23rd Annual Global CEO Survey Findings for North ... Annual Global...Source: PwC, 23rd Annual Global...

23rd Annual Global CEO Survey – Findings for North Macedonia

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Navigating therising tide of uncertainty

Four key themes emerged:

Uncertainty

undermines

outlook

No matter where CEOs look or from

where they are looking, the path forward

is fraught with uncertainty. And

uncertainty weighs on growth. In the past

two years, the percentage of CEOs who

believe global GDP growth will decline

has increased tenfold (from 5% to 53%).

In every region, CEOs report increased

pessimism. And in almost every region,

they show significantly diminished

confidence in their own organisation’s

12-month revenue growth prospects.

CEOs are more sanguine about the

prospects for the coming three years;

however, confidence levels are still at a

low not seen since 2009. Over-regulation

remains the top threat, but concern is

also rising over uncertain economic

growth, in particular, as well as over

trade conflicts, climate change and cyber

threats. The unknowns on all of these

fronts cloud CEOs’ outlook on the road

ahead.

Setting up guard

rails in

cyberspace

To upskill or not to

upskill is no longer the

question

Climate change: an

opportunity cloaked in

crisis

The internet — the great global

connector and democratiser of

information — is now confronting the

unintended and dangerous

consequences of its promise. With no

effective global framework in place that

can govern practices or control attacks

on digital technology, a majority of

CEOs surveyed foresee increasing

legislation around online content, data

privacy and dominant tech platforms.

As a result, it is likely that the internet

will become more fractured. The

backlash against the internet’s

dominant model of one global, all-

encompassing and all-knowing

platform is an expected development

— and may lead to a path forward that

is at once more distributed and

underpinned by certain common

standards. If the global economy is to

realise the full promise of the Fourth

Industrial Revolution, a greater level of

coordination on these issues will be

necessary.

There are correlations among upskilling

progress, economic optimism and

revenue confidence. Furthermore, CEOs

who have embraced the potential of

upskilling are realising the rewards, such

as a stronger corporate culture, greater

innovation and higher workforce

productivity. Those furthest along in the

upskilling journey cite employee retention

as the primary challenge, whereas those

just beginning the process find motivation

and lack of resources to be the biggest

obstacles. One reality is clear: increases

in automation, changes in demographics

and new regulations will make it much

harder for organisations to attract and

retain the skilled talent they need to keep

pace with the speed of technological

change. They will have to grow their own

future workforce.

The tide has turned on climate change.

Organisations worldwide are starting to

recognise its risks and even its potential

opportunities. Compared with ten years

ago, CEOs today are far more likely to see

the benefits of going ‘green,’ such as

reputational advantage, new product and

service opportunities, and government or

financial incentives. Looking at the results

on a regional basis, there are some

expected findings and a few concerning

ones. Organisations in Western Europe

and AsiaPacific are furthest ahead in

assessing the transition risks to a greener

economy, which is not surprising, given

government commitments to sustainability

in these regions. By contrast, in the Middle

East, where economies are most exposed

to the global progression towards clean

energy, organisations are comparatively

behind in assessing the changes likely to

result from a low-carbon future.

3 | 23rd Annual Global CEO Survey – Findings for North Macedonia

Growth

Uncertainty undermines outlook

4


Question

Do you believe global economic growth will improve,

stay the same or decline over the next 12 months?

CEOs have shifted from record optimism to record pessimism over the past two years on Global level

Source: PwC, 23rd Annual Global CEO Survey

Note: From 2012 to 2014, respondents were asked, ‘Do you believe the global economy will improve, stay the same or decline over the next 12 months?’

