16th Global PWC Ceo Survey

Contents
1. 16th Annual Global CEO Survey

2. Cyprus
3. Italy
4. Poland
5. Spain
6. United Kingdom
7. United States
8. Asset management in-depth
analysis
9. Asset management key findings
10.Automotive
11. Banking and capital markets
in-depth analysis
12.Banking and capital markets
key findings
13.Chemicals
14.Communications
15.Healthcare key findings
16.Industrial manufacturing
17.Insurance in-depth analysis
18.Insurance key findings
19.Metals
20.Technology
21.Transportation and logistics
www.pwc.com/ceosurvey
Dealing with
disruption
Adapting to survive
and thrive
16th Annual Global CEO Survey
The disruptive decade
p3
/ What worries CEOs most?
p5
/ A three-pronged
approach
p10
/ Its a question of trust
p22
1,330
CEOs in 68 countries
36%
of CEOs are very confdent
about their growth prospects
See page 3
82%
of CEOs plan to change
customer strategies in 2013
See page 15
Preface
During the past decade, weve seen
economic volatility and disruption
escalate to arguably unprecedented
levels. In a globalised world one
where countries, economies and
companies are more interconnected
and interdependent than ever before
risks that once seemed improbable
and even remote have become the
norm. For business leaders across the
world, expect the unexpected has
become the mantra.
To navigate through this environment,
companies need to develop resilience.
This combines an ability to ride out the
immediate impact of shocks with a
long-term capacity to adapt to constantly
changing conditions. Were helping
more and more of our clients achieve
this blend of qualities not only to survive
through new and emerging challenges,
but to thrive in this environment.
In my view, the shift to resilience helps
to explain the widening gap between
CEOs levels of confdence in their
organisations one-year and three-year
outlooks. This years survey shows that
just 36% of CEOs are very confdent
about their businesss growth prospects
over the next 12 months, down from
40% in 2012 and 48% in 2011 (see
Figure 1). In contrast, the proportion
confdent about growth over the coming
three years has held up much better.
This suggests that leaders believe their
organisations can be resilient by
rolling with the short-term blows while
reshaping for longer-term growth.
What strategies are CEOs adopting to
become more resilient? Our fndings
highlight three common approaches.
First, theyre targeting specifc pockets
of opportunity for organic growth,
avoiding spreading their resources too
thinly. Second, theyre maintaining a
clear focus on the customer, taking
active steps to stimulate demand,
loyalty and innovation in their
customer base through mechanisms
ranging from digital marketing
platforms to collaborative R&D. And
third, theyre fne-tuning their
operational effectiveness by reducing
costs without cutting value and
collaborating with trusted partners.
The focus on trust also goes much
further. In the post-crisis world, trust is
at a premium. But its also an essential
component of the ongoing relationship
between an organisation and all its
stakeholders and thereby an
important pillar of resilience. With
social media giving a voice to evermore
diverse groups of stakeholders, CEOs
are recognising the need to secure a
stronger social mandate by rebuilding
public trust. From promoting an ethical
culture to increasing workforce
diversity and reducing environmental
impacts, theyre pursuing a wide array
of initiatives to simultaneously support
their growth strategies, establish the
right mandate and boost resilience.
My sincere thanks go to the more than
1,300 CEOs from 68 countries who
shared their thinking with us. Their
active and candid participation is the
single greatest factor in the success of
the PwC Annual Global CEO Survey,
now in its 16th year. We greatly
appreciate our respondents willingness
indeed eagerness to free up their
valuable time to help make this survey
as comprehensive as possible. Im
especially grateful to the 33 CEOs who
sat down with us in late 2012 to hold
deeper and more detailed conversations.
You can see their verbatim comments
throughout this report.
Dennis M. Nally
Chairman, PricewaterhouseCoopers
International
PwC 16th Annual Global CEO Survey 1
Contents
The disruptive decade 3
What worries CEOs most? 5
A three-pronged approach 10
Targeting pockets ofopportunity 10
Concentrating on thecustomer 14
Improving operational effectiveness 18
Its a question of trust 22
CEO survey participants 28
Research methodology and key contacts 30

2 PwC 16th Annual Global CEO Survey
I think the level of external threats has increased with every
passing decade. And as the pace of change has increased,
organisations like ours have to be a lot more fexible than
we might have been in the past.
Shikha Sharma, Managing Director and CEO, Axis Bank Limited, India

