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Shrinking resources

by Louisa Coward on 19/10/2010 12:35:06 in CorpComms Online | share me: del.icio.us | digg | reddit | Tweet

One in five companies to downsize

About the author:

Louisa Coward

Louisa Coward is the editorial intern at CorpComms Magazine

Shrinking resources

One in five companies in Europe expects to downsize in 2011 and 2012 and half anticipate significant strategic changes over the next two years.

However, less than 20 per cent of companies feel confident about managing this process, according to a survey of 480 human resources and change communication professionals across ten European countries, conducted by market research consultants Penn Schoen & Berland Associates on behalf of global PR firm Burson-Marsteller. 

Even amongst those already effecting changes, the number that are satisfied with their ability to handle the situation is only marginally higher at 23 per cent, and just 18 per cent feel that the objectives and scope of the changes are being effectively communicated across their business.

British companies have already had a particularly unsettled few years, with two in five having been forced to relocate or close factories or premises during the recession, almost double the European average of 21 per cent.

UK businesses have also been fielding other significant changes, with 86 per cent having been forced to evolve new business strategies in the last five years and more than three quarters saying this is a direct consequence of the economic climate.

Jeremy Galbraith, chief executive of Burson-Marsteller Europe, Middle East & Africa, said: 'Employees tend to fear change. But change can offer opportunities. And handled well change can transform the performance of companies and organisations as well as the working lives of employees for the better. 

'True leaders, and the organisations they manage, embrace and navigate uncertainty by seeing change for what it is - a strategic weapon that ultimately links back to their Corporate Purpose.'

Maria Sennels, global practice chair of organisational change and performance at Burson-Marsteller, advises companies to develop and communicate plans to drive change internally rather than be seen reacting hastily to changing circumstances: 'Strategic change can be triggered by a number of factors, but companies are far more likely to view internally triggered changes as strategic - and externally driven changes as changes that happen to them and to which they must simply adjust and cope.

'This ultimately affects the way in which companies approach change and their internal communications. Change professionals can do more to help position their company as emerging stronger from particular changes, rather than simply coping with them. The truth is that, in today's reality, all changes can be strategic, regardless of their drivers.'

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