Over the past few years, adapting to change and volatility has become a constant and we’ve already seen that play out this year, with the disruption caused by the Auckland floods and Cyclone Gabrielle. These events are set against a backdrop of other immediate issues such as higher inflation, the threat of recession, continued supply chain challenges and ongoing labour and skills shortages.
Results from PwC’s annual CEO Survey show that these concerns are dominating the CEO agenda as leaders look to drive profitability in the face of numerous headwinds.
To help navigate this we can use insights from the 2023 PwC CEO survey, which collected data from almost 5,000 CEOs in 105 countries and territories, including 142 Aotearoa New Zealand CEOs. Here we explore key areas of prioritisation identified in the survey and how businesses can apply the insights.
Digital Transformation
Survey results show that CEOs are investing in technology to transform their businesses and ensure long-term growth and prosperity. In Aotearoa New Zealand there is a particular focus on new technologies, such as cloud, automation and artificial intelligence (AI). When it comes to technology, the majority of business leaders are making investments with an emphasis on reinventing, rather than just maintaining their current business (63% compared to 37%).
Sustainability & ESG
When the survey was conducted in late 2022, CEOs in Aotearoa New Zealand were more focused on their economic environment with only 8% feeling extremely or highly exposed to climate change. When asked about actions their company has taken to prepare for climate risk, the focus is firmly on implementing initiatives, innovating products and processes, and developing a strategy. Applying an internal price on carbon in decision-making is at the bottom of the table, with 61% saying they have no plan to do it. However, companies need to understand the importance of factoring an internal price on carbon, which is essential for organisations to adequately anticipate and manage the risks of the transition to a zero carbon economy.
Innovation
Businesses are adopting a culture of innovation to continue to be ahead of competitors and respond to customers’ changing needs. The survey shows that CEOs are investing in research and development, collaborating with partners and leveraging emerging technologies to achieve this, driving growth and differentiation.
Talent and Culture
This remains an ongoing challenge for businesses, particularly in the tech space and healthcare industry, with a high demand for skilled workers. There is an opportunity for CEOs to think about how they can best use technology, such as automation, alongside their employees to ease the pressure and drive longer-term transformation. The survey showed that 86% of NZ CEOs are investing in upskilling their workforce in the next year, and 92% are developing leadership and talent to drive the productivity of their workforce in the next 12 months. A further 83% are planning to upskill and reskill their employees.
Learn more about what’s on the minds of CEOs in Aotearoa New Zealand at www.pwc.co.nz/insights-and-publications/ceo-survey/ceo-survey-2023
