According to IBM’s Global CEO Study 2006, competitive pressures and global market forces are driving 65% of the world’s top executives to plan radical changes at their companies over the next two years.
Looking over the results of this survey, it becomes very clear that CEOs today are looking at new kinds of innovation to drive substantial organizational change. It’s not just product innovation anymore. Now it’s about innovation in a business model, an operational process, or a management behavior. In making this point, one CEO commented that “The business model we choose will determine the success or failure of our strategy,” while another stated that “Products and services can be copied, the business model will be the differentiator.”
Fear is definitely a factor in the impetus for change. In fact, 61% of CEOs admit they fear that their competitors will make changes in their own business models that ultimately reshape the landscape of their respective industries. So CEOs want their companies to be ready to adapt rapidly – or, better still, be the company leading the industry transformation.
CEOs today want innovative ideas not only from employees but from customers, and trading partners. This is in direct contrast to past corporate philosophy, where innovation was considered too critical and proprietary to involve outsiders. In fact, the study highlights the link between external collaboration and financial performance. Top performing organizations used external sources 30% more than under-performers. On this kind of collaboration, one CEO stated that, “We need third parties as benchmarks and sparring partners. This also helps our staff broaden their views.” While another simply stated, “If you think you have all of the answers internally, you are wrong.”
While a large portion of CEOs recognize that big changes are on the horizon, a significant portion indicated some trepidation about their company’s ability to execute the necessary changes. As they contemplate this radical change, only 20% of CEOs say they’ve been highly successful in such endeavors in the past.
So what does all this mean to communicators? Well, for starters – here are the messages you’ll be asked to spread throughout the organization for the next couple of years:
WANT TO INCREASE YOUR VALUE TO THE ORGANIZATION?
Become a top-knotch collaborator.
Benchmark everywhere.
Constantly reinvent your job.
Nurture innovation in your team or work group.
Become a champion of change.
Do all that – and the future is yours!
Carol Kinsey Goman, Ph.D. is the author of nine books including CREATIVITY IN BUSINESS and “THIS ISN’T THE COMPANY I JOINED” — How to Lead in a Business Turned Upside Down. She delivers keynote speeches and seminars to association and business audiences around the world. For more information or to book Carol as a speaker at one of your events, please call: 510-526-1727, email: CGoman@CKG.com, or visit her website: http://www.CKG.com.