Note: Not all figures add up to 100% as a result of rounding percentages and excluding ‘neither/nor’ and ‘don’t know’ responses

Base: Global respondents (2020=1,581; 2019=1,378; 2018=1,293; 2017=1,379; 2016=1,409; 2015=1,322; 2014=1,344; 2013=1,330; 2012=1,258)

2012

28%

42%

53%

5%

36%

17%

29%

53%

23%

27%

49%

17%

37%

44%

7%

44%

18%

52%

15%

34%

2013 2014 2015 2016 2017 2018 2019 2020

28%

49%48%

29%

22%

24%

57%

Improve Stay the same Decline

5


Q: Do you believe global economic growth will improve, stay the

same, or decline over the next 12 months?

22%24%

53%

24%

33%

43%

40%

33%

26%


Global CEE North Macedonia

The CEO survey within North Macedonia

shows some interesting insights from the

get-go. It seems that CEOs in North

Macedonia follows different trend to the

global growth trust. Where only 22% of

globally surveyed CEOs feel that global

economic growth will improve, nearly 40%

of CEOs in North Macedonia believe the

same.

This positive outlook is shared further in

the results, as only 26% of surveyed CEOs

in North Macedonia seem to believe that

global economic growth will decline as

opposed to more than 53% of CEOs on a

global level.


QuestionDo you believe global economic growth will improve, stay the same or decline over the next 12 months?

CEOs have shifted from record optimism to record

pessimism over the past two years on global level – does

the survey data from neighbouring countries show the

same?

7

22%24%

40%

56%

52%

24%24%

33% 33%

26%

30%

24%

53%

43%

26%

18% 18%

52%

Global CEE North Macedonia Albania Kosovo Serbia



Q: How confident are you about your organisation’s prospects

for revenue growth over the next 12 months and 3 years?

(showing only “Very confident” and “Somewhat confident” answers)

Here we see that the positive outlook that is

present in the business climate in North

Macedonia is on a continued trend.

CEOs in North Macedonia seem to be more

confident over a shorter period of time as it

allows for a more concise prediction. Namely,

81% of surveyed in North Macedonia are

confident that their organization has clear

prospects for revenue growth, as opposed to the

global level of 73%.

This, again, is an interesting contrast over the

larger three year period that might serve to

indicate political insecurity. Here, 73% of CEOs

in North Macedonia are confident in prospects

for revenue growth as opposed to 85% on a

global level.

73%

85%

73%

81%81%

73%

1 year 3 years



Q: How does your organisation’s current financial performance

compare to that of your competitive peers?

Positivism continues to be shown

further in the survey, as 60% of CEOs

in North Macedonia have indicated that

their organisation's current financial

performance is ahead of their peers,

which is in line with both the global

trend at 61%, and the region's trend at

57%.

Furthermore, only 7% of surveyed

CEOs consider that their organization's

current financial performance is behind

that of their peers, close to half of the

global trend at 13%.

61%

24%

13%

57%

31%

11%

60%

30%

7%

Ahead Same Behind



Q: Which of the following activities, if any, are you planning in the

next 12 months in order to drive revenue growth?

Strategies and plans for driving

revenue growth are largely in line

with both global and regional

(CEE) trends. Companies in North

Macedonia, mostly in line with their

regional and global peers, are to

mostly focus on operational

efficiencies at 72%, launching new

products and/or services at 67%

and organic growth at 49%.

Where opinions differ is in

collaboration with entrepreneurs

and startups, where CEOs in North

Macedonia are not likely to do so

(at only 9% compared to their

global peers at 28% who clearly

believe in the value in such

collaborations.)77%

60%

70%

35%

38%

28%

35%

14%

75%

64%

60%

25%

23%

19%

17%

8%

72%

67%

49%

28%

21%

9%

5%

2%

Operational Efficiencies

Launch a new product/service

Organic growth

Enter a new market

New strategic alliance or joint venture

Collaborate with enterpreneurs or startups

New M&A

Sell a businessNorth Macedonia CEE Global


Q: Which of the following statements do you believe most

strongly enables your strategic goals?CEOs in North Macedonia have a

clear strategic outlook towards

prospects and what it is that makes

them unique in a growing marked.

