Big businesses are making snap decisions that lead to outcomes they later regret, according to new research. 93% of business leaders say they’ve made decisions with cost cutting in mind, of which 38% regretted those decisions. The main reasons for this are the loss of talent they later realized they needed (24%), loss of employee engagement (24%), and the negative impact on operational efficiency and productivity (21%).
What’s more, more than half (55%) of those interviewed had a negative outlook on the future of their organization, with a quarter (25%) of C-level respondents saying they’re “pessimistic” about the short term.
The research*, interviewed 500 senior business decision makers from global organizations with over 3,000 employees. It focused on how these decision makers are planning for and responding to the threat of recession and to what extent they feel equipped to thrive in the long term.
The findings suggest that businesses find it hard to prioritize the right data at the right time to help them prepare for incoming storms. They listed efficiency (41%), productivity (38%), and growth (38%) as their top priorities in the next 12 months. Still, more than two thirds (70%) don’t feel equipped to deal with the current economic climate (70%).
Despite organizations having weathered persistent disruption over the past few years, the research reveals a strong sense of pessimism, with the majority (55%) having a negative outlook for the future of their organization.
Socio-economic and political factors are contributing to this negativity. The cost of living crisis and its impact on the organization’s ability to grow was the number one source of this concern for 53% of respondents.. This was followed by economic uncertainty (47%) and the market being more competitive (42%).
Oliver Shaw, Orgvue’s Chief Executive Officer, said: “Businesses have to react and adapt more quickly than ever before. With recession and continued economic uncertainty on the horizon, the need for businesses to plan and equip themselves with the right tools and data insights to make fast decisions has never been more important. This is partly because many organizations no longer have a choice about whether or not to make cost cutting decisions, and moving too quickly without the right information and planning risks damaging the business.
“It’s important that leaders pause to reflect on and respond to changing conditions throughout the year. Twelve-month planning cycles are a thing of the past and businesses should use all the tools at their disposal to avoid rash decisions.”
*Research from Vanson Bourne and Orgvue