LONDON, May 21, 2012 /PRNewswire/ --
UK companies
failing to keep pace with the rate of business change
Business leaders in the UK have admitted that companies are
failing to keep up with the increasing rate of change they face,
placing businesses at risk from factors such as reduced turnover
and hostile takeover. With an economic climate that remains
threateningly unclear, the findings of the 'Fit to Change' report,
carried out on behalf of Fujitsu, call into question UK plc's
ability to adapt and succeed in the uncertain environment they
operate within today.
The study, which included interviews with 150 c-suite
executives[1] and input from the Fit to
Change[2] panel, reveals that two thirds of executives
believe that the current rate of change, driven by factors such as
customer demand and new competitive threats, is too quick for UK
organisations to keep pace with and 57% agree that an inability to
respond rapidly and effectively to change is one of the most
significant risks their organisation faces today.
Commenting on the findings, Professor John Kotter, Harvard
Business School said, "Only 32% of those in private sector
firms are at all optimistic that they are actually 'fit to change'.
In a world that is changing more and more rapidly, these are highly
distressing numbers."
It went on to reveal that:
- Business planning cycles are reducing - five years ago 43% of
respondents believed they could plan with certainty two years
ahead. Only 21% believe that is still possible today
- Today, 33% believe they can plan one year ahead, and a quarter
feel it is only possible to plan ahead six months with any degree
of certainty
The most likely consequences of failing to adapt to change are
financial. Overwhelmingly, 96% of executives believe decreased
turnover would be a consequence of not reacting appropriately to
change. Similarly, respondents felt that the ability to get finance
would be severely impacted by a failure to appear responsive to the
market. 62% believe that a drop in share price would be a likely
outcome and 59% fear hostile takeover.
Customers are the biggest driver of change - 83% of respondents
felt they were a significant factor - clearly reflecting the
increasingly demanding consumer that businesses are tackling today.
However, it was also the factor that business leaders felt their
own organisation was least able to respond to effectively,
revealing the biggest pressure point for businesses today.
"The hardest task for CEOs today is to strike the balance
between responding to external change and allowing change to happen
around you while you stay true to your long term plan. Being Fit to
Change is about understanding the environment around you and arming
your organisation in advance with the tools it needs to be able to
respond quickly - and at its pinnacle it is about being the player
driving change in your sector," commented Duncan Tait, CEO, Fujitsu. "This is a topic that
is at the core of Fujitsu's own strategy right now. We are evolving
to meet the need to change and to remain competitive in a market we
have operated in for 40 years."
To tackle change successfully, respondents were clear that
strong leadership is the key ingredient - 97% felt this.
Additionally, the capacity to change and available resources topped
the list of ingredients required to be fit to change. However, when
comparing the ingredients that business leaders believe are
essential to being fit to change with those they believe are most
lacking across UK plc, the gaps occurred in three areas - a robust
ecosystem of suppliers; a long term vision and the right technology
solutions.
Notes to editors: Responding to the
threat
The research results have been combined with insights from our
Fit to Change Panel to create a top ten tips list, revealing both
the kinds of characteristics businesses need to foster, and also
the initiatives they should launch to improve their responsiveness
to change:
1. Strong, honest, leadership
Business leaders need to start not by focusing outwards on the
organisation, but by looking inwards. Do they themselves really
accept and embrace change, or is it just an inconvenience they're
forced to tolerate?
2. Foster innovation through a deep
sense of security
In contrast to the "lead by fear" ethos of the '90s, other
research has shown that innovation is best fostered in
organisations that first of all establish a sense of security in
their personnel.
Teams who feel confident, well-managed and secure in their jobs,
will be able to plan for the longer-term and make the decisions
that are required to ensure responsiveness to unexpected
change.
Put in place good planning for the worst case, and people will come
up with options to carry their businesses through.
3. Be clear on the skills you
need
Make sure you truly understand the market trends and customer
needs driving your sector in order to map out the skills and
capabilities you require to succeed. If you don't already have the
necessary skills, go out and recruit them, or plan to develop them
internally.
4. Release capacity through
flexibility
When people can work where is most appropriate for them, when
tasks can be simply shared, when teams can be brought together
simply to solve problems, an organisation can be far more effective
in its response to change.
