Companies Expect Economic Recovery by End of 2009, says new survey
The latest annual Corporate Issues Survey by The Ken Blanchard Companies suggests that over 70% of international companies asked are optimistic about the economy rebounding in 2009. Only a quarter of the 1700 executive, line managers, HR and L&D professionals surveyed worldwide thought the downturn would continue unabated into 2010.
Since 2003, over 6,700 leaders have participated in Blanchard’s ongoing study. Participants in this year’s survey were asked to describe their organisation’s overall outlook in regards to the economy, training expenditure, expected cuts, and coping strategies. In addition, the survey touched on corporate issues relating to organisational, HR, and management challenges. Responses focused on the most important aspects of future corporate growth and employee development, as well as how employees are prepared to deal with these and other hurdles.
Unsurprisingly, the top organisational challenge was economic pressure. Competitive pressure and the need for growth and expansion came second and third. Tactics companies were using to cope with the economic downturn were, in rank order, to invest in productivity and performance; cut travel costs and increase focus on branding and differentiation.
Interestingly, perhaps given the expectation that the economy will begin to recover within the next year, and possibly suggesting that corporate development is seen as a good way to ride out the economic storm, survey respondents did not predict drastic cuts to training budgets. Fewer than one in five stated that their organisation plans to spend significantly less money on training in 2009, as compared to 2008. Types of training expected to be offered were primarily leadership training, followed by managerial/supervisor skills training, and thirdly developing customer service skills. These answers tie in neatly with further survey findings relating to the top three management challenges of managing change; creating an engaged workforce and reducing costs.
Jim O’Brien, Managing Director of The Ken Blanchard Companies UK, says the survey findings suggest that despite much news of downsizing within well-known companies, most organisations are thinking twice before turning to the last of resort of cuts, cuts, and more cuts. “Only 29% of respondents listed personal layoffs and cuts as their way of dealing with the downturn, and neither are they directing cuts at the traditionally ‘soft targets’ of personnel and marketing”, he says. “Many appear to be looking inward to survive current conditions, with more than 60% planning to invest in productivity and performance-maximising strategies, with another 46% planning to focus on their corporate branding and differentiation.”
The full results of the Blanchard survey are available online at
http://www.kenblanchard.com/img/pub/Blanchard_2009_Corporate_Issues_Survey.pdf