22% 18% 22% 28%
Prioritising change to ensure on-going success 23% 41% 26% 6% 24% 24% 17% 34% 14% 14% 26%Measuring progress 21% 25% 34% 4% 14% 30% 17% 22% 14% 22% 30%
Raising issues that affect various business units or functions 20% 24% 14% 2% 20% 18% 17% 36% 16% 22% 34%
Managing expectations with respect to any company changes 17% 24% 18% 8% 10% 28% 21% 24% 2% 6% 28%Celebrating progress 16% 18% 34% 4% 10% 20% 10% 20% 10% 14% 18%
Q82 – 100 : In your opinion, how important are the following in ensuring any strategic changes are a success?
*Low base size
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
(Company does ‘very well’) Base Denmark Finland France Germany Italy Norway* Spain Sweden Switzerland
* UK
Setting measurable goals 24% 37% 26% 6% 27% 24% 21% 18% 32% 19% 34%Communicating progress 24% 37% 20% 10% 25% 28% 17% 12% 28% 19% 38%Communicating goals 22% 25% 18% 12% 33% 24% 14% 22% 16% 19% 38%Measuring progress 22% 31% 18% 10% 25% 22% 17% 16% 20% 19% 38%Explaining the strategic direction of the company 22% 29% 14% 8% 22% 28% 24% 26% 16% 17% 38%
Make strategic decisions in a timely manner 22% 29% 16% 10% 22% 28% 17% 18% 18% 17% 44%
Ensuring all business units/functions are aligned on company goals 21% 35% 12% 10% 18% 22% 24% 18% 16% 22% 36%
Prioritising change to ensure on-going success 21% 31% 20% 10% 27% 22% 14% 12% 18% 19% 36%
Celebrating progress 20% 16% 6% 16% 14% 22% 28% 14% 30% 19% 40%Managing expectations with respect to any company changes 20% 22% 16% 12% 29% 20% 21% 14% 26% 17% 28%
Ensuring all business units/functions involved in implementing changes 20% 27% 12% 12% 25% 24% 17% 10% 20% 14% 42%
Attracting and retaining employees 20% 35% 20% 6% 24% 18% 14% 10% 18% 8% 46%Engaging employees 19% 31% 16% 16% 20% 18% 10% 8% 26% 14% 30%Listening to employees concerns 19% 25% 20% 12% 22% 16% 17% 12% 20% 8% 40%Raising issues that affect various business units or functions 18% 22% 10% 4% 27% 20% 10% 10% 28% 17% 30%
Resolving issues that affect various business units or functions 18% 25% 8% 6% 22% 24% 17% 16% 12% 14% 36%
Responding to employees concerns 18% 29% 18% 8% 18% 26% 7% 14% 16% 11% 32%*Low base size
DECISION MAKERS BELIEVE A PLAN IS IMPORTANT
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S
Q131: How important is it to have a change management plan in your company?
41
Base Denmark Finland France Germany Italy Norway* Spain Sweden Switzerland
* UK
Critical 16% 29% 12% 6% 8% 28% 17% 24% 12% 8% 18%
Very important 50% 35% 50% 52% 45% 52% 59% 44% 52% 61% 46%Somewhat important 28% 27% 34% 34% 41% 20% 14% 24% 28% 22% 36%
Not very important 5% 8% 2% 6% 6% 0% 7% 4% 8% 8% 0%
Not at all important 1% 0% 2% 2% 0% 0% 3% 4% 0% 0% 0%
*Low base size
ONLY A THIRD OVERALL HAD A FULL PLAN IN PLACE IN ADVANCE OF THE CHANGE
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S
Q54: Did your company manage the change process using a strategic plan? (*low base size across markets)
42
Base Denmark Finland France Germany Italy Norway Spain Sweden Switzerland UK
Yes : there was a full plan in place in advance of the change
37% 26% 19% 26% 41% 60% 44% 32% 40% 39% 42%
Yes: there was a plan at the time of the change
44% 57% 42% 57% 45% 38% 41% 39% 35% 35% 53%
No: the change happened organically 14% 15% 26% 10% 12% 2% 7% 23% 19% 19% 4%
Don't know 5% 2% 14% 7% 2% 0% 7% 7% 6% 6% 0%
ONLY HALF HAVE CHANGE PLANS IN PLACE NOW
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S
Q126: Does your company currently have a change management preparedness/ communications plan in case of a potential change?
