2014 STRATEGY AND BUSINESS DEVELOPMENT REVIEW INSIGHTS FROM THE MANAGEMENT EVENTS EXECUTIVE TREND SURVEY EXECUTIVE TEAM AND CEO PERSPECTIVES

Transcription

1 2014 STRATEGY AND BUSINESS DEVELOPMENT REVIEW INSIGHTS FROM THE MANAGEMENT EVENTS EXECUTIVE TREND SURVEY EXECUTIVE TEAM AND CEO PERSPECTIVES

2 This report is based on Management Events 6th Executive Trend Survey The survey identifies the challenges and business development activities of 8,774 decision makers in Top500 companies and largest public sector organizations in 9 countries.

3 Executive Trend Survey is a biannual survey conducted by Management Events Surveys since The respondents are carefully selected decision makers who are invited guests at Management Events invitation-only events. These directors and managers are surveyed in terms of their position, decision-making responsibilities, upcoming development projects and their outlook for the next 18 months. More than 8,700 decision makers participated in our latest survey: Austria 856 Denmark 1,129 Finland 1,472 Germany 914 The Netherlands 1,401 Norway 617 Poland 438 Sweden 1,683 Switzerland 551 This report is based upon responses from 3,373 decision makers who defined having an active role in business management, strategy process and business development in their organization: Top/business management 1,164 Finance management 520 IT management 454 HR management 350 Sales and marketing management 267 Procurement and supply chain management 239 Production and product development management 293 Other directors and managers 86

4 Key figures 66 % of the CEOs and 58 % of other C-level decision makers think that their organization needs to act more customer-focused in order to succeed in the next 18 months. 47 % of the C-suite members say that their current business processes need renewal to increase efficiency, automation and flexibility. 32 % of the strategic level decision makers in banking, finance and insurance sector will focus on business model innovations. 56 % of the CEOs say that their critical development activities in 2014 and 2015 will focus on sales and marketing development. Top business management s main concern in R&D is commercialization of new products and services. 28 % of the CEOs believe that their business would benefit significantly from shorter time-to-market of products. CEOs in researched 9 markets expect CIOs to focus primarily on supporting business growth. Business analytics, finance solutions and CRM are the top three IT investment priorities for CEOs. 43 % of the CEOs who are planning to invest in big data believe that utilization of advanced analytics will improve customer profitability.

5 Corporate strategic outlook: critical success factors Development of customer orientation 60 % Cost reductions 56 % Execution of transformation projects 53 % Business process renewal 47 % Strategy renewal 26 % Customer focus is recognized as a strategic goal regardless of industry or business function. Talent development 19 % Top decision makers in the largest companies aim to build strategic partnerships with their customers and let customers influence their organizations future direction. Forecasting in changing environment 18 % Finding talent 11 % Critical success factors in the next 18 months The major focus is on customers, profitability and corporate transformation. Only one out of ten decision makers predict that they might face a challenge in securing needed talents.

6 Development of customer orientation Cost reductions % 60% 56% 58% Other C-suite 58 % CEO 66 % Execution of transformation projects 53% 53% Business process renewal 44% 47% Strategy renewal 26% 26% Talent development Forecasting in changing environment Finding talent 19% 19% 18% 18% 11% 15% Customer driven transformation is led by the CEOs. Seven out of ten CEOs say that their organization needs to act more customerfocused in order to succeed in Critical success factors in the next 18 months While there is no major shift to be seen, decision makers indicate slightly less need for cost reductions than a year ago. Adjusting to change remains a high strategic priority for CxOs. More than half of the executives say that it is critical for their company that ongoing transformation programs are successfully completed. Digitalization and changing customer demands are forcing companies to put more effort into renewing their current business processes to increase efficiency, automation and flexibility.

