Last week, McKinsey & Company representatives shared a briefing discussing their recently published special report, What matters most? Six priorities for CEOs in turbulent times. Liz Segel, Senior Partner, Chief Client Officer and Managing Partner, Global Industry Practices, New York and Homayoun Hatami, Senior Partner and Managing Partner, Global Client Capabilities, Paris, shared their insights.
Everyone knows the list of issues that have confronted CEOs the past few years. During these economic headwinds, the reflex may call for hunkering down and weathering the storm, but this is the time when companies can gain ground on rivals, if they play their cards right.
As McKinsey surveyed hundreds of CEOs, they found six priorities top the list of CEO agendas worldwide. They are:
- Grow new businesses
- Grow through technology
- Stay the course on net zero
- Modernize ways of work
Resilience. It’s the vital “muscle” for companies navigating a disruptive world. Resilience needs to be deployed across six areas: finance, operations, technology, organization, business model and reputation.
Courage. The best chief executives and leaders need to be ambidextrous: careful managing downside while courageously pursuing outside opportunities. These leaders are thinking not just how to make it the next two or three years, but how to reframe the game so their company thrives over the next decade.
Grow the business. More than half of top executives see growing new businesses a top three priority. It’s time to think about building a unicorn and the biggest opportunities are in green technology.
Consistent with McKinsey’s top findings, the recently released PwC 2022 Global CEO Study polled 4400 CEOs. 73% expected global economic growth to decline over the next twelve months. 40% said their companies would not be economically viable over the next decade unless they innovated and transformed at a faster pace.
Technology. It seems all companies are shifting to put software at the heart of their business. But digital transformation is just the start. Technology is always evolving, providing new opportunities for CEOs who seek to transform their business.
Net zero. The private sector is now engaged in reducing carbon emissions. Economic competitiveness, affordability, national security and sustainability are each important and make up the mosaic for CEOs to knit these concepts together in order to reach net zero.
Modernize the way of work. The final priority is leading people by providing purposeful work with new incentives. CEOs need to carefully consider the office of the future and the implications for top talent. Do these well and you’ll create a competitive advantage.
The CEO is the company’s top strategist and integrator. The McKinsey report provides in-depth readings to give CEOs what they need during this tumultuous time. For CEOs who seek to create an enterprise of great value, this is must reading.