As a CEO, how do you thrive in an age of continuous reinvention?

 

For this week’s newsletter, I've done the reading & summarizing, so you can save your most precious asset, namely your time:

* The drive to reinvent is accelerating as CEOs brace themselves for heightened pressures in the next 3 years compared to the preceding 5, stemming from technological advancements, climate change, & various other influential MegaTrends impacting global business

* Among CEOs, 45% express less confidence in their company's sustainability, prompting a slightly higher propensity among them to initiate actions geared towards business model reinvention

* Small company CEOs are particularly susceptible to feeling their company's viability at risk compared to their counterparts in larger corporations

* CEOs widely perceive significant inefficiencies within their companies across various routine operations, ranging from decision-making meetings to email correspondence, with approximately 40% of time spent on these tasks deemed inefficient

* A conservative estimate suggests that this inefficiency could equate to a self-imposed US$10 trillion tax on productivity!

* To address these challenges, about 60% of CEOs anticipate efficiency benefits from GenerativeAI, which could potentially alleviate some of the burdens associated with routine tasks

* 40% of CEOs acknowledge having adopted lower hurdle rates for investments focused on climate-friendly initiatives compared to other investments, typically reducing these rates by 1-4%. This indicates a willingness among some CEOs to navigate intricate trade-offs in their efforts to enhance the sustainability of their enterprises

* Simultaneously, 2/3 of CEOs report reallocating resources, both financial & human capital, by 20% or less on a yearly basis. The interplay between resource reallocation, reinvention efforts, & financial performance implies that a more assertive approach to reallocation—within certain limits—is essential for achieving success

Top tips from the authors to tackle some of the above challenges:

1. Elevate the stakes in your AI strategy

2. Move swiftly, & move with accountability

3. Transform obstacles into prospects

4. Involve, empower, & enable your workforce

5. Identify your critical actions

6. Illuminate links to value

7. Adjust expectations regarding climate priorities

8. Stay vigilant


Did you know that executive coaching is one of the most effective ways to support a CEO to reinvent?

But don't take my word for it, take it from one of my CEO client: