International Survey: key factors for a successful economic growth

Click here to load reader

  • date post

    21-Nov-2014
  • Category

    Business

  • view

    1.882
  • download

    0

Embed Size (px)

description

Quali saranno, nel breve medio termine, le principali leve per promuovere una crescita aziendale stabile e duratura? Una survey effettuata da Mercuri Urval su oltre 800 Manager e CEO di importanti aziende situate nei principali Paesi europei, ci svela che....

Transcript of International Survey: key factors for a successful economic growth

  • 1. Time for change:Solutions & Value are taking over leaving products & technology behind
    • Study about Key Success Factors for a sustainable growth
  • SME-companies, Western Europe, 844 resp.

2. 1 Sample's features Executive summary / Synthesis 2 3 Overview 4 Evaluation of the economic changes 5 Perception of the key success factors for growth Action plan evaluation 3. Sample's features Total Europe N= 844 Industry Service Total Europe N= 844 Size of the company Total Europe N= 844 [DEF]CEO / Directors Manager

  • From October to December 2009, online research

[E] - Italy [E] - Italy [E] - Italy [E] - Italy 1- 50 employees 51-1000 employees > 1000 1- 50 employees 51-1000 employees > 1000 4. Sample's features / most mentioned sectors [A] - Belgium [B] - Denmark [C] - France [D] - Germany [E] - Italy [F] - Holland [G] Switzerland Total Europe N= 844 Automotive and industrial sectors: Automotive industry+ Technical service - Other +Machinery & Tools+ Office Machinery Pharmaceuticals/Medical care :Pharmaceuticals / Medical care/medical device+ Health & Medical care Insurance/Bank & Finance:Bank & finance +insurance FMCG:Food and non food Electrical and electronic products : Electronic components+ Electrical products (high-tension) Transport:Transport equipment+ Transport & Forwarding Q1In which industry do you currently work?Automotive and industrial sectors Pharmaceuticals/ Medical Care Insurance/ Bank & Finance EDP - consultancy Information and technology FMCG - Food FMCG Non-Food Transport Electronic components/ Electrical productsAutomotive and industrial sectors Pharmaceuticals/ Medical Care Insurance/ Bank & Finance EDP - consultancy Information and technology FMCG - Food FMCG Non-Food Transport Electronic components/ Electrical products 5. Executive summary Western Europe

  • 8 of 10 Managers see the crisis as an opportunity to change managerial practices
  • The success in the future comes from client orientation:
    • From listening, inventing new services, increasing value, better customer service and mobilization of the intellectual and human capital
    • Management ability to lead to customer orientation
    • Sales ability to increase value, sell solutions
    • R&Ds ability of out-side in understanding together with development speed.
  • Companies have mostly completed traditional recession actions
  • Highest prioritized actions for a sustainable growth are:
    • Strengthening human capital
    • Developing real quality of services
    • Improving ability to listen to the client
    • Increasing employee motivation, involvement
    • Earning new markets

