Corporate Canada lacks bold vision, poll suggests
Corporate Canada is a timid place full of risk-averse leaders and it’s hurting the bottom line, says a new study that found that just 11 per cent of businesses here are “truly courageous.”
The conclusion comes from a sweeping poll of 1,200 businesses across Canada by Deloitte, which on Monday released a 36-page report, The Future Belongs To The Bold, illustrated with photographs of Inukshuk and of jack pine trees clinging tenaciously to a cliff.
“At a time when Canada needs its businesses to be bolder and more courageous than ever before, almost 90 per cent aren’t up to the task,” the report concludes. “This lack of courage has serious implications for these organizations and for the Canadian economy overall.”
The survey measured courage in five ways. It asked whether a business defies existing practices, takes risks, takes moral positions, has leaders with convictions, and taps the potential of Canada’s cultures.
A pre-screened group of business leaders at firms ranging from corner stores to Canada’s biggest private and public companies responded to the interactive voice response poll.
Deloitte categorized 15 per cent of respondents as fearful, 43 per cent as hesitant, 30 per cent as “evolving,” and 11 per cent as courageous.
Almost half of the respondents said “courageous” described their organization. But when they pro bed further, the study’s authors found a “courage perception gap” — one third of companies believe themselves bold when they are not.
“The result?” reads the report. “Investments aren’t made. New ideas aren’t explored. And Canadian companies slowly fall further and further behind.”
Canadian firms invest less in machinery and equipment than in comparable industrialized nations, while investments in training have dropped 40 per cent in 20 years, the report notes. These kinds of riskaverse behaviours are a drag on an economy that will grow just 1.3 per cent this year, compared to global growth of over three per cent.
Courage helps the bottom line, the report says :69 percent of“courageous” firms have rising revenues, and 17 per cent increased their workforce. Just 46 per cent of “fearful” businesses earned more, and only four per cent hired more staff.
Frank Vettese, managing partner of Deloitte Canada, chose in an interview to look at the bright side.
“I am very encouraged that 11 per cent of the businesses are truly bold,” said Vettese. “And one-third of the companies we surveyed were on the cusp of being courageous.”
“We came to conclusions about Canada being risk-averse,” Vettese added. “Canada has got some serious work to do.”
Investments aren’t made. New ideas aren’t explored. And Canadian companies slowly fall further and further behind.