A Guide to Change
The benefits of change for you and your company
The findings below, together with other research, demonstrate the benefits that are consistently reported from emterprises across sectors, both large and small, represented in this resource.
The benefits clustered around:- Increased efficiency and productivity
- Financial and Operating Performance
- Improving Collaboration and Partnership
- Quality of Working Life
- Skills and Competencies
- Customer Responsiveness
Five Compelling Reasons to Change
- Increased efficiency and productivity
700 private sector enterprises surveyed in Sweden showed that continuous learning and task delegation associated with 20% to 60% resulted in higher labour productivity, compared to other enterprises in the study.
20,000 employees surveyed in 7,000 manufacturing enterprises in the USA showed. Major productivity differences associated with use of new forms of work organisation.
Survey and interviews in 633 manufacturing sites in four countries in Europe revealed high levels of operating performance linked to new management practices (TQM, concurrent engineering and teamworking). - Saving time and costs
In a survey of 5,800 managers in 10 countries over 65% of managers believed self-directed teams reduce throughput time. - Market Place Performance
Statistical analysis on data from 968 US enterprises from all sectors. High Performance Work Practices, used together systematically, demonstrate significant impact on turnover, productivity and profits.700 European enterprises surveyed in 1997 reported a link between use of new management practices and increased market shares.
Interviews in 310 US and UK enterprises. 80 measures of practice and performance. Extensive use of new management practices linked to high levels of operating performance.
- Customer Responsiveness
80% of companies Interviews in 515 manufacturing enterprises that invested in both new technology and new methods of work organisation in Denmark believe that they increased ability to meet specific customer demands. - Increasing Innovation
2,100 private sector enterprises in Finland were surveyed and classified as 'traditional' (80%) or 'flexible' (20%). Only 3% of traditional enterprises had introduced new products, compared to 37% of flexible enterprises.
Increased efficiency and productivity
The 1998 UK Workplace Employee Relations Survey identifies a number of new management practices and employee involvement schemes. Managers reported rising levels of productivity as the number of new management and employee involvement practices increased.
A rigorous statistical analysis on cross-sectoral data from US enterprises showed that high performance work practices, used systematically, have a significant impact on turnover, productivity and profits. Evidence from high-performing individual organisations confirms the link between superior performance and new forms of work organisation. (Huselid, M 1995. The impact of human resource management on turnover, productivity and corporate financial performance. Academy of Management Journal, vol. 38, no. 3, 635-660).
Financial and Operating Performance
This includes substantial increases in profits and cost savings through the application of Continuous Improvement, and improved levels of quality and customer service.
Improving Collaboration and Partnership
Partnership is a collaborative way of working which breaks with the traditional, deeply entrenched and adversarial 'us and them' attitudes. An in-depth review of fifteen case studies found that companies that adopt a partnership approach to working relationships are more likely to pursue a range of work organisation transformations. All of the case study companies in the review reported enhanced competitive performance, described as a 'resounding endorsement' of the business benefits of partnership. (Knell, J. (1999). Partnership at Work. Employment Relations Research Series No. 7, Department of Trade and Industry, London).
Quality of Working Life
Measured by reduced levels of sickness absence and labour turnover, and increases motivation and job satisfaction, through working in teams and having expanded decision-making responsibilities.
Skills and Competencies
There is evidence of fundamental changes in culture, focused on improved skills and adaptations of behaviour, and supported by communication structures that facilitate continuous learning.
Customer Responsiveness
This is reflected in improved ability to deal with difficult or fluctuating market conditions, through enhanced capacity for process and product innovation.
