22 August 2007
Companies can grow, but executives aren't ready
Survey shows managers must communicate a vision during mergers and acquisitions.
Two thirds of executives say they aren't skilled enough to lead their companies' efforts to grow, according to a new survey by The Forum Corp., a performance-improvement firm.
Give managers more coaching
The study of 313 executives in North America, Europe and Asia Pacific,
shows that the leadership skills executives need differ depending
on the growth strategy they're being asked to lead.
91% of business unit leaders say their organizations haven't fully prepared them to manage their growth strategies.
For example, skills for leading organic growth aren't the same for leading growth by merger and acquisition (M&A) or growth by strategic alliance.
The survey revealed that 91% of business unit leaders say their organizations haven't fully prepared them to manage their growth strategies and that more training, education and coaching are needed to fill the competency gap.
Feelings of inadequacy
Ed Boswell, Forum's CEO, said "Increasingly, executives
are required to demonstrate more specialized skill in handling growth,
and most don't feel up to the task." The problem is compounded
in organizations where more than one growth strategy is at work at
one time, he added.
"It's imperative that companies equip their leaders with the skills that each type of growth strategy requires and enable them to succeed regardless of the strategy they're in charge of pursuing," said Boswell.
Collaboration and communication the keys to
success
The Forum study found that leading:
- growth by M&A requires managers to focus on engaging their talent. They must communicate a vision, make very focused decisions and adapt quickly.
- growth by strategic alliance requires managers to focus on relationships and collaboration. They must work well with partners to align objectives and plans, share information, collaborate inside and outside the organization, and be flexible.
Leaders should generate trust
The survey, which spanned a range of industries also showed that:
- 76% of executives believe that the performance of business unit leaders and their people are critical to successful growth.
- Managers who encourage workers to thrive in ambiguity, to try new things and learn from them and to share ideas and information are more likely to achieve growth.
- Business-unit leaders who succeed at helping their companies
grow have a core set of capabilities.
Managers who encourage workers to thrive in ambiguity are more likely to achieve growth.
These business-unit leaders:
- communicate strategy and direction in a clear and compelling way; and
- behave in a way that generates trust and demonstrates seasoned decision-making while not being fearful of challenging the status quo.
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