7 2013 Critical success factors in the next 18 months Decision makers across different markets vary in their views about which factors will be the most significant for their organization s success, although all think cost reductions are one of the top three. NORDICS D/A/CH Denmark Finland Norway Sweden Austria Germany Switzerland Netherlands Poland Development of customer orientation Cost reductions Execution of transformation projects Business process renewal Strategy renewal Talent development Forecasting in changing environment Finding talent

8 Strategic development initiatives 10 industries that invest the most in new business models Digitalization, customer demands, regulation and competition drive finance, energy, telecom and retail companies to seek new business models. Strategy implementation 58% Banking and Finance 114 Development of business strategies 41% Insurance Energy Defining business growth strategy 26% Telecom 68 Creating new business models 25% Retail Machinery Expanding into new business areas 17% Media 39 Expanding into new markets 16% Wholesale Food and Beverage Business strategies top development initiatives in the next 18 months Majority of strategic level decision makers are going through a strategy implementation process. As foundations of many industries are shaking, four out of ten indicate that innovative and fresh business models are needed. Automotive 30 The number of respondents per industry who said that their main development initiatives focus on creating new business models.

9 Key CxO actions in organizational development CEO CFO CIO CHRO CMO 56% 52% 45% 44% 39% 40% 31% 26% 33% 22% 19% 33% 34% 30% 27% 27% 24% 19% 20% 20% 36% 28% 25% 25% 25% 22% 22% 19% 35% 8% Executive Team working Management reporting Talent management Management models Decision-making structures Operational models CxO perspective: key development activities in organizational development CxOs find it critical that the whole C-suite works well together as a team. Among the members of the C-suite, CEOs are the most united with CMOs in their key development actions. CFO and CIO share the responsibility to provide right information to support decision making. While the results reflect somewhat clearly divided responsibilities within the C-suite, it is still worth noting that talent management is perceived as so much higher priority by CHROs than other CxOs.

10 CEO priorities Key development activities 2. Business development projects 3. ICT investments The sample includes 379 CEOs from Top500 companies in 9 countries

11 Sales and marketing 56% Innovation management Supply chain and production 37% 36% Key development activities for CEO Financial management and control 18% Mergers and acquisitions HR and talent management 17% 15% Where will the CEOs focus their key investments Strategic goals of increasing customer engagement, adapting to change and renewing business processes are reflected in CEOs key development plans. Procurement and sourcing CEOs top development plans in the next 18 months 13% CEOs say they are most willing to invest in development activities that support customer acquisition and retention enable innovations improve operational efficiency

12 Strategy and leadership 1. Executing change What the CEO wants from business development projects 1. Support to business growth and profitability 2. New business opportunities 3. Improved value for customer 4. Increased process efficiency 5. Reduced enterprise costs or resources Finance and risk management Innovations and R&D 1. Commercializing new products and services 2. Time-to-market of R&D 3. Increasing innovation capabilities 1. Profitability management 2. Business forecasting and analytics 3. Managing strategic and operational risks 2. New business models 3. Growth strategies: new business areas, new markets, M&A CEO s DEVELOPMENT PROJECT PRIORITIES Leadership development Sales and marketing 1. Exploitation of customer data 2. Lead generation 3. Service and solution selling 1. Supply chain flexibility 2. Sales and operations planning 3. Lean development Operational excellence 2. Performance and productivity management 3. Strategic workfoce planning CEO s top 3 development activities per business function CEOs indicate six business development areas where they will be personally most involved. Talent and performance management

13 Top ICT investments for CEO What the CEO expects from IT Business Intelligence and Big Data Finance and controlling systems Customer relationship management systems 21% 20% 23% Top 5 goals and objectives IT 1. Supporting growth 2. Reducing enterprise costs 3. Executing transformation projects 4. Renewing business processes 5. Digitalizing services and processes Mobility and communications solutions 14% ERP systems Product development systems Content and document management HR systems Supply chain management systems e-services 11% 11% 10% 10% 10% of the surveyed CEOs say they are actively involved in strategic IT management. CEOs top ICT investment plans in the next 18 months Less than third of the researched CEOs say that they work closely with CIOs in a sense that they actively involve themselves in strategic level IT management questions such as IT strategies, processes, vendor management or portfolio management. However, CEO influence is strongly present in key ICT investments, namely in analytics, finance, CRM and mobility. 12% 28 % Top 5 needs for business analytics 1. Steering sales 2. Business forecasting 3. Cost and profitability management 4. Performance management 5. Directing marketing efforts Top 5 expected benefits from big data 1. Improving customer profitability 2. Sales targeting 3. Increasing additional and after-sales 4. Customer segmentation 5. Forecasting customer behavior

14 For further information Management Events Surveys Management Events Austria Denmark Finland Germany The Netherlands Norway Poland Sweden Switzerland Turkey