The global economic outlook is
certainly enough to test even the
strongest enterprises. The eurozone
is still mired in recession and the US
economy is forecast to expand by just
2.2% this year.
1
The situation in some
of the growth markets is also getting
harder, as the slowdown in the BRIC
economies demonstrates.
While market conditions in many
countries are still very diffcult, CEOs
are more positive about the prognosis
than they were last year: 52% think the
Figure 1: CEO confdence has gone up and down sharply over the past decade
Q: How confdent are you about your companys prospects for revenue growth over the next 12 months?
Very confident about companys
prospects for revenue growth
over the next 12 months
0
10
20
30
40
50
60%
2013 2011 2010 2009 2008 2007 2003 2004 2005 2006 2012
40%
48%
52%
26%
31%
41%
50%
21%
36%
31%
Base: All respondents (2013=1,330; 2012=1,258; 2011=1,201; 2010=1,198; 2009=1,124; 2008=1,150; 2007=1,084; 2006 (not asked); 2005=1,324;
2004=1,386; 2003=989)
Source: PwC 16th Annual Global CEO Survey
global economy will stay the same for
the next 12 months and only 28%
believe it will shrink. In 2012, by
contrast, 48% were convinced the
global economy would contract.
But economic plateaux arent exactly
grounds for cheer. Thats why short-
term confdence about the prospects
for revenue growth has continued
falling (see Figure 1). CEOs in Western
Europe are especially nervous. Only
22% feel very confdent they can
increase their companys revenues in
the coming 12 months, compared with
53% of CEOs in the Middle East and
Latin America.
1 PwC, Global Economy Watch (December 2012).
Figure 2: Major disruptions over the last decade
US-led invasion of Iraq
SARS epidemic
Southeast Asian tsunami
Hurricane
Katrina
(US)
Eurozone sovereign debt crisis
and first Greek bailout
New Zealand and Japan
earthquake and tsunami
Hurricane Sandy
(US)
iPhone launch
Global financial crash
Northern Rock bank run (UK)
Lehman Brothers collapse
US, UK and European bank bailouts
Wenchuan earthquake (China)
Indonesia earthquake
WHO declares swine flu pandemic
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: PwC
The prevailing mood is, as usual,
somewhat more optimistic when it
comes to the longer-term outlook:
46% of CEOs are very confdent about
expanding over the next three years.
That said, CEOs in most parts of the
world are much less positive than
their peers in the E7 markets (46%
versus 58%).
2
Its easy to understand why theyre
so cautious. Far-reaching changes
are happening and theyre also
happening faster than before. Between
1970 and 2011, the number of man-
made disasters nearly tripled, while
the number of natural disasters surged
sevenfold.
3
The past decade alone has
seen a number of major disruptions
(see Figure 2).
Inshort, improbable risks arent so
improbable now; theyre becoming
the norm in a more uncertain world.
And CEOs everywhere are feeling
the heat.
2 E7 markets: China, India, Brazil, Russia, Mexico, Indonesia and Turkey.
3 Swiss Re, sigma No 2/2012.
people always tend to think
that a tough economic situation
is the sign of a new normal
and, conversely, that a robust
world economy will last forever.
But economic conditions
always alternate.
Yasuchika Hasegawa, President and
CEO, Takeda Pharmaceutical Company
Ltd., Japan
When people ask me, Whats going
to happen in the next fve years?,
I throw up my hands and say
I have no idea and neither do you.
How do you cope with that degree
of uncertainty? Well, I think, frst,
by having the right attitude about
the process of change and reinvention.
Peter Tortorici, CEO, GroupM
Entertainment Global, US
Figure 3: Major social unrest tops the list of scenarios that would have the worst impact on CEOs organisations
Q: How well would your organisation be able to cope with the following scenarios, if they happened within the next 12 months?
(respondents who answered negative impact)
75
67
63
56
53
53
52
51 Chinas GDP growth falling below 7.5% per annum
%
Recession in the US
Military or trade tensions affecting access to natural resources
Cyber attack or major disruption of the internet
Major social unrest in the country in which you are based
A breakup of the eurozone
A natural disaster disrupting a major trading/manufacturing hub
Health crisis (e.g. viral pandemic, food/water safety crisis)
Base: All respondents (1,330)
What worries CEOs most?
Todays CEOs are concerned about a
wide range of potential and ongoing
threats to their business growth
prospects. These include catastrophic
events, economic and policy threats
and commercial threats.
Major disruptions
We asked CEOs about their
organisations ability to cope with the
potential impact of various disruptive
scenarios. The majority thought their
organisations would be negatively
affected, with major social unrest being
cause for the greatest concern (see
Figure 3). Indeed, CEOs are far more
concerned about this than they are
about a slowdown in China, possibly
because theyve already factored the
latter into their calculations.
The global community of regulators
as well as the political classes are
keen on ensuring the stability of the
fnancial system. And that implies
a completely new order, a new set of
rules to play by. In these cases, its
not uncommon to wind up in a
situation of regulatory overreach.
Piyush Gupta, CEO and Director,
DBSGroup, Singapore
Red numbers, red tape
Of course, major disruptions arent
the only cause for concern; CEOs are
nervous about a whole clutch of fscal
and political threats. The prospect of
continuing economic volatility heads
their worry list, as it has for the past
two years. But 71% rising to 89% in
North America are also concerned
about how debt-laden governments
will try to address growing defcits.
And 69% are anxious about the risk of
overregulation, now seen as a bigger
threat than at any time since 2006
(see Figure4a).
Has regulation gone too far? The US
Dodd-Frank Act of 2010 runs to a
massive 884 pages, which makes it
23 times longer than Glass-Steagall,
the reform that followed the Wall
Street Crash of 1929.
4
And the
European Commission (EC) has
generated so much red tape that
business ministers from Germany,
the Netherlands, Poland and the UK
recently wrote a letter urging Brussels
to reduce the burden.
5
This is in spite
of the ECs efforts of the past years
to consolidate, codify and simplify
existing legislation and improve the
quality of new legislation.
Figure 4a: Volatile conditions top the list of economic and political threats, but concerns vary by where CEOs are located
Q: How concerned are you about the following potential economic and policy threats to your business growth prospects?
(top four threats global CEOs named)
Uncertain or volatile
economic growth
Government response
to fiscal deficit/debt
Overregulation Capital market volatility
Regions most concerned about this threat Regions least concerned about this threat
88%
81%
56%
89%
71%
54%
75%
69%
65%
66%
61%
50%
Africa North America Middle East Africa/Asia Pacific
Global Global Global Global
Middle East Latin America Western Europe Latin America
Base: All respondents (North America=227; Western Europe=312; Asia Pacifc=449; Latin America=165; Middle East=32; Africa=50)
4 Over-regulated America, The Economist (18 February 2012), http://www.economist.com/node/21547789
5 James Kirkup, Lift the weight of red tape, Vince Cable and allies urge Brussels, The Daily Telegraph (20 November 2012), http://www.telegraph.co.uk/fnance/yourbusiness/9689165/
Lift-the-weight-of-red-tape-Vince-Cable-and-allies-urge-Brussels.html
Too much tax, too little talent
On the commercial front, CEOs are
particularly anxious about higher
taxes and the shortage of key skills
(see Figure 4b). These are perennial
fears, but current events have brought
them to the fore.
In the US, for example, one of the most
pressing issues in President Obamas
in-tray is reform of the corporate tax
system. In February 2012, he proposed
reducing the headline tax rate by
eliminating dozens of subsidies, a
move that could hit some companies
Figure 4b: Volatile conditions top the list of business threats, but concerns vary by where CEOs are located
Q: How concerned are you about the following potential business threats to your growth prospects?
(top four threats global CEOs named)
Increasing tax burden Availability of key skills
Energy and
raw material costs
Shifting consumer
spending/behaviour
65%
62%
50%
82%
58%
45%
68%
52%
31%
57%
49%
35%
Asia Pacific Africa Africa Asia Pacific
Middle East Western Europe Middle East Latin America
Base: All respondents (Western Europe=312; Asia Pacifc=449; Latin America=165; Middle East=32; Africa=50)
6 Jackie Calmes & John H. Cushman Jr., Obama Unveils Proposal to Cut Corporate Tax Rate, The New York Times (22 February 2012), http://www.nytimes.com/2012/02/23/business/economy/
obama-introduces-plan-to-cut-corporate-tax-rate.html?pagewanted=all
hard.
6
Meanwhile, the competition
for talent has become more ferce than
ever before, with the aging of the
global population and the changing
nature of work.
Energy and raw material costs are
also a signifcant source of unease
especially in Africa and Asia Pacifc,
where 68% and 63% of CEOs,
respectively, see them as a serious threat.
Silver lining for some
Its not all doom and gloom, though.
Nearly a ffth of all CEOs in the Middle
East believe the collapse of the eurozone
could provide new business opportunities.
Similarly, 16% of CEOs in the Middle
East and 13% of CEOs in Central and
Eastern Europe believe Chinas slowing
growth could open new doors. And
13% of CEOs in North America would
welcome a squeeze on natural
resources for the same reason.
In fact, Chinese CEOs are already
benefting from the lingering
uncertainty in the eurozone. Our
research shows that, in 2011, there
were 61 deals in which mainland
Chinese companies acquired European
companies up from 11 in 2006. And
in the three months to March 2012, the
number of Chinese frms purchasing
European frms surpassed the number
of European frms purchasing Chinese
frms for the frst time in history.
7
Some European countries have
a high level of productivity while
others have a lower level of
productivity while they are all
wrapped up in a monetary corset
subject to different tax regulations.
If the eurozone fails, an array of
opportunities may arise, because
some of the current rigidities
will disappear.
Julio Patricio Supervielle, Grupo
Supervielles CEO and Banco
Supervielles Chairman, Argentina
From risk management
toresilience
One thing is clear: the threats facing
CEOs are coming from all directions;
theyre coming harder and faster; and
theyre coming in more subtly varied
forms. Confronted with this changing
risk landscape, CEOs recognise that
traditional risk management
techniques arent enough. And, in a
stagnating global economy, they know
they cant rely on a rising tide to come
to the rescue.
The only way forward is to build
organisations that can survive
andthrive amidst disorder:
organisations that are agile and
adaptable, able to cope with
disruption and emerge stronger
than before.
If you dont evolve and change, you
go backwards. Its pure physics, says
Larry Fink, Chairman and CEO of asset
management frm BlackRock Inc. So
weve adapted quite considerably. Even
this year we changed our entire frm
architecture to be more adapted
to our clients, to be more adapted to
the situation and, importantly, to
fnalise our evolution from a founders
culture frm to a global, hopefully
entrepreneurial frm. And that has
been a big evolution.
7 PwC, China deals: A fresh perspective (October 2012).
To be honest, we wouldnt dare to predict the future. The fact is
the world has been changing a lot more quickly in recent years.
And looking back, we fnd that many forecasts of the global
economy turned out to be incorrect. In our company, we just
try to do well everything we need to do today. There are so
many things out of our control that we feel its unnecessary and
impractical to make too many predictions about the economy.
Instead, we focus on building robust systems that can operate
under a variety of conditions.
Alex C. Lo, President, Uni-President Enterprises Corporation, Taiwan
A three-pronged approach
So what are CEOs doing to make their
organisations more resilient in this
era of stable instability? Our survey
shows that theyre taking three
specifc approaches:
Targeting pockets of opportunity:
CEOs are focusing on a few well-
chosen initiatives, primarily in their
existing markets, to stimulate organic
growth. Theyre more wary about
entering new markets or engaging
in mergers and acquisitions (M&As),
and diluting their resources too much.
Concentrating on the customer:
CEOs are looking for new ways to
stimulate demand and foster
customer loyalty, such as capitalising
on digital marketing platforms and
involving customers in product/
service development. But theyre also
aiming to keep their R&D costs down
and make the innovation process
more effcient.
Improving operational
effectiveness: CEOs are balancing
effciency with agility. Theyre trying
to cut costs without cutting value or
leaving their organisations exposed
to external upheavals. Theyre also
delegating power more widely and
collaborating with organisations
to share resources and develop
new offerings.
Targeting pockets
ofopportunity
Two-thirds of all CEOs are focusing on
a few carefully selected initiatives
rather than nurturing numerous
different ideas and then weeding out
the weakest. Thats easier said than
done because every business unit
naturally thinks its plans should take
precedence. But theres considerable
evidence to suggest that concentrating
your frepower works much better than
adopting a scattergun approach.
One analysis of how 4,700 companies
weathered three previous downturns
shows that the star performers those
that emerged stronger than ever
werent the obvious ones. They werent
the companies that cut fast and
furiously or went on the offensive with
ambitious restructuring programmes,
acquisitions and the like. The former
saw customer satisfaction drop as the
quality of their offerings deteriorated,
while the latter were stretched much
too thin.
8

