Philadelphia — June 30
CEOs have set bullish growth targets for 2011 and are demanding significant increases in workforce productivity to meet them, according to new research from global management consultancy Hay Group.
According to the study, firms globally are targeting 5.4 percent growth for 2011, targets that, in most cases, outstrip International Monetary Fund (IMF) local economic forecasts for GDP growth.
In the U.S., firms are targeting 4.9 percent growth for 2011. While this is less than growth targets globally, it is well above the U.S. economic growth forecast of 2.8 percent reported in the latest figures released by the IMF.
“U.S. business leaders face a significant challenge as they work to achieve aggressive growth targets with a workforce that is already stretched thin,” said Katie Lemaire, vice president at Hay Group. “To fully harness the power of their employees, executives need to take a fresh look at how performance is really managed to ensure people are enabled to drive organizational performance.”
Hay Group’s report about strategic performance management is based on research among 1,660 senior decision makers in large firms across more than 30 countries worldwide. In the U.S., 250 senior decision makers participated in Hay Group’s research. The performance challenge
A strong majority of U.S. business leaders — two-thirds (66 percent) — admit their growth targets present a challenge. To achieve these targets, U.S. business leaders say they need to increase productivity by 6 percent on average, with the majority (69 percent) intending to ask even more from their workforces.
Meanwhile, more than half (54 percent) fear their employees are already too stretched to deliver current business objectives.
“In response to the economic downturn, U.S. business leaders focused solidly on controlling costs,” Lemaire said. “Now, as they look to improve business results and get more discretionary effort from their people, it’s time for them to shift their focus to performance management.” Spotlight on performance