Summary: Similar to the last financial downturn, the words “agile” and “hedging” are frequently being thrown around to describe growth strategies. The reality is that these words are often a façade for strategic uncertainty. Top CEOs are getting crisper on their value creation strategy, evolving that strategy to account for less commercial investment, and determining new productivity levers to still meet growth expectations. This strategic clarity leads top growth CEOs toward a small set of highly focused growth imperatives.
Time horizons need to shift more toward near-term value creation to ensure that longer term sustained investment confidently occurs as economic headwinds ease. Over the next three to six months, most tech and tech-enabled organizations in private markets will shift from an incremental commercial investment thesis to a flat-to-contracting investment thesis, placing a premium on commercial productivity to sustain growth. Simply put, the era of throwing headcount at growth will pause. Few organizations have readied themselves for turning the productivity crank quickly.