The companies that fared best in terms
of both sales growth and profts
growth were those that mastered the
delicate balance between cutting costs
to survive in the short term and
investing to expand in the longer term.
They took advantage of depressed
prices to buy property, plants and
equipment that would help them
compete more effectively in the future.
And they invested judiciously in R&D
and marketing to boost their sales and
profts when demand rose again.
9
The CEOs in our survey are responding
in the same fashion. Theyre weighing
up all their options, making a few
smart investments and consolidating
their resources to maximise the odds of
success. And theyre doing so not
because they think its the best way of
surviving a downturn but because they
think it will make their organisations
more robust.
Steve Holliday, CEO of international
energy distributor National Grid Group
Plc., sums up this approach. Its very
easy to just go off and think you can do
things that you do well in many
countries around the world which
arguably need some of your skills, he
warns. But if a company doesnt have a
clear idea of where it can deliver value
and isnt disciplined in its focus, it risks
extending itself too far. Were very,
very conscious of making sure we dont
overreach ourselves.
8 Ranjay Gulati, Nitin Nohria & Franz Wohlgezogen, Roaring Out of Recession, Harvard Business Review 88, no. 3 (March 2010): 6269.
9 Ibid.
Growth is not necessarily about
revenue growth. In this uncertain
environment there is more and more
emphasis on bottom line growth.
Peter Terium, CEO, RWE AG, Germany
Figure 5: CEOs are pursuing the opportunities for organic growth in existing markets
Q: Of these potential opportunities for business growth, which one is the main opportunity in
the next 12 months?
New operation(s)
in foreign markets
New M&A/joint
ventures/strategic
alliances
Organic growth
in existing
foreign market
New product
or service
development
Organic growth
in existing
domestic market
32%
17%
17%
8%
25%
Note: 1% of CEOs responded Dont know/Refused
Figure 6: Two faster and two slower economic lanes are developing
Growing but susceptible to disruption
Aggregates
Growing but decelerating
Growing and accelerating
Struggling to grow
France
Japan
United Kingdom
Netherlands
Ireland
1.2%
0.9%
2.1%
1.1%
2.2%
Poland
Australia
Canada
United States
Germany
3.4%
3.1%
2.3%
2.4%
1.3%
Indonesia
Brazil
South Africa
Italy
Spain
Portugal
Greece
0.3%
0.9%
0.5%
0.6%
6.2%
4.0%
3.6%
South Korea
Mexico
Russia
3.6%
3.7%
3.8%
China
India
Saudi Arabia
Turkey
7.3%
6.6%
4.2%
5.1%
Eurozone Global (market rates) 1.0% 3.0%
The global growth leaderboard is changing
All percentages are projected 2013-15 average growth rates
Sources and methodology: PwC analysis, national statistical authorities, Thomson Datastream and IMF. The tables above form our main scenario projections and
are therefore subject to considerable uncertainties.
Homing in on organic growth
So exactly which pockets of
opportunity are CEOs targeting?
Nearly half are pinning their hopes
on organic growth in their existing
markets (see Figure 5). Only 17%
plan to complete M&As or form new
strategic alliances. And only 25% are
turning to new product and service
development.
At frst glance, then, it might look as
if CEOs are hunkering down and
waiting for better times. But CEOs also
know that, if they want to grow their
business, theyll have to go where the
growth is and four distinct economic
clusters are emerging (see Figure 6).
The troubled states of Southern Europe
are contracting. Meanwhile, Australia,
Japan, North America and the more
robust members of the European Union
are showing signs of recovery, albeit
rather shaky.
The growth countries are also
diverging. China and India are still
expanding rapidly, but the pace is
slowing down. Conversely, some parts
of Southeast Asia and Latin America
are picking up speed. This pattern is
expected to continue for the rest of
thedecade.
With growth rates among both mature
and growth economies diverging, and
with highly unique opportunities and
threats in each market, CEOs are
looking for specifc opportunities in
allclusters.
Its not surprising that fve of CEOs top
ten overseas destinations are growth
markets, nor that four of these are the
BRIC economies (see Figure 7). But the
fact that Indonesia is now in the top ten
for the frst time shows that CEOs
have been quick to spot more subtle shifts
in the distribution of economic power.
Indonesia is the fastest of the
accelerating markets, with real GDP
growth forecast to increase by 6.2%
a year for the next three years.
10

