A marketplace without boundaries? · with the growing disruptions facing their business. In...

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www.pwc.com.au/ceosurvey A marketplace without boundaries? Responding to disruption PwC’s18th Annual Global CEO Survey Australian report and analysis 60% of Australian CEOs believe there are more threats to growth today vs. three years ago 62% of Australian CEOs plan to enter a new joint venture or strategic alliance 43% of Australian CEOs feel very confident about their own organisation’s ability to grow 55% of Australian CEOs plan to increase headcount

Transcript of A marketplace without boundaries? · with the growing disruptions facing their business. In...

Page 1: A marketplace without boundaries? · with the growing disruptions facing their business. In particular they’re concerned about the changing behaviour of consumers, brought about

www.pwc.com.au/ceosurvey

A marketplace without boundaries?Responding to disruption

PwC’s18th Annual Global CEO Survey Australian report and analysis

60%of Australian CEOs believe there are more threats to growth today vs. three years ago

62%of Australian CEOs plan to enter a new joint venture or strategic alliance

43%of Australian CEOs feel very confident about their own organisation’s ability to grow

55% of Australian CEOs plan to increase headcount

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When we spoke to CEOs in late 2013 about their view of growth, sentiment was bleak – well below that of their global peers.

One year later and although confidence has returned to a level more consistent with their global peers, concerns about growth have risen sharply. And this accords with our view that the general sentiment of CEOs is slowly deteriorating again, month by month.

Our business leaders are particularly concerned about the growth-restricting effects of over-regulation. It seems that the expectations for reform that accompanied the change of Federal Government were high indeed, and although some progress has been made, clearly there is more to be done.

Australia’s CEOs are not, however, simply sitting on their hands. The number of CEOs that plan to undertake deals and restructures over the next 12 months has risen sharply.

In addition to an uptick in traditional merger and acquisition activity, we’re seeing a growing popularity in partnerships, including joint ventures and strategic alliances. CEOs are increasingly seeing the value in partnering with diverse businesses and groups that can bring the capabilities they need to differentiate and compete in a rapidly changing business landscape.

There has also been a rise in plans for offshore investment and although interest in the strengthening US market has increased, our

PrefaceAustralia’s CEOs have been through something of a roller-coaster of confidence over the 12 months since our last Global CEO survey.

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CEOs still see China as their favoured offshore destination for growth. But we now know that while many businesses talk about Asia, the level of direct investment and engagement in the region is actually very low. A PwC study completed in late 2014 found that only 9% of Australian businesses are currently operating in Asia, and only 12% have any experience of doing business in Asia at all1. CEOs need to ask themselves some tough questions about their Asia strategy if they want a substantive share in the region’s growth.

Domestically, Australia’s CEOs are working hard to come to terms with the growing disruptions facing their business. In particular they’re concerned about the changing behaviour of consumers, brought about by rapidly evolving digital technologies.

How companies respond to this and other technology-led change over the next 12 months will be critical to their

longer-term success. And while CEOs recognise the importance of innovation in meeting these challenges, there’s plenty of room for improvement when it comes to building innovation capability into the fabric of our companies and our economy alike.

We are confident that Australia’s CEOs have what it takes to meet these challenges and position their businesses to grow in a world where continual change and disruption are simply the norm. But there is much to be done, both individually and collectively, to ensure that Australian companies have the best chance of success.

At the enterprise level, CEOs need to focus on building the capabilities they need to differentiate and compete in technology-driven markets. At the policy level, there needs to be comprehensive reform of the taxation system and greater commitment to nurturing digital innovation.

Thank you to the CEOs who took part in our survey. Your ongoing willingness to share your views and concerns benefits us all.

