Page 42 - Chapter One

10 The Management Shift

table 1.1 Continued
Problem Examples of studies
Growing economic Between 1980 and 2000 the life expectancy of the bottom
inequality 10% of earners in the US increased at only half the rate of
the top 10%, and the top 10% of earners had its share of
overall income rise from 27% in 1966 to 45% in 2001
Gender inequality Research conducted amongst a sample of almost 40,000
executives in the UK has shown that females will earn
£400,000 less over their lifetime. They are also awarded
less than half of the male bonus, and are far more likely to
be made redundant
Over- compensation of In 2007, CEOs in the S&P 500 had an average
C- suite executives compensation of US$10.5 million annually, 344 times the
pay of an average American worker
Increasing unemployment, In April 2013, 2.56 million people (7.9%) in the UK were
especially among young unemployed
people

Continuing failure of the 386 banks failed in the US alone in the period 2008– 11
banking system
Declining Consumer In March 2013, the CCI was 59.7 (1985=100), down from
Confidence Index (CCI) 68.0 in February 2013
Decreasing Life Satisfaction In the UK, the Life Satisfaction Index fell from 7.4 out of
Index 10 (or 74%) in 2009 to 7.1 out of 10 (or 71%) in 2011
Declining Purchasing In April 2013, the PMI was 51.3%, a decrease of 2.9
Managers’ Index (PMI) percentage points from the February 2013 value of 54.2%
Declining house price First- time buyers in London face house prices six times

affordability higher than their annual income
Increasing debt Research conducted on behalf of the Bank of England
found that 62% of households reported reduced income.
Research by Legal & General has found that as many
as 2.64 million households (12%) across the UK are
“overwhelmed” by rising fuel costs and other bills
Declining retail outlets A report by PricewaterhouseCoopers shows more than
a 1000% increase in high street store closures between
2011 and 2012 in the UK
Growing dissatisfaction A survey of 75,000 rail users has discovered that over
with services half of the UK’s train companies score only 50% or lower
in terms of customer satisfaction ratings. A nationwide
survey of 46,000 patients who have been treated at A&Es
in the UK, has revealed an increase in hospital emergency
service waiting times
Increasing child poverty A report released by the Save the Children charity reveals
that 3.5 million children are living in poverty in the UK,
and that this figure is expected to rise by 400,000 by 2015