New Survey from Krauthammer: Around 80% of businesses feel resistant to current difficult business climate

KRAUTHAMMER | London, UK 80% of international businesses feel relatively resistant when it comes to the worsening business climate. 55% will defend their investments in ‘behavioural development’ programmes in areas such as leadership, management and sales. On the downside, 20% say that they will cut their budgets. This and other findings are the results of a probe conducted by Krauthammer in late Autumn 2008. 34% of the respondents forecast a poor business climate for 2009. Around 20% believe they have “low resistance” to a difficult business climate and are planning to cut their behavioural development budgets in line with their predictions. However, over twice as many – 55% – feel resistant – and 42% even plan to raise development budgets. “The news is mixed. The most positive signal we can distill from our probe is that companies will prioritise initiatives with a real and measurable impact. So consultants that excel in sophisticated forms of body-shopping will probably be hit as hard as temporary personnel providers”, comments Ronald Meijers, Co-chairman of the Board of Krauthammer. *) body shopping typically implies filling temporary competence gaps rather than structurally improving a company’s performance. The respondents will defend training and coaching more vigorously than they will consulting. And as many CEOs admit their difficulties in predicting results for 2009, leadership training will be most defended – by 53% of respondents, followed by sales training (47%) and management training (42%). Crossfunctional training such as IT- and language skills will be least defended, the probe suggests. When it comes to coaching, too – leadership, management and sales coaching will be most defended. Overall, training seems less vulnerable than coaching – training will be cut by fewer numbers of people than its coaching equivalents. According to the probe, consulting budgets will be defended by around a third of businesses. Least popular, the probe suggests, will be consulting in “hard issues” such as strategies, operations and structures – only 19% of the respondents would defend it. A combination of “soft” and “hard” issues such as sales effectiveness will be most resilient of consulting propositions – 33% of respondents say they will protect budgets in this area. Nick Girling Senior Consultant, Office Leader UK, Krauthammer Tel: +44 20 8770 7200 Mobile: +44 7900 5648 79 E-mail: nick.girling@krauthammer.com Coaching, consulting and training company Krauthammer assists clients worldwide in successfully uniting permanent people development and sustainable business performance. It offers major change implementation and human capital development programmes at the individual, team and corporate levels optimising the personal effectiveness of leaders and managers, salespeople and negotiators, trainers, coaches, consultants and support staff. Established in 1971, Krauthammer International has 300 consultants and employees, delivering services in over 50 countries, in 15 languages. International consistency and the ongoing professional development of the consultants are ensured by four annual Krauthammer University sessions where every consultant spends between 2 and 3 weeks per year. www.krauthammer.com

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