Corporate upheaval is costing UK companies over £50 million each year in terms of management time according to a new study entitled "The Challenge of Change 2002".

The research – conducted on behalf of Change Management Online and in association with the Institute of Management Consultancy (IMC) – shows that 35% of all directors' time is devote to managing change, with 79% of major initiatives, such as corporate restructures, down-sizing, acquisitions and mergers, being actively managed on a daily basis either by the managing director, a board director or other senior management.

Furthermore, this level of time investment is likely to increase – as on average companies will be implementing three major changes in the year ahead. Almost 80% will be undergoing major cost reduction exercises, almost half will be restructuring their businesses, over a third will be launching a major product and 44% plan to merge with or acquire another business during 2002-03.

However, the study showed that the massive investment by boards and senior directors into change management is not necessarily the best use of their time. Fifty-eight per cent of those questioned report that their directors are – at best – only satisfactory at managing change, and only one in ten believe that it is managed efficiently in their organisations. More worryingly still, 81% report that management focus on the rest of the business s lost due to the additional workload created by a major change.

Ian Barratt, chief executive, IMC, said: "The economic and social climate is constantly changing but this hard-hitting report, based on the views of managers and the profession, has found that UK business is not best-equipped." (CL)