• Service: Advisory, Management Consulting
  • Industry: Government & Public Sector, International Development Assistance Services
  • Type: Business and industry issue, Survey report
  • Date: 9/10/2013

About the Change Readiness Index 

In 2010, the idea of a Change Readiness Index (CRI) was first raised at the World Economic Forum in Davos, inspired by experiences from the Haiti earthquake. In the face of sudden shocks and long-term change, some countries are better able not only to manage and mitigate the risks associated with change, but also to capitalize on the new opportunities that arise. A country’s change readiness is therefore a key determinant of its ability to be resilient, achieve sustained and equitable long-term growth, and improve living standards.

What is change readiness?

For the purposes of this Index, change readiness relates to the capability of a country’s agents – its government, private and public enterprises, people, and wider civil society – to prepare for, manage, and respond to a wide range of change drivers, proactively cultivate the resulting opportunities, and mitigate any potential negative impacts.

Since launching the CRI in 2012, KPMG has worked with a broad array of policy makers, development agencies, and private organizations as well as an advisory panel of development experts from a number of organizations to evaluate the Index and gather feedback on potential improvements. KPMG worked with Oxford Economics to apply this feedback to develop a revised methodology and scope for the Index to enhance its overall value and usability.

For governments, policy makers, NGOs, civil society institutions, development partners, investors, and private sector enterprises, the need to understand better and develop greater capacity for managing change and promoting sustained growth is becoming ever more critical. While the specific policies and actions that are required to manage change will depend on the nature of the change itself, the CRI is based on the premise that the underlying capability of a country to manage change is dependent on certain fundamental characteristics.

The CRI is unique in that it focuses primarily on examining ‘inputs’ rather than ‘outputs.’ Input indicators are particularly useful in assessing the underlying capability of a nation to manage change, as they are often directly influenced by governments and other stakeholders. When viewed alongside other key data such as GDP per capita, poverty levels, social indicators, institutional capacity, and socio-political conditions, we believe that the CRI stands as a highly valuable tool for those seeking to assess the need for assistance and possible priorities for programs. We also believe that the CRI provides important insight to help development partners, governments, and other funding entities better target and prioritize interventions, resources, and investment across and within countries.

Oxford Economics

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