CEO Insights for What's Ahead | 5.10.23

CEO Insights for What's Ahead | 5.10.23

CEO Confidence Ticked Down Slightly in Q2

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The Conference Board?Measure of CEO Confidence??in collaboration with The Business Council declined slightly to 42 in Q2 2023, down from 43 in the first quarter of the year. (A reading below 50 reflects more negative than positive responses.)

The more things change…Even as dramatic bank failures stoked fears of a systemic financial breakdown, CEOs' outlook held remarkably steady in Q2—pessimistic, but not catastrophic.

  • 93% expect a short and shallow US recession ahead, with just 6% preparing for a deeper downturn with major global spillovers—essentially unchanged from Q1.
  • 56% now expect general economic conditions to worsen over the next six months, while 40% expect worse conditions in their own industry—up from 48% and 33%, respectively, in Q1.
  • Still, CEOs have mixed feelings about hiring, with 20% cutting jobs, but 46% holding labor forces steady and 34% looking to hire—little changed from Q1.

Battening down the hatches:?Leaders are acting to insulate themselves from the turmoil in the US banking sector: 62 percent of CEOs are examining their firms’ banking relationships. Large numbers are also reviewing their firms’ risk management practices and liquidity adequacy—as well as those of customers and suppliers.

Read the results ?

Explore the Global Recession hub ?



Is Your Coaching Program Worth the Cost?

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The use of executive coaching for the development of leaders has grown over the past decade. But the demand for coaching and its many benefits must be balanced with the associated costs, especially as businesses face a slowing economy.?

Coaching costs have grown, but is it having an impact??According to our upcoming Global Executive Coaching report, coaching costs have steeply increased since 2021. Despite this increased cost, few businesses rigorously evaluate the outcomes of their coaching programs. Indeed, 92 percent currently do not assess the ROI.?

The path forward:?Expect executive coaching costs and demand to continue increasing. To determine if those costs are worth it, businesses should collect data on program outcomes to assess the ROI and inform continuous improvement. Balance the demand for and costs of coaching with the impact and ROI.?

Join us in June:?Register for the Leadership and Coaching Conference, a two-day virtual event on June 1-2, where we will address the challenge of how to build better leaders for the business needs of the future.

Register for the conference ?



Dealing with ESG Backlash Requires Explaining What ESG Is—and Isn’t

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CEOs need to keep ESG backlash in perspective—and to put #ESG in the context of the company’s business strategy.?

Maintaining perspective:?While ESG backlash is expected to intensify over the next two years, 75 percent of US companies surveyed by The Conference Board say they have experienced only minimal or moderate backlash thus far.?

Moreover, there are powerful regulatory and market forces that will continue to move ESG forward, including (1) increased disclosure requirements from the SEC and EU, (2) public and private sector procurement programs emphasizing sustainability, and (3) continued pressure in capital, labor, and product markets for companies to embrace environmental and social responsibility.?

Providing context:?It also helps to explain who ESG is part (but just part) of and what it means to be a sustainable corporation. As shown above, the elements of a sustainable organization include why the company exists (purpose), what it does (its business strategy), where it carries out its strategy (the marketplace, workplace, and public space), how it measures its performance (including ESG), and whom it is serving (its stakeholders).?

Put in this context, it’s hard to argue with the value of ESG.

Learn more about the ESG Center ?



Find the Right Balance between Robotic and Human Customer Service

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Automated systems are US consumers’ biggest #customerservice frustration, period. They trump long wait times and being referred around the organization, according to our recent survey. Contacting customer service is often customers’ last resort after having tried to fix an issue or find needed information.?

As long as #AI systems aren’t advanced enough to handle more-than-standard inquiries, companies should make it easy to reach a well-qualified service associate to resolve customer problems and provide human—rather than robotic—empathy.?

Create happy customers, employees, and investors:?Human?customer service can enhance customer satisfaction, willingness to pay, loyalty, positive word-of-mouth, and brand value.?

Invest in employees:?This can include ensuring adequate staffing levels, treating employees well to retain and attract talent in a tight labor market, and having employees’ backs in light of increased customer incivility.?

Provide training:?Companies need to provide constant training to enable service employees to deal with well-informed customers and give them decision autonomy to resolve customers’ issues favorably.

Read the report ?



QUOTABLE: Advancing Opportunity

“Talent is created equally, opportunity is not…I'm hoping that decision makers, people on boards, can really continue to say, ‘What do we have to do to make sure that we're widening the aperture of talent,’ and that the way in which we see talent, that we are opening up our mindsets, we are looking at their skills, we are looking at their abilities. Because clearly as we do more of that, you will see more women, you will see more people of color—you will just see difference.”

—? Thasunda Brown Duckett , President and CEO of TIAA , and a recipient of our 2023 Distinguished Leadership Awards.?Watch ?or?listen? to the conversation for insights on:

  • Duckett is the first female CEO of TIAA and the third-ever Black woman to run a Fortune 500 company. How is she using her unique background and leadership position to advance change?
  • 40% of all Americans run the risk of running out of money. How is TIAA helping to address the retirement crisis in the US?
  • During times of large-scale change and economic uncertainty, what critical leadership principles does Duckett use to help navigate her company?
  • What are the fundamental factors that Duckett considers in advancing diversity, equity, and inclusion?



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