By 2050, Indonesias economy in
purchasing power parity (PPP) terms
could be bigger than that of Germany,
France or the UK.
11
Its stock market has
soared 12.6% in the past 12months
alone.
12
And the government has
launched a major programme to
improve the countrys overburdened
infrastructure.
13

Other emerging markets are also being
prioritised, like Mexico and Thailand,
which are close on the heels of CEOs
top ten markets. Mexico is particularly
notable it could become the worlds 7th
largest economy by 2050 in PPP terms.
14

And a growing number of CEOs are
looking to Africa. For example, Nestl
sees Africa as one of the biggest
opportunities for the food industry in
the next 10-20 years.
15
Dr.Joo Bento,
CEO of Portugal-based international
technology provider Efacec Capital
SGSP SA says, we also have a
presence in growth economies, such
as Latin America, Southern Africa,
Magreb and also in India.
The US, meanwhile, remains second
on CEOs list of top ten overseas
destinations, as it did last year.
All fve of the mature economies on
the list are growing, albeit susceptible
to disruption. These markets, which
comprise fve of the G7 countries, are
quite simply too big to ignore: the US,
Japan and Germany are projected to
remain among the worlds ten biggest
economies, in PPP terms, in 2050,
while Canada and the UK are expected
to remain in the top 20.
16

Furthermore, although the E7 countries
are set to overtake the G7 countries in
terms of GDP size and growth by 2050,
they are still expected to lag far behind
the G7 countries in terms of GDP per
capita.
17
So large, mature markets will
still remain attractive for higher valued
products and services, given their more
affuent consumers.
10 PwC projections.
11 PwC, World in 2050 (January 2013).
12 Daniel Inman, Southeast Asias Growing Appeal, The Wall Street Journal (3 December 2012), http://online.wsj.com/article/SB10001424127887324020804578151761632189982.
html#mod=djemITPE_t
13 Eric Bellman, Indonesia Boosts Infrastructure Investment, The Wall Street Journal (7 December 2012), http://online.wsj.com/article/SB10001424127887323501404578165794187322794.html
15 Caroline Scott-Thomas, Nestl eyes big food industry opportunities in Africa, Food Navigator (26 November 2012), http://www.foodnavigator.com/Financial-Industry/Nestle-eyes-big-food-
industry-opportunities-in-Africa
17 Ibid.
Figure 7: Half of CEOs top ten countries are growth markets
Q: Which three countries, excluding the country in which you are based, do you consider most important for your overall growth prospects over
the next 12 months? (maximum of 3 responses)
China
31%
US
23%
Brazil
15%
Germany
12%
India
10%
Russia
8%
Indonesia
7%
UK
6%
Canada
5%
Japan
5%
CEO opinion is divided on Europe,
though some CEOs see promise,
including those countries that are
struggling to grow. People there [in
Western Europe] have decided that
they should work less and retire earlier.
And that may not be affordable. So I
think that Western Europe has a
serious structural issue. says Seymur
Tari, CEO of Turkish private equity
frm Turkven.
Yves Serra, President and CEO of Swiss
industrial components manufacturer
Georg Fischer Ltd., is more positive.
We focus our efforts on where we
see growth. This includes Asia and
America, at least for our products, and
also some sectors in Europe. So the
picture is not just black and white;
there are defnitely pockets of growth
in Europe as well.
The traffc isnt going in only one
direction, though. CEOs in the mature
markets may be looking to various
growth markets, but CEOs in growth
markets are equally prepared to go
further afeld: 33% of CEOs in Asia
Pacifc and 19% of those in the Middle
East are targeting the US, for example,
while 27% of CEOs in Latin America
and 18% of those in Africa are
targeting China.
I think what we have to do ... is look for the growth
opportunities very carefully. The easy route is to say, well
thats an emerging market so thats got to be good, thats
a mature market, thats got to be tougher, but ... I think
youve got to drill down to see where the growth really is.
... and there is growth in every market but youve got to
go granular.
Alison Cooper, Chief Executive, Imperial Tobacco Group,
United Kingdom
Concentrating on
thecustomer
Irrespective of the markets theyre in,
CEOs have one overwhelming goal: to
grow their customer base. Indeed, 51%
say its a top three investment priority
for the coming year.
Thats not surprising. Whats changed
is the fact that CEOs are now trying to
attract more customers while focusing
on a smaller, more targeted range
of growth strategies no easy task in
the current economic climate. The
recession has hit some businesses and
consumers badly, particularly those in
richer countries. Between 2000 and
2011, consumer spending in the
mature markets increased by just
2.1% a year. In the growth markets,
by contrast, it increased by a much
healthier 5.7%.
18