Luke Sayers

CEO, PwC Australia Vice Chairman, PwC Asia

Preface–

1 PwC, Passing us by, 2014

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52%

PwC’s 18th Annual Global CEO Survey Key findings – what Australian CEOs are telling us

69%

38% 43%

67%

83%

92%

see global economic growth improving

feel very confident about their own organisation’s ability to grow

believe business performance has been enhanced from talent diversity and inclusiveness

Cultural diversity and experience will become paramount to capture opportunities abroad

More than half are collaborating with new partners to build and strengthen innovation capabilities

see digital technologies creating value for internal and external collaboration

Domestically, the landscape will change

see China as the top destination for off-shore growth

55%plan to increase headcount

40%are looking to complete a domestic M&A

New alliances will be made…

62% will enter into a new joint venture or strategic alliance

Tax reform plays a vital role in encouraging innovation, as well as helping foster economic growth

CEOs said government’s attempts at achieving an internationally competitive tax system were ineffective

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Preface .........................................................................................2

Growth

Growing in a disrupted world ....................................................................... 6

Cross-industry competition ........................................................................... 9

Partnerships

Deals and Asia high on the agenda .............................................................. 10

Alliances are growing (yet half fail) ............................................................ 12

Digital Innovation

Disruption on the mind of every CEO .......................................................... 14

Innovation the key to growth ...................................................................... 15

It’s all about tax ........................................................................ 17

Diversity

Thinking deeply about talent ...................................................................... 18

Final words

Where to now? ........................................................................................... 20

Thank you .................................................................................................. 23

Contents

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Growing in a disrupted worldWhile the economic and business climate isn’t giving CEOs anywhere great cause for celebration, Australia’s CEOs are more confident about growth prospects for their company than they were 12 months ago, and they’re more confident about growth in the long term compared to many of their global peers.

More than half (55%) are very confident about company growth over the next three years, up from 34% in 2014. This fortitude might be due to an understanding that while no-one is immune from the effects of change in our increasingly technology-led world, the opportunities are there for those ready to grab them.

This more upbeat perspective locally is supported by the fact that CEOs around the world see Australia as one of the 10 most important countries for growth prospects in the next 12 months, outplacing Canada, Africa and other OECD nations including France and Korea.

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Growth–

Local confidence is also reflected by strong hiring intentions: 55% of Australia’s CEO are planning to increase headcount in the next 12 months, higher than the global average of 50%. At the same time, concerns around availability of key skills are at an eight-year high, forcing companies to search more widely to find talent, including online platforms and social networks.

But in a somewhat complicated picture, this growing confidence is accompanied by growing concerns.

Australia’s CEOs – 60% of them – see more threats to growth today than they did three years ago. Almost all (95%) are worried about the impact of over-regulation, compared to 71% of their global peers, and 79% are concerned about the level of government debt.

Improve Stay the same

15.9

38 37

52

44

710

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0 2

Decline Don’t know/refuse

Global (1322)Australia (42) %%

Figure 3. Do you believe global economic growth will improve, stay the same, or decline over the next 12 months?

Figure 4. The top economic, policy and social threats, as well as, the top business threats to organisational growth

Business threats to organisational growth:

Economic, policy and social threats to organisational growth:

Over-regulation 95%

New market entrants

79%

Government response to fiscal deficit and debt burden

79%

Availability of key skills

74%Cyber threats74%

Geopolitical uncertainty

76%

Speed of technological change

67%

Increasing tax burden

64%

Shift in consumer spending and behaviours

57%

Inadequate basic infrastructure

57%

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Questions to help find growth in a disrupted world

:Q Is your growth strategy reflective of the changing dynamics of the market – locally and abroad?

:Q How widely are you looking to see how your industry could be disrupted?

:Q What ways are you using information to assist in making strategic and risk decisions? Have you embedded volatility into your overall risk view?

Figure 5. The top three most disruptive trends over the next five years (as ranked by Australian CEOs)

Competition from new market entrants, geopolitical uncertainty, skill shortages and cyber attacks are seen as the other top threats to growth. In fact, compared to last year, CEOs are becoming increasingly worried about all of the threats we enquired about.

And with optimism in global economic growth falling – only 33% of CEOs globally think it will improve over the next 12 months (down from 44% last year); Australian CEOs will need to work hard to turn their sanguine mindset into results.

0

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Changes incustomer behaviour

Changes in industry regulation

Changes in core technologies

JapanAustralia %% ChinaUSA % Global%%

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37

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47

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Growth–

You’ve got to look at disruptors and see what you can learn from them. They often come with very smart innovation and different service propositions. You’ve got to welcome their participation in the marketplace because they teach us different ways to interact with customers.”

