The Find: A recent global survey of managers finds a striking crisis in confidence, with large percentages of both senior managers and C-level executives doubting their companies’ ability to respond to the recession.- The Source: A survey by Booz & Company entitled “Recession Response: Why Companies Are Making the Wrong Moves.”
The Takeaway: Yesterday, as a new president was sworn in, it was hard not to feel a little optimistic, but, at least in regards to senior managers, the positive feelings may have been the exception that proves the rule. In fact, if Booz & Company’s survey of 828 senior managers across the globe is to be believed, the business world’s optimism and confidence, especially in their crisis management abilities, has taken a severe hit. Among the most worrying statistics:
- 40 percent of senior managers doubt that their leadership has a credible plan to address the economic crisis.
- 46 percent are not sure that their leadership could carry out the plan, credible or not.
- One-third of all CEO and CXO-level respondents do not have confidence in the plans that they presumably wrote themselves.
- 65 percent of hard-hit companies said they are not doing enough to ensure their own survival, such as accelerating efforts to dispose of assets or secure external funding.
- Among companies that said they are financially strong, one-quarter are not taking advantage of opportunities to improve their position in the crisis.
On a slightly more optimistic note, 54 percent of the managers said they do expect their companies to emerge from the crisis stronger. However, before you crack a smile, Booz offers the caveat that this shouldn’t be taken to mean that these companies are responding appropriately to the crisis. According to Bill Jackson, a Booz & Company senior partner,
Companies have focused on the near term, some at the expense of the long-term opportunities. The strong need to go long…. Many strong and stable companies are playing things too short-term oriented for the moment. The really struggling and failing companies have reacted dramatically and some have already moved into bankruptcy.
For more information on exactly how companies are fumbling their response, check out the complete survey results.
The Find: Is this new found humility a good thing for senior managers or will it lead to indecision and inaction?
