The ability to manage change effectively is one of the biggest factors determining whether an organisation delivers good financial and strategic performance, new research suggests.
The annual Management Agenda from UK-based executive education and research institute, Roffey Park, identifies a direct link between the way companies practice change management and their ability to be innovative and agile in the tough economic climate.
More successful organisations don't simply look to cut costs, they allow client need, efficiency and quality to drive change as and so are better able to deliver change fast and effectively.
"The relationship between change management and performance suggests organisations should pay more attention to both the drivers and process of change to maximise performance," said Jo Hennessy, Director of Research at Roffey Park.
"Organisations should avoid change that is driven by internal politics or driven solely by cost and focus on changes driven by customer needs.
They should also avoid strategies simply driven by short term cost savings, she added. "Organisations seem to be better served by continuing to innovate and looking for new market opportunities."
The Management Agenda – a survey of over 900 managers – found other significant differences between higher-performing and less successful companies. For example, 56 per cent of underperforming organisations focus on core business compared with 45 per cent of outperforming organisations, while 30 per cent of underperforming organisations have worked in partnerships compared with 49 per cent of outperforming organisations.
Better-performing organisations are also more likely to invest in leadership development and sustainability initiatives.
"With the pace of change accelerating, success depends on leaders making sound decisions and implementing change quickly," Jo Hennessy said.
"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."