Half of Companies Not Ready for Transformational Change, Says New Study by Forbes Insights and Medidata
NEW YORK--(BUSINESS WIRE)--Companies, and entire industries, today face a choice between radical change—often involving the reinvention of a business model—and imminent obsolescence. Yet, despite the life-or-death stakes, only 50% of executives say their companies adapt well to new technologies or processes, or are well versed in transformation.
“For more than a decade, Medidata has focused on transforming how new, life enhancing solutions are developed by our clients in the life sciences industry”
This is the primary finding in the just-released study by Forbes Insights in association with Medidata, "Transformational Change: What Works—and What Can Doom the Initiative." The research is based on a survey of 106 senior executives based in the U.S., across a range of industries. Forbes Insights also conducted one-on-one interviews to provide context for the findings.
“The report shows that it's vital for leadership to align on the vision,” says Bruce Rogers, Chief Insights Officer and head of the CMO Practice for Forbes Media. “But execution is the trickiest part, and that's usually left to the next layer down.”
Other key findings:
• The top factor in ensuring a successful transformation is assigning the right employees to implement the project, cited by 88% of executives surveyed. Almost as important: appropriating adequate resources from the start (85%) and gathering data for metrics during the process (82%).
• The biggest barrier to overcome is conflicting visions among executive leadership or decision makers, cited by 33% of respondents. This is followed by a lack of internal talent to spearhead or execute business change (28%) and resource/budget constraints (25%).
• The leading catalyst driving transformation is regulatory changes, cited by 37%. Other top catalysts include increasing competition (33%), new or changing technology (32%) and changing customer needs and/or expectations (31%).
• Executives are evenly split on the better philosophy for handling transformation with employees and clients. Roughly half of respondents (47%) believe in enabling individuals to choose their own approach within a set of parameters; the other 53% think individuals need close management and clearly defined rules to navigate change.
“For more than a decade, Medidata has focused on transforming how new, life enhancing solutions are developed by our clients in the life sciences industry,” says Tarek Sherif, founder and CEO of Medidata. “By developing innovative and disruptive technology, matched with customer-centric service, we’ve become an industry leader. Our position in the industry gives us tremendous insight to how different organizations deal with change and what it takes to succeed. We’re working with Forbes and successful leaders to better understand organizational and management best practices, defining those actions that will help companies achieve the greatest benefit from their effort to transform their businesses."
About the research
The survey was completed by 106 senior executives in the U.S., across a range of industries. Fifty-five percent of respondents were C-level executives; the rest were managing director or above. Thirty percent of respondents were from companies with at least $5 billion in revenues; all respondents work for companies with revenues of $100 million or more.
About Forbes Insights
Forbes Insights is the strategic research and thought leadership practice of Forbes Media, publisher of Forbes magazine and Forbes.com, whose combined media properties reach nearly 50 million business decision makers worldwide on a monthly basis. Taking advantage of a proprietary database of senior-level executives in the Forbes community, Forbes Insights conducts research on a host of topics of interest to C-level executives, senior marketing professionals, small business owners and those who aspire to positions of leadership, as well as providing deep insights into issues and trends surrounding wealth creation and wealth management.
Medidata is the leading global provider of cloud-based solutions for clinical research in life sciences, transforming clinical development through its advanced applications and intelligent data analytics. The Medidata Clinical Cloud™ brings new levels of productivity and quality to the clinical testing of promising medical treatments, from study design and planning through execution, management and reporting. We are committed to advancing the competitive and scientific goals of global customers, which include over 90% of the top 25 global pharmaceutical companies; innovative biotech, diagnostic and device firms; leading academic medical centers; and contract research organizations.
Download the report at www.forbes.com/forbesinsights/medidata