This article details four primary trends that should influence executive planning for the remainder of 2023 and into 2024:
Tones of Optimism but Concerns Over Pipelines and Volume. CEOs are generally optimistic, with many revising their revenue forecasts upward. However, there is a notable concern regarding pipelines, deal volumes, and renewal rates, which are showing some worrying trends compared to earlier in the year. Moreover, seller productivity is stagnating.
Managing Expenses but Not Driving Productivity. While there is a shift towards prioritizing EBITDA over growth, seller productivity remains stagnant. Few CEOs are capturing efficiencies possible from incorporating generative AI into their commercial engines, with only a quarter running small pilots, and fewer than 10% doing anything more substantial.
Value Creation Emphasis Is Shifting Toward Investing in Growth. There is a notable shift towards accelerating growth while increasing expense, with a focus on new market penetration. M&A activity is also being targeted towards market penetration and customer acquisition.
Leadership Transitions on the Horizon. There is a softening in CEO confidence in their GTM leaders, with only 26% expressing confidence in their CCO and CMO, and 38% expressing confidence in their CROs. This trend suggests potential leadership transitions in the future.
In addition to detailing the underlying data and implications of each of these trends, the article also includes assumptions that executives are making regarding growth, pricing, demand, and macro-economic conditions as they plan for 2024.
