KPMG, one of the Big Four auditors, has released its latest study on CEOs, surveying 1,268 CEOs in key markets and industry sectors globally on their hopes and concerns for their organizations in the future. Of these strategic priorities, the annual CEO Outlook highlights the increasingly important role of innovation and how “CEOs believe that technological change will be one of the biggest factors impacting growth over the next three years, second only to economic factors.”
The report also highlights the growing important of partnerships and collaboration, finding that 58% of CEOs think collaborative growth will be key in the future. “Companies are increasingly forming partnerships, alliances and joint ventures with startups and universities,” according to the KPMG report.
KPMG in Brazil’s Chairman Pedro Melo explains that a lot of CEOs are finding out they don’t have experience with “the critical issues their organization faces” and are increasingly turning to “arrangements such as joint ventures, alliances and partnerships with other companies to respond to market changes in a timely manner.”
Here is a complete list of the report’s key findings on CEO concerns for the future of their organizations:
- 58% of CEOs expect collaborative growth to increase shareholder value
- 72% of CEOs expect “the next three years will be more critical for their industry than the last 50 years”
- 88% of CEOs think customer loyalty is a top concern
- 86% of CEOs concerned with how millennials effect business
- Cyber-security is CEOs top technology concern
- 41% of CEOs think their companies will be “significantly transformed” in the next three years
- 69% of CEOs concerned with new issues in leadership due to innovation
With these concerns in mind, the report additionally identifies what CEOs consider to be their top strategic priorities, with innovation topping the list.
KPMG’s report, while vast in its findings, highlights one major theme across the board: A majority of CEOs recognize the need to foster a corporate culture of innovation, responding quickly to technological opportunities and investing in new corporate processes. What’s more, these CEOs are willing to handle the changes to come and ready to transform their organizations to accommodate the changing tide.
For more information, read the full CEO Outlook report here.