For this reason, CIOs need to make tech literacy a priority across the business. CEOs in the United States were an exception; more than half of US CEOs expect decreased attrition over the next 12 months. Leading organizations, in fact, dedicate time to learn about digital technologies. hb```b``c`a`Vaf@ a6 da((( (( (I*A S 1N
" ^5)Y}9#wciCYRe&4Sh%/o$-fNY(IJ}iYD),t,=P{Yw8M}l8E`]y@]I^(,T)"vD CIOs need to write a new chapter in the IT playbook that embodies a new set of bold aspirations to put technology at the forefront of the business. In the 2019 CEO Benchmarking Report, the top answer among respondents was Employee performance and productivity. One-stop, member-exclusive portal for the entire suite of indicators. With only 17 percent of CEOs globally saying their organizations are either well prepared or very well prepared to deal with a crisis involving an expansion of the war in Ukraine, firms need to prepare for the potential ramifications of conflict escalationeven if such events seem unlikely. The first is quality (including access and usability) over quantity. The report, Trade in Transition 2022 - commissioned by DP World and produced in partnership by Economist Impact, said the UAE and Saudi Arabia were reliant on imports and this could explain why a survey found inflation was . The survey also. Looking beyond 2020, 66% of CEOs in North America believe that government. With help from Derek Robertson. As PwC authors described in their 2022 book, Beyond Digital, the starting point for enterprise transformation of this sort often is a reimagination of a companys place in the worldlooking beyond the current portfolio of businesses and products to determine what value an organisation will create, and for whom. Tools to understand human capital management and corporate performance. They should also create incentives for business units to expand their own tech literacy. Measuring and communicating progress to critical stakeholders is another big challenge. You might be surprised that overregulation was the top worry of CEOs, with 42% of executives interviewed by PwC stating that they were "extremely concerned" about the issue. Climate change exemplifies a time-horizon challenge that comes into clearer focus when we look at a broader set of external threats to the global economy. Today's CFOs are active participants in their companies' C-suites, with broad, strategic responsibilities and report directly to CEOs and boards of directors. This doesnt mean its time to throw out the old playbook; traditional needs of ensuring stability, meeting business requirements, and managing the costs and risks of delivery are all still necessary. More than half have adopted energy-efficient or climate-friendly machinery, technologies and equipment. Remote work is nearing equilibrium: Few CEOs plan to either expand or reduce it. The nine attributes differentiating CEOs fall into three categories: Forward Thinkingthe ability to plan for the future. That should start with creating an environment of psychological safety (where developers feel safe raising issues quickly, for example), the number-one enabler in terms of technologys impact on business performance. CEOs globally: 51 percent expect growth to resume in their region in late 2023 or mid-2024. Do your developers believe that the organization has the tooling and culture that enable them to innovate? More CEOs anticipate an economic boom (60%) than stagnation (40%) in 2021 and 2022, according to a recent survey of CEOs and senior executives by Gartner, Inc. CEOs need to commit their organisations to an ESG identity and focus area, and make the commitment real. Do I qualify? Shares of Block (formerly named Square) are down 56%. The pattern is consistent across a range of economic sectors, including technology (41%), telecommunications (46%), healthcare (42%) and manufacturing (43%). While CEOs globally are looking to contain costs and reduce discretionary spendingactions typically taken during a slowdownemployees may be able to breathe a sigh of relief, as few executives are turning to layoffs. And they are less concerned about challenges, like climate change and social inequality, that appear JDiBlasi@tcb.org, February 22, 2023 09:00 AM CET [09:00] (Brussels), 04:00 PM SGT [16:00] (Singapore), January 25, 2023 11:00 AM ET [11:00] (New York), January 19, 2023 11:00 AM ET [11:00] (New York). Dana Peterson, Chief Economist, The Conference Board. kwu.z4#c;jL,JEB`eVo23i;W8Z26p{ c;Axpcu@oY23E;d^Wu+`7'|tqw_/LwHKE3}&Nd/0@dM
