Are business leaders overconfident about their organisations’ ability to change? Road to Growth: Optus Future of Business Report 2015 suggests that many are.
In today’s economy, where disruption is inevitable, we know it’s vital that organisations can adapt to change. So for this year’s Optus Future of Business Report we interviewed more than 500 senior business leaders across Australia to find out just how adaptable and agile their organisations are.
Using the results of this extensive survey, we developed an Australian Business Change Readiness Score. It’s based on a number of factors, including how well business decision makers understand the need for change, and how capable they are of implementing real changes.
The change readiness disconnect
Based on the collective scores of the survey’s respondents, only 23 per cent of Australian businesses are highly prepared for change. Compare this to the 72 per cent of decision makers feeling confident that their businesses are ready to respond to change. We found there was a gap between leaders’ perceptions of their organisations’ ability to change, and the capabilities required to actually implement that change.
Furthermore, the research reveals that many businesses are struggling with the pace of change – only 21 per cent feel confident they are keeping up with new technologies.
Any business can be change ready
The good news is that any business can become change ready. To better understand the attributes of organisations that are highly prepared for change, we compared their profiles with those of less prepared businesses. We found there were change leaders in the public and private sectors, in a variety of industries, with differing business models and of various sizes.
Where leaders differ is their heightened awareness of the causes of change – particularly external pressures such as customer expectations – and what can be done to adapt to change. They also understand the importance of change enablers, such as new technology.
Your first step to change
How change ready is your business? You can find out with our Change Readiness Assessment Tool. When you complete the assessment, the tool will reveal your Australian Business Change Readiness Score and help you determine the next steps to becoming a highly change-ready organisation.
All views expressed are the author's own.