Very different consumption volumes
and patterns in different markets add
to the challenge. Though the growth
economies have some common
characteristics, they also differ in key
respects and these differences are
likely to intensify as they continue to
develop. Some growth countries are
primarily producers rather than
consumers, for example (see Figure 8).
The purchasing power and preferences
of consumers can also vary a lot
within, as well as between, countries,
and adapting to such disparate tastes
requires a deep understanding of the
local environment. It all starts with
the consumer a rich and robust
understanding of what they want,
where theyre going, but, most
importantly, what they want in the
future, Douglas D. Tough, Chairman
and CEO of International Flavors &
Fragrances, Inc., observes.
We interview consumers all around
the world to make sure we have a
robust database, and we dont
extrapolate necessarily from any one
country to get a global view. But there
are obvious risks for multinationals, he
adds. they have to adapt properly
to local needs. The competition from
local and regional rivals is also
increasing all the time.
Figure 8: Not all growth markets are consumer-led economies
0
0 20 40 100% 80 60
-5
5
10
-10
15
-15
20
25
30
P
r
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d

p
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p
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p
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p
e
o
p
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o
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w
o
r
k
i
n
g

a
g
e
)
Projected consumption potential over 2011-20 period
(proxied by GDP per capita growth)
Nigeria
India
Indonesia
Vietnam
China
Russia
South Korea
South Africa
Brazil
Mexico
Malaysia
Saudi Arabia
Consumers and producers
Consumers
Producers
Note: Dotted lines represent average values
Source: PwC analysis, UN population fgures.
18 PwC, Introducing the PwC Global Consumer Index (October 2012), http://press.pwc.com/GLOBAL/global-consumer-spending-slowdown-eases.-pwc-releases-frst-ever-global-consumer-index-
gci/s/bc11166a-cd72-4ea7-93fa-c167d10a5cb5
We keep close track of the real
estate sector in order to remain on
the cutting edge of all advanced
trends in the construction of
buildings, energy effcient
technologies and environmentally
friendly materials. We introduce
ready-to-move-in residential
apartments in our buildings in
response to client suggestions.
Valentina Stanovova, Senior Vice-
President, Capital Group, Russia
In fact, nearly half the CEOs we polled
see shifts in consumer buying patterns
as a serious business threat. And they
realise that being able to respond
quickly and effectively to such changes
is crucial.
Dr. Weihua Ma, President and CEO
of China Merchants Bank Co. Ltd.,
puts the position particularly well:
We commercial banks are service
institutions, so changes in customer
demands are extremely important for
us. Just as a chef in a restaurant will
lose his job if his cooking cannot satisfy
his customers, a service institution will
not exist if it has no customers.
Getting customers onside
So its no wonder that new strategies to
stimulate demand and foster customer
loyalty play a big part in CEOs plans
for the next 12 months. A full 82%
anticipate making changes on this
score and 31% have major changes in
mind (see Figure 9).
One obvious measure is to take
advantage of the new marketing
platforms now emerging. Most
organisations have traditionally used
market research, competitive
benchmarking and the like. But these
sources of information can only show
how customers behave en masse.
Thats not the case in the digital arena.
Mining social media sites, blogs,
consumer reviews and other such data
sources helps an organisation fnd out
what individual customers think and
want. Equipped with these insights, it
can then develop products and services
for specifc customer segments and
craft more personalised marketing
messages as well as enhancing the
brand. This may explain why three-
quarters of CEOs say theyre increasing
their technology investments.
Figure 9: Attracting and keeping more customers is a key priority
Q: To what extent do you anticipate changes at your company over the next 12 months?
0 100 0 100
Increase in R&D and innovation capacity
Customer growth/retention/loyalty strategies
Dont know/refused
%
Strategies for managing talent
Increase in technology investments
Organisational structure
Some change A major change No change
51 31 1% 17
54 23 1% 23
54 21
1%
25
52 22
1%
26
50 17 1% 32
19 Bryan Urbick, Innovation Through Co-creation: Consumers Can be Creative, Innovation Management (26 March 2012), http://www.innovationmanagement.se/2012/03/26/innovation-
through-co-creation-consumers-can-be-creative/
In terms of the importance of our different stakeholders, our customers
are absolutely the most important. If we dont give them a good service
affordable tariffs, high reliability, good customer service then we know
we are going to be in trouble.
Andrew Brandler, CEO, CLP Holdings Ltd., Hong Kong, China
Engaging with customers isnt just
about communicating with them,
though. Its also about working with
them to co-create new offerings, and
helping them use the products and
services theyve bought more enjoyably
or effectively. Boeing has perfected the
frst of these two approaches: it
consults airlines and frequent fyers
alike when its designing new planes.
19

