Human Resources: 2008 Corporate Issues Survey

SAN DIEGO (June 2, 2008)—The latest survey findings from The Ken Blanchard Companies confirm that leaders have ever-increasing apprehensions regarding the impacts of the declining economy. Even though this is the company’s sixth annual polling, the 2008 Corporate Issues Survey is the first to include the economy. Other key organizational challenges respondents say they will face in the coming year are competitive pressure and the struggle to grow and expand in tight financial circumstances. This year’s findings represent feedback from more than 1,800 executives, line managers, and training and human resource leaders from a range of companies, industries, and countries. Since 2003, almost 4,900 leaders have participated in this ongoing study. Survey participants were asked a series of questions related to what they perceive as their most burning organizational business issues, as well as top management, employee development, and HR challenges. Their responses point to the key factors that organizations will need to focus on to prepare for the future, while developing their employees to handle these obstacles. The top responses for each category include: 2008 Top Organizational Business Challenges

Competitors evolving as imposing forces
Economic downturns in the economy that can effect their bottom line
The need to grow and expand

2008 Top Management Challenges

Creating an engaging workforce
Managing change
The development of potential leaders

2008 Top Employee Development Challenges

Performance management
Manager/supervisor skills
Interpersonal communication skills

2008 Top HR Challenges

Connecting training to business results
Sustaining training with follow-up and reinforcement
Strategic alignment of training goals and business initiatives

Continuing a trend that has lasted throughout the six years of the Blanchard survey, competitive pressure is one of the top organizational challenges. Competitive rivals can create a climate where customers form a “commodity” mind-set. This drives price sensitivity and the need to differentiate products, services, and offerings in a way that capitalizes on an organization’s value proposition. Other leading organizational challenges include the economy, which ranks as a principal issue even though it emerged in the survey for the first time this year, and growth and expansion, which for the third year hovers near the top and continues to increase in regards to the number of respondents selecting it. Respondents noted that engaging their workers was the top management challenge they expect to face. This response shadows the need to develop potential leaders, which also fares high on the survey. Disinterested and disengaged employees can lead to high turnover and lackluster results. For management to create a comprehensive workforce there must be compelling reasons for employees to stay involved. The survey also sheds some light on the top employee development challenges organizations will face. Performance management emerged as the key issue followed by manager/supervisory skills, showing a need for companies to continue building the key components of established employees. As jobs require more skills and abilities, companies are forced to train and develop their people, and keep up with the competition as well as ever-expanding industries.

Survey Facts The study utilized a multiple-choice question format with the opportunity to provide comments with each question. Respondents were selected randomly from the Blanchard database and participated in an email survey. Participants numbered 164 in 2003, 564 in 2004, 511 in 2005, 805 in 2006, and 1,091 in 2007. 2008 findings represent the feedback from 1,802 training and HR managers and leaders.

About The Ken Blanchard Companies

The Ken Blanchard Companies helps leaders and organizations lead at a higher level. As an acknowledged expert in leadership development, Blanchard helps leaders at all levels develop self-insight and competence in their leadership roles. Blanchard uses a discovery approach called Leadership Point of View to help executives understand why they lead. The company provides executive coaching, leadership training programs such as Situational Leadership® II—the most-widely taught leadership model in the world—change management consulting, and team-building solutions. With coverage in more than 30 countries, Blanchard brings leadership best practices to management teams in Europe, Africa and the Middle East, as well as the Americas and Asia Pacific to help deliver results through people. Visit: www.kenblanchard.com

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