I saw some interesting statistics from Liberum Research and thought I’d share

• More than 28,000 top executives (CXO and VP) lost, left or changed jobs in 2006, 68% higher than 2005.
• 2007 isn’t slowing down—in February alone, there were 2,224 changes.

And one other from The Association of Executive Search Consultants

• More than 50% of top managers will leave during the next five years.

Although Liberum tracks the effects of management change on companies’ financial performance, what isn’t directly tracked (that I know of) is the effect of the churn on culture and employees.

Even allowing for internal moves, you still have 28,000 cultural changes ranging from minor to massive.

When the change is massive, the effect on culture is obvious (think HP), but the great majority of those 28,000 changes are much more subtle.

Companies desiring to strengthen their retention need to pay greated attention to the subtle changes. How? Any time there’s a management change, no matter the cause, watch productivity and turnover. Not just by division or department, that can hide the problems, but also by group and team.

Cultural change has the potential to be very positive—or a positive disaster.

This entry was posted on Thursday, April 5th, 2007 at 11:00 am and is filed under Business info, Culture, Retention. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.