Over long term?
What about over the next 12 months?
PWC's "CEO Survey" (2023), includes the opinions of 4,410 CEOs from 105 countries.
40% do not consider their companies viable over 10 years (if the current business model stays the same).
CEOs are considering the following Top 3 solutions (for the next 12 months) to mitigate negative economic effects:
- reduction of operational costs,
- product offering diversification,
- price increases
Interestingly enough, 60% of them do not intend to reduce their workforce.
In general, the survey highlights a general negative feeling.
But let’s focus on the glass half full for a change.
Trends have their periodicity. Nothing is permanent neither in business nor in the economy.
The chart below highlights CEOs' confidence (over the next 12 months) in their company’s growth prospects:
In 2009, CEOs' confidence in growth potential had dropped by 58% compared to the previous year (it was the time of the global financial crisis).
After only one year, in 2010, expectations for 2011 were becoming optimistic (+50% change from 2009).
In 2021/2023:
The gap between the confidence indicators year on year grew really wide.
From an increase in positive expectations (+34%) it quickly went down to significantly low negative expectations (-26%).
(unfortunately, there is no info available for 2022).
A conclusion:
With so much change going on, reinventing companies is becoming the rule of thumb.
This is why your role in establishing a common vision across the organization becomes extremely important.
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link to PWC survey
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