What CEOs think about thriving in 2024 and beyond
Category Commercial and Industrial News
Earlier this year, PwC released the results of its 27th Annual Global CEO Survey, which provides valuable insights into the critical factors that allow companies to thrive in an age of continuous reinvention. Long-term business viability has emerged as a major concern for a majority of business owners and PwC has taken a deep dive into CEOs' thoughts about the future. 3Cube Property Solutions offers a brief guide to some of the salient points.
Reinvention and the reasons behind it
Topping the list of reasons why CEOs are concerned about the need to reinvent themselves are technological disruption and climate change. In response to these threats, 97% of respondents reported having taken steps to change their business models over the past five years. PwC's research shows that success relies on considering and implementing a broad range of initiatives in combination. This could, for example, involve investigating service partnerships while also keeping up to date with technological advancements.
AI and cognisance of its limitations
With regard to artificial intelligence, the survey focused on generative AI, which has the potential to significantly change the way businesses work. Roughly 50% of CEOs stated that they expect generative AI to enhance their ability to build trust with stakeholders, while 60% expect this technology to improve product or service quality. While some early AI-linked successes are already being enjoyed, the impact is expected to grow exponentially in the years ahead.
While they are embracing everything that it has to offer, CEOs are also acutely aware of possible unintended consequences. Cybersecurity was among the risks mentioned, as was the spread of misinformation. Another interesting concern was the possibility of generative AI increasing bias towards specific groups of customers or employees. Legal liabilities and reputational risks also made the list of significant concerns.
Developing a culture of trust
The report drives home the fact that while CEOs and other executives can do a lot to address inefficiencies and problems in their businesses, they can't do everything. Building a culture of trust among employees of all levels is critical, so that every employee feels safe to propose better ways of doing things. Strategies such as citizen-led innovation and redesigning career paths around skills are becoming increasingly important.
Factors that are getting businesses ahead
Factors enabling businesses to get ahead, according to the report, include technology development and deployment, novel pricing models and strategic partnerships. Other reinvention actions associated with higher profit margins include developing new technology in-house, enhancing capabilities through strategic partnerships or acquisitions and shifting from a global supply chain model to a regional one. Adopting new technologies that enhance one's capabilities is another factor mentioned, as is developing novel products and services.
PwC business strategy experts recommend that CEOs consider expanding their executive teams to include experts in emerging areas like climate regulation and AI. Another point to bear in mind from a human resources perspective is that people who are proficient in their current jobs may be resistant to change through fear that they won't be as good at what they are required to do in the future. Management teams who are serious about facilitating long-term growth must find ways to acknowledge concerns and reward openness to learning.
Traditionally, disruption has been seen as something to avoid, but in the age of continuous reinvention, it is to be embraced. By viewing upheavals as opportunities, CEOs can reshape their organisations to enable them to embrace the future and all that it holds. However, the more things change, the more they stay the same and having the right premises is still one of the cornerstones of success for any business. If you're looking for premises in Gauteng or the Western Cape, 3Cube Property Solutions can help. Get in touch and let's find the right location for your business.
Author: 3Cube Property Solutions
