Executive

Perspectives

Executive

Perspectives

TheCEOOutlook

Caution,Optimism,andNavigating

theRoadAhead

March2023

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

Introductiontothisdocument

Coexistingglobalphenomenasuchasmacroeconomicuncertainties,inflation,changesinthelabormarket,etc.,createachallengingenvironmentforcompaniesin2023.

Wesurveyed759globalC-suiteexecutivesacrossindustriestosharesentimentsabouttheircompany'soutlook,theirbiggestconcerns,andhowtheysetstrategicprioritiesintimesofuncertainty.Theresultsprovideuswithafreshoutlookonwhatistopofmindforglobalbusinessleadersinearly2023.

WewillpublishtwoExecutivePerspectivestosharetheinsightsgatheredfromthesurvey.Thisfirsteditionprovidesanoverview,withregionalnuances;thesecondwillprovideadditionaldetailthroughanindustry-levelcomparison.

InthisBCGExecutive

Perspectivesedition,we

sharehowC-suites

leadersviewtheworld

andarebuilding

resilience

2

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

Executivesummary|Recenteventsprovethedifficultiesofanticipatingfuturedisruptions,makingitcrucialtocutcostwhilefuelinglong-termgrowth

Uncertaintyisstillhighlyrelevantin2023

Headinginto2023,C-suiteleadersgenerallyholdacautiouslyoptimisticviewtowardstheircompany'sperformancewhilerecognizinguncertaintyisstillthebiggestchallenge.

?~75%thinkmacrouncertaintyisakeychallenge,withAsianleadersbeingmoreconfidentthanrestoftheworld

Inthesurvey,onlyhalfoftheC-suiteleadersareexpectingadditionalglobalshocksin2023.However,therecentfailureofSiliconValleyBankandothershowshowdifficultitisforexecutivestoanticipate/predictthefuture,eveninthenear-term.Therefore,itiscrucialforC-suiteleaderstocontinuestrengtheningcost-downeffortsandbuildingresiliencewhilefuelinglong-termgrowth.

Inresponsetotheuncertainties,companiesaretakingactiononallfronts,withcostreduction,talent/peopledevelopment,andinnovationbeingthemostimportantones

?Regardlessofregion,costreductionsareakeypriority,withafocusonefficiency,insteadofpurecost-cutting

?NorthAmerica:Particularlyfocusedontalent,bothreducingheadcountandimprovingEVP,toaddresstalentchallenges

?Asia:Hasastrongergrowthmindset,takingmorecustomer/productactions(e.g.,improvecustomerretention)

?Europe:Moreconservativetowardsinnovation,butaremoreactivelyinvestinginclimate&sustainability

Overall,C-suiteleadersthinktheircapabilitiestoaddressuncertaintiesaregenerallysufficient,butdeficienciesidentifiedinsupplychain,top-line,adaptableorganization,andtransformation.

Keyactionsin2023-resettingforgrowth

Howleaders

create

competitive

advantage

Whileeveryonerecognizesthechallengesfrommacroeconomics,afewplayershavebuiltstrongcapabilitiesandoutperformedindustrypeerswithhigherTSRperformance.Theyhavedonethisbyreinvestingresourcesfreedupfromcostsavingsintogrowthactionstofuellong-termsuccessevenduringdownturns.

BCGistherightpartnertoseizetheopportunityofuncertaintyandhelpcompaniesbuildcompetitiveadvantage.3

Sampleoverview|Respondentdemographicsandquotas

759RespondentssurveyedbetweenJan.30toFeb.21,2023

…byrole/businesstitle

7%7%

19%

26%

27%

15%

CEOCFOCXOwhoreports

directlytotheCEOBU/RegionCEOCOOOther1

…byregion

29%29%

26%

6%5%

3%

1%

AsiaEuropeNorthSouthMiddleAfricaPacific

AmericaAmericaEast

…byindustry

21%

ConsumerGoods

18%

Tech/Media/

Telecom

16%

IndustrialGoods

11%

10%

HealthCare

9%

Infra./Trans.&logistics/

Travel&tourism

Financial

Institutions

6%

3%

6%

Energy

Insurance

Other

.1.ChiefofStaff,ChiefTransformation/Growth/Customerofficer,Chairmanoftheboard

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

BCGExecutive

Perspectives

AGENDA

Uncertaintyisstillhighlyrelevantin2023

Keyactionsin2023—resettingforgrowth

Howleaderscreatecompetitiveadvantage

5

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

73%

Ofallrespondentsexpectmacrouncertaintytobeakeychallengefortheircompanyin20231

MajorityofC-suiteleadersrecognizinguncertaintyisstillthekeychallengein2023;nonetheless,onlyhalfareexpectingadditionalshocks

