{"componentChunkName":"component---src-templates-page-js","path":"/ceo-strategy/","matchPath":"/ceo-strategy/*","result":{"pageContext":{"matchPath":"/ceo-strategy/*","data":{"id":"playlist-06","seo":{"title":"How do you encourage courage?","description":"CEOs are resetting the risk radar for 2022","image":"https://impact.economist.com/projects/real-world-strategy/images/share6.jpg"},"link":{"id":"playlist6","basePath":"/ceo-strategy/","path":"/ceo-strategy/1/","type":"brand_ey_parthenon","img":{"thumb":"/images/playlists/thumb_pl_06.jpg","full":"/images/playlists/full_pl_06.jpg","alt":""},"label":"CEO Strategy","pretitle":"CEO Strategy","title":"How do you encourage courage?"},"menu":[{"id":"playlist8","basePath":"/ceo-video-series/","path":"/ceo-series/","type":"brand_ey_parthenon","watermark":"ceo","img":{"thumb":"/images/playlists/thumb_pl_08.jpg","full":"/images/playlists/full_pl_08.jpg","alt":""},"pretitle":"Strategy in Action:<br/>A CEO Series","title":"Watch Now"},{"id":"playlist9","basePath":"/digitalstrategy/","path":"/digitalstrategy/1/","type":"brand_ey_parthenon","img":{"thumb":"/images/playlists/thumb_pl_09.jpg","full":"/images/playlists/full_pl_09.jpg","alt":""},"label":"Digital Strategy","pretitle":"Digital Strategy","title":"How do you elevate your digital strategy?"},{"id":"playlist4","basePath":"/reshapingbusiness/","path":"/reshapingbusiness/1/","type":"brand_ey_parthenon","img":{"thumb":"/images/playlists/thumb_pl_04.jpg","full":"/images/playlists/full_pl_04.jpg","alt":""},"label":"Turnaround Strategy","pretitle":"Turnaround Strategy","title":"How do you restructure your business for a reshaped world?"}],"content":[{"brand":"brand_ey_parthenon","duration":10,"bg":{"type":"video","addGradient":true,"desktop":{"id":"v3:9qEWXtUPq","tracker":"74df9fd4-a094-11ec-976f-0ac7d739ff0e"},"mobile":{"id":"v3:VCySXkjsd","tracker":"fa09ed04-a094-11ec-9770-0ac7d739ff0e"}},"preview":{"thumb":"/images/previews/preview-06-01.jpg"},"card":{"cls":"top","showDots":true,"forceWidth":462,"title":"How do you encourage courage?","desc":"CEOs are reframing their strategy to transform for an uncertain future"},"readmore":{"label":"Scroll down to learn more","type":"info","exitCtaOverride":{"link":"https://ad.doubleclick.net/ddm/trackclk/N284201.139656THEECONOMIST/B29597296.362759588;dc_trk_aid=553819172;dc_trk_cid=189458919;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;ltd="},"body":[{"type":"CopyBlock","content":{"pretitle":"CEO Strategy","title":"While braced for an economic downturn, the world’s CEOs remain focused on seismic, long-term shifts within their businesses","paragraphs":["CEOs around the world are starting off the year with a healthy dose of realism and optimism. Nearly all (98%) of the 1,200 CEOs surveyed in the 2023 EY <a href=\"../../pdfs/ey-ceo-outlook-pulse-survey-jan-2023-global-report.pdf\" target=\"_blank\">January CEO Outlook Pulse</a> are bracing for an economic downturn across the globe. But they are split about its severity and length. The more optimistic among them—nearly half of CEOs surveyed—foresee a moderate slowdown in the global economy. Meanwhile, more than half (55%) fear a protracted recession worse than the 2008 global financial crisis.","While there is little consensus on the length, depth and severity, more than 55% of CEOs agree that this downturn will differ from previous ones given geopolitical tensions and a sweeping realignment of the world’s supply chains and operations. Although CEOs believe their leadership teams gained critical skills by managing through the COVID-19 pandemic, a majority (53%) say few of their senior leadership possess the experience necessary to manage the business through the upcoming economic uncertainty and volatility.","This may be because of the growing nature of business threats. To be sure, pandemic-related disruptions remain a concern. But CEOs are now more worried about how the threats to their growth strategies are becoming more complicated and interconnected. Cybersecurity risks, for example, are interlaced with geopolitical pressures and possibly greater restrictive regulations. And monetary policy uncertainty, coupled with an increase cost of capital, is resulting in higher input prices and inflation."]}},{"type":"ArcChartBlock","content":{"chart":{"value":0.97,"title":"97%","desc":"of CEOs have already altered investment strategies"}}},{"type":"CopyBlock","content":{"paragraphs":["The world’s CEOs are now responding and taking necessary steps to cushion potential negative impacts. For instance, nearly all (97%) of CEOs have already altered investment strategies, with almost a third (32%) halting a planned investment. This doesn’t mean, however, that businesses are scaling back all planned projects. Rather, there appears to be a measured approach to handling today’s volatility while remaining optimistic about long-term possibilities.","In fact, there seems to be a recognition that what’s happening presently and in the short term doesn’t negate the seismic changes continuing long term. Key themes transforming society and industry are still a focal point for CEOs the world over, such as reshaping the business for sustainability, investing in innovation and new business platforms, boosting customer loyalty with digitization, and creating new pricing models to increase profitability.","As such, there’s an underlying discipline that CEOs are using in their short-term actions as they assess how to manage costs while still preserving investment in key areas to their business. Investment plans