John Neal, CEO, QBE Group

Cross-industry competition

The maturity and stability of many Australian markets is leading our CEOs to look for growth in new areas. Three quarters (74%) recognise that organisations will increasingly be competing in sectors other than their own as digital models blur traditional boundary lines.

But CEOs need to be wary in thinking that falling barriers to cross-industry competition are just about opportunity. Few consider the threat. For example, more than one third (38%) of CEOs think competition from outside is unlikely to disrupt their industry. It seems to be a case of ‘it will happen, but it won’t happen to us.’

Many organisations have an inflated or uninformed view of their capabilities. While it’s not necessary to be the best in class in everything, it is important for companies to know where the gaps are and where they need to invest to compete and maintain a competitive edge.

Australia’s CEOs actually have less experience in developing cross-industry propositions (14%) compared to their global competitors (33%), and they need to up-skill fast.

Somebody will be thinking about how to do what you are doing faster, better and cheaper. Continually think about how you would compete from scratch if you were entering the industry as a new player.”

Chris Manning, Managing Director, Strategy&, ANZSEA

Figure 6. Are Australian CEOs entering new industries, or considering to do so?

14%have entered a new industry in the past 3 years

48%haven't considered entering a new industry in the past 3 years

38%haven't entered a new industry, but are considering to do so

?

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Deals and Asia high on the agenda

Despite their concerns, Australia’s CEOs are not waiting for the winds to change and are taking matters into their own hands when it comes to pursuing growth.

Since last year’s survey there’s been a substantial rise in the number of CEOs who are planning deals or restructures over the

next 12 months, which indicates leaders understand significant growth in the near future will need to come inorganically.

With so much activity planned, we expect a significant amount of change in the Australian business landscape.

Partnerships

Unlikely partners

Woolworths found themselves acquiring a hotel group in order to sell liquor in particular regions across the country (thanks to peculiarities in liquor licensing laws in some states). As such, they sought a partner who was proficient in running hotels – which they were not – thus permitting them to focus on “what we do best, which is run retail… both parties benefit from each other’s’ expertise.”

Grant O’Brien, Managing Director and Chief Executive, Woolworths Limited

Figure 7. The types of restructuring activities Australian CEOs plan to initiate over the next 12 months

2015

2015

2015

2015

2014

2014

2014

2014

57%

23%

43%

15%

67%

40%

62%

21%

Implement a cost reduction initiative

Complete a domestic M&A

Enter into a new joint venture or strategic alliance

Complete a cross-border M&A

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Partnerships–

2 Ibid

Tough questions to ask when broadening your footprint across Asia

:Q What’s your Asian strategy and how does it fit with your growth plans? How will you articulate that to stakeholders?

:Q Do you really understand what you’re getting into – how much time has senior management (and the board) spent on the ground understanding the local environment, meeting customers, suppliers and local stakeholders?

:Q What will your business model look like and how will you ‘win’ in this new market – and what do you need to change to gain consumer loyalty?

But CEOs are not just looking locally: plans for cross border M&A are up 40% compared to last year. Australia’s CEOs still see China as the top destination for offshore growth opportunities (67%), followed by the US (45%), Japan (21%) and Indonesia (21%).

But despite much talk about Asia as a key growth opportunity, we know the reality is very different for the majority of Australian businesses. Recent PwC research showed that the level of direct

investment and business activity (other than trade) in Asia is in fact woeful2. We invest more in New Zealand – a country of less than four and a half million people and with 2.5% GDP growth last year – than we do in both China or Indonesia, which have been growing at around 7-8% and 5-6% respectively for the last five years.

If Australian CEOs want to realise the growth opportunities that Asia has to offer, they will need to lift their game.

And just because we’re geographically close to Asia, we can’t assume we have a natural advantage. World-class companies from the US, Europe and within Asia itself are also competing for a part of the region’s growth. China, for example, ranks as the second top destination for a just over a third of global CEOs when considering their own company’s growth.

