In the face of challenging macro-economic conditions, CEOs must urgently pivot from traditional growth strategies to a more productivity-oriented approach. SBI's 2022 CEO Growth Survey reveals a concerning trend: a slow transition from headcount-driven growth to a productivity-centric model. CEOs are expressing doubts about their ability to execute a "productivity pivot" to sustain and potentially accelerate growth through a recession. Early adjustments in value creation plans are essential to navigate these uncertain times effectively.
Our survey data found the following insights:
- CEOs aren’t evolving their value creation strategy fast enough given the macro-economic conditions. They’re preparing to reduce expense but aren’t determining ways to grow in those conditions.
- CEO confidence in executing their current value creation plan is concerningly low. Many CEOs are slow to evolve from adding headcount to maintain growth rates and shift to a productivity-oriented strategy.
- CEOs must not only evolve their value creation strategy but prioritize a small set of growth initiatives that will maintain, if not accelerate, growth through a recession.
- CEOs doubt their business’ ability to execute a “productivity pivot” to fuel their growth through a recession; adjusting value creation plans and taking early action are key.
- SBI’s Value Creation Compass provides a simple, powerful framework to help CEOs and their leadership teams navigate the evolution of their value creation plan in a highly tailored manner.
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