Trends Identified
What business are you in
Competition In the face of an ever-growing set of concerns, the question CEOs are asking is this: How do we manage the day-to-day business while having the confidence and vision to explore a much wider range of opportunities than we’ve ever considered before? .
2015
18th Annual global CEO survey
PWC
Developing diverse and dynamic partnerships
Partnerships As CEOs increasingly focus on what they’re good at, they’re looking to partner with others whose capabilities could complement or enhance their own. Fifty-one percent plan to enter into new strategic alliances or joint ventures over the next year – the highest percentage since we began asking the question in 2010.
2015
18th Annual global CEO survey
PWC
Finding different ways of thinking and working
Views about diversity and inclusiveness seem to have reached a tipping point. No longer are they seen as ‘soft’ issues, but rather as crucial competitive capabilities. Of the 64% of CEOs whose companies have a formal diversity and inclusiveness strategy, 85% think it’s improved the bottom line. And they also see such strategies as benefiting innovation, collaboration, customer satisfaction, emerging customer needs and the ability to harness technology – all vital capabilities for success in the new competitive environment.
2015
18th Annual global CEO survey
PWC
Creating new value in new ways through digital transformation
CEOs no longer question the need to embrace technology at the core of their business in order to create value for customers. Beyond a shadow of a doubt, digital technologies have revolutionised how customers perceive value. Creating the personalised and ongoing experiences that are increasingly in demand requires a full view of the customer and all their relationships with the company. It requires an unprecedented level of customisation, responsiveness and innovation. Doing all this effectively just isn’t possible by tinkering at the edges. Companies increasingly recognise that they need to reconfigure their operating models – and perhaps their business models. And in order to do so they need to ensure that they’re not only investing in the right digital technologies, but can deploy them in a smart and effective way.
2015
18th Annual global CEO survey
PWC
Navigating complexity to exceed expectations
Technological progress, shifting demographics, urban expansion, the rise of emerging markets and a changing planet are moving the world beyond globalisation to a multi-polar reality. As this happens CEOs are learning that much of their success depends on sensing and addressing the rapidly changing values and expectations of their many stakeholders.
2016
19th Annual global CEO survey
PWC
Growing in complicated times
Today’s CEOs face a business environment that’s becoming increasingly complicated to read and adapt to. Seven years on from the global financial crisis, the business landscape still hasn’t really returned to what it was. Will it ever? Last year regulation, skills, national debt, geopolitical uncertainty and taxes topped CEOs’ list of concerns about threats to business growth. None of these have gone away this year. In fact, the level of worry is higher today than at any point in the past five years. Concern about over-regulation in particular is still highest, cited by 79% of CEOs – making it the fourth year in a row that it’s risen (see Figure 1). Geopolitical uncertainty, meanwhile, has become the second biggest concern, cited by 74% of business leaders. This comes at a time when terror attacks are increasing and touching every part of the world, many linked to the heightened conflict in Iraq and Syria. Global conflicts are also connected to anxieties about social instability and readiness to respond to crises, named by 65% and 61% of CEOs, respectively. Cyber security is also a worry for 61% of CEOs, representing as it does threats to both national and commercial interests.
2016
19th Annual global CEO survey
PWC
Addressing greater expectations
As technology and other factors create an environment of higher transparency, CEOs have set their radar on a wide range of stakeholders. Customers remain the top priority, with 90% of CEOs indicating they have a high or very high impact on their business strategy (see Figure 6). But government and regulators come in second (cited by 69% of CEOs). That’s higher than industry competitors and peers (67%) and no doubt reflects CEOs’ enduring concerns about over-regulation in the marketplace. The views of these and other stakeholders, including employees and investors, aren’t just evolving but diverging, as CEOs have told us. Customer behaviour, in particular, has become more complicated as values and buying preferences evolve. The three biggest trends CEOs see as most influencing those views – technological advances, demographic changes and global economic shifts – as well as the interactions between them, are only going to continue to drive change (see Figure B, Looking for more data?, page 34).
