What is change readiness?
Change readiness equips and prepares businesses to deal with change. It encompasses the entire organisation so they are always ready to deal with and adapt to changes, navigating their way, no matter what is thrown at them. It is not the same as change management.
Change Management is a well-established theory and practice, built from academic frameworks and typically relates to the process, tools and techniques to manage the people-side of change in reaching a desired business outcome.
Exploring the concept of change readiness with Australian businesses
In developing the Optus Future of Business Report 2015, we conducted an extensive survey of 502 senior business decision-makers across Australia. They included chief executive officers, chief financial officers, general managers, chief marketing officers, chief operations officers, chief human resources officers, chief information officers and several other management functions, representing 12 industries:
- banking, finance and insurance
- retail and wholesale
- transport and logistics
- information media, telecommunications and IT
- property, business and professional services
- electricity, gas, water and waste utilities
- education and training
- mining and resources
- local government
- state and federal government
We also conducted in-depth interviews with 29 senior executives and 9 change experts to gain deeper, qualitative insights.
Australian Business Change Readiness Score
To gain a clearer picture of businesses’ ability to adapt, we developed an Australian Business Change Readiness Score. This score is based on a number of factors, including how well business decision makers understand the need for change, the benefits change can deliver, and how capable they believe they are of implementing real changes.
Overall, our research revealed that:
- 23% of Australian businesses are highly prepared for change (with a score of 80 or above, out of 100)
- 55% display some change readiness (a score between 61 and 79.99)
- 22% show low readiness for change (a score of 60 or below)
The average score across all businesses was 69.9 out of 100. We’ll delve into more details including the methodology behind the score in Section 4.