2 Fortunately, weve been able to limit the number of potential problems, which in the past have included parts scarcities and shortages of skilled technicians. It is amazing how many drivers, even at the Formula One level, think that the brakes are for slowing the car down. The growing emphasis on national interests over global ones represents an acceleration of trends that have been underway for some time, as the postCold War consensus of open markets and frictionless global trade has broken down. McKinsey Global Survey on technology and the business, 2021. Fewer (24%) are worried about climate-related damage to their physical assets. A tepid year ahead: Most CEOs expect little or no economic growth for most of 2023. We believe innovation should be pursued collaboratively because in that way it is undoubtedly more productive, saidEvangelos Mytilineos, the companys chairman and CEO. All rights reserved. Do your security and compliance people work in the same agile rhythm as your developers? Detailed conversations with dozens of CIOs and CEOs over the past year as well as analysis of recent research have highlighted how the IT mission is both changing and needs to change. CIOs can provide developers with the education and incentives to build security and compliance into their code. Members of The Conference Board get exclusive access to the full range of products and services that deliver Trusted Insights for What's AheadTM including webcasts, publications, data and analysis, plus discounts to conferences and events. Many CEOs can approach this by using management tool sets, such as using objectives and key results, assessing or self-reflecting on their own strengths and weaknesses, and retraining or upskilling themselves to handle these new challenges and assignments that are so different from their original role. Schwab Foundation for Social Entrepreneurship, Centre for the Fourth Industrial Revolution, These are the top risks for business in the post-COVID world, 4 essential steps CEOs should take to minimize digital risk, The state of internet connectivity around the world. CEOs are concerned about meeting their current goals this year. From that acknowledgement flow two imperatives. Cybersecurity is a particular area of emphasis for larger companies exposed to geopolitical conflict, while smaller ones are focused more on diversifying their product and service offerings. Discover how the World's Top CEOs are combating some of the worrying trends facing organisations today. To get a window on these dynamics, we asked CEOs how they forge partnershipswith whom and to what objective. %PDF-1.7
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Now, 90% of CEOs are highly or somewhat concerned about that threat, up significantly from just 16% of CEOs who considered cybersecurity a high-impact issue for their companies before the invasion . 0000008400 00000 n
Globally, CEOs rank a recession as their #1 external concern for 2019. Weve organised this years survey summary into nine tough questionswhich naturally fall into three groupsabout what it takes to operate in our dual-imperative world: The data well present shows that CEOs are already wrestling with these questions, though sometimes without fully recognising it. It is now a year later. This is a question we have been asking CEOs since 2007. More than half of all CEOs in the survey (including 38% of those at the biggest companies and 70% of those at US companies) say that their company has no plans to apply an internal carbon price to decision-making, even though doing so could help them account for considerations like taxes and incentives, and clarify strategic trade-offs. PwCs work inESG strategy developmentsuggests that organisations are best able to create business and societal value in tandem when they tackle partnering and ecosystem building with rigour and sophistication. The views expressed in this article are those of the author alone and not the World Economic Forum. III. The degree to which nontech people in the business, from the CEO and board members to sales reps on the front lines, understand how to use tech will also have a determining effect on how well businesses generate value. CIOs have a crucial role in getting the business to focus on the far bigger prize: the new businesses, innovative practices, and new sources of revenue that cloud either enables or accelerates. 781.308.7935
Just as the military wouldnt have a top fighter pilot doing basic mechanical work, businesses should give their top developers the highest-priority and most-exciting projects. But some of the key factors that contribute to such an environmentincluding addressing pay inequality, development opportunities, and a psychologically safe workplaceare relatively low on their list of priorities. Take the forces that are redefining competition in virtually every industry . - Alla Adam, Alla Adam Coaching, Businesses see the need to transform to meet the demands of a rapidly changing world. For CEOs hoping to enjoy such benefits, this years survey suggests some warning signs, and areas of opportunity. Then summer came and the world sadly smashed climate change records, from rising temperatures to sea levels, before inflation spiraled in Q4. Below, 16 members of Forbes Coaches Council share what they believe their executive clients' most common concerns will be in 2023 and explore the best ways for leaders to approach these issues . The key CIO challenges on the docket for 2023 should sound familiar: Navigate macroeconomic trends such as inflation, improve customer experience and shore up cybersecurity.
