Long term perspectives from the top of the corporate world
After years of navigating through the most significant financial, political and technological disruptions in more than half a century, today's CEOs continue to confront business challenges of unprecedented complexity.
In an economic environment where change moves faster than ever, while growth takes time and focus, business leaders must look beyond the immediate horizon.
KPMG's CEO Study "Setting the Course for Growth: CEO Perspectives" gathers viewpoints from 400 U.S. CEOs, for an in-depth look at the most critical business issues of the next three years, and powerful insights on where U.S. leaders are taking their companies over the long-term.
More than half of the CEOs surveyed (55%) feel more confident about the economy over the next three years than they did a year ago. Slightly more, 59% and 62% respectively, feel more confident about their industry and their company.
- Growth Strategy
Half of the respondents characterize their overall growth strategy as aggressive, and half as conservative. A vast majority (84%) are either moderately aggressive or moderately conservative, again split roughly in half 72% say that the focus on growth is more important for their companies’ well-being than a focus on operational efficiencies. The top growth strategies are geographic expansion and organic growth.
- Staying Relevant
A vast majority of CEOs surveyed (90%) are concerned about competitors taking business away. 72% are concerned about the relevance of products/ services three years from now and 59% about new entrants disrupting their business model. In an attempt to stay relevant, the top organizational priorities are promoting and advancing the brand, and more interaction with customers.
76% of CEOs said that their companies are at some stage of transforming or having just transformed their operating models. However, just 16% evaluate their operating models quarterly, and the majority (54%) do it yearly. While spurring innovation is among the top challenges for CEOs, just 17% of companies have developed and implemented a formal, company-wide process for innovation across all units.
Regulatory environment is the top issue that can have the most impact on a company. It is also the second most critical challenge that CEOs expect to face over the next three years (after geographical expansion), according to the survey.
- Risk Management
Risk management is the second-highest concern about the company for the CEOs surveyed (following financial performance). The majority of CEOs either lead the discussions on risk planning or have a strong voice in them (89%). However, risk planning is proactively discussed on a regular basis at just 27% of organizations.
For more information, download the full report.