43
Base Denmark Finland France Germany Italy Norway* Spain Sweden Switzerland* UK
Yes 52% 47% 62% 40% 41% 54% 66% 52% 54% 56% 52%
No 31% 39% 12% 36% 41% 30% 21% 26% 30% 36% 36%
Don't know
17% 14% 26% 24% 18% 16% 14% 22% 16% 8% 12%
*Low base size
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
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S44
Base Denmark Finland France Germany Italy Norway* Spain Sweden Switzerland
* UK
Board of Directors 43% 51% 50% 20% 49% 44% 48% 42% 32% 42% 52%All employees 36% 47% 56% 18% 27% 38% 38% 30% 30% 42% 38%Heads of business units 30% 49% 44% 12% 18% 40% 21% 30% 24% 28% 32%
Heads of business functions 30% 45% 48% 14% 29% 36% 10% 26% 24% 33% 32%
Shareholders 26% 27% 34% 10% 18% 20% 28% 40% 16% 28% 36%Key stakeholders 26% 29% 34% 12% 27% 22% 24% 40% 18% 19% 36%Business partners 22% 18% 14% 12% 20% 26% 14% 34% 20% 25% 36%Government 17% 37% 14% 6% 4% 26% 38% 4% 12% 11% 22%Industry press 13% 16% 8% 4% 12% 32% 14% 12% 4% 11% 20%
Policy influencers, e.g. NGOs 13% 18% 12% 2% 6% 16% 17% 4% 6% 19% 28%
General media 11% 14% 10% 4% 12% 14% 10% 8% 8% 17% 16%
External consultants 7% 10% 4% 2% 8% 8% 7% 4% 6% 6% 14%
*Low base size
HOW COMPANIES ARE COMMUNICATING…
Q121: How, if at all, does your company usually communicate strategic changes throughout the business?
45
Base Denmark Finland France Germany Italy Norway* Spain Sweden Switzerland
* UK
In all staff meetings / briefings/workshops 40% 53% 48% 36% 41% 30% 28% 30% 48% 33% 56%
On the employee intranet 39% 49% 62% 42% 31% 30% 34% 22% 42% 44% 34%
Announcement from the CEO/Management 37% 47% 52% 24% 43% 32% 24% 18% 46% 44% 38%
On-going communications from middle managers / line managers 32% 47% 34% 30% 35% 24% 17% 24% 36% 39% 32%
Staff newsletters 32% 37% 44% 42% 29% 22% 28% 26% 30% 22% 42%Via all office email 32% 27% 48% 24% 31% 28% 34% 28% 8% 42% 46%On corporate website 23% 27% 38% 16% 31% 40% 10% 14% 20% 17% 18%In small-group-meetings/workshops 22% 16% 30% 20% 29% 28% 3% 18% 40% 8% 28%
In seminars/workshops 18% 20% 18% 24% 18% 22% 17% 10% 18% 8% 30%Via individual email 16% 12% 14% 18% 20% 16% 17% 8% 24% 14% 22%In one-to-one meetings 14% 6% 16% 18% 14% 18% 3% 4% 28% 8% 22%Word of mouth 14% 10% 18% 10% 20% 12% 17% 6% 10% 11% 26%Via social media 7% 4% 6% 18% 6% 10% 0% 6% 4% 0% 14%
*Low base size
HOW COMPANIES SHOULD COMMUNICATE…
Q122: In your opinion, how should your company communicate strategic changes throughout the business?