However,only~50%areexpectingadditionalglobalshocksin2023

51%

61%

62%

Expectadditionalglobalshockstheycannotforeseetodayto

impacttheircompanyin20232

49%

56%

49%

Havemoreclaritytodayabouthowtobalancetradeoffsvs.

12monthsago2

62%

57%

68%

Haveenoughcertaintyabouttheircompany'smid-term

outlooktomakelong-terminvestmentdecisions2

58%

59%

71%

Asialeadersmore

confidentthanthe

restoftheworld

1.Surveyquestion:Whatarethebiggestchallengesforyourcompanytoweathertheevolvingglobalheadwindsin2023?2.Surveyquestion:Howdotheevolvingglobalheadwindsanduncertaintiesaffect

yourcompany'sdecisionmakingin2023?%ofrespondentsthat"Stronglyagree"or"Agree"tothestatement.Note:AsiaexcludesMiddleEast.6

Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

2023/03/17

ofexecutivessurveyedidentifiedfinancingandcapitalmarketvolatilityasoneoftherisksin2023

2023/03/10

ofexecutivessurveyedplannedonactionstosecureliquidityin2023

%ofrespondentstakingfinancialactions

2023/03/17

18%

18%

17%

2023/03/17

Increasecashreserve

Securefuturefinancingoptions

Reducedebt

TherecentfailureofSiliconValleyBankandothers-combinedwiththe

surveyresults-showshowdifficultitisforexecutivestoanticipatethefuture

Recentcollapseofbankshassparkedanewwaveofconcerns…

…thatfewexecutivesforesawatthebeginningoftheyear

1%

…leadingtolesspreparednessforfinancialchallenges

<20%

7

Source:Media,BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

RisksOpportunities

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

Large

Headinginto2023,executivesviewinflationandeconomicuncertaintiesasbiggestrisks,whiledigital&technologyasopportunities

Apartfromtheirresponsestoqueriedphenomena,respondentsacrossregionsalsomentionedregulatoryandpoliticalrisks

?“ChangeinUKgovernment,”“Brexit,”“generalelection,”and“l(fā)ocalelections”—mostoftenmentionedby

Europeanrespondents

?Governmentalpoliciesandlawsthatsubsidizeordisadvantagecertaincompanies/sectors

8

Expectedimpactofglobalphenomenaoncompanyperformancein2023

Magnitude3

SmallMedium

Directionofimpact1

%ofrespondentswhoexpectapositive/negativeimpact

60%

Climate&sustainabilitycommitment

Digital/tech/

AIdisruption

0%

Likelihood2

Changesinconsumerexpectations/behavior

%ofrespondentswho

believephenomenonhas

ahighchanceof

impactingtheircompany

60%

Labormarketchanges

Inflation/risinginterestrates

Supplychainchanges

COVID-19/new

pandemicoutbreaks

Energycrisis

80%

Uncertaineconomicoutlook

Changesingeopol.situation

WarinCyberrisks

Ukraine

100%

35%

0%

50%

70%

80%

1.Surveyquestion:Whatistheexpecteddirectionandmagnitudeoftheimpactoftheseglobalphenomenaonyourcompany'sperformancein

2023?Countedasoverallpositive(negative)if≥50%ofrespondentsviewitaspositive(negative).2.Surveyquestion:Howlikelyarethefollowing

globalphenomenatoimpactyourcompany'sperformancein2023?Counted%ofrespondentsthatselected"Verylikely"or"Ratherlikely".3.

