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Theresa Welbourne
  Theresa Welbourne
 

Organizational Change Continues to Rise

12/30/2005 --

Executive Education's Theresa Welbourne warns that continuous adjustments and coping methods are needed to sustain growth and keep employees energized.

ANN ARBOR, Mich.—More than three-fourths of firms report high levels of organizational change, according to a recent study by Theresa Welbourne, adjunct professor of executive education at the Stephen M. Ross School of Business at the University of Michigan.

Welbourne's ongoing Leadership Pulse study, which charts trends in organizational change, leadership energy and confidence data from a sample of senior business executives worldwide, shows that 79 percent of the 379 business leaders surveyed said their companies are undergoing high levels of change—up from 63 percent last year. Another 15 percent said their firms are experiencing medium levels of change.

"Given the recent leadership pulse trend data indicating lower energy and confidence levels at the same time of this increase in rate of change, we worry that the high rate of change we're all experiencing is starting to catch up with leaders," Welbourne said. "Continuous change is no doubt the wave of the future. However, research indicates that for organizations to thrive in high-change environments, they also must provide employees with an ability to cope with change."

Among various industries, communications topped the list with 95 percent of respondents in that field reporting high levels of organizational change. Executives in Web-based technology (89 percent), biotechnology (87 percent), health care (84 percent), manufacturing (83 percent) and consulting (76 percent) also reported great change in their respective industries.

About 85 percent of leaders of companies with more than $250 million in annual revenue reported high levels of organizational change, compared with 72 percent of firms with less than $5 million in revenue.

The Web-based Leadership Pulse study is conducted every two months on topics of strategic importance to business leaders. It measures the effects of key resources and confidence levels on overall growth and performance. For more information or to participate, contact Welbourne or the eePulse research team at (734) 996-2321 or visit www.eepulse.com.



For more information, contact:
Bernie DeGroat
Phone: (734) 936-1015 or 647-1847
Email: bernied@umich.edu