I RECENTLY attended the 22nd Management Association of the Philippines (MAP) CEO Conference 2024. I had the opportunity to learn about the 2024 PwC Philippine CEO Survey. The insights shared during the event were invaluable, offering a deeper understanding of the challenges and strategies that shape today’s business landscape.
The survey, conducted by PwC Philippines in partnership with MAP, surveyed business leaders from various industries, providing a wealth of knowledge on how companies are navigating uncertainty and preparing for the future.
Geopolitical tensions, including the ongoing Russia-Ukraine war, territorial disputes in the South China Sea, and the Israel-Hamas conflict, are major concerns for business leaders. According to the report, 62 percent of chief executive officers highlighted that geopolitical uncertainty keeps them awake at night, with concerns ranging from supply chain disruptions to global economic instability.
Despite these challenges, business leaders remain optimistic about the global economic outlook. 52 percent of CEOs believe that global economic growth will improve in the next 12 months, while 86 percent are confident about their industry’s prospects and expect their companies to achieve revenue growth over the next three years.
A key theme emerging from the survey is the pivotal role of technology in business transformation. CEOs are increasingly turning to generative AI (GenAI) as a critical tool to enhance operational efficiency and product development. The survey revealed that 75 percent of respondents believe that GenAI can improve their products or services and make processes more efficient. However, adoption remains slow, with only 39 percent of CEOs implementing GenAI in their organizations.
The gap between awareness and implementation highlights the challenge of integrating cutting-edge technologies into existing business models. Many CEOs acknowledge the potential of GenAI but face hurdles in terms of technical infrastructure, talent development, and regulatory frameworks. Technology adoption remains a top priority for organizations, with plans to invest in AI, automation and cloud systems over the next 12 months.
The survey also highlighted the increasing complexity of managing a multigenerational workforce. Today’s workforce spans five generations — Baby Boomers, Gen X, Millennials, Gen Z, and Gen Alpha — each with unique perspectives, communication styles and work expectations. Over 75 percent of CEOs identified differences in management and leadership styles as their biggest challenge in dealing with this multigenerational workforce.
Generational shifts are not limited to the workplace; they also extend to consumer behavior. Businesses are tasked with understanding the evolving needs and values of different age groups, from tech-savvy Gen Z customers to the more traditional Baby Boomers.
Succession planning emerged as another crucial issue for business leaders. While 45 percent of companies intend to make changes in their senior leadership within the next three to five years, only 25 percent have established formal succession plans for all senior executives. This gap in succession planning poses a risk to the continuity and stability of businesses, particularly as leadership transitions become more frequent.
Ensuring a smooth leadership transition requires more than just identifying successors; it involves a comprehensive plan that includes mentorship, clear communication and a well-defined roadmap.
The survey highlights the importance of business model reinvention in ensuring long-term viability. With 46 percent of CEOs believing that their companies will no longer be economically viable in the next 10 years if they continue on their current path, the pressure to innovate is clear. The challenges posed by macroeconomic volatility, inflation and cyber risks have forced businesses to rethink their value propositions and delivery models.
As CEOs prepare to navigate these existential threats, many are investing in workforce upskilling, automation and technological advancements. 71 percent of CEOs plan to upskill their workforce in priority areas, while 70 percent aim to automate processes and systems. This focus on reinvention and innovation reflects the broader trend of businesses adapting to new market realities, where agility and transformation are key drivers of success.
The report also underscores the growing importance of sustainability in business strategies. Larger companies are increasingly integrating environmental, social and governance (ESG) factors into their core operations, responding to both regulatory pressures and shifting consumer preferences.
Sustainability is no longer viewed as a peripheral issue; it is now a central aspect of business resilience and long-term profitability. Companies that prioritize sustainable practices — from reducing carbon footprints to promoting social responsibility — are better positioned to attract environmentally conscious consumers and investors.
In a time of uncertainty, collaboration and alliances are becoming essential strategies for business growth. CEOs are recognizing the need to build partnerships across industries, governments and communities to enhance resilience and expand their market reach. By joining forces with other businesses or entering into public-private partnerships, companies can access new opportunities, share resources and mitigate risks.
The importance of strategic alliances was emphasized by several CEOs, who highlighted the role of partnerships in driving innovation and creating value. Whether through collaborations with tech firms for digital transformation or joint ventures with suppliers to stabilize supply chains, alliances offer a pathway to sustainable growth in a rapidly changing business environment.
The key takeaway from the survey is clear: businesses must be agile, innovative, and forward-thinking to thrive in the future. By embracing technological transformation, fostering collaboration, and prioritizing sustainability, companies can build the resilience needed to weather uncertainty and seize new opportunities.
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