Surveyquestion:Whatistheexpecteddirectionandmagnitudeoftheimpactoftheseglobalphenomenaonyourcompany'sperformancein

2023?Weightedaverageresponseshown.Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

North

America

Asia

Uncertaineconomicoutlook

Labormarket

Uncertaineconomicoutlook

Supplychain

Digital/tech/AIdisruption

Changesinconsumerbehavior

C&Scommitments

Digital/tech/AIdisruption

Digital/tech/AIdisruption

Changesinconsumerbehavior

9

Globalphenomenamarkedaskeyrisksoropportunitiesin2023byregion

Top3risks1

Inflation

Inflation

Inflation

1 2

3

Europe

Energycrisis

Uncertaineconomic

outlook

Top2oppor-tunities2

1

2

Note:AsiaexcludesMiddleEast.Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

Viewsonglobalphenomenavarybyregion

?Mostconcernedabout

talentshortage

?Dividedpictureonclimate&sustainability

?Riskofenergycrisisespeciallyhigh

?Particularlypositivetowardclimate&sustainability

?Changesinconsumerdemand

provideopportunitiesformany

?COVID-19stillmoreaconcernthanforrest

ofworld

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

7%

44%

12%

49%

39%

16%

49%

35%

11%

50%

39%

49%

Global

Global

Asianleadersaremostconfidentintheir

capabilitytooutperformindustryasthere's

lessconcernaboutmacrouncertainties

C-suiteleadersgointo2023generallyoptimistic,butlessconfidentabouttheircompany'sabilitytooutperform

…butonly~40%confidenttheywilloutperform

%oJ】asdonpan?sL

4/5ofC-suiteleadersoptimisticabout

theircompany'sperformancein2023…

%oJ】asdonpan?sL

BelowindustryOnparAboveindustry

OptimisticPessimistic

79%

21%

83%

17%

72%

28%

79%

21%

Europeanleadersareleastoptimisticabout

company'sperformance,likelybecausetheyrecognize

uncertaintiesaroundmacroenvironment

Higher%vs.otherregionsLower%vs.otherregions

10

Note:AsiaexcludesMiddleEast.1.Surveyquestion:Whatisyouroutlookonyourcompany’s

performancein2023relativetoitsindustry?

Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

…andsomespecifictopics(e.g.,innovationorpeople)indicatewhereexecutive'sfocuswillgo

Inresponsetouncertainties,C-suitesleadersareaimingtobringcostdownwhilebuildingcapabilitiestofuelgrowth

Growthandcost—typicallyincombination—areontopofeverybody'sprioritylistfor2023…

Respondentsstresstheneedforabalancedfocusoncostandgrowthintimesofuncertainties

Focusonkeybrandlaunches[...]tobringthecompanytothenextlevelwhilekeepingcostsundercontrol

--CFO,pharmaceuticalscompany

Managingcosttothemacroenvironment[...],structuralre-organdseparationofsomeofthebusinessareas,peopleagenda(employeevalueproposition,upskilling,insourcingcriticalskillssuchassoftwareengineering)

--CIO,telco

11

Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

BCGExecutive

Perspectives

AGENDA

Uncertaintyisstillhighlyrelevantin2023

Keyactionsin2023—resettingforgrowth

Howleaderscreatecompetitiveadvantage

12

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

Plannedactionstonavigateuncertaintiesin2023

%】2sdoup2u?sL

Actionsrelatedto2023Top2levers

72%

59%

Up-/re-skilling

54%

45%

39%

Supplierdiversification

36%

24%

52%

Costreduction/

efficiencies

Process/Opmodelredesign

Organizationalsimplification

47%

Talent,people,&organization

EVPenhancement

42%

41%

Innovation

Techinnovation

45%

Businessmodelinnovation

38%

Financing

Increasedfin.plan/forecast/report

29%

AR/APoptimization

26%

Supplychain/

operations

Supplierrenegotiations

30%

26%

Top-line/customers

Priceincreases

23%

Newproduct/servicelaunches

23%

M&A

Market-/product-extensionmerger

14%

Horizontalmerger

13%

MostC-suiteleadersfocusoncostreductiontocombathighinflation.Particularly,theyarelookingtoimproveoperationalefficiency.

Meanwhile,manyseekgrowthopportunitiesin2023throughup-skillingtalent,techinnovations,etc.

M(mDu?】Diu?VisD】2Dis,aou,?l2?d2】J2O?q2?V22u2m(oJ3oop,-wehavetogofastDupm2,v23o??odn??】DusdD】2uO(D??V2V2D】?oJ?V22JJo】?