Digital music service Spotify has
perfected the second by inviting
subscribers to customise their playlists,
which enhances the product offering
for them and for others.
Making the most of disruption
Yet innovation generally one of the
most important factors in attracting
and retaining customers is surprisingly
low down the schedule for many CEOs.
It comes ffth on their list of investment
priorities for this year. And though
67% plan to increase their companys
R&D capacity, only 17% intend to
make major alterations.
The drive for effciency explains why
some CEOs are reluctant to invest more
in R&D, but a closer look at the data
also shows marked regional variations.
CEOs in Africa, Asia Pacifc and Latin
America are more likely to be beefng
up their companys R&D than those in
the rest of the world possibly because
the growth countries are still in
catch-up mode.
Nevertheless, CEOs know that
innovation isnt possible without
investment. Thats why a number
of leading companies are adopting
a more imaginative approach to the
innovation process itself, whether
its incremental changes or more
fundamental changes to their business
models, in order to become more agile
and responsive to competitive threats
or shifts in customer demand.
Finland-based international
communications and information
technology company Nokia is a case
in point. our focus is very much
on disruption disrupting ourselves,
disrupting the trends that have been
established in the industry and moving
forward with new strategies, new
products and new ways of managing
our organisation in order to keep pace
and indeed accelerate the pace beyond
others. says President and CEO
Stephen A Elop.
One of the most important ways that
we see to drive disruption is to focus on
unique and differentiating consumer
experiences. Thats a fancy way of
saying, how can we help you do
something you couldnt do before?
when you look at the patterns
of disruption, particularly in the area
of technology, its often something
relatively focused, relatively simple
that allows you as a person to do
something you couldnt do before,
or to do it faster or more effciently.
And its those types of innovations that
were focused on today, he explains.
Human capacity is key to any
companys growth. The second
important factor is R&D.
Karen Agustiawan, President Director
and CEO, PT Pertamina (Persero),
Indonesia
we want more than just satisfed
consumers. We want to delight
them to go beyond their
expectations. We are seen as a
company that delivers excellence
in terms of customer service.
But our main innovations are
our [retail] collections and how
quickly we get them to market.
Jos Gall, CEO and Director,
Lojas Renner, Brazil
It all starts with the consumer a rich and robust
understanding of what they want, where theyre going,
but, most importantly, what they want in the future.
Douglas D. Tough, Chairman and CEO, International Flavors
& Fragrances, Inc., US
effectiveness
Under pressure to meet demanding
customer growth targets within tightly
defned investment parameters, CEOs
know theyll have to change the way
their companies function. Nearly half
say improving operational
effectiveness is one of their top three
investment priorities this year.
Anders Nyrn, President and CEO of
global investment frm Industrivrden
AB, based in Sweden, spoke for many
CEOs when he told us: Given that the
global economy and the global pace
of life are getting faster in all aspects,
one needs to become more agile and
effcient about everything including
running a company. Its essential that
you streamline operations and become
leaner wherever you can, so as to be
able to react more quickly to changing
market conditions.
Finding the right balance
Cost-cutting is still high on the agenda:
77% of CEOs have undertaken
cost-saving initiatives in the past
12months and 70% plan to do so in
the next 12 months (see Figure 10).
But theyre not wielding the knife
indiscriminately; theyre trying to
balance effciency with other strategic
objectives. As ArtemKonstandyan,
CEO of Russias Promsvyazbank (PSB),
notes, Downsizing is not a goal in
itself. Were trying to streamline our
operations and improve staff
performance.
An example? Many companies
discovered in the aftermath of the
tsunamis in Southeast Asia and Japan
that the quest to maximise the
effciency of their supply chains had
severely impaired their ability to cope
with disruption. Todays CEOs have
clearly learned from that experience:
50% are diversifying their supply
chains and working with suppliers
in a wider range of territories.
CEOs are also wary about
inadvertently cutting value in the
course of cutting costs and slashing
the workforce is one action that can
certainly backfre. This probably
explains why 25% have kept their
companys headcount the same for
the past 12 months, while 48% have
actually increased it. It may explain,
too, why 77% of CEOs plan to revise
their strategies for managing talent
in the coming year; they realise they
wont be able to attract and retain new
customers without well-trained, highly
motivated employees.
I think the underlying idea of
trying to reduce cost in whatever
we do actually makes us become
creative and innovative.
Aireen Omar, CEO,
AirAsia Berhad, Malaysia
We believe the underlying growth
trends will be slow. So we have to
just be better than the competition
in these markets, and that is also
one of the reasons why we have
to keep costs under control.
Martin Blessing, Chairman of the
Board of Managing Directors,
Commerzbank AG, Germany
we have had to look seriously at
how we manage our business. And,
we have had to learn how to be
prepared to disrupt ourselves. So,
rather than getting too rigid and
bureaucratic and too procedures-
driven, sometimes weve had to step
outside of ourselves, but yet within
ourselves, by creating new units
to challenge the way that we do
business and to extend that
learning to the traditional parts
of our business.
Alex Arena, Group Managing Director,
HKT Ltd., Hong Kong, China
Figure 10: Cost-cutting tops the list of restructuring activities CEOs plan to put in place in 2013
Q: Which, if any, of the following restructuring activities do you plan to initiate in the coming 12 months?
Implement a
cost-reduction
initiative
70% 47% 31%
Enter into a new
strategic alliance
or joint venture
Outsource a
business process
or function
20 Pankaj Ghemawat & Sebastian Reiche, National Cultural Differences and Multinational Business, Globalization Note Series, 2011.
21 Karen L. Newman & Stanley D. Nollen, Culture and Congruence: The Fit Between Management Practices and National Culture, Journal of International Business Studies 27, No. 4 (4th Quarter,
1996), pp. 753-779.
I prefer a management style based
on openness and cooperation at
every level; one that does not
necessarily obey or respect
hierarchy at all times. I believe in
leadership that can stay fexible.
Sndor Csnyi, Chairman and CEO,
OTP Bank Plc., Hungary
Figure 11: Involving less senior managers in strategic decisions is seen as most effective in preparing them for leadership
Q: Do you deploy any of the following to develop your leadership pipeline?
Q: If so, how effective are they?
0
20
40
60
80
100
Active
succession
planning,
including
identifying
multiple
successors
Dedicated
executive
development
programme
Encouraging
global mobility
and
international
experience
Involving
managers below
board level
in strategic
decision-making
Programmes
to encourage
diversity
among
business
leaders
Rotations to
different
functions/
challenges
Shadowing
senior
executives
Effectiveness of methods deployed to develop leadership pipeline
Somewhat effective Not very effective Not at all effective Dont know/refused Very effective
% of CEOs who deploy the following to develop their leadership pipeline
% of CEOs who
dont rate their
initiatives as
highly effective
%
37
58
61
62
69
71
79
11
13
22 22
19
24
33
Putting power in more hands
In fact, some CEOs are going
considerably further: theyre devolving
power more widely to make their
organisations more agile and responsive.
Although only 31% encourage all their
staff to get involved in strategic
planning, 79% include managers
below board level in such decisions as
part of the process of developing their
leadership pipelines. And most CEOs
think its the best way of nurturing
their successors (see Figure 11).
We dont have one way of doing things
nor do we have one point of authority
to which all questions have to be
directed, says Carl Sheldon, CEO of
United Arab Emirates-based global
energy company TAQA. Instead, our
approach is to create a culture that
empowers people and within the
context of a set of shared values
provides them with the freedom to
take action. That gives you tremendous
strength, fexibility, and agility.
That said, there are pronounced
regional variations in behaviour.
CEOs in North America are far more
likely to encourage their employees to
participate in strategic decisions than
those based in Central and Eastern
Europe, Asia Pacifc and Latin America.
Theyre also more likely to involve
middle managers.
These variations obviously refect
cross-cultural differences in how
decisions are made. CEOs in cultures
that are relatively egalitarian typically
adopt a more participative approach
than those in cultures that are
relatively hierarchical.
20
But whereas
participative management can improve
proftability in less hierarchical
cultures, it can worsen proftability in
more hierarchical cultures.
21
So using
different decision-making styles in
different cultures makes good
business sense.
Sharing as well as buying
Its not just the way management
and employees interact within
organisations thats changing, though;
its also the way organisations interact
with each other. Nearly half the CEOs
we polled aim to form a new strategic
alliance or joint venture during the
next 12 months, which is broadly
in line with the pattern for the past
four years.
At the same time, global M&A activity
has declined sharply since the start of
the global fnancial crisis, although
CEOs in some sectors, like mining,
power and utilities and communications,
are much more likely to be prioritising
investment in M&A in the coming year.
Even so, the aggregate value of the
deals completed in the frst half of
2012 was less than half the value of
the deals completed in the frst half
of 2007.
22
Further evidence of how
cautious CEOs have become is the
fact that three-quarters of the deals
conducted in 2012 were cash-only
transactions.
23