46
Base Denmark Finland France Germany Italy Norway* Spain Sweden Switzerland * UK
In all staff meetings / briefings/workshops 47% 69% 72% 42% 29% 34% 38% 40% 60% 44% 44%
Intranet 42% 39% 66% 46% 20% 38% 45% 36% 42% 58% 34%
On-going communications from middle managers / line managers 39% 51% 62% 36% 27% 34% 31% 26% 42% 42% 38%
Announcement from the CEO/Management 38% 51% 54% 42% 51% 24% 17% 18% 36% 47% 42%
Staff newsletters 34% 37% 44% 50% 29% 24% 28% 34% 30% 28% 32%
Via all office email 31% 31% 52% 22% 29% 30% 55% 14% 10% 36% 34%In small-group-meetings/workshops
30% 27% 32% 34% 31% 44% 7% 20% 42% 31% 32%
On corporate website 23% 22% 40% 16% 27% 26% 21% 24% 20% 17% 22%In seminars/workshops 21% 16% 26% 26% 16% 34% 34% 12% 20% 14% 16%In one-to-one meetings 17% 2% 14% 26% 14% 20% 10% 12% 26% 14% 36%Via individual email 17% 8% 16% 24% 14% 24% 14% 18% 22% 11% 24%Via social media 8% 6% 8% 12% 16% 8% 7% 8% 4% 0% 14%Word of mouth 5% 10% 0% 4% 10% 4% 3% 2% 0% 6% 16%
*Low base size
LONDON • NEW YORK • WASHINGTON • SEATTLE •LOS ANGELES • SAN FRANCISCO • HONG KONG • DUBAI
ADDITIONAL ANALYSIS- COMPANY SIZE- EXPECTATIONS FOR GROWTH IN COMING YEAR- SECTOR
© P E N N , S C H OE N & B E R LA ND
METHODOLOGY- SECTOR DEFINITIONS
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S48
• 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)
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
Base
Number of Employees Expected Growth Industry Sector
Under 2500
Over 2500
Substantial + A Lot Little Same +
Downsize Public +
NGOService
IndustryManufacturing
+ Industrial Tech + R&D
+ Retail Yes, several 47% 44% 52% 48% 47% 44% 43% 45% 52% 50%Yes, one 38% 40% 35% 43% 37% 32% 38% 34% 41% 40%No 15% 16% 13% 8% 15% 24% 19% 21% 7% 10%
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
Base
Number of Employees Expected Growth Industry Sector
Under 2500
Over 2500
Substantial + Many Little Same +
Downsize Public + NGO
Service Industry
Manufacturing + Industrial
Tech + R&D + Retail
Organizational restructuring 50% 45% 57% 37% 51% 66% 54% 49% 43% 44%
New strategic direction 40% 38% 43% 36% 43% 38% 36% 41% 34% 48%
Downsizing 35% 28% 44% 23% 38% 45% 33% 27% 35% 42%
New Mission, vision or values 33% 33% 31% 33% 32% 32% 30% 34% 37% 30%
Leadership transition and development [e.g. CEO shift] 33% 29% 38% 24% 36% 40% 34% 36% 28% 32%
Implementation of new technology systems or processes 33% 32% 34% 30% 36% 32% 31% 35% 36% 30%
New product launches 32% 32% 32% 34% 35% 23% 22% 41% 35% 39%
Mergers & acquisition 31% 31% 30% 26% 38% 22% 22% 38% 36% 29%
Transformations of a specific business unit 29% 26% 33% 29% 29% 29% 21% 33% 27% 35%
Brand repositioning (new name and identity) 24% 22% 28% 23% 26% 23% 18% 25% 35% 28%
Relocations, closing of factories etc. 20% 13% 30% 13% 21% 28% 17% 21% 23% 25%
A crisis impacting the organization and its stakeholders 20% 21% 19% 21% 19% 23% 18% 30% 16% 20%
Other 1% 1% 1% 1% 0% 2% 1% 0% 0% 0%
THE RECENT ECONOMIC CLIMATE HAS AND WILL CONTINUE TO CREATE AN INFLUX OF CHANGES
51
Expect more/less changes due to economic climate in the next 2 years
Base
Number of Employees Expected Growth Industry Sector
Under 2500
Over 2500
Substantial + A Lot Little Same +
Downsize Public +
NGOService
IndustryManufacturing
+ Industrial Tech + R&D + Retail
More changes 52% 50% 53% 62% 45% 50% 53% 50% 54% 47%Neither more nor less 39% 41% 37% 33% 44% 38% 40% 39% 35% 46%Fewer changes 10% 9% 10% 5% 11% 11% 8% 10% 11% 7%
Experienced more/less changes due to economic climate in the last 2 years
Base
Number of Employees Expected Growth Industry Sector
Under 2500
Over 2500
Substantial + A Lot Little Same +
Downsize Public +
NGOService
IndustryManufacturing
+ Industrial Tech + R&D + Retail
More changes 64% 63% 66% 72% 61% 62% 62% 56% 70% 67%Neither more nor less 29% 31% 27% 23% 31% 35% 32% 37% 26% 26%Fewer changes 6% 6% 6% 5% 8% 4% 6% 7% 4% 7%
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?