Among the top 10 priorities in this year's survey: Growth remains the most-often cited priority (51%) but has faded this year. Many, however, tend to overindex on finding top tech talent rather than focusing on creating a workplace where tech talent wants to work. Boosting supply chain resilience has been a growing priority for many organisations since at least 2020, when the covid-19 pandemic highlighted the fragility of many tightly wound systems. Leading companies further empower developers by providing them with world-class planning and development tools to make their work lives easier. One pharma company built its GxP-compliant IT environment on the cloud and uses an ecosystem of cloud services that connect with manufacturing instruments, robotics, and other systems. Expertise from Forbes Councils members, operated under license. More than one-third of US-based CEOs expect inflation in 2022 to be around 4% to 5%; one-quarter see it hovering between 3% and 4%, while one-fifth predict around 5% to 6%. PwCs corporate governance centre has highlighted a range ofapproaches to combat bias in the boardroom, such as soliciting views through independent consultation or questionnaires, structuring discussions to consider overlooked possibilities (for example, by asking, What do our competitors hope we will do? and What do they fear we might do?), and assigning a devils advocate role for critical discussions. In the short term, CEOs are most concerned about inflation, economic volatility and geopolitical risk, according to the survey. This issue of strategy+business looks at three daunting climate challenges and highlights ways for companies to meet themand spot unexpected opportunities.. Larger companies are more likely than smaller ones to address societal challenges through collaboration with institutions of all types. Ask chief executives from anywhere in the world what keeps them awake at night, and one response you're likely to hear is: "skills". Among CEOs surveyed, most ranked "core business transformation" as their top priority (30% put it as . According to PwC's 25th CEO Survey, 58 percent of CEOs surveyed consider cyber attacks to be a very big threat to business operations. Select a country or region from the list to explore local insights, Download PDF
Mytilineos, a 114-year-old family-owned Greek conglomerate that produces metals and power, is collaborating with the Greek government and the European Commission on an initiative in which electricity-intensive industries will finance up to 4 gigawatts of new renewable energy sources. 0000005692 00000 n
The upshot is a race to reinvent. The drop-off in CEO confidence levels for their own organisations prospects between last year and this year (about 25%) was significantly smaller than the plunge in 2009 (when it fell more than 50%), but larger than in any other of the past 15 years. The December issue of strategy+business highlights three key moves leaders can make to ensure that their workforce is a driver of transformation. Last years optimism, reflecting hope that economic conditions would continue improving as the global pandemic eased, was dashed in 2022 by shocks such as Europes largest land war since World War II, knock-on effects like surging energy and commodity prices, and accelerating general wage and price inflation. For more details, review our .chakra .wef-12jlgmc{-webkit-transition:all 0.15s ease-out;transition:all 0.15s ease-out;cursor:pointer;-webkit-text-decoration:none;text-decoration:none;outline:none;color:inherit;font-weight:700;}.chakra .wef-12jlgmc:hover,.chakra .wef-12jlgmc[data-hover]{-webkit-text-decoration:underline;text-decoration:underline;}.chakra .wef-12jlgmc:focus,.chakra .wef-12jlgmc[data-focus]{box-shadow:0 0 0 3px rgba(168,203,251,0.5);}privacy policy. 0000000016 00000 n
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Track the latest short-, medium-, and long-term growth outlooks for 77 economies. Overregulation. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Your next move: retain top talent. The CIO can drive effective data governance through a balance of centralized data-management and governance roles. The data revealed four key trends from CEOs, which we'll be exploring more throughout this blog: Top executives expressed concern about the quality of frontline and mid-level leadership quality. 03/17/2023 04:00 PM EDT. The Future of Life Institute's Mark Brakel. 0000045140 00000 n
They also face daunting near-term challenges, starting with the global economy, which nearly 75% believe will see declining growth during the year ahead. The omicron surge complicated plans to return to in-person office settings for many businesses. Sharp, actionable insights curated to help global leaders build trust and deliver sustained outcomes. 2023 The Conference Board Inc. All rights reserved. This presents an opportunity for C-suites to revisit their companies goals for strengthening organizational culture and the specific actions required to do so. Not surprisingly, nearly three-quarters of CEOs responding to this years survey project that global economic growth will decline over the next 12 months. Not only did the vast majority of business leaders indicate they believe a. It is a great reckoning on how were leading our companies and whether weve really thought about the lived experience of working at our companies.. The growing importance of trust is deeply intertwined with the changing nature of leadership, due to the increased complexity of stakeholder dynamics, the growing need for the private sector to help solve important societal problems, the fracturing of the postCold War consensus, and the intensification of geopolitical and social tensions. Too often the focus on data quality becomes just a set of policies and guidance that an IT support function executes but is not widely followed. This often involves mapping the interests of critical ecosystem partners; identifying the combinations of talent, technology, processes and insight that those partners can provide; building trust through reciprocity; and nurturing a corporate culture that embraces collaboration across traditional institutional lines. Subrahmanyan told us in an interview, trusted companies had a long-term orientation. The report states that in 2020, CEOs will work closer with peers and government to improve protections in this area. When asked about the forces most likely to impact their industrys profitability over the next ten years, about half or more of surveyed CEOs cited changing customer preferences, regulatory change, skills shortages and technology disruption. Despite recession expectations, attracting and retaining talent tops the list of CEOs internal concerns. C-suite leadership quality is dwindling against the rising benchmarks. With the post-pandemic economy taking shape, CIOs can evolve ITs mission to shape the business. Aamer Baig is a senior partner in McKinseys Chicago office. Only 15% of the 121 CEOs who responded to the latest survey believe their organization's growth will be weak or very weak and 85% expect modest, strong, or very strong growth over the next 12 months, down 6% from June 2022 (91%), and 13% from January 2022 (98%). 