[The following news item appeared in the December 1993 edition of
_Quality_Progress, p. 12.]

                        CORPORATE LEADERS ARE NOT
                            READY FOR CHANGES

     Are American corporate leaders prepared to take on changes
that affect their businesses? A recent Gallup poll of business
leaders indicates that corporate leaders aren't ready to manage
change. In areas ranging from shifting consumer demands and
increased competition to changes in market conditions and the
quality of the work force, the poll showed that executives are
uneasy about changes and tend to resist them.

     "Companies that handle change well should not experience the
kinds of jolting disruptions we have seen many of our top
companies implement recently," said Robert D. Gilbreath, president
and chief executive officer of Proudfoot Change Management in
Winter Park, FL. Proudfoot commissioned the poll, in which 400
executives from FORTUNE 1,000 companies responded.

     "The data clearly demonstrate that American business leaders
are not well prepared to deal with even those changes they fully
expect to face," said Gallup Vice President Gale D. Muller.
"Recent business news stories have suggested that, given rapidly
shifting social, economic, and global conditions, organizations
must adapt or die." 

     Some of the key findings from the survey were:

     ù Sixty-two percent of executives say they have a
     conservative approach to change.
     
     ù More than 75% of respondents agree that there are four
     factors why American executives resist change: They have a
     vested interest in the status quo, they do not like to lose
     control of people or events, they do not know what to do
     about change, and they are too short-term oriented.
     
     ù Of the company leaders, 59% believe small businesses are
     generally best equipped to manage change, while only 32%
     mentioned large corporations.
     
     ù Nearly 25% of respondents could not name a single example
     of a company they perceive to be best at managing change;
     only one company, General Electric, reached double digits in
     this category, with 17% choosing it, while Microsoft was
     second with 9%.
     
     ù Almost 80% of executives believe the pace of change in
     their organizations is "rapid" or "extremely rapid," and 61%
     believe it will accelerate.
     
     ù Just 47% of the executives described their companies as
     "very capable" of handling change, and only 44% said their
     companies have formal structures in place to manage change.
     
     ù The leaders said they are least prepared for changes in
     areas that they believe will be very important in their
     futures, including ensuring the quality and advancement of
     workers, dealing with government regulations, understanding
     and using new information technology, and responding to
     social changes.
     
     ù Declining sales, foreign competition, labor relations, and
     mergers are far down on the list of importance to executives,
     indicating a gap between the real concerns of business and
     the issues most often getting media attention.
     
     "Whether you're considering Kodak's ill-fated ventures into
electric photography and copiers or Apple's inability to roll with
the punches of the brutal computer industry, corporations in
trouble today have one thing in common," said Gilbreath. "They
either incorrectly interpreted a changing environment or al-

together failed to recognize the critical need to adapt to new
realities."

     The cost of the survey is $50. To order a copy, call
800-448-5963.