Newswise — Business leaders around the world are more focused today than ever before on managing risk and uncertainty within their organizations. According to new research released this week by Babson Executive Education (BEE)—The Report on Business Uncertainty: 2010 Survey Results— almost half of 1,048 global executives surveyed said they are taking bolder actions than before 2008 when the global economy tumbled. Economic concerns—turbulence in the financial industry and capital markets, economic recession, and tighter budgets—are the primary drivers of uncertainty in business.
Says Dr. Elaine Eisenman, BEE’s Dean and co-author of the report, “Business leaders everywhere are behaving more like start-ups that redefine uncertainty through bold entrepreneurial thought and action. This trend can be seen in our finding that executives who take bold actions today outnumber those who are not by more than two to one.” The survey also found that these leaders are using a variety of experimental approaches to manage uncertainty in a complicated business environment.
For example, more executives are intentionally linking job design to growth strategy. “These corporate growth and innovation goals are being adapted pervasively across the workforce, not just from the traditional groups like Research & Development,” affirms H. James Wilson, BEE’s Senior Researcher and the report’s co-author. BEE’s research shows that six out of ten respondents agree or strongly agree that they are more innovative in performing their jobs.
While employees are being asked to be more innovative, a majority (51%) are also required to perform routine tasks that steal time from innovative pursuits. The survey points out the downside of “responsibility creep,” when managers ask employees to take on new tasks before asking whether such tasks are strategically relevant.
Sixty-eight percent of respondents who strongly agree that there is a clear link between their job and corporate strategy also report that their company is growing revenue. Says Wilson, “Companies that don’t regularly link jobs to strategy often are more than twice as likely to have flat or declining revenues.”
Economic uncertainty was identified as the chief reason business organizations have introduced a hiring freeze. Forty-seven percent of respondents say that training and professional development initiatives have also been reduced since the economic downturn.
Eisenman says that executives need to understand that employees are taking their careers into their own hands. A majority (55%) spend more time networking and being proactive. The report points to a number of things executives can do to remedy the situation.” Notes Eisenman, “Executives can create new legitimacy for employee empowerment—by providing greater opportunities for promotion and ‘giving credit’ to employees who have expanded their job responsibilities.”
For a complete copy of Babson Executive Education’s Report on Business Uncertainty: 2010 Global Survey Results visit: http://www3.babson.edu/bee/uncertainty/.
H. James Wilson is a senior researcher and senior writer at Babson Executive Education.
Elaine J. Eisenman is Dean of Babson Executive Education. Dr. Eisenman is co-author of I Didn't See It Coming, a book on how executives can manage their companies and careers amid business uncertainty.
About Babson Executive Education
Babson Executive Education is ranked as one of the world’s best executive education providers by Financial Times and BusinessWeek. With roots in entrepreneurial thought and action, Babson educates leaders on how to create opportunities, regardless of organizational size or structure. Organizations across the globe and from key industries choose Babson Executive Education for progressive and flexible solutions that leverage the global business and teaching expertise of our faculty, industry experts, and partners. Our solutions include a strategic blend of education, consulting, coaching, and research to enable our Clients to analyze challenges, develop solutions, and implement strategies to meet their goals. For more information on Babson Executive Education, please visit www.babson.edu/bee.
Babson College in Wellesley, Mass., is recognized internationally as a leader in entrepreneurial management education. Babson grants BS degrees through its innovative undergraduate program, and grants MBA and custom MS and MBA degrees through the F.W. Olin Graduate School of Business at Babson College. Babson Executive Education offers executive development programs to experienced managers worldwide. For information, visit www.babson.edu.
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