--ChiefImpactOfficer,SalesforceatWEFinDavos

13

2023Actions|Companiesarepullingleversonallfrontsinresponsetomacrouncertainties—costs,talent,andinnovationarehighestpriorities

3%ofrespondents

planningtotakeno

actionin2023

Missed

opportunityfor

preparedness-

Techfirmsaretakingtheleastfinancingactions(33%),butaremostimpactedbyrecentcollapseofbanks

1.Surveyquestion:Whatmeaningfulactionswillyourcompanytakein2023tomitigaterisks,accelerateopportunities,orchangetrajectoryof

opportunitiesspecificallytorespondtoevolvingglobalheadwinds?Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

NorthAmerica

Europe

Asia

72%

57%

58%

49%

42%

41%

23%

67%

71%

57%

40%

29%

29%

27%

?ManyC-suiteleadersarethinkingabouttalentactions–e.g.,Techfirmsarenotonlylaying-off,butalsoinvestinginEVP2towininamarketoftalentshortage

?Higherfocuson

improvingfinancialpositionandtop-lineperformance

WaOon?inna?oqadJnpan?DnpdJoDO?ivaq(

JoOnsin3onod?imizin3lDqoJDnp

dnJOVDsapsaJviOaOos?s‘a(chǎn)nVDnOin3

dJopnO?ivi?(‘a(chǎn)?O.

--OVDiJmDnDnpO3O‘inpns?JiDl勾mDOVinaJ(

14

2023Actions|Costreductionisthepriorityforallregions;eachregionhasdifferentmixofprioritiesbasedonmarketcontext

Actionsplannedfor2023tonavigateuncertaintiesbyregion

%oJJasdonpan?sL

Costreduction/efficiencies

Talent/peopleactions

Innovation

Financing

Supplychain/opsactions

Top-line/customers

M&A

Higher%vs.otherregions

Lower%vs.otherregions

73%

52%

51%

39%

42%

36%

24%

Note:AsiaexcludesMiddleEast.1.Surveyquestion:Whatmeaningfulactionswillyourcompanytakein2023tomitigaterisks,accelerate

opportunities,orchangetrajectoryofopportunitiesspecificallytorespondtoevolvingglobalheadwinds?2.Employeevalueproposition

Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

Optimizeorganizationalstructuretoincreaseefficiencyforcost-saving

Ofcompaniesthattakecostactionscuteitherdirectand/orindirectspending

Companiescombinecost-cuttingandefficiencyimprovementtotacklecostfrommultipleangles

15

89%2

78%2

50%2

Costreduction/efficiencies

Cutdirectspend

Redesignprocesses/opmodel

Reduceindirectspend

Simplifyorg.structure

Other

67%

73%

72%

39%

39%

37%

Asiaalsohasstrongfocusoncost,despitemoreoptimisticperformanceoutlookvs.otherregions

58%

51%

51%

42%

44%

45%

46%

48%

47%

4%

3%

1%

2023Actions|CuttingcostsandimprovingefficiencyistopofmindforC-suiteexecutives—majorityredesigningopmodel&simplifyingorg.structure

>2/3plantotakecostactionsin2023,withdifferentleverstobepulled

%oJ】asdonpan?sL

North

America

Europe

Higher%vs.otherregions

Asia

"Structuredexpenseefficiencyprogram,""Offshorecallcenteratlowercost,"

"Evaluateandreducenon-necessaryfixedcostcontainment,""Reduceheadcountanddelaybonuses"

Notes:AsiaexcludesMiddleEast.1.Surveyquestion:Whatmeaningfulactionswillyourcompanytakein2023tomitigaterisks,accelerate

opportunitiesorchangetrajectoryofopportunitiesspecificallytorespondtoevolvingglobalheadwinds?2.%ofn=543respondentsthat

selected"Costactions."Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

1

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

x

x

Morethanglobalmean

Lessthanglobalmean

Asia

NorthAmerica

2023Actions|Regionsfacedifferentexposuretoglobalphenomenaandtakedifferentactionstoaddresstheenvironment

Europe

Differentactionsprioritizedfor2023

Keyrisksandopportunities

42%

47%

29%

12%

49%

38%

39%

17%

7%

5

Financial

actions

4

Lay-offs(>10%)

EVP

enhance-

ment

Supplychainactions

6

7

9

IncreaseOptimiza-

incashtionof

reservesAR/AP

Supply

chain

actions

8

NewCustomer

productretentionlaunches

globalmean

42%

32%

23%

22%

21%

Lay-offs(>10%)