China

Japan

EU

South Korea

New Zealand

IndiaUS

ASEAN

$6.4bn

$0.53bn

$0.47bn

$45.9bn

$1.6bn

$28.2bn

$73.4bn

$121.7bn

1.30%

0.10%

0.10%

9.30%

0.30%

5.70%

14.8%

24.6%

2.7%

6.0%

4.9%

5.7%

1.8%

2.7%

2.8%

1.0%

Economy size Australia's FDI into country (AU$ billion)Forecast GDP growth rate over 10 years (2014-2023)%

Figure 8. Destinations for Australia’s FDI relative to GDP growth and market size

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Alliances are growing (yet half fail)

The popularity of alliances as a growth strategy has surged since our last CEO survey. Almost two thirds (62%) of Australia’s CEOs plan to enter a new strategic alliance in the next 12 months, up from 28% last year.

This corresponds with recent PwC research showing a strong rise in alliances – whether it’s a strategic partnership, informal collaboration or joint venture (JV) – and estimates that alliance activity could reach up to $100 billion in the next few years3.

More and more CEOs are taking less of a traditional ‘deals’ view towards the market. Rather, they’re considering what capabilities they need to differentiate themselves and looking to alliances to fill the gap. The CEOs we spoke to all stressed the strategic importance of partnerships.

In the medium to long term, leading CEOs will become as adept at alliances as traditional M&A by taking a systematic and structured approach to building enterprise-wide capability.

Importantly, Australian CEOs are seeing alliances as opportunities to do more than just cut cost or grow revenue – they’re now more likely to partner with customers and see the key benefits as being able to access new technologies and strengthen innovation capacity.

And technology is critical to making those partnerships work. 83% of Australia’s CEOs say digital technologies are creating value in how companies collaborate, both internally and externally.

We only really want to partner with those who add value beyond financial contributions. So whether it’s a mining company that brings their know-how to the fore, or a Japanese trading house that brings more knowledge of Asia or of those customers, we want to get more than just money.”

Andrew Mackenzie, Chief Executive Officer,

BHP Billiton Limited

3 PwC, The Sciences of Alliances, 2014

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Partnerships–

Figure 9. The types of partners Australian CEOs are engaged with or considering as part of a joint venture, strategic alliance or informal collaboration

The increasing volatility in the market today – such as fluctuating oil prices, or regulatory change – needs to be factored in when considering alliances. But the volatility may also be an opportunity for increased activity, particularly for the strong players in the market.

But despite recognition of the value of alliances, as well their growing popularity, Australian companies are still struggling to make them reliably work. Research shows that half of JVs fail to deliver their objective and two thirds dissolve within two years of formation4.

With the increasing reliance on alliances as a form of competitive advantage, differentiation and growth, Australia’s CEOs really need to lift their game in order to make their alliances deliver on expectations.

4 Ibid

When making an alliance work, CEOs need to think about three key things:

1. The degree of trust and mutual understanding between the participants must be nurtured and managed very, very carefully

2. Companies need to reduce the likelihood of failure by focusing on execution excellence

3. Exit options/triggers available to each of the participants must be clearly defined and understood from the start of any alliance

Governments

Academia

Competitors

43%31%26%

43%52%

Suppliers

Customers

Alliances are usually designed to be finite and a constructive exit plan is therefore vital.”

Sean Gregory, Managing Partner, Deals

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Digital innovationDisruption on the mind of every CEO

There is no doubt, locally or globally, that digital technologies have revolutionised how customers perceive value, and this in turn is resulting in Australia’s CEOs continuing to feel the heat of change.

In fact, they are more likely than many of their global peers to see a range of emerging business trends as being disruptive to their industry over the next five years. Digital innovation and its irrevocable impact on customer behaviour is a particular concern: nine of out ten CEOs in Australia say it is the number one disruptive trend they face. Customer expectations – based on their online experience both here and overseas – are way ahead of what many companies can currently deliver.

Australia’s CEOs also see changes to industry regulation and changes in core business technology as important disruptions, and to a greater extent than their global peers.

Figure 10. The most strategically important digital technologies for Australian CEOs

90%somewhat/very important

76%somewhat/very important

86%somewhat/very important

86%somewhat/very important

76%somewhat/very important

Data mining & analysis

Cloud computing

Cyber security

Mobiletechnologies for customers

Internet of things

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Digital–

Innovation the key to growth

Digital technologies are critical drivers of growth, and Australian CEOs know it. More than eight out of every 10 CEOs say digital is adding value in terms of operational efficiency (90%), customer experience (83%) and collaboration (83%).

