2018 Global CEO Outlook: UK - assets.kpmg.com · 1r phpehuilup kdv dq\ dxwkrulw\ wrreoljdwhruelqg.30* ,qwhuqdwlrqdoru dq\ rwkhu phpehuilupylvjylv wklugsduwlhv qrugrhv .30* ,qwhuqdwlrqdokdyh

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2018 Global CEO Outlook: UK

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2©2018 KPMG International Cooperative ( KPMG International ), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients.No member firm has any authority to obligate or bind KPMG International or any other member firm vis à vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved

Document Classification: KPMG Confidential

Their optimism in the global economy is tempered by a healthy dose of pragmatism

CEOs aredriving growth against a backdrop of geopolitical volatility, changing customer expectations and the seemingly inevitable cyber issue

© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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Exposure to growth headwinds

Making digital a personal crusade

Putting instincts over data

Driving realistic growth





CEOs are being buffeted by a series of strategic issues in their pursuit of growth

And as Geopolitics hits the boardroom, a ‘return to territorialism’ is the

Number Onethreat to growth this year


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Cyber up from 5th place (2017) to 2nd place (2018) for risks hampering future growth, but UK CEOs are less worried

39% UK

49% Global

of CEOs say that becoming a victim of cyber attack is a case of ‘when’ not ‘if’


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But UK CEOs feel less well prepared to deal with a cyber incident…

39% UK

51% Global

… compared to 59% of UK CEOs in 2017, who said they were fully prepared





44% of UK CEOs say investments in personalising customer experience have not delivered anticipated growth

and…

25%

of CEOs believe they are not meeting expectations in this area


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CEOs are quite bullish on the economy at large as well as their overall outlook for their company


econir

mp

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CEOs are quite bullish on theomy at large as well as overall outlook for their any.

-



Confidence in the global economy’s growth over the next 3 years:

77% theco

UK

67% Global

CEOs are queconomytheir overall company.

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ite bullish on theat large as well as

outlook for their

-



Confidence in their company’s growth prospects over the next 3 years

Global

90%

UK

92%

UK CEOs are less optimistic about the domestic economy in the next 3 years

Global

74%

UK

65%




“ I’m exceptionally bullish at the moment. I think the world is in the best place that it’s been for at least 12 years. ” Ken Allen CEO, DHL Express


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Document Classification: KPMG Confidential© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.


CEOs are more realistic and take a more pragmatic approach when it comes to their own company’s revenue growth, particularly in the UK

61% UK

55% Global

of CEOs predict revenue growth of less than 2%

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UK CEOs are more focused on working with third parties in pursuit of growth

70% UK

53% Global

see third party partnerships as the only way to achieve the agility needed for growth


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However… fit with organisational culture and purpose is crucial

70% UK

49% Global

of CEOs have reconsidered a partnership on these grounds, even if it would have helped with growth


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CEOs are embracing the digital agenda like never before and taking personal ownership for driving transformation and protecting customer data

They are also focused on transitioning their workforce for the digital age





95%

of CEOs see technological disruption as more of an opportunity than a threat to their business, up 30 percentage points from 2017

54%

of CEOs are actively disrupting in the sector they operate in, rather than waiting to be disrupted by competitors


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71%

of CEOs are personally ready to lead a radical organisationaltransformation


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However, only 40% of UK CEOs see protecting customer data as a critical personal responsibility

59% Global

40% UK


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UK CEOs are more likely to feel their board has unreasonableexpectations from digital transformation

72% UK

51% Global





62% Global

71% UK

of CEOs expect AI to create more jobs than it destroys


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“ We have to face up to the fact that AI and automation will have a significant impact on the way we work – so let’s redevelop our workforces. ” Duncan Tait SEVP, Head of Americas and EMIA Fujitsu





CEOs are prioritising agility– UK CEOs even more sothan their Global peers

79% UK

59% Global

believe that acting with agility is the new currencyof business


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Document Classification: KPMG Confidential© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.


In making strategic decisions for their company…

67% have overlooked data-driven insights because they contradicted their intuition

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CEOs still need to do more to adjust to a world of advanced and predictive analytics

71% UK

51% Global

Nearly three quarters of UK CEOs are less confident in the accuracy of predictive analytics compared with historic data


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CEOs have the highest trust in social media sources over all others:

‒ traditional media ‒ secondary information

providers ‒ open data from government

agencies ‒ government commissioned

research


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“ The most successful CEOs are at the heart of their organisations, leading from the centre.

From here the chief executive can be in touch with every part of the organisation and show greater agility, resourcefulness and realism – maximising the chances of success in the transformation journey ahead. ”

Bill Michael Chairman, KPMG in the UK


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The 2018 Global CEO Outlook: Leading from the Centre Findings based on a study of more than 1,300 CEOsin 11 of the world’s largest economies (150 in the UK)

kpmg.com/uk/ceo-outlook


https://home.kpmg.com/xx/en/home/insights/2017/06/ceo-outlook.html?cid=van_ceooutlook-sx_xx-acx_2017-adv-ceooutlook&utm_medium=van&utm_source=ceooutlook&utm_content=xx-acx&utm_campaign=2017-adv-ceooutlook

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


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2018 Global CEO Outlook: UK - assets.kpmg.com · 1r phpehuilup kdv dq\ dxwkrulw\ wrreoljdwhruelqg.30* ,qwhuqdwlrqdoru dq\ rwkhu phpehuilupylvjylv wklugsduwlhv qrugrhv .30* ,qwhuqdwlrqdokdyh