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Understanding the Change Landscape in Organizations

A recent survey by Protiviti, in collaboration with BoardProspects and Broadridge Financial Solutions, reveals a striking insight into how organizations perceive their roles in today's rapidly evolving corporate landscape. Conducted as part of the second annual Global Board Governance Survey, the findings underscore a prevalent issue: a mere 15% of organizations consider themselves as change agents, or 'disruptors.' This raises critical questions about the readiness of companies to navigate the upheavals brought on by technological advancements and geopolitical dynamics.

The Survey’s Key Findings

The survey, which received insights from over 1,800 board members, CEOs, and C-suite executives, highlights various aspects of organizational identity in relation to change management. Notably, although 75% of respondents anticipate changes in business models within the next three years, a significant number remain hesitant to classify themselves as agents of change. Here are the classifications provided by the organizations surveyed:

• - Disruptive Leaders (15%): Organizations that confidently lead the charge in embracing change and innovation.
• - Disruptive Aspirants (34%): Companies that recognize their ability to become disruptors but are still on their journey.
• - Disruptors at Risk (25%): These firms identify as disruptors but acknowledge their vulnerability to external disruptions.
• - Agile Followers (16%): Organizations that can adapt quickly to disruptions but may not actively seek to lead.
• - Slow Responders (7%): Firms that lag in assessing change and how to react to it.

The findings create a spectrum that illustrates the varied approaches organizations take towards change management. Only a small fraction of firms express confidence, with 77% of disruptive leaders feeling equipped to recognize and respond adeptly to disruptions, contrasted with just 28% of those considered slow to act.

The Role of Generative AI

In examining how organizations view emerging technologies like generative AI, the survey indicates a decisive split. A significant 72% of disruptive leaders see generative AI as a promising opportunity for innovation, whereas over 40% of those that do not identify as disruptors view it primarily as a threat. This disparity sheds light on the mindset necessary for companies to thrive in a disruptive environment.

Commentary from Industry Leaders

Joe Tarantino, the president and CEO of Protiviti, emphasized the accelerated pace of change in the current decade, stating, "We have experienced more change in this decade than we have since the turn of the century, with more on the horizon." He reinforces the necessity for organizations to adopt a proactive stance, emphasizing the importance of preparing for potential disruptions rather than merely reacting to them.

Mark Rogers, founder and CEO of BoardProspects, echoed this sentiment, pointing out that organizations viewing themselves as disruptive leaders are significantly better positioned to leverage emerging technologies and navigate transformative change. He commented, "This highlights the critical importance of boards fostering an innovative culture that embraces disruption rather than merely responding to it."

Doug DeSchutter, co-president of Investor Communications Solutions at Broadridge Financial Solutions, added that successful leaders utilize digital disruption as a strategy to deliver sustained value to all stakeholders. This aligns with the overarching theme of the survey: adaptability and foresight are essential traits for companies aiming to thrive amidst systemic upheaval.

Conclusion

Overall, the findings from the Global Board Governance Survey reveal a concerning trend: many organizations remain uncertain about their identity in the face of change. As businesses continue to navigate the complexities of today's market, the call for embracing a change-oriented mindset has never been more urgent. The disparity between how companies view their roles as disruptors versus followers may determine their long-term success in an ever-evolving landscape.

For more in-depth insights, the full survey report, titled "Disruptors See the World Differently," is available for complimentary download, and a global webinar is scheduled for March 19, 2025, featuring a panel discussion on these findings.