The growth challenge is being redefined for the modern era. Today’s CEOs must steer a new growth path for their organizations that deliver not only strong financial returns, but also societal and environmental value.
Achieving purposeful growth against a backdrop of economic and political volatility, rapid technological change, and significant demographic shifts is the defining challenge for this generation of CEOs.
CEOs in Luxembourg see organic growth as the most important strategy for achieving growth objectives (48 percent), well ahead of strategic alliances with third parties (16 percent), and joint ventures (16 percent). Compared with CEOs in Benelux and core countries, they give more priority to organic growth, and less to strategic alliances
The majority of CEOs surveyed in Luxembourg have expressed a confidence in their own transformation abilities, both at the personal and management level. Six in ten agree that they are personally prepared to lead the organization through radical transformation, while only a minority are not confident that the existing leadership team is fully equipped to do this. - Philippe Meyer, Managing Partner of KPMG Luxembourg
In light of the recent implementation of GDPR, it seems that data protection is front of mind for the CEOs surveyed and is considered as an integral part of their role.
This research showed that Luxembourg CEOs, despite acknowledging a need to build some dependency on technology, often make decisions based on instinct rather than data analytics.
40% of CEOs surveyed stated that they had less trust in the accuracy of predicative analytics than in historical data and 68% of Luxembourg CEOs have overlooked the insights provided by data analysis models or computer-driven models in the past 3 years because they were contrary to their own experience or intuition.
Although they are well acquainted with the challenges they face, the majority of CEOs in Luxembourg do not agree on any particular changes or actions needed. Less than half (44 percent) agree that the main challenge in achieving growth is acting with agility, and 40 percent say that they are struggling to link their growth strategy with a wider societal purpose for the organization.
“When we drill down to look at CEO views of the individual technologies involved in transformation, digital is the one creating the biggest opportunities for organizations in all sectors but it presents challenges. The majority of CEOs surveyed in Luxembourg say that they are struggling to run in parallel the digital and non-digital aspects of their business. Technology will only work for those who take the opportunity to fundamentally rethink altogether existing operating models, technology platforms, people skills and corporate culture. That’s why at KPMG we are committed to help clients critically look at their business though a digital lens in order to thrive in this new world.” - Pascal Denis, Head of Advisory at KPMG Luxembourg