MOST DECISION MAKERS ADMIT NOT HANDLING THESE CHANGES VERY EFFECTIVELY
Q55: In your opinion, how effective was your company’s strategic change process?
52
Base
Number of Employees Expected Growth Industry Sector
Under 2500
Over 2500
Substantial + A Lot Little Same +
Downsize Public +
NGOService
IndustryManufacturing
+ Industrial Tech + R&D + Retail
Very effective 23% 22% 25% 36% 17% 18% 19% 29% 27% 20%
Somewhat effective 58% 63% 51% 52% 64% 56% 63% 55% 55% 57%
Not very effective 15% 14% 17% 10% 18% 19% 14% 14% 14% 19%
Not at all effective 3% 1% 6% 2% 2% 8% 4% 2% 3% 5%
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
Base
Number of Employees Expected Growth Industry Sector
Under 2500
Over 2500
Substantial + A Lot Little Same +
Downsize Public +
NGOService
IndustryManufacturing +
Industrial Tech + R&D
+ Retail
New strategic direction 55% 53% 58% 46% 59% 59% 55% 61% 57% 51%
New Mission, vision or values 50% 47% 54% 46% 51% 54% 54% 49% 47% 51%
Organizational restructuring 46% 45% 48% 40% 47% 54% 50% 41% 44% 47%
Mergers & acquisition 40% 40% 39% 35% 46% 32% 27% 47% 50% 39%
Brand repositioning (new name and identity) 35% 32% 38% 30% 35% 41% 31% 46% 33% 27%
Implementation of new technology systems or processes 35% 36% 35% 33% 34% 43% 42% 33% 38% 26%
New product launches 32% 31% 35% 36% 34% 24% 25% 32% 39% 38%
Transformations of a specific business unit 29% 31% 26% 29% 30% 28% 25% 40% 29% 28%
Relocations, closing of factories etc. 26% 22% 32% 22% 26% 32% 27% 25% 35% 20%
Leadership transition and development [e.g. CEO shift] 24% 23% 27% 25% 24% 25% 22% 31% 23% 21%
A crisis impacting the organization and its stakeholders 19% 20% 17% 20% 20% 14% 22% 15% 21% 13%
Downsizing 19% 16% 25% 14% 19% 29% 21% 16% 25% 17%
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
Base
Number of Employees Expected Growth %Industry Sector
Under 2500
Over 2500
Substantial + A Lot Little Same +
Downsize Public + NGO
Service Industry
Manufacturing + Industrial
Tech + R&D + Retail
Make strategic decisions in a timely manner 36% 32% 41% 35% 36% 36% 39% 35% 35% 29%Communicating goals 33% 27% 41% 33% 32% 35% 35% 23% 27% 44%Engaging employees 33% 30% 37% 34% 29% 40% 37% 28% 33% 28%Explaining the strategic direction of the company 29% 25% 34% 31% 30% 25% 31% 33% 24% 30%
Setting measurable goals 28% 24% 34% 29% 30% 23% 28% 32% 25% 28%Ensuring all business units and functions are aligned on company goals 28% 23% 35% 32% 28% 24% 30% 36% 26% 22%
Listening to employees concerns 28% 24% 34% 29% 24% 35% 30% 31% 22% 28%Responding to employees concerns 27% 24% 31% 29% 24% 30% 31% 25% 18% 31%Ensuring all business units and functions are involved in implementing major changes 25% 21% 31% 26% 25% 25% 30% 28% 19% 19%
Attracting and retaining employees 25% 20% 31% 28% 20% 28% 29% 26% 20% 22%Resolving issues that affect various business units or functions 24% 22% 27% 29% 20% 26% 28% 20% 22% 23%
Communicating progress 23% 17% 31% 26% 21% 22% 26% 25% 15% 24%Prioritising change to ensure on-going success 23% 18% 29% 28% 21% 18% 26% 17% 21% 25%Measuring progress 21% 19% 25% 27% 20% 16% 25% 18% 22% 22%Raising issues that affect various business units or functions 20% 19% 22% 28% 19% 12% 24% 17% 17% 19%
Managing expectations with respect to any company changes 17% 12% 24% 21% 16% 12% 22% 14% 13% 15%
Celebrating progress 16% 14% 19% 21% 14% 11% 13% 18% 15% 18%
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
(Company does ‘very well’) Base
Number of Employees Expected Growth Industry Sector
Under 2500
Over 2500
Substantial + A Lot Little Same +
Downsize Public + NGO
Service Industry
Manufacturing + Industrial
Tech + R&D + Retail