But the difference between making the most of digital technologies and actually developing them is significant. And in the area of digital development and innovation, Australia is lagging its global peers. This could be linked to the fact that only 20% of respondents in a recent PwC survey rated their company as having excellent Digital IQ, which was defined as how well they understand the value of technology and weave it into the fabric of their organisation5.

PwC modelling has shown that an ecosystem based on innovation and digital technologies has the potential to increase Australia’s productivity and raise GDP by $37 billion in 2024. Longer term the contribution to GDP could be as high as 3.5% of $136 billion by 20346.

Yet the OECD rates Australia’s capacity and competency to innovate as ‘average’. Australian companies need to develop their own innovative capabilities, or partner with those that can help them. Failure to do so represents both a threat and missed opportunity for businesses.

Historically Australia has under-invested in digital innovation. The small-scale nature of digital development in this country means businesses have favoured alliances and partnerships in lieu of direct innovation.

While partnerships and alliances are a critical ingredient to growth, relying on them exclusively as an innovation strategy can be problematic, particularly at the economy-level. This is because digital economics heavily favour the development of platforms that can be leveraged globally due to the low or zero marginal cost of distribution.

Without a local large-scale innovation economy of its own, Australia is putting itself in a position where it’s unlikely we’ll own any of these platforms. This makes our businesses more susceptible to competition and disruption from other markets.

We’re using technology in various ways, particularly regarding knowledge about our customer whom we know a lot about. Empowering our people with that knowledge to design the customer experience around that is really key.”Alan Joyce, Chief Executive Officer &

Managing Director, Qantas

Australian CEOs need to do the following in order to ‘upskill fast’ their own innovative capabilities:

– Fund continuous innovation initiatives with a focus on digital

– Hire leaders from outside industry and support them at the highest levels

– Organise the incentive and performance management structure to support these initiatives

5 PwC, Annual Digital IQ Survey, 2014 6 PwC, Expanding Australia’s Economy:

How digital can drive the change, 2014

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Digital–

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Tax–

It’s all about taxAustralian CEOs views on what the government should prioritise has shifted substantially in the 12 months since the last CEO survey.

The number one issue currently is to create an internationally competitive and efficient tax system. More than three quarters of CEOs cited this as their key concern; last year it was less than half.

Seven out of ten CEOs said that the government attempts at achieving an internationally competitive tax system were ineffective. Only CEOs in the US were more critical of their government’s performance in relation to the tax system.

And PwC agrees with Australia’s CEOs on this issue. We have long been a leader in the conversation about tax reform.

Australia urgently needs tax reform to ensure we can continue to fund the services we have come to expect in our society: education, a strong public health system, public infrastructure and a safety net for those who need it the most. Without major reform our debt will exceed GDP within 25 years7.

Businesses need tax reform to increase the level of certainty, accountability and transparency in the tax system and to ensure a level playing field.

We also recognise the need for tax reform at the international level and support the G20/OECD program to modernise the global tax system in order to create and build confidence, and to foster growth.

R&D tax reform can drive innovation

Tax reform has a key role to play in encouraging an innovation economy in Australia by creating incentives for businesses to invest in innovation. This includes initiatives such as supporting early stage innovation by maintaining the generosity of the refundable tax incentive and considering additional incentives such as a Patent Box regime.

However, Australian policy makers are considering legislation to limit innovation incentives, such as potentially reducing the offset rates and excluding companies with turnover of greater than $20 billion.

Policies such as these will ultimately lead to a drop in R&D investment in Australia. And at a time when other countries, such as the UK and Singapore, are strengthening their R&D incentive programs, placing these countries in a strong position to compete for global R&D investment.

We know Australia’s CEOs have a lot on their plate, but any time they spend championing the case for broad tax reform – including the R&D incentive – will ultimately benefit both their business and the wider community.

7 PwC, Tax reform: why you should care, 2014

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DiversityThinking deeply about talent

Views about diversity and inclusiveness seem to have reached a tipping point. No longer are they seen as ‘soft’ issues, but rather as crucial competitive capabilities.

