health strategy
institute (hsi)
multidisciplinary institute of continuous transformation
for in-person health and digital health strategy
Joaquim Cardoso MSc
Chief Research and Editor — of the Health Strategy Portal;
Chief Strategy Officer (CSO) — of the Health Strategy Institute (HSI),
Senior Advisor — for Boards and C-Level
June 25, 2023
Over the past few years, CEOs have found themselves repeatedly recalibrating in the wake of shock after shock. And as 2023 shapes up to be another year of uncertainty, stable ground may continue to seem elusive.
Leaders around the world are confronting a welter of uncertainties. Here’s how to home in on what matters — and begin making the most of novel opportunities — amid ongoing change.
This is an Executive Summary of the article “Six CEO priorities for 2023”, which reproduces an interview with Homayoun Hatami, senior partner and managing partner for global client capabilities, and chief client officer Liz Hilton Segel, of Mckinsey, published on April 6, 2023.
What matters in a world in flux
- CEOs are facing unprecedented levels of shock in the macroeconomic environment and changes in consumer buying behavior, driven by factors like energy prices, inflation, and supply shocks.
- The reopening of China post-COVID-19 is significant for companies, as China’s economy has a substantial impact on the global GDP and collaboration with China is crucial.
- Prioritization is essential for CEOs in the current dynamic world, with a focus on building resilience as an organizational muscle.
- Having a courageous mindset toward change is important, embracing change instead of avoiding it.
- Technology should be seen as the foundation for growth, including building new businesses and leveraging shifts like the energy transition.
- Competing and winning in the talent market is crucial, and the quality of the talent value proposition supports all other priorities.
- CEOs are facing unprecedented levels of shock in the macroeconomic environment and changes in consumer buying behavior, driven by factors like energy prices, inflation, and supply shocks.
Top 6 priorities:
1.RESILIENCE: Building resilience as an organizational muscle.
2.COURAGE: Embracing a courageous mindset toward change and leaning into opportunities.
3.TECHNOLOGY: Leveraging technology as a foundation for growth.
4.NEW BUSINESS & GROWTH: Building new businesses and exploring growth opportunities.
5.ENERGY TRANSITION: Navigating the transition to clean and sustainable energy (net-zero opportunity).
6.TALENT: Attracting and developing top talent in a tight talent market.
DEEP DIVE
Brief description of each priority
1.RESILIENCE — Building resilience as an organizational muscle.
- Resilience for leaders means the ability to deal with adversity, withstand shocks, and adapt quickly.
- Resilient companies generated higher shareholder returns compared to less resilient peers during 2020–2021.
- Resilient companies prepare well, focus on flexibility in their supply chains, and have systems in place to detect potential disruptions.
- They take preemptive action, using analytics for predictive maintenance and planning based on potential scenarios.
- Top talent is crucial for resilience, and resilient organizations invest in value-driving roles and strive to have the best talent in those positions.
- Having the best teams leads to positive outcomes even in challenging times.
2.COURAGE — Embracing a courageous mindset toward change and leaning into opportunities.
- In times of economic uncertainty, strategic courage becomes a competitive advantage.
- While some organizations adopt a defensive posture, focusing on resilience and caution, it is also an opportunity for courage and inspired change.
- Embracing a lean-forward posture is advocated, whether through big moves like M&A strategies or small steps like gathering insights from country managers to capitalize on shifting trends.
- Taking a longer-term lens involves fostering an aspirational mindset and culture, not accepting the status quo, and actively seeking pathways for profitable growth.
- Expanding the core, exploring adjacencies, and venturing into new businesses are seen as critical priorities for CEOs, with the majority considering new businesses a top priority.
3.TECHNOLOGY — Leveraging technology as a foundation for growth.
- Technology is a top concern for CEOs, not just the purview of CIOs, as it plays a critical role in acquiring capabilities, product innovation, and growth.
- While a large percentage of companies are engaged in digital transformation, only one-third feel they are achieving the anticipated financial value.
- CEOs should ensure a direct link between technology transformation and value creation, while assessing talent, operating model, and technical architecture to support the roadmap.
- Successful companies differentiate themselves through software creation and monetization, highlighting the importance of software in delivering superior returns.
- Traditional companies need to think and operate like software companies, considering factors such as software-like culture, sophisticated product management, and rigorous software development processes.
While a large percentage of companies are engaged in digital transformation, only one-third feel they are achieving the anticipated financial value.
4.NEW BUSINESS & GROWTH: Building new businesses and exploring growth opportunities.
- To build new businesses at scale, CEOs should closely understand customer pain points and spend time engaging with buyers.
- Clearly define the unique advantage that the new business will bring in solving customer issues.
- Dream big and aim for unicorn-level success when pursuing new business opportunities.
- Supportive leadership from the CEO is crucial, setting the vision, aspiration, and investment profile for the new business while granting it autonomy.
- Speed is important, and considering acquisitions and serial acquisitions can be powerful strategies to enter and expand into new markets.
To build new businesses at scale, CEOs should closely understand customer pain points and spend time engaging with buyers.
5.ENERGY TRANSITION: The net-zero opportunity
- Net zero remains a key priority for CEOs, aiming for a clean and sustainable energy system that is also affordable, resilient, and secure.
- Leaders should view the energy transition as an opportunity rather than a cost, identifying areas where they can be early movers and invest in value pools that could create trillions of dollars in opportunities by 2030.
- Reframing the issue as an “and” rather than an “either/or” scenario allows for profitable investments in areas like transport, electrification, sustainable aviation, and more.
- Nature-based solutions also present positive ROI opportunities, such as regenerative agriculture, reducing food waste, and implementing returnable and reusable containers to address plastic waste.
- Aligning business actions with what’s good for the planet and humankind can be beneficial for both business and broader stakeholders.
6.TALENT: Talent in transformation
- Leaders should shift from pedigree-based selection to focusing on potential and skill credentials.
- Impact delivered should be prioritized over time in roles for promotion and career acceleration.
- The job itself needs to change to accommodate hybrid work, with a focus on functional technology integration and creating new cultures and norms.
- Experimentation and forward-thinking in adapting to the changing talent landscape lead to maximum global productivity.
- Two-way apprenticeship and the value of the next generation in educating and upskilling senior employees are gaining importance.
- Emphasize self-authorship and allow individuals to define their own exciting and purpose-filled career paths.
- The post-COVID-19 period requires adaptation and avoiding a return to the old ways of talent management.
- Impact delivered should be prioritized over time in roles for promotion and career acceleration.
