CEO challenges for 2016

175 Australian CEOs have identified the key challenges and concerns for Australian business in 2016. Analysis of research conducted by Pronto Software in partnership with the CEO Institute shows there are five main areas of interest, resulting from both industry and economic pressures. The study follows on from similar research conducted in January 2015. Among the most pressing issues:

• Hiring and retaining talented staff: Nearly 30% of CEOs highlighted staff management as an important challenge for the year ahead including attracting, training and retaining staff. Additionally, keeping long-term existing staff energised and motivated was a cited area for focus. Interestingly, staffing attracted more feedback than any other issue.
• Mastering disruptive technology: Just over one-quarter (26%) of survey respondents considered disruptions and opportunities caused by technology to be one of the most significant trends they will face in 2016. Those CEOs who see technology as an opportunity tend to focus on how it will allow them to make large-scale changes to their business processes.
• Business growth: In 2015, approximately one in five CEOs described growth as a key area of transformation and concern. One year later, that has grown to one in four (23% of respondents). A common theme in this year’s discussions of growth was the impact on businesses of the apparent slowing of the Australian economy, with respondents calling out the need to manage a sluggish market.
• Economic uncertainty: One in six (16%) CEOs cited economic uncertainty as a key concern for 2016, resulting in reduced business budgets and apprehension towards business spending. CEOs are consequently setting more conservative targets for success.
• Managing change and improving processes: Managing change was noted as a major challenge for 15% of respondents. Overall, the need for ‘change management’ was framed as a consequence of other trends, such as economic fluctuations, technological developments and international competition, particularly from Asia. Technology is also a key driver of the perceived need to manage change. However, CEOs were divided over the exact nature of the issue, as some regarded change as a necessity in the face of existing technologies, while others spoke of harnessing innovation to drive real change.

When comparing 2015 and 2016 findings, adapting to change, managing and retaining staff, as well as business growth have remained as key concerns. The prevailing mood among those surveyed was one of wary optimism and CEOs spoke of “maintaining momentum” and “achieving growth” in the face of threats.

Chad Gates, chief operating officer, Pronto Software, said, “In my ongoing discussions with CEOs, technology is continually the trend that is perceived to be a threat, as well as a source of great opportunity.

“I urge business leaders to look at technology as the support required to help overcome these challenges identified by the research. By embracing a strong technological solution that’s flexible, CEOs and their teams can gain clarity regarding how their business is performing, transform underused data into actionable insights and empower their teams to make better decisions. Technology can truly empower leaders, helping them navigate the company towards ongoing success,” he said.

The 2015 research findings can be accessed via this link.

Image credit: © iStockphoto.com/Luis Pedrosa