Development is the High Strategic Enterprise Precedence for Half of CEOs.
Majority of CEOs Consider an Financial Downturn or Recession Shall be Shallow and Quick.
Inflation and Value Sensitivity Creating the Greatest Shifts in Buyer Habits.
A current survey of CEOs and senior executives by Gartner, Inc. revealed that synthetic intelligence (AI) was the highest know-how that CEOs imagine will considerably affect their business over the subsequent three years, cited by 21% of survey respondents.
“Generative AI will profoundly affect enterprise and working fashions,” stated Mark Raskino, Distinguished VP Analyst at Gartner. “Nevertheless, concern of lacking out is a strong driver of know-how markets. AI is reaching the tipping level the place CEOs who will not be but invested develop into involved that they’re lacking one thing competitively vital.”
The 2023 Gartner CEO and Senior Enterprise Government Survey was carried out from July by way of December 2022 amongst over 400 CEOs and different senior enterprise executives in North America, Europe, Asia/Pacific, Latin America, the Center East and South Africa, throughout completely different industries, income and firm sizes.
Half of CEOs Cite Development as Their High Strategic Enterprise Precedence
“When figuring out enterprise priorities, CEOs are hesitant, however not frozen,” stated Kristin Moyer, Distinguished VP Analyst at Gartner. “Greater than half of CEOs imagine an financial downturn or recession in 2023 can be shallow and brief, and the survey confirmed solely a modest rise in money move, capital and fundraising considerations.”
Regardless of the affect of those financial headwinds, half of CEOs cited development as the highest strategic enterprise precedence for the subsequent two years. Know-how additionally stays a prime focus space for CEOs, carefully adopted by workforce points (see Determine 1).
Fig. 1: CEOs’ High Strategic Enterprise Priorities for 2023-2024 (Sum of High Three Mentions)
Supply: Gartner (Might 2023)
“After three years of volatility, CEO priorities are stabilizing,” stated Raskino. “Government leaders are trying previous the aftershocks of the omnicrisis interval to a time when expertise, sustainability and next-level digital change would be the levers of aggressive efficiency.”
In actual fact, mentions of environmental sustainability rose 25% over the earlier yr’s survey, which was the first time sustainability ranked amongst CEOs’ prime 10 priorities. Gartner predicts that by 2026, environmental sustainability can be a better CEO strategic enterprise precedence than the technology-related class.
Inflation Drives Shifts in Buyer Habits
Inflation was ranked as probably the most damaging enterprise danger by 22% of CEOs, and practically 1 / 4 cited higher worth sensitivity as the most important shift in buyer expectations they anticipate this yr. Nevertheless, growing costs continues to be the highest motion that CEOs are taking in response to inflation (44%), adopted by price optimization (36%) and productiveness, effectivity and automation (21%).
“It’s regarding that CEOs don’t but appear to be targeted on productiveness as a lot as they need to be in an inflationary interval,” stated Moyer. “This can be attributable to wishful considering that inflation won’t develop into a persistent function of the financial panorama. CEOs should embrace automation to revamp strategies, processes and merchandise for effectivity, reasonably than pushing price will increase onto clients.”
Attracting and Retaining Expertise Is the High Workforce Precedence
When requested in regards to the affect of assorted dangers on the enterprise, 26% of CEOs cited the expertise scarcity as probably the most damaging danger for his or her group. Attracting and retaining expertise is, by far, CEOs’ prime workforce precedence. Considerations about compensation are the most important shift in worker and potential worker habits that CEOs anticipate, adopted by a need for higher flexibility and distant or hybrid work.
“The emphasis on pay isn’t a surprise in an inflationary surroundings, however in prior financial cycles, unemployment would sometimes be undermining labor market energy,” stated Raskino.
Gartner shoppers can learn extra within the report “2023 CEO Survey – The Pause and Pivot Yr.”
