Manage change effectively or pay the price
UK – Organisations who failed to manage change effectively during the recession have subsequently underperformed in the past 12 months.
The annual Management Agenda survey, by executive education and research provider Roffey Park, shows there is a correlation between the way organisations manage change and their financial success during the recession. The lack of adaptability for change had exposed these companies’ weaknesses in innovation and agility during the tough economic climate, says Jo Hennessy, director of research at Roffey Park. But successful organisations have allowed clients’ needs, efficiency and quality to drive change as opposed to simply cutting costs. They are also better able to deliver change fast and effectively.
Compared to 45% of companies that out-performed expectations, 56% out of more than 900 executive respondents, who underperformed in 2009, had focused on core businesses. Only three out of 10 underperforming organisations thought working in partnerships with other businesses would benefit them, while 49% of businesses that chose to link up with others performed well.
Similarly, just under half of organisations had a healthy profit margin invested in leadership development, compared to 23% of underperforming organisations. A quarter of companies polled that chose not to invest in sustainability also underperformed.
Hennessy says organisations should pay more attention to both the drivers and process of change to maximise their financial performance.
“Organisations should avoid change that is driven by internal politics or driven solely by cost and focus on changes driven by customer needs,” she says.
Hennessy adds that companies should also avoid strategies driven by “short-term cost-savings”. Top business leaders would fare better if they continue to innovate and look for new-market opportunities for their companies. It helps if they can make “sound decisions” and implement their corporate vision across the board successfully with 62% of organisations that deliver their strategic direction successfully outperforming the rest.
“Organisations with good leadership tend to be more strategically and financially successful – by identifying and investing in high-quality leadership organisations will be able to drive performance,” she says.
Singapore takes measures to age gracefully
Singapore - A majority of Singapore public sector employees (62%) say their organisations have taken adequate steps to address the issues of an ageing workforce – a sentiment that is ahead of other countries such as Canada (37%), Germany (26%) and the US (28%).
In a recent KPMG International report, 38% out of 805 global respondents agreed that their organisation was taking steps to address the ageing workforce seriously, with an additional 34% saying that it was an important concern for senior management.
The issue of the ageing workforce is expected to be a growing concern in the near future. While Singapore has 10 working people for every person over 65, the number is expected to drop to four workers for every three elderly persons by 2050. “Based on the population forecasts, the resources per elderly person are likely to be scarce, so preparations need to be made now,” says Lim Yen Suan, executive director of KPMG Advisory Services.
In addition, eight out of 10 respondents in Singapore say an ageing public sector workforce poses a significant challenge, compared to 70% of Australian and half of American respondents.
But more can be done in order to address these issues.
“As a start, the highest levels of the organisation should treat the ageing workforce as a serious issue and ensure that they have a defined strategy and plan to counter this,” Lim says.
For one, Lim says organisations should put more emphasis with making the most out of employees’ knowledge and skills transfer by utilising tools such as mentoring, shadowing and communities of practice to ensure the next generation of leaders receives the appropriate accelerated knowledge.
“The pressures on efficiency are likely to be so intense that reshaping is inevitable,” Lim says. “By addressing issues such as performance management, strategic sourcing and service/process harmonisation, the public sector can respond positively to these significant challenges.”
The survey Rising to the challenge? The impact of an ageing population upon public sector services was carried out in mid-2009 and covered respondents in Singapore, Australia, Canada, Germany, the Netherlands, South Africa, the UK and the US.
| What is the effectiveness of your organisation at supporting the continued professional development of people at different stages of their careers? |
| Answers | All respondents |
| Effective | 64% |
| Not effective | 29% |
| Not applicable in my organisation | 34% |
| Don’t know | 4% |
Source: Rising to the challenge? – KPMG International
HR makes leadership skills a top priority for middle managers
Global – About two thirds of HR professionals polled have said developing the leadership skills of middle managers for their organisations would be their top learning and development priority in 2010.
According to the Corporate Learning Priorities Survey 2010 by Henley Business School, 67% out of 2500 HR respondents stated the leadership development of middle managers as their first or second priority this year.
One of the key areas marked for middle managers’ development, said HR professionals, was equipping them with change-management skills. They also anticipate focusing on high potentials as they would be the ones to lead the business “into an uncertain future”. This suggested HR felt they have coped well with the changes brought on by the recession and now they see a need to coach managers, who should be equipped to manage change well.
Linda Irwin, executive director of corporate development for Henley Business School, said many organisations were planning for the long-term, and no longer making budget cuts “they may live to regret”. Learning and development priorities are now being aligned with business objectives more closely than ever before. Only 35% polled felt leadership development for senior managers was more important.
Succession planning and attracting new talent were also among the top five priorities for HR in 2010. Citing a respondent’s answer that his organisation’s priority was “riding out the storm that had been created by the recession without losing our A teams”, Irwin said many companies were showing similar reactions. “Rather than axing development budgets and cutting leadership development, they have focused effort on those individuals who they expect will lead their organisations into a future yet to be created.”
Investing in softer leadership skills and coaching skills to bring out the best in people and facilitate better teamwork were other key concerns for senior
HR directors.
Six out of 10 respondents said developing a coaching culture was one of their top priorities, even though only 9% made it their number one priority. Interestingly, slightly over half of respondents polled have said corporate sustainability was a learning and development priority with 68% ranking it between third and fifth in their top-five ranking. But the survey said that while “sustainability” was on HR’s agenda, it was “not at the top yet”.
Neither have HR professionals forgotten about their team’s personal development. Slightly fewer than four out of 10 respondents said developing the capability of the HR team was in their top five priorities this year.
Age fails to weary older Singaporeans’ thirst for knowledge
Singapore – Despite their age, mature Singaporeans are skill keen on upgrading their skills and obtaining new sources of knowledge.
In a recent survey commissioned by Ministry of Community Development, Youth and Sports (MCYS) and SIM University (UniSIM), more than half of older Singaporeans surveyed said they were keen on taking up courses.
Their reasons for learning new skills varied from keeping their minds active, staying connected with the world and being able to better engage with their children and grandchildren. Nearly 20% of the respondents have either participated or plan to participate in career and non-career related training courses.
As for the style of learning, respondents said they were most comfortable learning from peers, which the study describes as having two advantage points. Firstly, peer teachers serve as role models and an inspiration to peer learners, even as they themselves benefit from sharing knowledge and being socially engaged. Hands-on learning was also ranked highly as well.
Associate professor and sociologist of National University of Singapore, Tan Ern Ser, said that the study covered three key segments of the ageing population – the late-baby boomers (40-54), early baby boomers (55-64) and seniors (65-74).
“This study will help in indicating how to best keep seniors mentally agile, socially engaged, physically active, and vocationally relevant, thereby contributing towards making their post-retirement years truly golden” Tan said.
Tan added that life-long learning could help keep Singaporeans’ minds active while staying current.
“In addition, we also want to encourage our seniors to engage in life-long learning to help them stay employable. To do this, we need to enhance the opportunities for them to do so,” he said.
