Making a change not always right

A PREOCCUPATION with personnel change and structural reorganisation as a key to improving performance is undermining the investment made by European businesses in developing leadership talent and making more difficult the challenge of retaining high-potential individuals.

This insight features among key findings of Executive Guidance for 2010, a new research report published by global executive network and consultancy Corporate Executive Board.

The limited impact of organisational changes as a route to improved effectiveness is reflected by the report's revelation that only one in six of surveyed organisations which made at least one senior level personnel change have succeeded in outperforming their key performance objectives in 2009.

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In contrast, 39 per cent of leaders in organisations which have resisted leadership team personnel changes have succeeded in outperforming their objectives in the same period.

However, additional research by the consultancy reveals that amongst European companies, an estimated 40 per cent of the barriers to effective leadership are linked to shortcomings imposed by their surrounding working environment.