Setting measurable goals 24% 25% 24% 39% 20% 13% 23% 30% 23% 21%Communicating progress 24% 22% 26% 37% 19% 15% 24% 27% 25% 21%Communicating goals 22% 20% 25% 35% 19% 11% 20% 29% 23% 23%Measuring progress 22% 23% 20% 34% 20% 9% 15% 33% 18% 24%Explaining the strategic direction of the company 22% 21% 23% 34% 19% 12% 21% 24% 20% 18%Make strategic decisions in a timely manner 22% 23% 20% 37% 18% 9% 18% 22% 24% 25%Ensuring all business units and functions are aligned on company goals 21% 22% 20% 33% 20% 9% 19% 21% 23% 22%Prioritising change to ensure on-going success 21% 22% 20% 33% 17% 14% 15% 21% 23% 25%Celebrating progress 20% 23% 17% 39% 14% 8% 17% 21% 21% 17%Managing expectations with respect to any company changes 20% 19% 23% 33% 17% 11% 18% 23% 22% 23%Ensuring all business units and functions are involved in implementing major changes 20% 19% 22% 37% 14% 12% 18% 21% 28% 16%Attracting and retaining employees 20% 22% 17% 33% 17% 8% 21% 18% 24% 16%Engaging employees 19% 20% 17% 32% 14% 12% 18% 19% 15% 20%Listening to employees concerns 19% 21% 17% 39% 11% 11% 20% 21% 21% 16%Raising issues that affect various business units or functions 18% 17% 19% 31% 13% 10% 17% 20% 23% 14%Resolving issues that affect various business units or functions 18% 19% 16% 35% 12% 8% 19% 13% 19% 14%Responding to employees concerns 18% 19% 16% 31% 14% 9% 18% 17% 21% 20%
DECISION MAKERS BELIEVE A PLAN IS IMPORTANT
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S
Q131: How important is it to have a change management plan in your company?
56
Base
Number of Employees Expected Growth Industry Sector
Under 2500
Over 2500
Substantial + A Lot Little Same +
Downsize Public +
NGOService
IndustryManufacturing
+ Industrial Tech + R&D + Retail
Critical 16% 13% 21% 20% 13% 18% 17% 15% 21% 11%Very important 50% 51% 47% 52% 51% 44% 49% 51% 40% 55%Somewhat important 28% 28% 28% 21% 32% 29% 28% 27% 34% 28%Not very important 5% 6% 3% 5% 3% 8% 5% 6% 2% 6%Not at all important 1% 1% 1% 2% 0% 1% 1% 0% 3% 1%
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
Base
Number of Employees Expected Growth Industry Sector
Under 2500
Over 2500
Substantial + A Lot Little Same +
Downsize Public + NGO
Service Industry
Manufacturing + Industrial
Tech + R&D + Retail
Yes : there was a full plan in place in advance of the change
37% 36% 39% 39% 34% 41% 34% 45% 39% 27%
Yes: there was a plan at the time of the change
44% 48% 38% 42% 48% 38% 49% 42% 38% 49%
No: the change happened organically
14% 12% 16% 12% 13% 18% 15% 7% 15% 18%
Don't know 5% 4% 6% 7% 5% 2% 2% 5% 8% 7%
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
Base
Number of Employees Expected Growth Industry Sector
Under 2500
Over 2500
Substantial + A Lot Little Same +
Downsize Public + NGO
Service Industry
Manufacturing + Industrial
Tech + R&D + Retail
Yes 52% 52% 53% 63% 51% 41% 51% 48% 49% 56%
No 31% 33% 28% 25% 34% 31% 32% 36% 28% 31%
Don't know
17% 16% 19% 12% 15% 28% 17% 16% 22% 13%
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
© P E N N , S C H OE N & B E R LA ND A S S OC I ATE S59
Base
Number of Employees Expected Growth Industry Sector
Under 2500
Over 2500
Substantial + A Lot Little Same +
Downsize Public + NGO
Service Industry
Manufacturing + Industrial
Tech + R&D + Retail
Board of Directors 43% 40% 47% 40% 47% 38% 41% 46% 51% 37%All employees 36% 35% 39% 37% 34% 40% 37% 36% 35% 35%Heads of business units 30% 28% 33% 30% 31% 27% 30% 33% 25% 32%Heads of business functions 30% 27% 34% 34% 30% 24% 26% 38% 33% 28%
Shareholders 26% 23% 30% 26% 27% 22% 23% 21% 35% 24%Key stakeholders 26% 24% 30% 28% 26% 23% 30% 26% 25% 20%Business partners 22% 19% 25% 27% 20% 18% 23% 32% 17% 15%Government 17% 18% 17% 17% 14% 26% 30% 11% 12% 11%Industry press 13% 12% 15% 18% 12% 9% 16% 15% 15% 8%Policy influencers, e.g. NGOs 13% 12% 14% 15% 11% 14% 17% 12% 14% 7%
General media 11% 10% 14% 15% 10% 8% 15% 9% 14% 7%External consultants 7% 6% 9% 11% 6% 4% 8% 5% 3% 8%
HOW COMPANIES ARE COMMUNICATING…
Q121: How, if at all, does your company usually communicate strategic changes throughout the business?
