SBI just released their 2022 CEO survey. Use the insights to help drive your business as we navigate the recession. Key take aways:
* CEOs are taking on far too many growth imperatives heading into a recession. Organizational focus — particularly across the commercial team — is a critical factor in maintaining growth through a recession or similar economic event. Getting clear on your value creation plan, and the precise growth initiatives related to that plan is key.
* CEOs are taking on the wrong growth imperatives based on their value creation plan. CEOs are prioritizing growth imperatives that have little bearing on their value creation plan. For instance, a vast number of CEOs who identify their value creation model as Accelerating Growth with the Same Operating Expense are prioritizing changing the revenue mix of their firms to improve the margin profile, where far more resources need to be directed at commercial productivity efforts almost exclusively.
* Most CEOs said they believe inflation and rising interest rates will eventually have a negative impact on their businesses. 46% anticipate a “somewhat negative impact” while another 9% expect “significant negative impact”. In anticipation, they are increasing near-term pricing to keep pace with higher labor and material costs, which is reflected in a six percent median price increase reported across the survey.
Nearly two-thirds of CEOs have developed contingency plans (65% reported taking financially or budgetarily explicit actions to prepare for an economic recession in late ’22 or early ’23) that are overly focused on cost reduction instead of defending growth bets or reallocating expenses to maintain growth in the face of recession.
If you enjoyed this article be sure to claim your subscription to the weekly email I send out. It’s full of great information and other articles just like this one. This piece is from my 7/30/22, Week 32 update.
SOURCES: SBI 2022 CEO Survey