[OPE] The recession and new management styles

(interesting clip from US Directors and Boards Magazine: February 2009 e-Briefing)

"Amidst the uncertainty of today's environment, 40% of senior managers doubt that their leadership has a credible plan to address the economic crisis. What's more striking is that one-third of all CEO and CXO-level respondents do not have confidence in their own crisis plans, finds a new study by global management consultancy Booz & Co.

The report, "Recession Response: Why Companies Are Making the Wrong Moves," http://www.booz.com/media/uploads/Recession_Response.pdf was conducted in December 2008 and examines responses from 828 corporate executives across many major industries, from financial services and healthcare to energy and consumer goods to explore how well they are handling the global financial crisis, the actions they are taking, and the impact on the companies' social responsibility agendas. Additional highlights of the survey include:

. "Green" efforts will be significantly delayed due to recession. The survey reveals that 40% of respondents expect "green" and other corporate social responsibility initiatives to significantly slow due to the downturn. The pullback will be especially pronounced in transportation and energy industries, with, respectively, 51% and 47% of respondents in those industries saying CSR [corporate social responsibility] agendas will be delayed.

. Optimism overly rosy? Despite the depth of challenges they face, 54% of all respondents - CEOs and lower levels alike - believe that the crisis will ultimately have a positive impact on their companies' competitive position. Further, 75% of managers express a rosy view of their companies' financial strength today; only 13% said they worked for companies that are financially weak.

. Skepticism grows farther down the management chain. Among managers below the CEO and CXO levels, 51% think senior leadership lacks the capabilities to carry out their crisis plans, a point that seems at odds with the optimism expressed by many respondents. "Many top executives are still reacting and are not ahead of the curve yet. They are still operating with their cumbersome processes and lines of communications. This is slowing them down. They are do not getting the right homework fast enough, nor are they able to enact decisions quick enough or to the extent they expect. This crisis calls for a new, more direct leadership approach," says Bill Jackson, Booz & Co. senior partner."

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Received on Mon Feb 2 14:44:05 2009