The German economy is on the verge of a recession. However, many companies are not prepared. More than half of companies must admit that their structures are neither flexible nor adaptable. Moreover, only every second company has reviewed its own processes with regard to upcoming challenges. These are the results of the “Success in Change” study. Management consultancy Staufen interviewed more than 400 top executives from German companies for this study.
“Many companies failed to do their homework during the long boom phase,” says Wilhelm Goschy, CEO of Staufen AG. “They just did not take enough time to really ensure that their own company is weather-resistant.” One key reason: According to the study, more than 40 percent of executives surveyed still believe that their business will not change much over the next two years.
“Even if the current economic situation is difficult to compare with that of ten years ago, thousands of companies run the risk of being thrown off track,” warns Goschy. “Especially since changes – characterized by volatile markets, aggressive competitors and investors, agile forms of work and digital transformation – are occurring faster and faster.”
As a result, even established companies that are seeing good earnings are now faced with the challenge of securing their existing success while managing the transition to new business models and structures. “We convey this view of predictive restructuring to our customers in projects that focus primarily on change management, digitization, process optimization, agility or leadership,” says Management Consultant Goschy.
In addition to “classic” crisis measures, such as overtime reduction, reducing hours accumulated or employing fewer temporary workers, part of this holistic approach is ensuring sustainability. “If the order situation is not booming, you can spend more time on improvement projects and adjust processes, structures as well as the organization on the next upswing,” advises Staufen Board Member Goschy. “Almost all companies complain about a shortage of skilled workers. The time available now should be used for more qualification. Identify the biggest gaps and find the right people to retrain or train in that field.”
About the study “Success in Change”
Business consultancy Staufen surveyed a total of 421 companies in Germany on the subject of “Success in Change” for the “Change Readiness Index 2019.” More than 65 percent of the companies surveyed come from the mechanical and plant engineering industry, the electrical industry and the automotive industry. The study can be downloaded at: https://www.staufen.ag/en/company/media/studies-white-papers/