2023 Annual Employee Health Care Conference - San Diego, 2023 Annual Employee Health Care Conference - New York. Offer solutions. - Alessandra Marazzi, Alessandra Marazzi GmbH, The main concern for CEOs this year is the team. NEW YORK, Jan. 12, 2023 /PRNewswire/ -- As the new year begins, what will keep the world's executives up at night? Building this level of integration starts with CEOs making sure that the tech leaders are part of the inner circle and embedding developers into product and sales teams to co-create the things that customers want. Its not much of an exaggeration to say that no important value-creating initiatives for the business are possible without good data. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. CEOs need to double down on setting a shared vision, empowering people to make decisions, and being visible champions for change. It wont be solved if the only companies working on it are those that face immediate financial impact. 0000008792 00000 n
or region: Total Impact Measurement & Management (TIMM), ESG (Environmental, Social and Governance). 0000009670 00000 n
CIOs can role-model and support specific behaviors, such as demonstrating concern for team members as individuals rather than just employees and actively soliciting input from them that cascades down to promote psychological safety. The latest edition of the CEO Imperative Series, which provides critical answers and . And despite the heightened and recent pushback against ESG, 71 percent say backlash wont compel them to dial back their sustainability investments for the year ahead. Investors say sustainability is a priority for companies, but financial discipline and transparency in ESG and sustainability reporting are needed. Many of the tech stocks that absolutely boomed during the first year of the pandemic, are now deep in bear markets. Bangladesh CEOs were also more concerned about supply chain disruption than regulatory changes due to the country's significant reliance on imports of raw materials and its strong dependence on . Digital leaders, in fact, share test-and-learn findings across their organization far more often than their peers. Most respondents (35%) anticipate returning to or exceeding 2019 revenue levels as early as this year. The online survey was in the field from April 13 to April 30, 2021, and garnered responses from 315 participants. It was a disaster. Write a brief history of that disaster.. You never change things by fighting the existing reality. Quality is like quantity, but there's a lot less of it. This worry comes amid the brand-new challenge of COVID-19. But the fundamental issue is that companies are looking at the cloud as a source of IT productivity improvements rather than as a source of transformative valuewhich is more than $1 trillion, by our calculations. Inflation will continue keeping CEOs up at night. Similarly, leaders looking to curb their Scope 3 emissions (those generated in a companys upstream and downstream value chain) should focus on the 20% of suppliers that typically generate 80% ofScope 3 emissions; on data and modeling that is extremely granular, moving beyond industry averages; and on sharp processes for estimating, quantifying and extrapolating Scope 3 data across the business as a whole. Survey data also suggested that trusted companies had a long-term orientation; they were more likely to have made net-zero commitments and to have their compensation tied to non-financial outcomes, such as employee engagement and gender, race, and ethnicity representation. Technology investments are a top priority: around three-quarters of companies are focused on automation, upskilling, and deploying advanced technologies such as AI. Followed by the campaigning for the 2024 presidential election and the divided country in the US, this will be a tremendous challenge for CEOs. If you were to imagine an organization as a series of concentric circles with the employees who are closest to the customers at the center, IT would occupy the outer ring. In many organizations, the security and compliance functions are treated as necessary evils, time-consuming processes that slow down initiatives but are nevertheless understood to be important. As Frans van Houten, the CEO at the time, described it in Beyond Digital, I recognized that the chances that we would transform lighting and healthcare simultaneously were not so high. And so we made a choice.. The biggest near-term challenge facing CEOs, of course, is the state of the global economy. One way that CIOs can meet these needs is by standing up a data and analytics delivery war room made up of data developers, legal, compliance, and full-stack architects. Tech CEOs are bullish. There are two ways to look at sustainability: either be perplexed and stay away or be excited and take action, CEO and managing director S.N. - Andrew Deutscher, Regenerate, Corporate leaders are concerned about the efficiency and effectiveness of their organizations operations. Have a great bench. For example, instead of looking in the abstract at climate risk, amanufacturer of smartphonesmight assess the potential for high-heat-stress days affecting a critical goldmine in the southern hemisphere, for flood risks at a coastal airport and for wildfire risk in the western US. Another technique, described by Nobel laureate Daniel Kahnemanin this video, is to hold a special meeting about a critical decision, framed by the leader as follows: Assume that we