Of the 86% of CEOs whose companies have a formal diversity and inclusiveness strategy, 92% think it’s improved the bottom line. Further to this, 83% stated it had helped to strengthen the company’s brand and reputation.

But we still have a long way to go. For example, although women make up more than half of all university graduates, only 26% of senior management and 17% of CEOs are women. Research published by Strategy&, part of the PwC network, revealed that both the appointment and retention of women in CEO roles in Australia is in decline8.

In other words, businesses are selecting their senior executives from a seriously depleted talent pool.

8 Strategy&, The 2013 Chief Executive Study, 2013

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Diversity–

For us, diversity is all about talent. We want the best talent possible at Amcor, so we’re fishing in the whole talent pool. If you’re not a diversity-oriented company, then you’re really just fishing in the shallow end, and why would you want to do that?”

Ken MacKenzie, Managing Director & CEO, Amcor Limited

Figure 11. Key talent findings for Australian CEOs

Tough questions about finding different ways of thinking and working

:Q Are you measuring how diversity and inclusiveness contributes to your bottom line? Are you assessing its impact on the capabilities you have or need to develop?

:Q What strategies do you have in place to ensure you’re looking as widely as possible for talent?

:Q What measures of diversity are important to help your organisation achieve its goals?

And while the focus on gender diversity is critical, it’s also important to remember that diversity comes in many forms. Leading researchers have made the distinction between inherent diversity (e.g. gender, race, age, religious background) from acquired diversity (e.g. cultural fluency, generational savvy, work experience, a global mindset). Acquired diversity means, in essence, a proliferation of perspectives.

In our experience, there needs to be more and deeper conversations about talent diversity in Australian organisations. Particularly how CEOs can work with inherent diversity as they adapt their talent strategies in response to major demographic shifts, but also how they cultivate acquired diversity in order to realise the greatest value.

91%(versus 81% global) look for a much broader range of skills when hiring than they did in the past

92%(versus 85% global) see talent diversity as enhancing business performance

86%(versus 64% global) have a talent diversity strategy in place

74% 64%

86%

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Where to now?Australia’s CEOs are looking to the year ahead with both renewed confidence and heightened concern. And considering the rapid and seemingly ever-increasing pace of change, their paradoxical mix of optimism and apprehension is completely understandable.

So what are the key things Australian business leaders should be looking at to build success in 2015? We believe that CEOs who can develop the right strategic capabilities will be best placed to win in the emerging competitive landscape.

There is evidence that focusing on a few capabilities is key to successful growth strategies. PwC studied top companies that exhibited signs of long-term revenue declines since 2009 and found successful recoveries were closely tied to defining and rebuilding existing capabilities.

They pursue what we call Capabilities-Driven Strategies, aligning their strategic direction to the capabilities that make them unique. They make hard choices about differentiation and stick to them.

The six steps for success identified here are a good starting point for identifying and building capabilities and sharpening strategic focus. It’s arguable that these approaches wouldn’t have been substantially different ten years ago. But what’s different now is the impact of digital technologies on virtually every aspect of business.

My feeling is that increasingly, CEOs are seeing focus as a really important area, and I think therefore focusing your industry, on your capabilities, on your core competencies, is exceptionally important.”

Michael O’Keefe, CEO, Aesop

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Final words–

1. Focus on what you’re good at

In an increasingly confusing marketplace, it’s crucial to identify your organisations key capabilities, those which make it unique. We don’t think companies can manage more than three to six truly differentiating capabilities.

2. Re-evaluate the business you’re in

Once you understand your strengths, consider the true value you give to stakeholders. Recognise who your competitors really are – including those in different industries. Ensure there’s strong cohesion between your organisation’s capabilities, value proposition and product and service offerings. It could be that your core strengths could excel in a sector you’ve never been part of before.

3. Anticipate policy issues

Pre-empt them by self-regulating effectively. Work with government to develop effective and balanced policies, as part of a collaborative network of partners.

4. Build diverse yet aligned partnerships

Consider how partnerships could enhance your capabilities. Develop a broad, diverse and dynamic ecosystem of partnerships that you can adjust upwards or downwards depending on needs. And strengthen collaborations by identifying mutually beneficial outcomes.