Yet, some frms have plenty of money
in their piggy banks. US companies are
sitting on about $1.7 trillion in cash
reserves.
24
Canadian companies hold
nearly $300 billion.
25
And British
businesses hold another 720 billion.
26

Nearly two-thirds of the CEOs who
participated in our survey also intend
to boost their capital spending over the
next 12months, which suggests that
they have enough cash to fnance their
plans or are confdent of raising the
funds. So, if money isnt the issue,
whatis?
We believe the dip in M&A is being
driven by current levels of uncertainty
rather than a major change in
emphasis. But were also seeing a move
by businesses towards sharing, by
forming partnerships or networks.
Inspired by companies like Amazon
and Apple, CEOs recognise that theyre
no longer confned to the traditional
options of build or buy.
Collaborating with other organisations
in the same or adjacent industries
provides new opportunities for
generating business by co-developing
products and services, taking
advantage of a common infrastructure
and sharing customers. It also carries
much less risk than an M&A because
it doesnt require a signifcant upfront
investment and doesnt entail spending
several years integrating the target
company to realise the gains.
Thats not to say theres no place for
M&As. On the contrary, one study
shows that frms using multiple modes
to obtain new resources were much
more likely to survive over a fve-year
period than those that relied solely on
alliances, solely on M&As or solely on
internal development.
27

