- Two in five leaders are ‘conservative’ leaders – unwilling to lead a transformation
- For many, company transformation is just a tool to implement layoffs
- The “wrong approach” is causing “anxiety”, report finds
Many tech CEOs are so put off by workplace transformation that they’d rather quit, new research has found.
A survey of 700 senior decision-makers from large organizations by Orgvue found that nearly two-fifths (38%) of CEOs would rather resign than lead a large-scale workforce restructuring.
Alarmingly, less than a third (29%) of CEOs would be willing to lead significant restructuring efforts, and fewer still (25%) would be prepared to challenge and break down traditional hierarchies and management tiers in the name of efficiency.
CEOs are not prepared to lead transformation efforts
Often seen as a cost-cutting tool associated with company layoffs, three in five see human emotion as a key driver behind workforce transformation as opposed to rational analysis.
A similar number (63%) agreed cost-cutting was the primary motive behind their transformation, with three-quarters (74%) prepared to go through the transformation process to facilitate this.
Concerningly, two-thirds (64%) of CEOs also stated they would rather make workers redundant than miss earnings targets.
“Organisations are taking the wrong approach to transformation, creating anxiety around these large, arduous, risky projects that invariably don’t return the cost savings they promise,” noted Orgvue CEO Oliver Shaw.
The research splits CEOs into one of two categories – conservative leaders who would rather quit than go through transformation represent two in five CEOs. An overwhelming majority (97%) of agile CEOs – those with an opposing view – are willing to lead major restructuring projects.
Shaw added: “Encouragingly, the research shows there’s a cohort of CEOs that see transformation in a different way and they’re more willing to lead major restructuring programs as a result. They see transformation as a continuous, iterative process that takes the pain out of organisational change and makes it more sustainable.”
Looking ahead, the company identified three key barriers that leaders must overcome in order to move their company into the next era – resistance to ‘do the hard thing,’ resistance to change and a lack of shared vision.