Out of seven answers offered,

companies in North Macedonia

prefer "having a clear vision of

value for customers" at 30%, more

than both their regional and global

counterparts, and "having a set of

differentiating abilities" at 26%,

significantly more than their global

counterparts.

These values are somewhat

different in the areas of new

opportunities and talent

development, where CEOs are less

sure about their standing and show

a decline in relation to both the

region and globally.

26%

18%

13%

11%10%

12%

9%

27%

18%

15%

12%11%

9%

7%

30%

26%

12% 12%

9%

7%

5%

We have aclear vision ofhow we createvalue for ourcustomers

We have a setof differentiatingabilities that setus apart from

our competitiors

Allocate ourresources

strategically

We bringsomething

unique to ourcustomers

We pursue onlythose strategicopportunities

that we believewe have theability to win

We are agileand pursue new

opportunitiesthat emerge

We are able toattract, retainand developtalent in tjoseareas that arethat are most

important for usto win



Q: Do you expect headcount at your organisation to increase,

decrease, or stay the same over the next 12 months?

Regularly an interesting

point, headcount

expectations are in line more

with global trends as

opposed to the region.

Nevertheless, the positive

outlook is shared as

surveyed company heads

expect an increase in

headcount at 49%, on the

same level as globally,

whereas only 12% of

surveyed CEOs anticipate a

declining headcount over the

next year.

49%

30%

22%

40% 39%

21%

49%

40%

12%

Increase Stay the same Decrease



Q: Which three territories, excluding the territory in which you are

based, do you consider most important for your organisation’s

overall growth prospects over the next 12 months?

Serbia 33%

Kosovo 30%

Bulgaria 21%

Albania 19%

USA 16%

Germany 14%

Croatia 12%

China 20%

Germany 19%

USA 17%

Russia 11%

Romania 8%

Serbia 8%

Austria 7%

CEE North MacedoniaAs is expected given the geopolitical

conditions, the economies of the immediate

neighbors are viewed as the crucial markets

towards direct growth prospects for companies

in North Macedonia, ranging from 33% of

companies viewing Serbia as crucial, through

30% for Kosovo, 21% for Bulgaria, to 19% for

Albania.

Interestingly enough, next in line is USA at

16% as a crucial territory along with Germany

at 14%.

Considering the sizes of these markets, it is no

wonder that regional CEOs share these

sentiments as USA is crucial to 17% of

regional CEOs and Serbia at 8% of the same.


CrossingUncharted Territory

Q: Please find below a list of threats to your organisation's growth

prospects. How concerned are you, if at all, about each of these?

(showing only “Extremely concerned” and “Somewhat concerned” answers)

Threats are a common aspects for

company heads. As such, it is no

wonder that on many levels, there

is unspoken agreement between

local, regional and global surveyed

CEOs.

This can easily be seen at shared

concerns over uncertain economic

growth where CEOs in North

Macedonia feel equally threatened

at 81% as their global counterparts.

What is different, however, is how

CEOs in North Macedonia are

largely concerned over taxation,

and associated regulations. 86% of

interviewees have marked

concerns for increased tax

obligations, shared by only 58%

globally. A similar trend is at tax

uncertainty, a concern for 81% of

CEOs in North Macedonia, as

opposed to 57% on a global level.

81%77%

74%

58%

73% 72%

57%

82%79%

77%

66% 65%69%

64%

81% 81%

88%86%

56%

77%81%

Uncertaineconomic

growth

Policyuncertainty

Availability ofkey skills

Increasing taxobligation

Cyber threats Geopoliticaluncertainty

Tax uncertainty



Regulations and Technology

Setting up guard railsin cyberspace

16

Question 15: Are you seeing changes in international policies and regulations in

the following areas?

North Macedonia


Q: What key factors are having the greatest

impact in shaping your cybersecurity strategy?

Cybersecurity is a growing subject area, and here, companies in

North Macedonia align more closely with their regional counterparts

(CEE) than their global peers.