EVP

enhance-

ment

Supply

chain

actions

2

Tech

New

inno-

product

vation

launches

1

3

Strongactionsonlabormarketchanges:

bothworkforcereductionandtalentretention

Lessfocusonsupplychaindespite75%expectingnegativebusinessimpact

Inflationandenergycrisisposinglargerisks,butadjustingfinancesnotdonebyall

1

4

7

Morelikelytoadjusttheirfinancialpositionasaresponsetoinflationandrisinginterestrates

8

2

3

Highfocusonsupplychainasthisposesthe3rdlargestrisktoAsiancompanies

Strongercustomer&productfocus—morelikelytoviewdemandchangesasopportunity

5

Despitelabormarketconcerns,lay-offs

andtalentretentionaremuchless

commonvs.NAMR

9

Highfocusonsupplychainsvs.globalmean

6

Highfocusontechinnovationasdigital/tech

isalargeopportunity—butnotusedfor

productlaunches

Notes:AsiaexcludesMiddleEast.Surveyquestion:Whatmeaningfulactionswillyourcompanytakein2023tomitigaterisks,accelerateopportunities,orchangetrajectoryofopportunitiesspecifically16

torespondtoevolvingglobalheadwinds?Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

2022

2023

7%

4%

+17%

+25%

13%

Nogrowthactions

7ormoregrowthactions

2023Actions|Whilegrowthisapriority,C-suiteexecutivesarepolarizedonwhethertotakeactionstoboostgrowth

Increasingspreadbetweenrespondentswhotakenogrowthactionsvs.doubledownongrowthactions

Asiaismostfocusedongrowthaction,whileEuropeisleastinvestedingrowth

NorthAmerica

Europe

Asia

9%

5%5%

16%

16%

20%

18%

Withmacrouncertaintybeinglessofaconcern,Asianleadershavethebandwidthtofocusongrowthactions

Note:AsiaexcludesMiddleEast.1.Growthactionsincludebusinessmodelinnovations,techinnovations,horizontalmergers,verticalmergers,market-orproduct-extensionmergers,conglomeratemergers,17productionprocessredesign,employeevaluepropositionenhancement,up-/re-skilling,newproductorservicelaunches.Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

C-suitesleadersshowstrongappetitetoinvestinmultipleareastoaddresscurrentchallengesandbuildadvantages

%ofrespondentswhoselectedthetopicasacurrentsignificantinvestmentarea1

Mostcompaniesaredeeplyinvolvedina

digitaland/orclimate&sustainabilityjourney,bothrequiresnewcapabilities

Highconsensusoncurrentfocusofinvestmenttofostergrowth

75%75%

71%

62%60%58%58%

49%47%

43%

TalentProduct/

retention/servicedevelopmentinnovation

Cybersecurity

Digital&AI

(internal/

process

focus)

Digital&AI

(external/

customer

focus)

Business

model

transfor-

mation

Hiring

Productioncapacity/

equipment

C&S/ESG

M&A

1.Surveyquestion:Whichofthefollowingareasarecurrently(2022/2023)significantinvestmentareasforyourcompany?

Source:"

TalentIstheGreatAntidotetoUncertainty

",;BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

Investment|Companiesareshowingastrongappetitetoinvestonmultiplefronts,withtalentretentionandinnovationatthetopofthelist

ClimateandSustainability,aswellasDigital&AIareexpectedtobetheinvestmentprioritiesinmidtolongtermtoseizetheopportunities

%ofrespondentswhoselectedthetopicasasignificantlong-terminvestmentarea1

54%54%54%50%49%

Digital&Digital&Product/

AIAIservice

(internal/(external/innovationprocess)customer)

18

Cybersecurity

C&S/ESG

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

Regionaldifferences

Higher%vs.otherregions

73%

80%

71%

58%

56%

67%

66%

35%

53%

45%

3

2

2

1

Product/serviceinnovation

Talentretention/development

57%

59%

60%

59%

47%

51%

55%

63%

63%

59%

59%

48%

44%

41%

71%

71%

73%

1

3

78%

3

72%

transformationHiring

Digital&AI(internal/processfocus)

Digital&AI(external/customerfocus)

Investment|There’sglobalconsensusontopinvestmentareasforfuelinggrowth;regionalnuancesarekeytobuildingadvantage

%ofrespondentsstatingthatthistopiciscurrentlyasignificantinvestmentareafortheircompany1

