Canadian Management Centre's Training Blog

Future Workers Will Increasingly Work on Project Teams

As reported by HRI. Executives believe that employees will be working on project teams more frequently in the future. According to a survey conducted by temporary administrative staffing firm OfficeTeam of 150 Fortune 1000 executives, 58% responded that employees will be working in team situations more frequently in the next 10 to 15 years. Another 33% indicated that workers would be involved in teams much more frequently in that same time period. While 7% of the executives felt there would be no change, none of the respondents answered that teamwork would be less frequent in 10 to 15 years than it is today. (Office of the Future: 2020 [OfficeTeam], 2005, p. 4)

Most Admired Companies Have Cultures That Foster Teamwork

As reported by HRI. Organizations counted among The Hay Group's Most Admired Companies have cultures that foster teamwork and collaboration. Unfortunately, many employees do not believe that their companies encourage cooperation, and that leads to lower morale and higher turnover. Across a database of over 400 companies with 1.2 million employees, research shows that only 54% feel that collaboration was encouraged, and 49% responded that company had a cooperative atmosphere. As for teamwork that is already occurring, only 48% rated that teamwork as "good" or "very good." ("Companies Risk Greater Employee Turnover and Lower Productivity Without Improved Teamwork" [Hay Group], press release, July 6, 2005) 

In Times of Change Managers Should Try to Retain High Performers

As reported by HRI.

Because an organization's top-performing employees are often the ones most likely to seek other employment when faced with major organizational change, managers should consider proactive steps to retain them, writes Judith Ross in a February 2006 Harvard Management Update article based on advice from change experts. To retain high performers through times of change, managers should communicate clearly about all aspects of the initiative, and they should also involve high-performing employees in designing and implementing changes. Allowing those workers to try new processes in advance may help ease trepidation, as well. Consistency is important, Ross writes, reminding leaders to present a unified message to their workforce. Finally, she notes that experts in the change field suggest that managers address resistance proactively, taking time to understand and respond to employees' concerns. (Harvard Management Update [Ross], February 2006, pp. 1-4)

Change Requires a Number of Crucial Components

As reported by HRI. Senior management support for change initiatives was judged a crucial component for a successful change outcome, based on research conducted by the Chartered Institute of Personnel and Development (CIPD). From its studies of change initiatives in 11 large UK organizations and a survey of more than 800 senior executives, the CIPD developed a seven-step approach to organizational change. Along with leaders' support, change initiatives require these elements:

• Proposed changes should fit logically within the organization's overall business strategy.
• Employees' involvement in shaping and implementing initiatives should be genuine and pervasive.
• Communications programs must be ongoing, must reach all parties involved in the change and must provide a two-way flow of information.
• HR staff should play an active role in leading change initiatives.
• Organizational leaders must be able to apply sound project management skills to change initiatives.
• Interdisciplinary teams should be formed to ensure that a variety of skills can be applied to implement the change initiative.
  ("Regular Reorganisations in UK Organisations" [Chartered Institute of Personnel and Development], press release, September 13, 2005)

Leaders Have to Set the Stage for Change

As reported by HRI. How does a leader set the stage for organizational change that can fuel growth? Judith Glaser, president of Benchmark Communications, recommends that managers ask themselves questions in seven areas when contemplating how to build a corporate environment that embraces change:

• Are the company's communication styles open and healthy? Workers should be comfortable and skilled at interacting.
• Does the company praise positive efforts? Organizations that dwell on negatives discourage enthusiasm for growth.
• Do company leaders embrace and communicate the organizational mission? Visions for growth and positive change need champions at the top level.
• Do employees network effectively throughout the organization? Companies that silo workers may discourage the interaction needed to innovate and grow.
• Are workers mutually supportive? Employees who are encouraged to build on each others' ideas can create powerful momentum for the organization.
• Does the company culture encourage a team mindset? Companies that communicate a collaborative atmosphere encourage engagement.
• Does the corporate culture foster excitement about learning? Without a commitment to ongoing development, an organization cannot hope to create a dynamic environment that embraces change.
  (Leadership Excellence [Glaser], September 2005, pp. 7-8)

