A tale of two strategies. To complement the recently published KPMG Global CEO Outlook Survey 2015, we examined the views of the 151 UK respondents and found the country’s business leaders in a confident mood.
UK CEOs differ with their global peers in several significant areas – primarily around growth opportunities and the pace of change to their business model. Our study also reveals a sharp strategic split among British business leaders with opinion divided over how best to exploit the opportunities ahead. One group (51 percent) sees the need to transform their business for a new world (Revolutionary CEOs); the other believes in holding firm on their current model, but optimising it wherever they can (Evolutionary CEOs).
Although the speed with which business models change is increasing, UK CEOs seem remarkably unbothered by key competitive risks. UK CEOs regard innovation as crucial: 85 percent believe they are innovating fast enough to secure a competitive future, though far fewer are confident they are using data and analytics technologies effectively.
UK CEOs’ strategies for innovation differ. Some are focussing on in-house R&D, and plan substantial capital investments. Others think partnerships and collaborations with other parties represent the best way to secure innovation that will drive future growth.
Either way, there is work to be done. Only one in three UK CEOs say they have implemented a fully-developed company-wide process for innovation, far less than their global peers.
Managing disruption has become incredibly important. If you do not anticipate change, and you do not embed agility into your business model, you will be at a competitive disadvantage.
Historically, businesses underwent transformation once a generation. Now most organisations will face business model change at least once during the average tenure of a CEO. The organisations which are agile and alive to the need to evolve will be more successful than those that don’t.
"Assume that someone, somewhere is figuring out how to change the rules of the game you are playing."
"Take advantage of the opportunities presented by big data and analytics tools to generate actionable insights into your customers' needs and desires."
"Sometimes an extension of the dating phase can be a pragmatic step, before seeking to tie the knot"
"Smaller firms see more of their competition up close. They feel the threat more accurately than a larger company might."
"The big question is what strategic route should you follow: buy, merge, collaborate, or something else?"
"UK Financial Services CEOs should focus on business areas where customer loyalty is less pronounced and the switching threat is the greatest."
"The organisations which are agile and alive to the need to evolve will be more successful than those that don't."