5. Empower people by delegating deep
into the organisation
Working practices that emphasise delegated management and
delegated decision-making foster a sense of empowerment.
Most change must be met effectively in day-to-day decisions, rather
than by long-term strategy.
Empowered organisations tend to be more responsive to the majority
of environmental change.
6. Communicate, communicate and
listen
If you want to ensure the whole organisation understands and
feels the intensity of competition, the nature of key challenges
and the pace of change required to win, the key is communications.
Change is an evolving process that requires buy-in (whether willing
or not), many organisations fail at an early stage by ignoring the
long-term communication strategy. And communication is a two-way
street. Listen to the market; listen to your staff and listen to
your competitors - if you are not listening you will not hear the
call to change.
7. Employee diversity
The most important thing in business today if you want to
succeed is diversity across your employees. Different experiences;
cultures and ages provide a range of insights that enhances a
company's flexibility. When it comes to technology for instance, it
is likely to be young employees that enable you to harness the
latest technology to keep pace with change. And there's also likely
to be advantage in hiring staff from industries which have already
embedded some of the attitudes you're seeking.
8. A robust ecosystem of suppliers
The way you partner with suppliers and integrate them into your
business is a complex situation - but it is also the difference now
between winning and losing in business. Your supplier ecosystem can
make the difference between agility and sluggishness.
9. The right technology solutions
Technology is not just a means to save money and reduce risk; it
can be your ticket to ensuring that when you need to move quickly
and in different directions, you can. It's essential that today's
CEO has an understanding of when IT should be an integral part of
business strategy - when investing in IT can reshape the
business.
10. Balance your visions
Ultimately being "Fit to Change" is about ensuring the right
balance between your long- and short -term visions. The key
here is having a defined long-term vision but the capability and
infrastructure that allows you to drop down to the frontline at any
minute in response to external factors.
Supporting material/tools
Please contact teamfujitsu@harvard.co.uk if you would like to
receive any of the following supporting materials:
- The Fit to Change report is available for download here
http://www.fujitsu.com/uk/campaigns/fit-to-change/index.html - it
includes full results and commentary from Fujitsu as well as the
Fit to Change panel
- Fit to Change video: see Duncan
Tait talking about the findings and what they mean for CEOs
in the UK
- How fit to change are you? An online comparison
tool revealing how fit to change your organisation is
- Fit to Change panel insights: a compilation of available
to use quotes from the Fit to Change panel
- Vertical insights: sector specific data sheets (retail;
financial services and telco/utility) including insight from
Fujitsu's sector specialists
About Fujitsu
Fujitsu is the leading Japanese information and communication
technology (ICT) company offering a full range of technology
products, solutions and services. Over 170,000 Fujitsu people
support customers in more than 100 countries. We use our experience
and the power of ICT to shape the future of society with our
customers. Fujitsu Limited (TSE:6702) reported consolidated
revenues of 4.5 trillion yen
(US$54 billion) for the fiscal year
ended March 31, 2012. For more
information, please see http://www.fujitsu.com
Fujitsu UK and Ireland is a
leading IT systems, services and products company employing 11,400
people with an annual revenue of £1.7 billion. Its business is in
enabling its customers to realise their objectives by exploiting
information technology through its integrated product and service
portfolio. This includes consulting, applications, systems
integration, managed services and product for customers in the
private and public sectors including retail, financial services,
telecoms, government, defence and consumer sectors. For more
information, please see: http://uk.fujitsu.com
[1] Respondent sample excluded CIOs. The survey was carried
out across retail, financial services, telco and utility companies
by independent research company Coleman
Parkes
[2] Business and opinion leaders who formed the Fit to
Change panel were Duncan Tait, CEO,
Fujitsu; Andrew Bale, CEO, Resilient
Networks; Robin Young, Operations
Director, Mitchells & Butlers; Paul
Dreschler, Chairman and CEO, Wates; Dido Harding, CEO, Talk
Talk; Professor John Kotter,
Harvard Business School; James Woodhuysen, Professor of Forecasting and
Innovation, De Montfort University
Press Contacts
Rajinder Khakh
Harvard PR
Tel: +44(0)20-7861-2800
E-mail: teamfujitsu@harvard.co.uk
Graham Goulden
Fujitsu UK and Ireland
Tel: +44(0)843-354-9568
E-mail: graham.goulden@uk.fujitsu.com
