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Culture change is one of the top issues corporations are focusing on this year

Forty one percent of leaders responding to a recent survey cited culture change is one of the top five most important challenges organizations are facing this year. 

As the economy continues to languish, not surprisingly, the top organizational challenges are similar to 2008. Respondents cite economic challenges, competitive pressures and growth and expansion as the top three issues. Fourth on the list is culture change, cited by 41 percent of the 1,700 executives, leaders and managers in the survey as a top issue, ahead of skill shortage and innovation.

The findings are from the 2009 Corporate Issues Survey by leadership consulting firm The Ken Blanchard Companies.  It is part of a seven-year annual survey started in 2003 to pinpoint the needs, issues and areas of focus for organizations seeking to develop their people to their fullest potential.

At the management level, the top challenges identified largely focus on people development, including managing change, creating an engaged workforce, developing potential leaders, customer loyalty and selecting and retaining key talent. Key areas of focus identified by more than 30 percent of respondents were communicating mission, vision and values and aligning culture with strategy.

Despite the need to continue to contain costs, more than 60 percent of respondents indicated they will implement productivity and performance maximizing strategies to cope in a down economy. In addition, nearly half of those surveyed plan to spend the same or more on training in 2009 in comparison to 2008. This data indicates that organizational leaders recognize the strategic value and competitive advantage of developing people.