About the 2013 Survey - ESRI · N = 138. Number of observations for each challenge varies. Each...
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www.conferenceboard.org © 2013 The Conference Board, Inc. | 14 About the 2013 Survey • From September 2012 to November 2012, CEOs were asked to rank order the top three challenges they anticipated their companies will face in the coming year. • The 729 responses were weighted according to each country’s GDP. Regional, industry sector, and revenue groups were also weighted based on individual country GDP shares. • Each response was assigned a weight according to its relative ranking. A challenge ranked number one, therefore, was assigned greater importance than a challenge ranked number three. • The calculation of the mean of the ranks resulted in an overall score. (If a challenge was not chosen, it was assigned a value of zero.) • To get deeper insights into how CEOs plan to meet their challenges, respondents were also asked to rank order three critical strategies for meeting their top three challenges, which resulted in an “importance-adjusted” score for each strategy. About the Rankings
Transcript of About the 2013 Survey - ESRI · N = 138. Number of observations for each challenge varies. Each...
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About the 2013 Survey• From September 2012 to November 2012, CEOs were asked to rank order the
top three challenges they anticipated their companies will face in the coming year. • The 729 responses were weighted according to each country’s GDP. Regional,
industry sector, and revenue groups were also weighted based on individual country GDP shares.
• Each response was assigned a weight according to its relative ranking. A challenge ranked number one, therefore, was assigned greater importance than a challenge ranked number three.
• The calculation of the mean of the ranks resulted in an overall score. (If a challenge was not chosen, it was assigned a value of zero.)
• To get deeper insights into how CEOs plan to meet their challenges,respondents were also asked to rank order three critical strategies for meeting their top three challenges, which resulted in an“importance-adjusted” score for each strategy.
About the Rankings
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CHALLENGES
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Human capital and operational excellence are the top global challenges for 2013
# of observations: 729, number of observations for each challenge varies.
*For the 2013 survey, “Operational Excellence” was substituted for “Cost Optimization” and “Trust in Business” replaced “Investor Relations”.
Top 10 Global Challenges
CEO CHALLENGE 2013: GLOBAL RESULTS
2.44
2.10
1.99
1.72
1.68
1.55
1.31
.92
.82
.46
.00 .50 1.00 1.50 2.00 2.50 3.00
Human capital
Operational excellence*
Innovation
Customer relationships
Global political/economic risk
Government regulation
Global expansion
Corporate brand and reputation
Sustainability
Trust in business*
Human Capital
Operational Excellence
Innovation
Customer Relationships
Global Political/Economic Risk
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Human Capital and Operational Excellence are the Top Global Challenges for 2013
2012 (2011 data*)
1. Innovation
2. Human capital
3. Global political/ economic risk
4. Government regulation
5. Global expansion
6. Cost optimization
7. Customer relationships
8. Sustainability
9. Corporate brand and reputation
10. Investor relations
*For the 2012 survey “Business Growth” was substituted by “Global
political/economic risk” and “Talent” was refashioned into
“Human capital”
2010 (2009 data)
1. Excellence in execution
2. Consistent execution of strategy by top management
3. Sustained and steady top-line growth
4. Customer loyalty/retention
5. Speed, flexibility, adaptability to change
6. Corporate reputation for quality products, services
7. Stimulating innovation, creativity, enabling entrepreneurship
8. Profit growth
9. Improving productivity
10. Government regulation
2011 (2010 data*)
1. Business growth
2. Talent
3. Cost optimization
4. Innovation
5. Government regulation
6. Customer relationships
7. Corporate brand and reputation
8. Sustainability
9. International expansion
10. Investor relations
*The 2011 survey was redesigned with an
updated sets of challenges; any year-over-year
comparison on the data is of broad trends only.
CEO CHALLENGE 2013: RELATIVE GLOBAL RANKING OF CHALLENGES IN PAST SURVEYS
2008 *
July Oct1. 1. Excellence in
execution
3. 2. Consistent execution of strategy by top management
7. 3. Speed, flexibility, adaptability to change
16. 4. Global economic performance
11. 5. Financial risk including liquidity, volatility and credit risk
2. 6. Sustained and steady top-line growth
5. 7. Customer loyalty/retention
9. 8. Improving productivity
34. 9. Business confidence
4. 10. Profit growth*Financial Crisis Edition.
The results show ranking differences for the matched
responses during both the July and Oct timeframes
2012 (2011 data*)
1. Human capital
2. Operational excellence
3. Innovation
4. Customer relationships
5. Global political/economic risk
6. Government regulation
7. Global expansion
8. Corporate brand and reputation
9. Sustainability
10. Trust in business
*For the 2013 survey “Operational Excellence” was
substituted for “Cost Optimization and “Trust in
Business” replaced “Investor Relations”
2013 (2012 data*)
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Regional results reflect a global convergence on challengesCEO CHALLENGE 2013: REGIONAL VIEW
Global United States Europe Asia Rest of World
1 Human capital Operational excellence Human capital Human capital Operational excellence
2 Operational excellence Government regulation Operational excellence Innovation Human capital
3 Innovation Customer relationships Global political/economic risk (T3) Operational excellence Global
political/economic risk
4 Customer relationships Innovation Innovation (T3) Global political/economic risk
Customer relationships
5 Global political/economic risk Human capital Customer relationships Global expansion (T5) Government
regulation
6 Government regulation Global political/economic risk Government regulation Customer relationships
(T5) Innovation
7 Global expansion Global expansion Global expansion Government regulation Global expansion (T7)
8 Corporate brand and reputation
Corporate brand and reputation Sustainability Corporate brand and
reputation Sustainability (T7)
9 Sustainability Trust in business Corporate brand and reputation Sustainability Corporate brand and
reputation
10 Trust in business Sustainability Trust in business Trust in business Trust in business
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N = 138. Number of observations for each challenge varies. Each score represents the mean of the ranks given the challenge
*For the 2013 survey, “Operational Excellence” was substituted for “Cost Optimization” and “Trust in Business” replaced “Investor Relations”.
