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Barometer of Change 2015: Growth in FTSE 250 directly linked to investment in business transformation

 

INDUSTRY NEWS

Research indicates £1bn more spent on change initiatives than one year ago

8 October 2015 – London, UK – The British programme, project and change management consultancy Moorhouse have announced the publication of their “Barometer of Change 2015” report. According to Moorhouse, FTSE 250 companies and major public sector organisations that have invested in change initiatives over the past year have seen significant returns in the form of business growth over the same period, in stark contrast to more cautious competitors.  This is according to research amongst Board members and their direct reports at FTSE 250, UK multinational and public sector organisations.

151008-pmwj39-barometer-MOORHOUSE LOGOThe Barometer on Change 2015 from transformation consultancy Moorhouse – and now in its fourth year – finds that 81 per cent of those organisations which spent £25m or more in such business transformation initiatives have grown this year, more than half of them by 5-25%.

Perhaps just as tellingly, nine in 10 of these organisations are also predicting further growth in the next three years. The report also reveals that the average spend on change programmes has risen from £20.8m to £25.4m – an increase of more than 22 per cent.

John Lunn, Partner at Moorhouse, explains: “The message here is clear: fragile as the recovery of the economy is often reported to be, the future belongs to the fleet-of-foot.  Those organisations that have continued to watch and adapt to changing market conditions through investment rather than just words are reaping the dividends.”

“If the past several years of economic uncertainty have been a tempest, then adopting a ‘batten-down-the-hatches’ approach is clearly not the best way to steer the course.”

Sixty-nine per cent of respondents feel the pace of change over the last three years has increased, a marked jump from the 58 per cent reported in 2014, and the highest level since the Barometer on Change was first published in 2012.  Looking ahead, 80 per cent are predicting a further jump in the next two to three years.

“The fact that we’ve seen such a big increase in spending on change initiatives also suggests we’re seeing more of the bigger, more strategic kinds of transformations that are vital to an agile and forward-looking organisation,” adds Richard Goold, Partner at Moorhouse.  “And indeed, this is what we see when we delve a little further into this year’s research findings.”

The Barometer on Change 2015 survey spoke to 200 Board members and their direct reports in UK organisations. Respondents had a combined spend on change initiatives of £5.1 billion (compared to £4.2bn in 2014), with an average project spend per respondent of over £25 million.

The Barometer on Change 2015 is based on a survey of Board members and direct Board reports, from a range of organisations spanning the telecoms and media, health and pharmaceuticals, transport and distribution, financial services, energy and utilities, retail and FMCG, and public sectors. Structured telephone interviews were carried out by Illuma Research on behalf of Moorhouse among 200 senior managers and directors in UK public & private sector organisations. Fieldwork was completed in June 2015. One-third of respondents were from FTSE 250 companies, whilst a quarter represented UK-headquartered non-FTSE 350 companies, and a further quarter UK subsidiaries of multinationals. The average project spend for which they are currently responsible is over £25 million.

About Moorhouse

Moorhouse helps organisations design and deliver successful transformation. They ensure clients effectively deliver their strategy by working with them to turn strategy into action, establish a programme and project management culture and provide out of the ordinary delivery. Moorhouse recruits only experienced, ‘upper quartile’ PPM specialists with a background of practice within a global management consultancy firm. They bring ‘Big Firm’ consultancy experience combined with the ethos, approach and ‘value for money’ of a small focused team. Moorhouse work on some of the largest and most complex programmes in Europe and clients include BT, BA, BAA, MoD, DfT, GSK, Bupa Intl, RBS and Lloyds Banking Group.

Moorhouse has received a major national-level award in every year of their existence, including London Excellence ‘Succeeding through People’ Award 2012; Association for Project Management (APM) Project Management Company of the Year; Management Consultancies Association (MCA) International Programme of the Year 2011. For more information visit http://www.moorhouseconsulting.com/.

Contacts regarding this news release:

Alexandra Pehlivan or James Hafseth at Tungtree Communications on 020 7580 7025 or mailto:[email protected]// [email protected]

Rachael Robson at Moorhouse on 020 3004 4482 or [email protected]

Source: Moorhouse