CEOs remain optimistic despite geopolitical uncertainty – PH CEO Survey

Geopolitical uncertainty is a major concern for CEOs, with 62 percent saying that it keeps them awake at night. Ongoing events, such as the Russia-Ukraine war, Israel-Hamas conflict and territorial disputes in the South China Sea have had far-reaching implications for global trade, supply chains and economic stability, impacting businesses worldwide.

But the CEOs remain upbeat about the global economy despite external pressures with 52% believing that global economic growth will improve in the next 12 months. They are also optimistic about their industry's future, with 86% expressing confidence in their business prospects and their ability to achieve revenue growth over the next three years.

These insights are part of the Philippine CEO Survey 2024, conducted from July to August among 168 business leaders. As the Knowledge Partner for the Management Association of the Philippines’ (MAP) International CEO Conference, PwC Philippines carried out the survey that touches on the conference theme “Business in Five Movements: Wisdom, Passion and Inspiration Across Five Generations.”

Business leaders are tasked not only to come up with solutions, but such should strategically cater to multigenerational stakeholders. Rene Almendras, MAP President for 2024, shared, “Businesses today have to deal with five generations: Baby Boomers, Gen X, Millennials, Gen Z and Gen Alpha. Each generation behaves differently and has unique characteristics as consumers, producers, business leaders and citizens. Organizations need to change because market preferences are shifting. The challenge is to ensure that whatever product or service you offer penetrates each generation.”

When it came to challenges of having a multigenerational workforce, over 75 percent of respondents identified differences in management and leadership styles as their biggest challenge. Other issues include differences in communication styles and work-life balance expectations.

The survey also explored succession planning within multigenerational companies. In the next three to five years, 45 percent of companies intend to make changes in their senior leadership. Only a quarter (25 percent) said that they have established succession plans for all senior executives in their organizations, and over 60 percent are confident that they have the right measures in place to ensure operational sustainability and continuity in times of leadership changes.

Business leaders were also asked how they are reinventing their businesses to ensure longevity, such as through investing in generative AI (GenAI). Though three-fourths of the respondents agreed that GenAI can improve their products or services and make their processes more efficient, GenAI adoption remains low, with only 39 percent having implemented it in their organizations.

Nonetheless, incorporating technology into operations is a priority for organizations. In the next 12 months, majority of CEOs plan to make investments in upskilling their workforce in priority areas, automating processes and systems and deploying advanced technologies like AI and cloud to better equip their companies for the evolving business environment.

Danao added, “In order to ensure that their businesses survive beyond the next decade, leaders need to reinvent their organizations through investing in new technologies and in the next generation. This involves fostering innovation, embracing digital transformation and empowering young talent to drive forward-thinking solutions. The results of this year’s Philippine CEO Survey 2024 reveal that leaders are ready to make strategic short-term investments that lay the foundation for sustained long-term growth and success.”