5. Transform through digital

Understand the impact of digital technologies on your stakeholders and the value they seek. Assess how your operating model needs to change to fulfil new needs and desires – and have a clear vision and plan for how digital investments can help achieve these changes.

6. Develop a good mix of talent

Leverage the full spectrum of differences in thinking and working to build a collaborative and technologically skilled workforce that can deliver the innovation you need to compete in the new economy.

Customer – driven capabilities

Partnership

Diversity

Technology

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Notes and sources

1. PwC, Passing us by, 2014

2. Ibid

3. PwC, The Sciences of Alliances, 2014

4. Ibid

5. PwC, Annual Digital iQ Survey, 2014

6. PwC, Expanding Australia’s economy: How digital can drive the change, 2014

7. PwC, Tax reform: why you should care, 2014

8. Strategy&, The 2013 Chief Executive Study, 2013

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Thank youThank you to the company leaders who shared their views with us. Their active and candid participation is the single greatest factor in the success of PwC’s Annual Global CEO Survey. We greatly appreciate our respondent’s willingness to take the time and make this survey as comprehensive and accurate as possible.

We’re also especially appreciative of the six CEOs who sat down with us to hold deeper and more detailed conversations and whose comments appear throughout this report (more footage and insights can be found on our website www.pwc.com/au/ceosurvey.)

Thank you all for providing us with such interesting perspectives.

Alan Joyce Chief Executive Officer & Managing Director, Qantas Airways Limited

Andrew Mackenzie Chief Executive Officer, BHP Billiton Limited

Grant O’Brien Managing Director & Chief Executive Officer, Woolworths Limited

John Neal CEO, QBE Group

Ken MacKenzie Managing Director & CEO, Amcor

Michael O’Keefe CEO, Aesop

PwC’s18th Annual CEOSurvey Australian report and analysis

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Page 24: A marketplace without boundaries? · with the growing disruptions facing their business. In particular they’re concerned about the changing behaviour of consumers, brought about

www.pwc.com.au/ceosurvey

© 2015 PricewaterhouseCoopers. All rights reserved.

PwC refers to the Australian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

This content is for general information purposes only, and should not be used as a substitute for consultation with your professional advisors.

Liability is limited by the Accountant’s Scheme under the Professional Standards Legislation.

PwC Australia helps organisations and individuals create the value they’re looking for. We’re a member of the PwC network of firms in 157 countries with more than 184,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting www.pwc.com.au

Contacts

About the surveyPwC’s Annual Global CEO Survey, now in its eighteenth year, aims to inform and stimulate the debate on how businesses are facing today’s challenges. Over the years, thousands of CEOs around the world have taken the time to share their views with us.

For this Global CEO Survey, we conducted 1,322 interviews with CEOs

in over 77 countries between October and December 2014. By region, 459 interviews were conducted in Asia Pacific (including 46 in Australia), 330 for Western Europe, 147 in North America, 167 in Latin America, 125 in Central and Eastern Europe, and 94 in the Middle East and Africa. The interviews were spread across a range of industries.

The lower threshold for inclusion in the top 10 countries (by GDP) was 500 employees or revenues of more than $50million. The threshold for inclusion in the next 20 countries was companies with more than 100 employees or revenues of more than $10million.

Luke Sayers CEO, PwC Australia Vice Chairman, PwC Asia

02 8266 0000

Chris Manning Managing Director Strategy& ANZSEA

02 9321 1900 [email protected]

Debra Eckersley Managing Partner, Human Capital

02 8266 9034 [email protected]

Sammy Kumar, Managing Partner, Enterprise and Strategy & Transformation

03 8603 3608 [email protected]

Chris Mitchell National Leader, Technology Consulting

02 8266 1211 [email protected]

Sean Gregory Managing Partner, Deals

02 8266 2253 [email protected]

Andrew Parker Partner, Asia Practice Leader

02 8266 0218 [email protected]

Jon Williams Managing Partner, People

02 8266 2402 [email protected]

Tom Seymour Managing Partner, Tax & Legal

07 3257 8623 [email protected]