60
Base
Number of Employees Expected Growth Industry Sector
Under 2500
Over 2500
Substantial + Many Little Same +
Downsize Public +
NGOService
IndustryManufacturing +
Industrial Tech + R&D + Retail
In all staff meetings / briefings/workshops 40% 39% 42% 30% 45% 44% 41% 36% 44% 37%
On the employee intranet 39% 34% 47% 31% 45% 37% 35% 50% 31% 42%Announcement from the CEO/Management 37% 35% 39% 34% 38% 38% 26% 38% 41% 45%
On-going communications from middle managers / line managers 32% 31% 33% 33% 33% 28% 28% 31% 34% 30%
Staff newsletters 32% 28% 38% 27% 33% 37% 31% 29% 34% 29%Via all office email 32% 30% 34% 29% 31% 38% 35% 35% 27% 25%On corporate website 23% 18% 30% 23% 21% 28% 28% 25% 27% 12%In small-group-meetings/workshops 22% 19% 27% 20% 23% 24% 24% 21% 18% 25%In seminars/workshops 18% 18% 19% 16% 19% 22% 21% 15% 18% 18%Via individual email 16% 16% 17% 14% 17% 19% 16% 18% 16% 13%In one-to-one meetings 14% 14% 13% 19% 10% 15% 13% 14% 14% 15%Word of mouth 14% 15% 12% 11% 14% 19% 17% 14% 9% 11%Via social media 7% 7% 7% 8% 6% 6% 7% 8% 6% 4%
HOW COMPANIES SHOULD COMMUNICATE…
Q122: In your opinion, how should your company communicate strategic changes throughout the business?
61
Base
Number of Employees Expected Growth Industry Sector
Under 2500
Over 2500
Substantial + Many Little Same +
Downsize Public + NGO
Service Industry
Manufacturing + Industrial
Tech + R&D + Retail
In all staff meetings / briefings/workshops 47% 46% 49% 34% 51% 56% 47% 45% 46% 49%
Intranet 42% 39% 47% 32% 46% 49% 43% 43% 36% 45%On-going communications from middle managers / line managers
39% 35% 45% 29% 44% 42% 40% 31% 41% 35%
Announcement from the CEO/Management 38% 35% 42% 32% 43% 37% 31% 46% 39% 41%
Staff newsletters 34% 29% 41% 22% 37% 42% 37% 26% 35% 33%Via all office email 31% 29% 35% 26% 33% 36% 35% 26% 29% 29%In small-group-meetings/workshops
30% 24% 39% 25% 33% 30% 32% 37% 23% 24%
On corporate website 23% 18% 31% 23% 23% 25% 24% 18% 30% 23%In seminars/workshops 21% 21% 23% 22% 18% 28% 28% 14% 20% 17%In one-to-one meetings 17% 18% 16% 15% 18% 19% 20% 19% 12% 19%Via individual email 17% 18% 17% 20% 16% 17% 22% 21% 17% 8%Via social media 8% 8% 9% 10% 7% 8% 11% 5% 6% 8%Word of mouth 5% 7% 4% 6% 5% 4% 5% 5% 8% 4%