Companies have lost their ability to change/executives underestimate the tempo of changes – Change Readiness Index 2019

July 1, 2019 | Global News, News Germany

The upheaval of the economy and of business is accelerating, but German companies are having an increasingly difficult time dealing with disruption. This is what the second iteration of the “Change Readiness Index” shows – it has fallen from 58 to 55 points as compared to 2017. To compile this scale whose top score is 100 points, Staufen surveyed more than 400 top executives of German companies as part of its “Success in Change” study.

Staufen’s Change Readiness Index 2019 reflects companies’ ability to change. In the categories of structures, processes, leadership and corporate culture, and employees and qualifications, it records the ability of German industrial companies, – from medium-sized companies to large corporate groups – to change. In particular, it examines the automobile industry and electrical engineering, mechanical and plant engineering sectors.

“The development in recent years shows that in addition to industry, all other areas of life are affected by the digital transformation: mobility, education, media, health care, and many more, says Wilhelm Goschy, Executive Board member at Staufen AG. “In the process, the German economy risks being overtaken, for old competitive advantages and traditionally high market shares do not protect against disruptive competitors.” Goschy emphasizes: “The crucial characteristic of digital change is the speed with which it occurs. German companies still tend to underestimate this.”

Thus, in the course of the 2017 study, 53% of those surveyed estimated that their companies would change significantly or very significantly in the next two years. In retrospect, the 2019 study produced a much greater value: it indicates that 67% of companies changed significantly or very significantly in the previous two years. Astonishing: despite this hard landing in reality, only 59% of the executives surveyed said that their companies will change significantly or very significantly in the next two years.

Another result of the study: an important factor for reinforcing all fields of action that were examined in the Change Readiness Index is Lean Management. Ever more companies are also reaching this conclusion. Two-thirds of them have firmly established lean principles in their value creation. At every fourth company surveyed, the indirect areas are also already pursuing the lean philosophy.

“Business has already started down this path, but there are still stragglers,” says Staufen Executive Board member Goschy. “Our study shows that Change Readiness improves demonstrably with the consistent implementation of Lean Management. Lean Management makes companies better able to change and points the way to an organization that is fit for the future.” The study was presented on Tuesday at BestPractice Day – the leading Lean Management congress in Europe.

About the study “Success in Change”

In Spring 2019, the management 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.

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About Staufen AG –

Inside every company there is an even better one. With this conviction, Staufen AG has been advising and qualifying companies and employees for 25 years. Markets are on the move – the competitive pressure is enormous. Staufen helps to quickly bring about the right changes, increase productivity, improve quality and increase innovative strength. With the appropriate strategies and methods, the international lean management consultancy ensures rapid and measurable success. In order to leverage the potential available in every company, Staufen consultants establish a lively and sustainable culture of change together with executives and employees. Staufen subsidiary Staufen Digital Neonex supports medium-sized industrial companies on their path to digital transformation. The Academy of Staufen AG also offers certified, practice-oriented training courses. From the international locations, more than 320 employees serve customers all over the world. In 2019, Staufen AG was recognized by “brand eins Wissen” as “Best Consultants” for the sixth year in a row. According to the renowned industry study “Hidden Champions 2018,” the consulting firm is Germany’s best lean management consultancy and was honored several times with the “Best of Consulting” award by the “Wirtschaftswoche” journal.


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