In the current uncertain economic conditions, countries, businesses and institutions around the world are undergoing unprecedented change with new challenges and opportunities every day. Some countries, however, are better able to manage and mitigate the risks associated with change and capitalize on new opportunities.

There has been little focus on the concept of change readiness, and there are few reliable and appropriate measures to assess it. Recognizing this, KPMG International, in collaboration with researchers from the Overseas Development Institute (ODI), evaluated the need and opportunity for a new forward-looking index – the Change Readiness Index – to assess the capability of individual countries to manage change.

While the specific policies and actions that will be required to manage change will depend on the nature of the change itself, the Index is based on the premise that the underlying capability of a country to manage change is dependent on certain fundamental characteristics. These characteristics, along with the hypotheses for the expected meaning of the results are outlined in the report (PDF 2.4 MB): http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/change-readiness/Documents/change-readiness-index.pdf

The results of the first Change Readiness Index suggest some surprising findings. Over time, the Index will be tested and necessary adjustments will be made to further refine this approach and provide a reliable, independent and robust assessment to support the work of governments, civil society, businesses and the international donor community.