CEOs are prioritizing agility and instincts over data, but almost 67% of them say they have overlooked the insights provided by analytics, according to KPMG.
A bullish outlook tempered by realism.
NEVERTHELESS, that optimism is not translating into bullishness about their own company’s topline revenue growth.
With many of the world’s major economies experiencing positive growth momentum, we found CEOs are optimistic about the worldwide economic and business environment over the next 3 years at the global, country, industry and company level.
Three-quarters of CEOs are confident in their country’s growth prospects over the next 3 years
Their confidence in the global economy, their industry and their company has increased since last year. At an industry level, for example, over three-quarters (78%) say they are confident in growth prospects for their sector, a 9% increase on 2017.
A DOSE OF PRAGMATISM
However, that faith in the macroeconomic environment is not translating into ambitious topline revenue growth targets: the majority of CEOs —55%— expect cautious revenue growth of less than 2%.
“As traditional products and services become obsolete and CEOs work to make their portfolios relevant to the digital age, it will take time to replace historical revenue streams.”
More than half of CEOs expect cautious topline revenue growth of less than 2%. This conservative outlook could reflect the difficulties of driving growth from new digital business models and revenue streams. As traditional products and services become obsolete and CEOs work to make their portfolios relevant to the digital age, it will take time to replace historical revenue streams. What’s more, the success of new digital initiatives is often revealed by different performance indicators than pure topline growth—such as, for example, customer engagement.
This caution is also reflected in their hiring plans. Over half (52%) say they will not hire new skills until growth targets are met and only 37% predict headcount growth of more than 6% over the next 3 years. This is a 10% point decrease versus 2017.
In today’s environment, pragmatism prevails.
The upswing in the global economy has generated a broadly positive outlook, and we’re seeing more growth opportunities in emerging markets than in developed ones.Tim Murray, CEO Aluminium Bahrain