are being balanced with a strong focus on getting the fundamentals right, because attention to controlling costs, reviewing projects and optimizing working capital will be an important enabler for financing digital transformation that delivers revenue growth and leverages operational advantage.","Even reducing headcount is a more nuanced exercise these days. Some (42%) are considering moving more employees to contract employment, while more than one-third (36%) are considering a restructuring or workforce reduction. Such cost-cutting moves, a hallmark of past downturns, are less straightforward today given that CEOs remain concerned about a talent shortage. Interestingly, the percentage of CEOs focused on managing workforce costs is outnumbered by those looking for ways to retain talent and find the skills they need in the future. More than half (57%) say that other companies reducing headcount during a downturn is an opportunity for their organization to attract and retain new talent. And, even among those not increasing headcount, 56% say they are upskilling their current workforce."]}},{"type":"ArcChartBlock","content":{"chart":{"value":0.78,"title":"78%","desc":"of CEOs say they’ll conduct M&As in countries geopolitically and economically aligned with their home country"}}},{"type":"CopyBlock","content":{"paragraphs":["Now more than ever, there is a refined approach to managing the downturn with an understanding that things will eventually improve. Almost two-thirds (58%) of CEOs surveyed are confident that fiscal and policy decisions will mitigate the worst aspects of a downturn. In the meantime, those who are forging ahead with investments are doing so in approachable ways. More than three-quarters (78%) of CEOs say they’ll conduct M&As in countries geopolitically and economically aligned with their home country.","Today’s economic landscape is fraught with dilemmas and contradicting solutions. CEOs are advised to get ahead of potential developments with scenario planning, continually reassess all aspects of their business, operations, portfolio and ecosystem, and seek long-term opportunities for growth while remaining laser-focused on their customers. Past downturns provide teachable moments on how to better and more boldly handle those of the future."]}}]}},{"brand":"brand_ey_parthenon","duration":10,"bg":{"type":"video","addGradient":true,"desktop":{"id":"v3:v0brAuhSI","tracker":"b135e51c-a128-11ec-928c-0ac7d739ff0e"},"mobile":{"id":"v3:rzj1mkhf2","tracker":"2c0dee18-a130-11ec-ac60-0ac7d739ff0e"}},"preview":{"thumb":"/images/previews/preview-06-02.jpg"},"card":{"cls":"top","showDots":false,"forceWidth":490,"title":"Ethics over aesthetics","desc":"CEOs must ensure their business transformation is actionable with sustainable results"},"readmore":{"label":"Scroll down to learn more","type":"info","exitCtaOverride":{"link":"https://ad.doubleclick.net/ddm/trackclk/N284201.139656THEECONOMIST/B29597296.362760305;dc_trk_aid=553844532;dc_trk_cid=189075578;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;ltd="},"body":[{"type":"CopyBlock","content":{"pretitle":"CEO Strategy","title":"The CEO challenge: value creation in volatile times","paragraphs":["Today’s CEOs are operating in a complex environment. Finding the right balance between resilience, agility and value creation will require bold actions and measured risk-taking in an ever-changing world.","As business leaders face an economic downturn and ongoing disruption on a global scale, what are their top priorities to ensure sustainable, long-term growth?","Jeff Wray, Global EY-Parthenon Leader, Nadine Mirchandani, EY Global Deputy Vice Chair, Strategy and Transactions, and Andrea Guerzoni, EY Global Vice Chair, Strategy and Transactions, discuss the challenges and opportunities that lie ahead."]}},{"type":"VideoBlock","content":{"src":"https://players.brightcove.net/1153191510001/default_default/index.html?videoId=6305558041112","title":"Playlist 6 episode 2"}}]}},{"brand":"brand_ey_parthenon","duration":10,"bg":{"type":"video","addGradient":true,"desktop":{"id":"v3:aLhWbBp_n","tracker":"e25070ce-a130-11ec-9482-0ac7d739ff0e"},"mobile":{"id":"v3:V0xEK5oGK","tracker":"9f92178c-a12c-11ec-bf43-0ac7d739ff0e"}},"preview":{"thumb":"/images/previews/preview-06-03.jpg"},"card":{"cls":"top","showDots":false,"forceWidth":390,"title":"Turning the tide","desc":"How a travel firm CEO delivered success for stakeholders in a global&nbsp;pandemic"},"readmore":{"label":"Scroll down to learn more","type":"info","exitCtaOverride":{"link":"https://ad.doubleclick.net/ddm/trackclk/N284201.139656THEECONOMIST/B29597296.362760311;dc_trk_aid=553846422;dc_trk_cid=188906641;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;ltd="},"body":[{"type":"CopyBlock","content":{"pretitle":"CEO Strategy","title":"Not so plain sailing","paragraphs":["Few sectors were more severely disrupted by the COVID-19 pandemic than travel and tourism. As borders closed and trips were cancelled, many organizations struggled to stay afloat. For luxury travel firm Scott Dunn, however, help was at hand. With support from strategy and industry experts, the business not only survived the pandemic but broadened its horizons. Hear from Scott Dunn CEO Sonia Davies on how bold, decisive action delivered success for both the business and its stakeholders in uncertain times."]}},{"type":"VideoBlock","content":{"src":"https://players.brightcove.net/1153191510001/default_default/index.html?videoId=6300232416001","title":"Playlist 6 episode 2"}}]}}]},"id":"playlist6"}}}