6. Synthesis: Key success factors for growth As the financial crisis engenders an economical recession, the levers for a durable growth are mostly based on the return to financial and commercial profitability.The crisis has every signal from a recession : hence, the directors and managers levers are logically centered on a stronger customer/market orientation and strengthened core competencies. 2 )- Core competencies: as the economy is subject to the competition from the emerging countries costs, the European industries have understood thekey role of the innovation its rhythm must be accelerated .Two other levers allow to complete the available assets:the quality of service and the mobilization of the intellectual and human assets. 1 )- Market orientation: the conquest ofnew customersis the main priority. Some of the countries nuance it with theinvestment in the customers loyalty . The European economies have realized that the customers loyalty implies to invest in astrong service policy (the product is no longer enough). 3)- Internal management : the crisis engendered the erosion of the employees motivation.That preoccupation is particularly strong in Southern Europe (Italy) where the employees demotivation may engender a degradation of the social climate (hence a more pronounced preoccupation towards salary grids management). In Northern Europe, that fear also applies to the managers and directors. Their demotivation leads to theimplementation of revisited management methods(project management, network/collaborative organization, etc.). 4) Financial management : the crisis engendered an erosion of profitability due a lower level of activity.Hence, the financial crisis also endered an economical crisis. Thus, thereturn to profitability implies to increase the activity and control the customers financial health .Some of the countries (Italy) are more affected by a liquidity crisis. 7. Synthesis: Action plans evaluation Whereas the urgent action plans have been promptly set up, the HR action plans still need to be implemented in most of the countries As a whole, the European companies have quickly faced the economic changes (less quickly in Switzerland). Emergency plans are mostly ongoing or achieved. 1)- The market/customer orientation :the accent has been put onstrengthening the orders portfolio . Facing the lower activity (and for some of the countries the degradation of the orders portfolio), European managers haveimplemented action plansin order to improveorders portfolio, the quality of service(customers loyalty), while theinternationalization and openess to new markets seems to be a less urgent priority. 2)- Core competencies:in order to improve the service to the client, the action plans are mainly focused onimproving the quality of service, accelerating the innovations rythm and prioritizing the organic growth vs. the external growth. 3)- Internal management:the whole consideredaction planstowards internal managementare more recessed(ongoing or achieved in less than 6 companies out of 10), even on the three most important factors employees remobilization and remotivation. 4)- Financial management:emergency plans have consisted in classic recipes in order tofind profitability and manage liquidity issues : skills insourcing, reduction of the outsourcing expenses, process strengthening, etc. Most of the European directors and upper managers consider that the current economic changes constitue an opportunity in order to develop new managerial practices ,while the external (clients) and internal (employees) publics are meant to have active role. That reflexion fits a highly liberal trend (with some nuances though!), as the whole country plead for the markets self-regulation. The economic changes context is favorable to organizational and managerial changes. 8. Synthesis: Key factors vs. actions :overall results Key factors + Completed or ongoing + (Ongoing: 79%) (Ongoing: 85%) (Ongoing: 71%) (Ongoing: 73%) (Ongoing: 79%) Profitability Acquiring new clients Innovation frequency Quality of services Client retention/ loyalty 9. Key factors + Completed or ongoing + (Ongoing: 80%) Italy confirms the trends that have been observed in the other countries, prioritizing the consolidation of the market/client orientation (acquisition of new customers, detection of new expectations). The cash crisis explains the specific attention that is brought towards the customers financial health and the return to solvability. Still, Italy also bets on a permanent innovation policy and on the investment in the employees and executive mobilization. Client Retention Profitability Innovation frequency Employees' level of motivation Intellectual - human capital Financial health of clients Acquiring new clients Synthesis: Key factors vs. actions :Italy 10. Evaluation of the economic changes Current situation per country 27% 21% 41% 7% 24% 41% 28% 73% 79% 59% 93% 76% 59% 72% Xx% Unaffected: completely + rather unaffected Affected: rather affected + very much affected Xx% 27% 73% [A] - Belgium [B] - Denmark [C] - France [D] - Germany [E] - Italy [F] - Holland [G] -Switzerland Total Europe N= 844 Q04- How would you say your company's situation has been affected so far by the current economic change? Would you say it has been...Completely unaffectedRather unaffected Rather affected Very much affected Completely unaffectedRather unaffected Rather affected Very much affected 11. Evaluation of the economic changes Current situation of the most mentioned sectors Q04- How would you say your company's situation has been affected so far by the current economic change? Would you say it has been...[C] Insurance/ Bank & Finance N = 41 [G] Electronic components + Electrical Products N= 29 [D] EDP ConsultancyInformation &technology N= 48 [E] FMCG food and Non Food N= 42 [A] Automotive and industrial sectors N= 125 [B]Pharmaceuticals/ Medical Care N= 73 [F] Transports N= 31 Xx% Unaffected: completely + rather unaffected Affected: rather affected + very much affected Xx% 12. Evaluation of the economic changes Forecast of the situation per country Xx% Better than today: better + slightly better Worse than today: slightly worse + worse Xx% 61% 12% 68% 8% 78% 7% 49% 13% 59% 15% 54% 19% 71% 5% 62% 14% [A] - Belgium [B] Denmark [C] - France [D] - Germany [E] - Italy [F] - Holland [G] -Switzerland Total Europe N= 844 Q07- How do you expect the health of your company to evolve over the next 12 months? Would you say it will be Better Slightly better Neither better nor wose Slightly worse Worse I can't tell / I don't know Better Slightly better Neither better nor wose Slightly worse Worse I can't tell / I don't know 13. Evaluation of the economic changes Forecastsituation of the most mentioned sectors Q07- How do you expect the health of your company to evolve over the next 12