Interestingly enough, the peak issue for local and regional

companies seems to be the impact of data privacy regulations in

cyber security, at 63% for North Macedonia, and 74% for the region,

as opposed to 59% on a global level.

Increasing complexity of cyber threats is less of a concern

regionally, as only 58% of companies expressed such concern -

while this is the key concern on a global level. Ultimately, shortage

of cyber security talent is on point locally, at 33%, in line with the

region at 32% and globally at 38%.

59%

75%

48%

38% 38%

34%

26%

18%

74%

58%

46%

32%29% 29%

26%

11%

63%

58%

47%

33%30%

28%

21%

14%

Cyber security dataprivacy regulations

Increasingcomplexity of cyber

threats

Growing publicconcern over data

privacy

Shortage of cybersecurity talent

Vulnerabilities insupply chains

Adoption of Internetof Things, hardware

and software

Rising geopoliticaltensions

Introduction of 5Gceullar networks



26%

23%

13%

55%

22%

18%

8%

61%

33%

21%

2%

56%

I have deleted some or allof my social media

I have stopped usingAmazon Alexa, Siri

I have requested acompany to provide or

delete data it has collected

None of the above


Q: Have you taken any of the following actions regarding your own

personal digital behaviour over the past 12 months?

It is said that leaders best lead by

example, and this is even more true in

the digital landscape.

We asked CEOs about their individual

digital behaviour, to determine how it

aligns with the strategy of their company

in this field. Results demonstrate that not

enough attention is paid on this, which is

in line with global trends.

Only 33% of CEOs have deleted some or

all of their social media content, but only

2% had asked that their digital footprint

be removed, as it is now possible.

It should be noted however that more

than half of surveyed CEOs, or 56%,

have done nothing about this.


Climate change

An opportunity cloaked in crisis

20

Q: How strongly do you agree or disagree with

the following statements regarding climate

change?

(showing only “Agree” and “Strongly agree” answers)

Climate change is a hot topic, and while it is somewhat concerning as opposed to

additional expenses to the company, a number of growth opportunities have been

shown to come up.

56% of surveyed CEOs have determined that working towards a greener economy will

provide a reputational advantage. There is still work to be done here, as the global level

for the same metric is at 75%.

What is commendable, however, is the fact that 65% of CEOs have determined that

climate change initiatives may and will lead to significant new products and service

opportunities for their organizations, which is on par with global prospects at 63%.

CEOs in North Macedonia continue to demonstrate a forward vision by testing out the

risks to a greener economy (53%) and explored financial incentives at 58%.

75%

63%

78%

64%

45%

56%

68%

56% 54%

39%

68%

45%

56%

65%

47%

53%58%

49%

Our response to climatechange initiatives willprovide a reputational

advantage for myorganization among keystakeholders including

employees

Climate change initiativeswill lead to significant new

product and serviceopportunities for my

organization

Our stakeholders havereasonable expectations

regarding our approach toclimate change

My organisation hasassessed the potential

transition risks to agreener economy

My organisation willbenefit from government

funds or financialincentives for green

investments

My organisation hasassessed the potentialphyical risks to future

climate events



Upskilling

To upskill or not to upskill is no longer the question

22

Q: How much progress has your

organisation made in the following areas

related to upskilling?

(showing only “Significant progress”)

Companies in North Macedonia have yet to accept the growing benefit of

upskilling.

This is evident by the fact that in respect of all options the interviewees from

North Macedonia are shown to be trailing behind their regional and global

counterparts, by more than half in some sections.

Only 16% of surveyed companies have thought about building employee

engagement through open communication on upskilling. Further, only 9% of

companies have established an upskilling program, whereas 18% of global

surveyed companies have an active program.

