| Global
companies threat
from technophobic CEOs
CEOs of the world's largest companies are struggling
to keep pace with the impact of digital technology and many are
being left behind, placing their corporations at risk in the medium
to longer term. Their own senior teams also lack basic IT skills
and understanding, without which they cannot steer their corporations
into the next millennium. Despite this, corporations are failing
to address the problem.
These are the conclusions of a survey of forty-nine
global 100 companies published on June 24, 1998, by the Wolfsberg
Executive Development Centre (Switzerland) and ADVANCE: Management
Training Ltd. (UK). The research surveys how the global 100 companies
"define, measure, nurture and reward" technology competence
in their "top teams", e.g. the five to ten most senior
executives in these companies (Chairman, President, CEO, Executive
Directors).
This report was featured in The
Times 14 December 1998.
"The degree of incompetence is staggering",
said report author Prabhu Guptara. "Many CEOs are afraid of
computers, some are unable even to read their own e-mail without
help. Only a minority use the Internet or company Intranets regularly,
while more than 25% entirely avoid using either."
"Many CEOs and other senior team members are
out of touch with the virtual world in which their companies increasingly
are operating. Most companies surveyed have no IT training initiative
for senior teams and no formal definition of IT competency."
"88% are doing nothing to introduce IT competence
to senior executives which means the problem is going to become
a crisis, with bad decisions made by those who should know better,
and very frustrated middle managers."
Dr Patrick Dixon, director of Global Change commented:
"These technophobic CEOs are a threat to corporate survival."
Practical steps proposed in the
report include:
- Training for senior team members and CEOs regarding the impact
of IT on business-boundaries
- Inclusion of boardroom in move to paperless office
- Business TV channel on intranet to keep all staff updated
in an accessible way
- Integration of latest IT tools into every aspect of company
decision-making
All 100 CEOs of companies named in the "1996
Global 100 Companies" were sent surveys by e-mail, fax or phone.
49 responded with information about their "top teams"
(top 5 - 10 people within the company).
Professor
Prabhu S. Guptara is Group Director, Organisational Learning
& Transformation, based at the Wolfsberg Executive Development
Centre, and non-executive Chairman of ADVANCE: Management Training
Ltd. He is Visiting Professor at the University of Fribourg, Switzerland,
as well as other universities and business schools.
The research, which was conducted by Prabhu Guptara is jointly published by ADVANCE: Management Training Ltd., UK, and
the Wolfsberg Executive Development Centre (a Member of the UBS
Group), Switzerland.
Full copies of the report are available to members
of the public at SFr 195.-, UK£ 95.- or US$ 125.- (ISBN 0 9513089
X X). Copies are AVAILABLE TO MEMBERS OF THE PRESS FREE OF CHARGE.
For more information or interviews
please contact:
Prof. Prabhu S. Guptara
Group Director, Organisational Learning & Transformation
Wolfsberg Executive Development Centre
CH-8272 Ermatingen phone: 071 663 56 05
fax: 071 663 55 90
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