Confident, agile, resilient – Australian CEOs set for the future Australian CEO perspectives from KPMG’s 2019 Global CEO Outlook

Australian CEOs are more upbeat in their outlook than their overseas counterparts, and topics such as the need for agility and up-skilling, adapting to climate change, satisfying customers and handling the digital revolution are central to their thinking. To meet these challenges, Australian CEOs are taking a fresh approach – being willing to disrupt, form new strategic partnerships, focusing on M&A strategies, and boosting the skills of their human and robotic workforces to be fit for the future.

Home confidence up, global down

are very confident in growth prospects for Australia over the next 3 years, compared to 20% in 2018.

But confidence in the global economy has moderated – with just 12% very confident in 2019, compared to 30% in 2018.44% 12%

44% 2019

20% 2018

12% 2019

30% 2018

Economy

44%

© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights

reserved. The KPMG name and logo and are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.June 2019 349794841FIRM.

Deliberate disruptors

Agility is the new currency of business, and if they are too slow, they’ll soon be bankrupt.

Boosting C-suite quality

They need to improve innovation processes and execution.

strongly agree and 46% agree that they are proactively disrupting their sector, up from 6% strongly agree and 26% agree in 2018.

Strongly agree

18% 46% 18% 2019

6% 2018

Agree

46% 2019

26% 2018

Agility

Resilience and up-skilling

24% 56%

18%

Strongly agree

Agree 20% 42%

38% 38% Strongly agree

Agree

Strongly agree

Agree

CEOs are actively transforming their leadership team to strengthen resilience.

© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights

reserved. The KPMG name and logo and are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.June 2019 349794841FIRM.

Teaming up to transform Talent hard to find

said strategic alliances were their key growth strategy, followed by 26% organic growth.

are set to up-skill 41-50% of their workforce in digital capabilities.

Meeting society’s expectations

Climate change

38%

62%

36% 62%

62% 2019

35% 2018

said M&A appetite was driven by the need for transformation.

20% Strongly agree

24% Strongly agree

42% Agree

38% Agree

It is challenging to find the workers they need.

28%

It is the CEO’s personal responsibility to ensure their company’s environmental, social and governance (ESG) policies reflect the values of its customers.

48% Agree

see climate change risk as the

greatest threat to growth.

Climate change poses challenges

Business growth will be determined by the ability to navigate the global shift to a low-carbon, clean technology economy.

22% Strongly agree

© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights

reserved. The KPMG name and logo and are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.June 2019 349794841FIRM.

Getting better connected

Improving understanding of customers

Customer

CEOs believe they could significantly improve understanding of their customers.

50% Agree

36% Strongly agree

40% Strongly agree

32% Strongly agree

18% Strongly agree

30% Agree

34% Agree

32% Agree

Clouds on the horizon

Technology

26% Strongly agree

16% Strongly agree

42% Agree

42% Agree

CEOs are more confident about increasing the use of cloud technologies.

CEOs have concerns about migrating business data to the cloud.

CEOs are responsible for connecting the front, middle and back offices to build a ‘connected enterprise’.

A connected enterprise creates a stronger brand experience for customers.

Investments in personalising the customer experience have not had the growth benefits they hoped.

This was a leap from 2018, in which 2% strongly agreed and 32% agreed.

© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights

reserved. The KPMG name and logo and are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.June 2019 349794841FIRM.

Machines taking charge

Braced for cyber-attack

44% are piloting and 48% are beginning implementation of the automation of their processes.

The information contained in this document is of a general nature and is not intended to address the objectives, financial situation or needs of any particular individual or entity. It is provided for information purposes only and does not constitute, nor should it be regarded in any manner whatsoever, as advice and is not intended to influence a person in making a decision, including, if applicable, in relation to any financial product or an interest in a financial product. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

To the extent permissible by law, KPMG and its associated entities shall not be liable for any errors, omissions, defects or misrepresentations in the information or for any loss or damage suffered by persons who use or rely on such information (including for reasons of negligence, negligent misstatement or otherwise).

© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Liability limited by a scheme approved under Professional Standards Legislation.

June 2019. 349794841FIRM

KPMG.com.au

44% piloting automation

48% beginning automation

Strongly agree

16% 26% 16% 2019

4% 2018

Agree

26% 2019

58% 2018

Very well prepared

24% 52% 24% 2019

12% 2018

Well prepared

52% 2019

48% 2018

Becoming a victim of a cyber-attack is now a case of ‘when’ not ‘if’.

The level of cyber-attack preparation is varied.

For the full 2019 Global CEO Outlook report, visit our website.