Summary: Forty percent of global CEOs think their organisation will no longer be economically viable in ten years’ time, if it continues on its current course. Roughly 40% flagged the transition to new energy sources and supply chain disruption.
Why this is important: Rather than focusing on the negative aspects of 'polycrisis' we read the survey results as a reflection that many CEO's know they need to change making them more open to constructive engagement.
The big theme: Organisations are facing what could be described as unprecedented change. We have become used to our financial choices, the companies we lend to or invest in, or the projects we select for our company to undertake, to be undertaken in a world that looks pretty much like the past. Change happens, but it has normally been incremental. Sources of competitive advantage remain fairly stable. But, that pattern is breaking. Much like the situation that Nokia faced in the mid 2000's, when the first smart phones emerged, companies across a wide range of sectors increasingly know that the environmental and social pressures they are facing will permanently change their industries. Their choice is simple, adapt and evolve, or fade away.
As a rule, I normally avoid stories that have been published in the FT (assuming that many of you will have already read or at least skimmed them) or surveys from consultancy firms (sorry - but they are normally just promotions for their services).
But the recent PwC Global CEO survey, published on the 16 Jan and covered in the FT, grabbed my attention. This was at least partly prompted by a LinkedIn post from Nawar Alsaadi, a Toronto based portfolio manager.
To quote the report ..."nearly 40% of CEOs think their company will no longer be economically viable a decade from now, if it continues on its current path".