Board Members Themselves Seldom Receive Risk Training

As reported by HRI, "Just 14% of board members are confident that their organizations' boards understand, and will respond correctly to, risks facing their foreign operations," declared a 2005 report on risk management from the insurance firm Lloyd's of London and the London business analysis firm the Economist Intelligence Unit. Ironically, the survey of more than 100 business leaders in international organizations found that fewer than one in three respondents provided board members with risk management training or thought that risk management skills were important. Eighteen percent of the respondents indicated that their board members had risk management training. Said David Foreman, chief underwriting officer of Wellington, a Lloyd's insurer, "Whether the lack of preparedness to anticipate and deal with risk reflects misplaced confidence or ignorance is debatable. But until boards start to tackle these issues, risk management is likely to be seen by senior management as a constraint on their business, rather than the source of competitiveness it should be." (Best's Review [Green], December 2005, p. 113)

Leaders Jobs Often Hinge on Change Management Success

As reported by HRI, failure to oversee change effectively is the leading reason that organizations' governing boards discharge chief executives, according to Leadership IQ Inc. The leadership training organization interviewed more than one thousand public- and private-sector board members during the course of a four-year study and found that 31% of the nearly 300 organizations represented in the study fired CEOs for botching change initiatives. The most frequently cited problem, according to Leadership IQ, was leaders' inability to convince managers and employees that change was necessary. Failure to attend to customers and their needs motivated CEO terminations in 28% of the organizations represented, while tolerance of poor performers was cited as a cause by 27%. ("Leadership IQ Study: Mismanagement, Inaction Among the Real Reasons Why CEOs Get Fired" [Leadership IQ Inc.], press release, June 20, 2005)

Organizations Are Undergoing Much Change

As reported by HRI, nearly eight out of 10 (79%) global business leaders say that their organizations are undergoing high levels of change, reports the University of Michigan's Theresa Welbourne, an adjunct professor at the institution's Ross School of Business. Welbourne oversees the Leadership Pulse study, an ongoing poll of nearly 400 business leaders worldwide. In December 2005, Welbourne also released figures showing that an additional 15% of the executives said their firms were seeing a medium level of change. Welbourne's research for the preceding year documented 63% of leaders reporting high levels of change. ("Organizational Change Continues to Rise" [University of Michigan], press release, December 30, 2005)

Being Able to Adapt to Change Has Become a Global Priority

As reported by HRI, nearly four of 10 executives in Europe cited "speed, flexibility and adaptability to change" as their top challenge for 2006, according to the nonprofit research organization The Conference Board. The organization's survey of 658 CEOs worldwide found change tied for second place (with the desire to sustain company growth) among the concerns of Asian executives and fifth among the leading challenges U.S. leaders said they faced. Although companies with annual global sales under $5 billion ranked their ability to adapt to change slightly lower in their hierarchy of concerns, the topic remained a top-five challenge across all sales and industries represented by survey respondents. (CEO Challenge 2006 [The Conference Board], 2005, pp. 2+)

Europe Expects to Offshore More Financial Jobs

As reported by HRI, the financial industry in Europe is expected to see a surge in offshoring by 2010, according to a report by global finance company consultant Celent. The report, Offshoring in the European Banking and Securities Industries, concludes that some 450,000 financial services jobs in continental Europe will be sent offshore by 2010. According to the report, many Indian offshoring companies point to Europe as the fastest-growing region using their services. Germany is expected to be the site of the most growth, and thus the country with the most jobs moved offshore. While about 35,000 jobs in Germany are currently offshored, the report expects that number to climb to 154,000 by 2010. Lauren Bender, the author of the report, believes that for European financial companies, "Eventually most will come to the point where offshoring has become a standard part of doing business." ("Offshoring in the European Banking and Securities Industries Report Published by Celent" [Celent], press release, May 10, 2006)