ECONOMYNEXT – Audit firm KPMG International’s Sri Lanka unit said it will release the results of a global CEO survey in Colombo this Wednesday (12 June).
The ‘KPMG International Global CEO Outlook’ report has for the first time included chief executives from Sri Lanka.
Globally, two-thirds of CEOs say that agility is the new currency of business and that if they don’t adapt, their business will become irrelevant, the audit firm said in a statement.
“CEOs are faced with a stark choice. In the face of unparalleled environmental, economic and technological change, they are looking to grow their businesses by creating the organizational agility to disrupt existing business models and challenge long-held market orthodoxies,” it said.
According to the fifth KPMG International Global CEO Outlook, just over half of CEOs are confident they will succeed but are realistic, with 53 percent projecting cautious three-year growth of up to 2 percent (down from 55 percent in 2018).
KPMG Sri Lanka had interviewed 15 chief executives for the global report, bringing the local context and trends into the survey for the first time.
The chief executives were chosen depending on the size and systematic national importance of the corporates they head.
“As with 2018, the CEOs are maintaining a positive three-year growth outlook for the global economy, although this has slightly fallen from 67 to 62 percent over the last 12 months.
“This confidence is also shown by their commitment to hire, with 36 percent of CEOs projecting to add more than six percent to their workforce in the next three years,” KPMG said in its statement.
The majority of CEOs (84 percent) believe a ‘fail-fast’ culture is required in today’s marketplace, in which lessons from failures are learned quickly.
Eight out of ten chief executives are looking to change the makeup of their leadership teams to disrupt the status quo.
“Disruption is a modern-day constant’, Reyaz Mihular, Managing Partner KPMG in Sri Lanka and Chairman MESA region, said.
“Technological advancements in areas such as artificial intelligence, augmented reality, autonomous vehicles and drones, data analytics, cloud computing and blockchain to name a few, are among recent disruptors.
“As a result, there is an increasing emphasis around digitization and customer experience which are now strategic priorities for most businesses” he said.
For 84 percent of the interviewed CEOs said they had proactive mergers and acquisitions strategies in place in order to transform their businesses faster than via organic growth.
Most chief executives prefer to buy new technology rather than investing on developing teams to make their businesses resilient.
While technologies such as artificial intelligence becomes mainstream, 65 percent of chief executives said these will create more jobs. (COLOMBO, 11 June, 2019)