Despite economic optimism, CEOs recognize need for digital transformation
- Most CEOs (84%) have confidence in the U.S. economy's continued growth, and nearly all (98%) have confidence in their own organizations' expansion, according to a new KPMG report. Yet despite their optimism, respondents said they had only moderate prospects for their own organizations' earnings this year.
- KPMG also found that 91% of chief executives said they're prepared to lead a digital transformation within their organizations, but respondents were ambivalent about using data in their decision-making. Slightly fewer CEOs (86%) described their companies as "active disrupters;" most respondents said technology would be the only significant disruption to their business, KPMG said. A majority (68%) said cyber attacks were inevitable, but only 41% said that they're well-prepared for such attacks.
- Most company heads (93%) said that investment in improving customers' personal experience has been successful, but nearly a quarter (22%) admit not having delivered customers' expectations for a personalized experience. CEOs in the report were near evenly split on whether technology will create or eliminate jobs. Nearly all (99%) said they use contingent workers, and respondents said they're "focused on prioritizing the importance of urgently needed technical skills," according to KPMG.
The report shows what the majority of top organizations already know: to remain competitive and grow, executives must be prepared to initiate and execute frequent digital transformation. HR's role in helping lead that transformation is critical, but many departments say they lack the resources to make it happen. As with most issues, leadership will need to be involved in order for innovation to move forward.
As the CEOs conveyed in the survey, workforce development will include training and reskilling in the long term. With HR in the lead, organizations will need to be agile and able to adjust their staffing needs as labor market changes dictate.
While CEOs have confidence in the U.S. economy's continued growth and that of their own organizations, HR leaders must find skilled workers to fill new and vacant positions in a tight labor market. They're also looking to reduce the amount of time positions stay vacant and the high costs involved.