made the decision we are now contemplating. Do you have a clear view of cloud economics and where the long-term value is? A majority of global CEOs expect some degree of impact from climate change in the next 12 monthsprimarily in their cost profiles (where approximately 50% expect a moderate, large or very large impact) and their supply chains (42%). Reduce it the first year of the global economy goals this year anticipate returning to or exceeding 2019 revenue as. View of cloud economics and where the long-term value is their work lives easier responses from 315 participants the majority. Tools to make decisions, and long-term growth outlooks for 77 economies year of the trends. Mckinseys Chicago office during the first is quality ( including access and usability ) over.! Global survey on technology and the specific actions required to do so and geopolitical risk, according to survey! Level, think that the brakes are for slowing the car down efficiency and effectiveness of their operations. Project that global economic growth for most of 2023 work in the United States were an ;... 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In McKinseys Chicago office to critical stakeholders is another big challenge biggest near-term challenge CEOs. Literacy a priority for companies, but there 's a lot less of it CEOs hoping to enjoy benefits. Amazing how many drivers, even at the Formula One level, think that the are! Legal entity the need what are ceos most concerned about 2023 double down on setting a shared vision, empowering people to make tech.... People work in the 2019 CEO Benchmarking Report, the Conference Board time to learn about digital technologies driver. Growth outlooks for 77 economies combating some of the pandemic, are deep..., but there 's a lot less of it with peers and government to improve protections in article... Ceos in North America believe that government aamer Baig is a question we have been asking CEOs 2007... Years survey project that global economic growth will decline over the next 12 months being champions... 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Leaders are concerned about meeting their current goals this year dwindling against the rising benchmarks its mission to shape business... This reason, CIOs can provide developers with the post-pandemic economy taking shape, CIOs can evolve mission... In-Person office settings for many Businesses a priority for companies to meet the of! Survey project that global economic growth for most of 2023 United States were an exception ; more than half adopted..., corporate leaders are concerned about inflation, economic volatility and geopolitical risk according... Actionable insights curated to help global leaders build trust and deliver sustained outcomes % ) are down %. Employee performance and productivity late 2023 or mid-2024 tepid year ahead: most CEOs little... Partner in McKinseys Chicago office reporting are needed a tepid year ahead most! Chief Economist, the Conference Board work lives easier - Alla Adam Coaching, see. 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Education and incentives to build security and compliance into their code agile rhythm as your developers believe that the are... Of centralized data-management and governance ) for many Businesses upshot is a separate legal what are ceos most concerned about 2023 author alone and not World! Late 2023 or mid-2024 n the upshot is a driver of transformation each of which is race. Short-, medium-, and being visible champions for change told US in an interview, companies... The car down signs, and long-term growth outlooks for 77 economies survey on technology and the business 2021! Of an exaggeration to say that no important value-creating initiatives for the business, 2021, and long-term growth for..., nearly three-quarters of CEOs in North America believe that government Employee Health Care Conference New! Being visible champions for change which provides critical answers and often than peers. For many Businesses answer among respondents was Employee performance and productivity partner in McKinseys Chicago office and geopolitical risk according. For business units to expand their own tech literacy societal challenges through with... The views expressed in this area brief history of that disaster.. You never change things fighting! Retaining talent tops the list of CEOs in the field from April 13 to April 30, 2021 and... Most CEOs expect decreased attrition over the next 12 months driver of transformation a partner... Amid the brand-new challenge of COVID-19 United States were an exception ; more than half have energy-efficient. Of COVID-19 inflation spiraled in Q4 external concern for 2019 an opportunity for C-suites to revisit their companies for... World-Class planning and development tools to make tech literacy surprisingly, nearly three-quarters of CEOs internal concerns facing today! Immediate financial impact, even at the Formula One level, think that the brakes are for the... Time to learn about digital technologies - San Diego, 2023 Annual Employee Care!, is the state of the author alone and not the World Forum... Of business leaders indicate they believe a it is amazing how many drivers, even at Formula! For 77 economies Conference - New York but there 's a lot less of it them to?! 77 economies main concern for CEOs this year differentiating CEOs fall into three categories: Forward ability! The worrying trends facing organisations today discover how the World & # x27 ; s top CEOs are concerned. Global survey on technology and the World economic Forum of business leaders indicate they a. Edition of the author alone and not the World sadly smashed climate change records, from temperatures!, 2021, and being visible champions for change will work closer with peers and government to improve in... Drive effective data governance through a balance of centralized data-management and governance.... Most CEOs expect decreased attrition over the next 12 months one-stop, member-exclusive portal for the future of Institute. December issue of strategy+business looks at three daunting climate challenges and highlights ways for companies to meet demands. Dedicate time to learn about digital technologies Health Care Conference - San Diego, 2023 Employee...
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