Top 10 Challenges
2.13
2.12
2.10
2.07
1.81
1.77
1.30
.92
.82
.46
Operational excellence*
Government regulation
Customer relationships
Innovation
Human capital
Global political/economic risk
Global expansion
Corporate brand and reputation
Trust in business*
Sustainability
CEO CHALLENGE 2013: REGIONAL VIEW
Operational Excellence tops the list of challenges for U.S. CEOs
Government Regulation continues to be a critical challenge in the United States; the U.S is the only region to rank this challenge in the top five.
The United States rank Human Capital fifth, the lowest ranking of any region for the top-ranked global challenge.
THE UNITED STATESIS GOVERNMENT REGULATION GETTING IN THE WAY?
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Top 10 Challenges
N = 136. Number of observations for each challenge varies. Each score represents the mean of the ranks given the challenge
*For the 2013 survey, “Operational Excellence” was substituted for “Cost Optimization” and “Trust in Business” replaced “Investor Relations”.
2.15
2.04
1.99
1.99
1.98
1.71
1.31
.65
.60
.58
Human capital
Operational excellence*
Innovation
Global political/economic risk
Customer relationships
Government regulation
Global expansion
Sustainability
Corporate brand and reputation
Trust in business*
CEO CHALLENGE 2013: REGIONAL VIEW
Human Capital made a dramatic jump from the number seven challenge to its current top rank in Europe.
The high rank of Operational Excellence shows a inward focus among European CEOs.
In Europe, the focus is on Global Political/Economic Risk and other external challenges has shifted inward, with this challenge dropping in rank from last year.
Innovation remains in the top three challenges this year.
EUROPECOUNTERING THE DOOM AND GLOOM
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ASIAFOCUSED ON GROWTH
CEO CHALLENGE 2013: REGIONAL VIEW
Asian CEOs are the only regional group to rank both Innovation and Human Capital within their top three challenges
Innovation, ranked second in Asia, is the highest ranking of any region. China rank Innovation as their number one challenge.
Reflecting a focus on growth, Asia is the only region to rank Global Expansion in its top five (tied with Customer Relationships)
N = 395. Number of observations for each challenge varies. Each score represents the mean of the ranks given the challenge. Includes India.
*For the 2013 survey, “Operational Excellence” was substituted for “Cost Optimization” and “Trust in Business” replaced “Investor Relations”.
Top 10 Challenges
2.93
2.11
1.95
1.40
1.39
1.39
1.16
1.14
1.13
.39
Human capital
Innovation
Operational excellence*
Global political/economic risk
Global expansion
Customer relationships
Government regulation
Corporate brand and reputation
Sustainability
Trust in business*
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CHINA AND INDIA
CEO CHALLENGE 2013: REGIONAL VIEW
India 2013 Top challenges
1 Human Capital
2 Global political/economic risk
3 Innovation
4 Operational excellence
5 Government Regulation
6 Customer relationships
7 Global Expansion
8 Sustainability
9 Corporate brand and reputation
10 Trust in business
China 2013 Top challenges
1 Innovation
2 Human Capital
3 Sustainability
4 Global political/economic risk
5 Operational excellence
6 Customer relationships
7 Corporate brand and reputation
8 Government Regulation (T8)
9 Global Expansion (T8)
10 Trust in business
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Government regulation is the top challenge for financial services
CEO CHALLENGE 2013: INDUSTRY VIEW
Global Importance-adjusted top three challenges ManufacturingN=256
FinanceN=92
ServicesN=361
1 Human Capital 1 4 1
2 Operational excellence 2 3 4
3 Innovation 3 6 3
4 Customer relationships 6 2 2
5 Global political/economic risk 4 5 6
6 Government regulation 7 1 5
7 Global Expansion 5 10 7
8 Corporate brand and reputation 9 9 8
9 Sustainability 8 8 9
10 Trust in business 10 7 10
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Human Capital is a chief concern at all levelsCEO CHALLENGE 2013: COMPANY REVENUE VIEW
Global Importance-adjusted top three challenges Less than
$100 millionN= 289
$100 million to under $1
billionN=161
$1 billion to under $5
billionN=121
$5 billion and above
N=141
1 Human Capital 1 1 3 1
2 Operational excellence 4 2 1 3
3 Innovation 2 3 5 5
4 Customer relationships 3 6 4 7
5 Global political/economic risk 6 5 2 6
6 Government Regulation 7 8 6 2
7 Global expansion 9 4 7 4
8 Corporate brand and reputation 8 7 9 8
9 Sustainability 5 9 8 10
10 Trust in business 10 10 10 9
