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Study reveals nearly half of business leaders experiencing ‘crisis of confidence’ when it comes to managing growth

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Study reveals nearly half of business leaders experiencing ‘crisis of confidence’ when it comes to managing growth

Moving from small to mid-sized businesses creates most anxiety.

While organizations strive to achieve growth and profitability, new research reveals a significant underlying level of anxiety exists among top business leaders regarding their company’s ability to succeed in the face of growth and change.

 

New international research from Epicor Software Corporation, a global provider of industry-specific enterprise software, has unveiled the potential pitfalls of business growth, and the key concerns causing executives fear, uncertainty and doubt, when growth is unplanned – nearly nine-in-ten (89%) organizations surveyed experienced growth that hadn’t gone exactly according to plan.

The top concern cited by CEOs was the perceived loss of customer intimacy that may come about as a result of growth.

The research, which was conducted by MORAR Consulting and commissioned by Epicor, questioned over 1,800 business leaders from across the globe. Of those surveyed globally, 58% of businesses reported growth in 2015 and nearly 70% expect to grow in 2016; however, only 11% experienced growth totally in line with their plans in 2015.

 

The business leaders surveyed admitted they often fear the consequences of growth, citing a number of negative impacts when growth is not planned for effectively. Half (48%) said they worry that business growth puts excessive pressure on operations, damaging quality and customer satisfaction. A substantial number of businesses (42%) were also concerned that their business IT systems may prove unable to cope with managing a larger, more complex, business model. The top concern cited by CEOs was the perceived loss of customer intimacy that may come about as a result of growth.

 

Growth also poses a number of concerns about resource and bandwidth availability as business activities scale. Forty-six percent of business leaders said that as a result of growth, they worry that their business might take on large or complex projects that they lack the skillset and technology to deliver effectively, damaging their brand reputation. They were also concerned that by growing the business, workloads may increase to a level that places too much pressure on staff, prompting key personnel to leave the organization (43%). The vast majority of survey respondents said “market expansion and global expansion” would likely contribute to their company’s growth in 2016, and just under half (45%) of business leaders polled worry they are not personally prepared for the challenges of managing a larger, more diverse business.

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