North

America

Europe

Asia

80%

2

1

Cybersecurity

Businessmodel

NAMRmoreactiveinhiringwhilealsomoreinclinedtolayofftalent

AsiastronglyleveragingdigitalandAItoaddresschangingconsumerdemands

M&A

Productioncapacity/equipment

Climate&sustainability/ESG

Europeanleadersinvestmorevs.otherregionstoseizeopportunitiesofC&Scommitments

Note:AsiaexcludesMiddleEast.1.Surveyquestion:Whichofthefollowingareasarecurrently(2022/2023)significantinvestmentareasforyourcompany?19

Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

Capabilities|Capabilitiesfortacklinguncertaintiesaregenerallysufficient,withroomforimprovementespeciallyinsupplychainandtop-line

…withsomedeficienciesidentified

Self-assessmentshowscapabilitiesgenerallysufficient1…

Largestdeficienciesrelatedto…(%respondents2)Exampleactionstobuildcapability

Avg.response&StDev.

Selectresiliencedimensions

Resilientsupplychain&ops

Resilientcustomer

base&revenues

Adaptableorganization&people

Businessperformance&transformation

Safe&modular

technology

Riskdetection&

management

3.3

E-2-Esuppliernetworkvisibility

Proactivesupplierriskmanagement

26%

25%

?Createmulti-layersuppliermapping

?Identifypotentialexposuresatthepart,supplier,locationlevel

Click

here

formoredetails

3.4

E-commerce&digitalsales

Dynamicpricing

31%

25%

?Adoptnewpricingmodel

?DrovepersonalizationandsalesefficiencywithAI

Click

here

formoredetails

3.3

Changemanagement&adapttoagile

Leanorg.withefficientprocesses

25%

26%

?Createthecultureandenvironmentforchange,withleaderenablement

?Makede-averagedworkforcereductionandstreamlinestructure

Click

here

formoredetails

3.4

3.4

Techfunctionoptimizedforefficiency

Cybersecurity

27%

18%

?Modernizetechstack

?Adoptazero-trustsecurityapproachforriskmitigation

3.6

Riskmeasurementandgovernance

19%

?Buildanearlywarningsystemandcontinuouslyscantheenvironmentforemergingrisks

12345

20

1.Surveyquestion:Howwouldyourateyourcompany'scurrentcapabilitiesacrossthefollowingdimensions?2.Minororlargedeficiencies

Source:"CEODilemma"seriesBCGExecutivePerspectives;"

BecominganAll-WeatherCompany

",;BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

BCGExecutive

Perspectives

AGENDA

Uncertaintyisstillhighlyrelevantin2023Keyactionsin2023—resettingforgrowth

Howleaderscreatecompetitiveadvantage

21

Copyright?2023byBostonConsultingGroup.Allrightsreserved.

Companieswithhighestresiliencecapabilities2outperformtheirindustrypeersonvariousdimensions

15ppts

…h(huán)igherTSRvs.industryaverageintimesofuncertainty3

Leader2Industry

Deviationfromoverallmedianinppts

18%

16%

0%

13%13%

12%

6%

0%

Financialinstitutions

-1%

Healthcare

-1%

Industrialgoods

-2%

Consumer

-3%

Insurance

91

Energy

66

1.4x

…moreoptimisticabouttheircompany'soutlookand

performance

12ppts

…lowerlikelihoodtofacechallengesnavigatinguncertainty

Leaders2

IndustryPeers

1.Surveyquestion:Howwouldyourateyourcompany'scurrentcapabilitiesacrossthefollowingdimensions?

2.Definedasacompanythatevaluatesitscapabilitiesacross19dimensionasfollows:majorityis5("verygood"),majorityoftherestis4("good")andnodimensionisbelow3("justsufficient").

3.CompanyTSRdatabasedonJanuary2022-January2023averages.3.Definedasacompanythathas"verygood"capabilitiesinatleasthalfofthecategories,"good"capabilitiesinatleasthalfofthe22

rest,andnodeficiencies.Source:CapitalIQ,BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents

AllCEOsrecognizethemacroeconomicchallenges,butfewplayershavebuiltstrongcapabilitiesandoutperformtheirindustrypeers

While>70%executivesseemacroeconomicchallenges…

…12%reportedtohavebuiltupcapabilitiestorespondtouncertainties

Totalscoreofcapabilityassessment(onascaleof100)1

Copyright?2023byBo