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To borrow a line from the late Big Tom Callahan: “You’re either growing or you’re dying. There ain’t no third direction.”
While the Tommy Boy patriarch (and all-time great salesman) was referring to the auto parts business, it’s clear that executives everywhere agree with the sentiment, the latest Pulse survey from PwC suggests. Three-quarters of the 673 US executives PwC surveyed believe the average company in their industry won’t make it in the next decade “unless they change their current business model.”
It’s also clear that most business leaders think they’re well-positioned to adapt and survive. Again, about three-quarters of respondents said they both “have the right talent mix to support their company’s future vision” and the capabilities to make these needed business-model transformations at scale. A slightly lower percentage (71%) said their firms could make changes “at speed.”
About six in 10 respondents said there’s “strong consensus” among leadership around their organization’s future vision. However, only about four in 10 said that leadership is in agreement on how they’ll adapt their business model and how long it will take.
So, what changes are organizations making? About half of the respondents said they’re investing in new technologies, specifically generative AI, in the next 18 months. Four in 10 said they’re planning a major reorganization in the next year and a half. Three-quarters said they’ve created or are working on new ways to reach customers directly.
The survey results are also generally good news for CFOs who are asked to take on more strategy-oriented responsibilities. A majority of CEO respondents (64%) viewed their CFOs as “highly effective strategic partners.” CFOs scored higher than board directors (54%) on that front, but lower than COOs (76%).
There are also plenty of challenges for business leaders to worry about. Nearly four-fifths of respondents said that more frequent and broader cyberattacks are a serious risk. Three-quarters of respondents said an uncertain economy was most risky, and about three in five named climate change.