27%26%

24%

20%

18%

13%

23%22%

21%20%

15%

10%

16% 16%

12% 12%

9%

7%

Building employmentengagement through opencommunication on skills of

the future

Implementing a diversityand inclusion strategy toattract a wide range of

talent and ensureinclusivness in how we work

Defining the skills neededdefining our future growth

strategy

Improving our workers andleaders knowledge of

technology and its potentialimplications

Establishing an upskillingprogram that develops amix of soft , technical and

digital skills

Collaborating withacademic/governmentinstitutions on the skillsneeded for the future



14%

9%

13%14% 14%

12%

21%

17% 17%

10%9%

8%

28%

19% 19% 19%

7%

2%

A lack of resourcesto conduct the

upskilling programswe need

Disruption of day today business

activities

Motivating orincentivising

employees to learnand apply their

learning

Retainingemployees who

have beenupskilled

Ability ofemployees to learnnew skills needed

for the future

Defining the skillswe should build


Q: Please rank the greatest challenges your organisation currently

faces in its upskilling efforts.

To elaborate on the lack of

upskilling programs, it seems

that the issue is not a lack of

understanding what needs to be

done.

In this area, CEOs from North

Macedonia lead way ahead of

their global counterparts, as only

2% of CEOs have stated that

the challenge is not knowing

what skills are needed.

What is an issue, however, is

the fear of employees leaving

after upskilling, evident at 19%

of surveyed CEOs, which is

quite a bit higher than the

regional value of 10%, as well

as the lack of resources to

conduct upskilling programs at

28% as opposed to only 14% on

a global level.


Q: How effective are your upskilling programs in achieving the

following outcomes?In contrast to the aforementioned

results, companies clearly understand

the benefit of upskilling programs, as

almost all trends are on a similar level,

shared among local, regional and

global peers.

Major impact is viewed in a greater

innovation and accelerated digital

transformation at 79% (which is equal

to the global level), as well as a

greater business growth, again at

79%, compared to the global level for

the same at 80%.

Where trends differ however, is in

relation to higher workforce

productivity. Only 68% of CEOs in

North Macedonia feel that upskilling

directly relates to increased

productivity, in contrast with both

regional CEOs at 80% and global

CEOs at 84%.

87%

79%

84%80% 80% 79%79%

70%

80%77%

67%70%

74%

79%

68%

63%

79%

72%

Strongercorporate culture

and employeeengagement

Greater innovationand accelerated

digitaltransformation

Higher workforceproductivity

Improved talentacquisition and

retention

Greater businessgrowth

Reducing skillgaps and

mismatches



Survey Methodology

PwC surveyed 3,501 CEOs in 83

territories in September and October

2019. The sample of 1,581 CEOs

used for the global and regional

figures in this report are weighted by

national GDP to ensure that CEOs’

views are fairly represented across

all major regions. Further details by

region and industry are available on

request. Seven percent of the

interviews were conducted by

telephone, 88% online, and 5% by

post or face-to-face. All quantitative

interviews were conducted on a

confidential basis.

Of the 1,581 CEOs whose

responses were used for the global

and regional figures:

• 46% of their organisations had

revenues of US$1bn or more.


revenues between US$100m and

US$1bn.


revenues of up to US$100m.

• 55% of their organisations were

privately owned.

Notes:

• Not all figures add up to 100%

as a result of rounding

percentages and excluding

‘neither/ nor’ and ‘don’t know’

responses from exhibits.

• The base for global figures is

1,581 (global respondents)

unless otherwise stated.

More information on the Macedonian

edition you can find on our website

pwc.com/mk.

The research was undertaken by

PwC Research, our global centre of

excellence for primary research and

evidence-based consulting services.

https://www.pwc.co.uk/pwcresearch


For the Macedonian results, 43 CEO’s

shared their responses, insights and

predictions.


revenues between US$100m and

US$1bn.


revenues of up to US$100m.

• 74% of their organisations were

privately owned.

Contact us:

PwC North Macedonia

16, 8th Septemvri Blvd.

Hyperium Business Centre

1000 Skopje

North Macedonia

E-mail: [email protected]

T: +389 2 3140 900

© 2020 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity.

Please see www.pwc.com/structure for further details.

mailto:[email protected]

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