2016
19th Annual global CEO survey
PWC
Transforming: technology, innovation and talent
It’s evident that most businesses today, in defining what they stand for, recognise the needs of a wider set of stakeholders – and their customers’ expectations about how they address those needs. Translating a broader corporate purpose into the everyday, however, is another matter entirely. Even the most committed can find it challenging in the extreme to reshape their company while facing day-to-day battles on every front to fight off competition, grow revenues and cut costs. Putting technology to work: business leaders understand all too well how technology is transforming their relationship with customers as well as other stakeholders. So it makes sense that they see technology as the best way to assess and deliver on changing customer expectations, with 51% of CEOs making significant changes in this area (see Figure 11). The innovation edge Over half of CEOs ranked R&D and innovation technologies as generating the greatest return in terms of successful stakeholder engagement (see Figure 12). The winners in the innovation game, however, will be those that harness technology and innovation to deliver products and services that are cost-effective, convenient, functional and sustainable. The people edge As companies look to meet the complicated expectations of stakeholders and society, they will need a new generation of people with an entrepreneurial mindset who can harness technology and drive innovation.
2016
19th Annual global CEO survey
PWC
Measuring and communicating success
In a complex and rapidly changing world, we were interested in understanding which areas CEOs want to better measure and which areas they want to better communicate to the multiple stakeholders who interact with their organisations. We found that the key metrics CEOs would like to improve are the ones traditionally seen as ‘harder’ drivers of business success like innovation and risks, while the areas they want to better communicate are emotional, ‘softer’ issues around values and purpose (see Figure 15). But customers are seeking information about both the ‘hard’ and ‘soft’ drivers of business success. Indeed, real-time dashboards created and managed by users themselves are becoming feasible, raising expectations for more fresh and relevant information and ways of viewing it. Ultimately the CEO must deal with matters of the head and the heart, the rational and the emotional. Our research suggests that there is much room to improve on both the assessment and communication of key business areas, including of course, core financial data.
2016
19th Annual global CEO survey
PWC
Geopolitics: 'Rivals will take greater risks against the US'
"No balance of power lasts forever. Just a century ago, London was the centre of the world. Britain bestrode the world like a colossus and only those with strong nerves (or weak judgment) dared challenge the Pax Britannica. That, of course, is all history, but the Pax Americana that has taken shape since 1989 is just as vulnerable to historical change. In the 1910s, the rising power and wealth of Germany and America splintered the Pax Britannica; in the 2010s, east Asia will do the same to the Pax Americana. The 21st century will see technological change on an astonishing scale. It may even transform what it means to be human. But in the short term – the next 20 years – the world will still be dominated by the doings of nation-states and the central issue will be the rise of the east. By 2030, the world will be more complicated, divided between a broad American sphere of influence in Europe, the Middle East and south Asia, and a Chinese sphere in east Asia and Africa. Even within its own sphere, the US will face new challenges from former peripheries. The large, educated populations of Poland, Turkey, Braziland their neighbours will come into their own and Russia will continue its revival. Nevertheless, America will probably remain the world's major power. The critics who wrote off the US during the depression of the 1930s and the stagflation of the 1970s lived to see it bounce back to defeat the Nazis in the 1940s and the Soviets in the 1980s. America's financial problems will surely deepen through the 2010s, but the 2020s could bring another Roosevelt or Reagan. A hundred years ago, as Britain's dominance eroded, rivals, particularly Germany, were emboldened to take ever-greater risks. The same will happen as American power erodes in the 2010s-20s. In 1999, for instance, Russia would never have dared attack a neighbour such as Georgia but in 2009 it took just such a chance. The danger of such an adventure sparking a great power war in the 2010s is probably low; in the 2020s, it will be much greater. The most serious threats will arise in the vortex of instability that stretches from Africa to central Asia. Most of the world's poorest people live here; climate change is wreaking its worst damage here; nuclear weapons are proliferating fastest here; and even in 2030, the great powers will still seek much of their energy here. Here, the risk of Sino-American conflict will be greatest and here the balance of power will be decided."
2011
20 predictions for the next 25 years
The Guardian