Study Reveals Worldwide Failures of Corporate

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<p><strong>Pittsburgh &mdash; Nov. 16</strong><br />A new study reveals the worldwide failure of corporate leadership to focus on the factors necessary for long-term organizational survival and competitiveness, including talent management and employee retention issues.<br /><br />Co-sponsored by the Iacocca Institute of Lehigh University and SAS Institute&#39;s BetterManagement.com, and based on the corporate health assessment framework presented by Robert A. Rudzki in his book<em> Beat the Odds: Avoid Corporate Death and Build a Resilient Enterprise</em>, the study&#39;s eye-opening results indicate that nearly half of all organizations have serious underlying corporate health issues, and more than half report employee retention difficulties.<br /><br />”The study&#39;s results are a &#39;wake up call&#39; to organization leaders regarding the importance of continual diagnosis and attention to core principles,” notes Rudzki, president of Greybeard Advisors LLC.<br /><br />”In the current, dynamic business environment, it is easy to become consumed with daily emergencies and managing complexity. Senior leadership of organizations must set aside time to focus on periodic and comprehensive health checkups for their organizations and pay attention to core principles on an ongoing basis. It is not a matter of choosing between the short term or the long term. Managing complexity and leading into the future both deserve attention and resources.<br /><br />”Corporate executives and boards endanger their organization&#39;s long-term health by not paying continuous attention to the core principles of building and preserving corporate health,” he adds.<br /><br />Following are some of the more striking results of the study, and the full report is available online at www.bettermanagement.com/default.aspx.<br /><br /><strong>General</strong><br /><br />&bull;    While many respondents expressed overall optimism about the near-term financial performance of their organizations, their responses indicate that they are quite concerned about some of the fundamental underpinnings of their organizations&#39; long-term health.<br /><br />&bull;    Serious underlying conditions at organizations were reported by almost half of the respondents, with 22 percent reporting problems that equate to “some serious corporate health issues” and 26 percent reporting that their organization is seriously “unhealthy” when balanced against the Beat the Odds principles.<br /><br />&bull;    Particularly weak were the principles that relate to establishing a view and a strategy for the future (and the appropriate competencies to support that view and strategy), as well as principles that relate to translating those ideas into action and execution (including leadership effectiveness and aligning the workforce).<br /><br /><strong>In regard to employee retention</strong><br /><br />&bull;    More than half of all respondents say their organizations have employee retention problems. The study also reveals that when it comes to gauging corporate health, a severe disconnect exists between the views of top-level executives and all other levels of the organization.<br /><br />&bull;    Approximately 40 percent of top management rates their organizations&#39; employee retention as “fair” or “not good.” That percentage rose to greater than 60 percent for all other levels of respondents.<br /><br />&bull;    40 percent of white-collar employees see their organization as “middle-of-the pack or struggling” in its industry.<br /><br /><strong>Regarding employee morale</strong><br /><br />&bull;    Approximately 40 percent of all respondents indicated that morale of their top management was fair or not good.<br /><br />&bull;    Approximately 50 percent of all respondents indicated that morale of their middle management was fair or not good.<br /><br />&bull;    Approximately 60 percent of all respondents indicated that morale of their nonsupervisory personnel was fair or not good.<br /><br /><strong>Additional observation</strong><br /> <br />&bull;    The study demonstrates a clear relationship between an organization&#39;s overall Beat the Odds (BTO) score across nine core principles and key corporate longevity issues such as employee retention and morale, industry rank and financial performance. </p>

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