Cautious Optimism for Economy in 2009
Latest Blanchard Corporate Survey Finds Companies Expecting Recovery by End of Year
SAN DIEGO (February 23, 2009) -- The latest in a yearly series of surveys on corporate issues from The Ken Blanchard Companies shows that executives and company leaders are somewhat optimistic that the US economy will rebound in 2009. Following the 2008 slowdown that has crippled economies around the world, over 70% of those surveyed expected the economy to begin its recovery sometime this year. Only a quarter of the respondents thought the downturn would continue unabated into 2010.
The 2009 results represent feedback from more than 1,700 executives, line managers, and training and human resource leaders from a range of companies, industries, and countries. Since 2003, over 6,700 leaders have participated in this ongoing study.
Participants in the most recent Blanchard survey were asked to describe their organization’s overall outlook in regards to the economy, training expenditures, expected cuts, and coping strategies. In addition, the survey touched on corporate issues relating to organizational, HR, and management challenges. Responses focused on the most important aspects of future corporate growth and employee development, as well as how employees are prepared to deal with these and other hurdles. Some of the survey’s top responses include:
Tactics for Coping in a Down Economy
- Invest in productivity and performance
- Cut travel costs
- Increase focus on branding and differentiation
2009 Top Organizational Challenges
- Economic challenges
- Competitive pressure
- Growth and expansion
2009 Top Management Challenges
- Managing change
- Creating an engaged workforce
- Reducing costs
Types of Training to be Offered in 2009
- Leadership skills
- Managerial/supervisory skills
- Customer service skills
With the expectation that the economy will begin to recover within the next year, survey respondents also predict that their corporations will not make drastic cuts to training budgets. Fewer than 1 in 5 state that their organization plans to spend significantly less money on training in 2009, as compared to 2008. This desire to maintain an adequate level of training points to the identification of corporate development as a way to ride out the storm of economic turmoil, while also refining and realigning each organization’s own learning infrastructure.
While recent news has highlighted the downsizing of well-known companies, the Blanchard survey results show signs that corporations are looking inward to survive current conditions instead of resorting to the old playbook of cuts, cuts, and more cuts. Companies seeking to decrease costs along all facets of the organizational structure are not, the survey suggests, primarily targeting personnel and marketing. Only 29% of respondents listed personnel layoffs and cuts as ways their companies plan to cope with the down economy, while marketing cuts came in at 14%. More than 60% plan to invest in productivity and performance-maximizing strategies, while another 46% plan to focus on their corporate branding and differentiation.
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, 1,091 in 2007, and 1,802 in 2008. The 2009 findings represent the feedback from 1,730 training and HR managers and leaders.
To Obtain a Complimentary Copy
To view the entire Blanchard 2009 Corporate Issues Survey findings, please visit
http://www.kenblanchard.com/img/pub/Blanchard_2009_Corporate_Issues_Survey.pdf
Blanchard Media Contact
Wendy Wong, Vice President of Marketing and Director of Media Relations, 760 233-6710
Email: wendy.wong@kenblanchard.com
About The Ken Blanchard Companies:
With over three decades of helping leaders and organizations, more than 18 million books in print, programs offered in more than 12 languages and clients across six continents, The Ken Blanchard Companies is recognized as one of the world’s leading training and development experts.
Our groundbreaking thinking and memorable learner experiences create lasting behavioral change that has measurable impact on the organizations with which we work—companies that wish to develop leadership capacity, improve workplace cultures, drive organizational change and strategic alignment, and become high performing organizations. Using a collaborative diagnostic process we help identify each organization’s unique needs and business issues, and then help to develop an appropriate leadership strategy to drive results and profits.
As the innovator of Situational Leadership II—the most widely taught leadership development system in the world—our behavioral models add a situational context to the training experience so individuals learn to be more productive in real-world scenarios and make the shift from learning to doing more quickly and effectively. Learning takes place through both instructor-led and virtual experiences offered by our worldwide network of consulting partners, trainers, and coaches. To learn more, visit www.kenblanchard.com.