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Industry study: The majority of organizations has lost sight of the fundamentals in the face of crisis defense / Consistent performance improvement requires a higher degree of courage and determination 

March 21, 2024 | News Germany, News Switzerland

The often small-scale and rather knee-jerk reactions to the current polycrisis are increasingly taking up so much capacity in many organizations that long-term projects often fall by the wayside. According to the latest study “Performance Drivers 2024“, there are already three out of four organizations that have to cut back on implementing their strategic decisions. To propel their business back towards high performance, organizations should abandon this passive attitude and instead systematically and courageously improve their performance. For the study, management consultants Staufen surveyed more than 200 industrial organizations in Germany, Austria, and Switzerland.

“So many challenges, large and small, that should have been solved yesterday rather than today are currently increasingly binding valuable capacities in many orgsanizations,” says Wilhelm Goschy, CEO of Staufen AG. As an example, 76 percent of the organizations surveyed admitted that solving the most urgent problems is taking up most of their time and energy. And in view of the stress of the day-to-day, only every fourth organization manages to consistently implement strategic decisions. 

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Wilhelm Goschy

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Studie Performance-Treiber – Infografik – Konjunktur und Fachkräftemangel

The results of the study show just how challenging the economic situation currently is in the German-speaking region. 83 percent of the organizations report that they have rarely had to face such a wide range of challenges throughout their history. The spectrum of burdening factors range from climate protection measures to geopolitical uncertainties and internal problems. The greatest challenges for industry relate to the shortage of skilled workers (62% of organizations) and the economic situation (59%). 

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Operational Excellence instead of German Angst 

“Even if, admittedly, many of the challenges – such as with regard to bureaucratic challenges, supply chain issues, or energy supply problems – are not always within the immediate control of the organization, complaining about it will not help” Staufen-CEO Goschy. “If you want to drive your business back to top performance, you have no choice but to get out of your comfort zone and take courageous action. Operational Excellence instead of German Angst Only then can the necessary resources be freed up in order to invest in new technologies and employee training and qualification.” 

As such, the challenge facing the organizations is to get their numbers under control without sacrificing expertise and effectiveness. In other words, traditional job cuts are at best likely to provide short-term relief. “In the end, successful performance improvement means that I am able to decisively identify and implement measures that improve my P&L,” continues Goschy with conviction. “We can only achieve this consistent increase in performance by adopting a holistic operational excellence strategy that includes process improvements, employee empowerment and data-based management of financial performance.” 

Looking towards the future with cautious optimism 

Many organizations definitely have the prerequisites and the mindset to succeed on this path. In fact, when looking towards the future, 40 percent of those surveyed for the “Performance Drivers 2024” study identified more opportunities than risks for their organization. Another 46 percent agree to this statement at least in part. 

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About the “Performance Drivers 2024” study 

For the “Performance Drivers 2024” study, Staufen AG surveyed more than 209 industrial organizations in Germany, Austria, and Switzerland early this year. You can request a copy of the complete study results here:

“BestPractice Day 2024”: Operational Excellence – Next Level

Save the Date

For the past 15 years, the Staufen AG BestPractice Day has been a must-attend event for anyone who recognizes one primary goal for themselves and their company: operational excellence. On June 25th, the BestPractice Day 2024 will once again offer a full day of expert knowledge, insights and opportunities to network. How do global market leaders manage to improve their performance even in times of crisis? What steps do we need to take to unleash the potential of digitalization and artificial intelligence? What does leadership need to look like in the future?

BestPractice Day 2024 Teaser


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