Next 3 Years More Critical Than Previous 50 as Global CEOs Believe it is Now or Never to Transform Their Company

New York (ots/PRNewswire) -

KPMG International survey finds CEOs' optimism based on
technology, speed and talent

http://www.multivu.com/players/English/7871451-kpmg-ceo-outlook/

KPMG International released its 2016 Global CEO Outlook (https://h
ome.kpmg.com/xx/en/home/campaigns/2016/06/ceo-outlook.html?cid=psrs_n
wr_xx_press-acx_2016-adv-ceo-utlk&utm_medium=psrs&utm_source=nwr&utm_
content=xx_press-acx&utm_campaign=2016-adv-ceo-utlk), revealing that
while a majority of CEOs foresee the next few years to be
challenging, with expected moderate economic growth, they are
optimistic they can successfully manage through this environment.
While 72 percent of top executives believe the next 3 years will be
more critical to their industry than the previous 50, they are
confident in their company's growth prospects. Further four-in-ten
CEOs say they are pinning their prospects on significantly
transforming their operating model over the next 3 years, up 12
percent from last year's survey.

Highlights of KPMG's 2016 Global CEO Outlook study

KPMG's 2016 Global CEO Outlook study provides a vivid image of
global CEOs' expectations for business growth, the challenges they
face and their strategies to chart organizational success over the
next 3 years. Key findings include:

- The vast majority of CEOs are confident in future growth over the
next 3 years, with 89 percent feeling confident in their own
company's growth, 86 percent confident in their home country's
growth, 85 percent confident in the growth of their industry and 80
percent confident in the global economy.
- Almost half (48 percent) of CEOs say their company's annual
top-line growth over the next 3 years will be between 2 and 5
percent.
- CEOs expect the primary sources of growth to be from new products
(28 percent), new customers (26 percent), new markets (25 percent)
and new channels (22 percent).

Top concerns and priorities

The annual study by KPMG International, of nearly 1,300 CEOs from
companies across 11 industries in 10 countries, found that CEOs are
concerned with a number of critical issues - many of which they
indicate they have not previously experienced in their careers. The
most pressing concerns for CEOs are:

- customer loyalty (88 percent)
- impact of the global economy on their company if global economic
growth is less than they project (88 percent)
- lack of time to think strategically about the forces of disruption
and innovation shaping their company's future (86 percent).

Importantly, 65 percent are concerned that new entrants are
disrupting their business models and more than half (53 percent) of
CEOs believe that their company is not disrupting their industry's
business models enough.

"These CEOs understand that their organizations need to be
disruptors - and it's now or never for them to do so," says John
Veihmeyer, Chairman, KPMG International. "Despite today's global
geo-political uncertainty and disruptive market and social forces,
the CEOs in our survey are focused on growth, by strengthening their
capabilities today and readying their businesses for a very different
future, through transformation, advanced technology and more
specialized talent."

The level of concern about new and unfamiliar challenges, is
evident from the shift in top risks identified by the CEOs. For
example, cyber risk rose to the top in the 2016 survey, whereas it
was not among the top five risks in 2015. Seventy-two percent of CEOs
believe their organization is not fully prepared for a cyber event.
CEOs also voiced their concern with their company's level of data and
analytical sophistication, as well as their ability to connect with
customers through digital channels. Less than a third (30 percent)
believe they are currently a leader in data and analytics.

The top strategic priorities over the next 3 years of the CEOs
surveyed are:

- fostering innovation (21 percent)
- having stronger client focus (19 percent)
- implementing disruptive technology (18 percent)
- developing and/or managing talent (18 percent)
- stronger marketing, branding and communications (17 percent).

Despite innovation being the top priority for their organization
and that nearly 8 in 10 (77 percent) say it is critical to include
innovation in their strategy, with clear targets and objectives, less
than a quarter (23 percent) of CEOs say that innovation is at the top
of their personal agenda.

CEOs stake future on transformation, technology and talent

In light of the shifting business environment, almost half (41
percent) of CEOs indicated that their company will likely be
transformed into a significantly different entity in the next 3
years. That number has risen markedly from the 2015 survey, in which
29 percent of CEOs held that opinion.

In line with expectations of economic and revenue growth, a
growing number of CEOs plan to increase talent over the 3 year
period. Ninety-six percent expect to increase their headcount over
the next 3 years, up from 78 percent in last year's survey. A solid
majority (61 percent) plan on hiring within the next 12 months.
However, most report some levels of skills gaps emerging, with over
50 percent of the CEOs reporting skills gaps in key business
functions.

Technology also featured prominently in the CEOs' transformation
plans, with these executives stating that it would be the second
largest factor contributing to company growth - after global economic
factors and ahead of domestic economic conditions. The CEOs
highlighted new technology as a key enabler to achieve and accelerate
their progress, with 18 percent saying that implementing disruptive
technologies will be a key priority. The CEOs reported that they will
devote significant investment to technology over the next 3 years,
with 25 percent planning to increase data analytics capabilities and
22 percent planning investments in cyber security solutions.
Technology-related risks are also top of mind for CEOs, with cyber
security (30 percent) and emerging technology risk (26 percent)
accounting for two of the top three risks they are concerned about.

To view additional information about the study (http://www.kpmg.co
m/Global/en/IssuesAndInsights/ArticlesPublications/ceo-outlook/Pages/
Default.aspx?cid=_psrs_gdp_psrs_global_2015_2007_%7bkeyword%7d_CEO+su
rvey+email01_ceosurvey&utm_source=_psrs&utm_medium=psrs&utm_term=%7bk
eyword%7d&utm_content=CEO+survey+pr01&utm_campaign=2015+gdp+ceosurvey
), please visit kpmg.com/CEOoutlook (https://home.kpmg.com/xx/en/home
/campaigns/2016/06/ceo-outlook.html?cid=psrs_nwr_xx_press-acx_2016-ad
v-ceo-utlk&utm_medium=psrs&utm_source=nwr&utm_content=xx_press-acx&ut
m_campaign=2016-adv-ceo-utlk). You can also follow the conversation
@KPMG on Twitter, using the hashtag: #CEOoutlook.

About KPMG's 2016 Global CEO Outlook survey

The survey targeted 1,268 CEOs in 10 key markets (Australia,
China, France, Germany, India, Italy, Japan, Spain, UK and US) and 11
key industry sectors (automotive, banking, infrastructure, insurance,
investment management, life sciences, manufacturing, retail/consumer
markets, technology, energy/utilities and telecom). A third of the
companies surveyed have more than US$10B in annual revenue, with no
responses from companies under US$500M. The survey was conducted
between 15 March and 29 April 2016. NOTE: some figures may not add up
to 100 percent due to rounding.

About KPMG

KPMG is a global network of professional services firms providing
Audit, Tax and Advisory services. We operate in 155 countries and
have 174,000 people working in member firms around the world. The
independent member firms of the KPMG network are affiliated with KPMG
International Cooperative ("KPMG International"), a Swiss entity.
Each KPMG firm is a legally distinct and separate entity and
describes itself as such.

Brian Bannister, KPMG International, +44-7919-393753,
Brian.Bannister@kpmg.co.uk

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ots Originaltext: KPMG International LLP
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