But partnering with other
organisations, as distinct from
purchasing them, does carry
considerable organisational implications.
The qualities needed to form a
successful network are quite different
from those needed to pull off an
acquisition. Key among these is the
high degree of collaboration thats
required to make an alliance work.
28
Our innovation comes from
globally collaborative efforts and a
lot of encouragement from within.
It is also about empowerment,
decentralisation and
encouragement to come up with
new ideas for R&D programmes
and product development.
A.M. Naik, Executive Chairman,
Larsen & Toubro Limited, India
22 mergermarket H1 round-up report (July 2012).
23 mergermarket 2012 round-up report (January 2013).
24 Federal Reserve, Flow of Funds Accounts of the United States (June 2012).
25 Dead money, The Economist (3 November 2012), http://www.economist.com/news/fnance-and-economics/21565621-cash-has-been-piling-up-companies-balance-sheets-crisis-dead
26 Michael Izza, Business Confdence research suggests recovery has not yet taken hold, ICAEW (5 November 2012), http://www.ion.icaew.com/MoorgatePlace/25687
27 Laurence Capron & Will Mitchell, Build, Borrow, or Buy: Solving the Growth Dilemma (Harvard Business Review Press, 2012).
28 PwC, Creating successful alliances and joint ventures (2012).
One key point of our strategic advantage is the capability
to orchestrate the production and engineering value
chain we create in partnership with other companies.
That gives us the ability to scale up or scale down quickly
and effciently. We try to ensure our organisational
structure is suffciently fuid so that we can respond
quickly to changes in demand.
Pertti Korhonen, President and CEO, Outotec Oyj, Finland
Its a question of trust
Figure 12: More stakeholders have more infuence
Q: Thinking about the range of stakeholders, to what extent do they have a signifcant infuence on your business strategy?
0 100 0 100
Providers of capital (e.g. creditors and investors)
Your supply chain partners
Customers and clients
Dont know/refused
%
Industry competitors and peers
Government and regulators
Employees (including trade unions/work councils)
Users of social media
The media
Local communities
Have some influence Have significant influence Have little or no influence
17 80 1% 3
45 45 1% 9
47 36
1%
1%
1%
1%
16
35 50 14
44 32
1%
2% 22
35
45
40
40
39
16
12
10
1% 24
38
46
49
Base: All respondents. (1,330)
Weve discussed what CEOs are doing
to make their organisations more agile,
more appealing and more proftable.
To succeed in, and align, these three
goals, CEOs know theyll have to repair
the bridges between business and
society. CEOs also recognise the
important role that business can play
in addressing social challenges and
improving national outcomes.
The global fnancial crisis and
questionable behaviour of some
companies have badly damaged
faith in institutions of every kind.
And this is impacting their brand
value and performance. CEOs are
understandably concerned: 37% worry
that lack of trust in their industry could
endanger their companys growth.
They know that nothing they do to get
closer to customers will work if they
dont have the confdence of the public.
But trust isnt just an essential part of
the customer relationship, its the glue
that binds an organisation and all its
stakeholders together and there are
now many more stakeholders to
consider. Thanks to the social media
revolution, many of these stakeholders
also have an unprecedented amount
ofclout.
CEOs recognise this. While they regard
customers, competitors, governments
and regulators as their most infuential
stakeholders, theyre certainly not
ignoring others, like employees,
suppliers, investors or local
communities (see Figure 12).
As a public company we have to
demonstrate growth and improve
margins, quarter by quarter, because
that is what the market wants to see.
But we are a lot more than that, says
Alonso Quintana, CEO of Mexican
construction and engineering company
ICA. We are a company that really
affects many more people and many
more stakeholders than one would
think from just a fnancial perspective.
The number one thing that will
make people more at ease is
transparency. Being a public
company, the preservation of
transparency is an inherent
obligation for us. We keep in touch
with our customers in order to
understand their needs. Everything
is interconnected.
Dr. John Coustas, President and CEO,
Danaos Corporation, Greece
Starting from within
So what are the CEOs we surveyed
doing to rebuild trust? Theyre starting
from within: 56% rising to 72% in
the Middle East and 76% in Africa
plan to focus more heavily on
promoting an ethical culture this year
(see Figure 13). Thats a logical place to
begin. The more customer touchpoints
there are, and the more decision-
making is delegated, the more an
organisation is exposed to the actions
of individual employees.
Building a business with a strong
ethical foundation is partly about
aligning the values of employees with
those of the organisation they work for
to create a shared, socially useful sense
of purpose. Its also about shifting from
a rules-based approach to one that
rests on principles: moving from a
culture of compliance to a culture in
which people do the right thing for its
own sake.
Figure 13: A range of non-fnancial priorities are getting CEOs attention
Q: To what extent does your organisation plan to focus on the following priorities over the next 12 months?
76%
51%
72%
50%
31%
68%
49%
40%
64%
41%
30%
Africa Middle East Africa Africa
North America Central and
Eastern Europe
Central and
Eastern Europe
North America
Framework to support
a culture of
ethical behaviour
Workforce
diversity and
inclusion
Reducing
environmental
footprint
Non-financial reporting
(incl. corporate
responsibility reporting)
56%
Base: All respondents. (North America=227; Central and Eastern Europe=95; Middle East=32; Africa=50)
People need a sense of purpose.
Gross margins are not the stuff of
which dreams are made. And even
without going so far as to talk of
dreams, you cannot inspire people
to take action, create or motivate
without instilling a sense of
purpose, especially when times
are diffcult.
Jean-Pascal Tricoire, President and
CEO, Schneider Electric SA, France
An important part of achieving this is
how businesses connect with their
employees. Over three-quarters of the
CEOs who see employees as infuential on
their strategy say theyre strengthening
their employee engagement programme.
Organisational culture isnt the only
issue on the internal agenda, though:
50% of CEOs including 72% of those
in the Middle East intend to develop
a more diverse and inclusive workforce.
Malaysias AirAsia Berhad is one
such example.
we hire people from all sorts of
backgrounds, all sorts of different
cultures, CEO Aireen Omar explains.
We understand and respect each
other and at the same time its a way
for us to share ideas and see what
sits best for the whole company.
... Moreover, despite the fact that we
have operations in different countries
with different cultures and backgrounds,
we are able to work effectively as a
team in one company culture.
Figure 14: CEOs see developing a skilled workforce as the top joint priority between business and government
Q: Which three areas should be the Governments priority today?
0
0 20 40 60 80 %
20
40
60
%
80
%

o
f

C
E
O
s

w
h
o

t
h
i
n
k

i
s
s
u
e

s
h
o
u
l
d

b
e

a

t
o
p

t
h
r
e
e

g
o
v
e
r
n
m
e
n
t

p
r
i
o
r
i
t
y
% of CEOs raising investment to address issue
Creating and fostering
a skilled workforce
Maintaining the health
of the workforce
Ensuring financial
sector stability
Improving the
countrys infrastructure
Securing natural resources
that are critical for business
Addressing the risks of climate
change and protecting biodiversity
Reducing poverty
and inequality
Many CEOs are also aiming, more
broadly, to improve national outcomes.
Over the next three years, 61% plan
to invest more in creating a skilled
workforce and 45% in maintaining the
health of the workforce (see Figure 14).
Demographic factors are clearly one
driver of these efforts. And the focus
on employee health is increasingly
being driven by rising healthcare costs
in the mature economies and rising
healthcare expectations in the
growth economies.
CEOs in the Middle East and Africa
have especially ambitious goals: 81%
and 86%, respectively, intend to
increase the amount they spend on
staff training, while 75% and 72%,
respectively, intend to spend more on
keeping their staff healthy. More than
half of all CEOs in North America
where health insurance is one of the
most prized employee perks also
expect to invest more in employee
healthcare programmes.
CEOs know that treating the workforce
well creates a virtuous circle.
Organisations with a reputation for
looking after their staff fnd it easier
29 Econsultancy, Social Media Statistics Compendium, Global (November 2012). Marketers were asked to indicate the two most important uses of social.
Engaging with the
outside world
The majority of CEOs are strengthening
their engagement with the stakeholders
they see as infuential. Social media is
becoming an increasingly important
tool but many businesses see it more
as a way to increase brand awareness,
rather than as a customer engagement
channel. One survey, for example,
found that 64% of businesses that
use social media do so for brand
awareness, while only a quarter do
so for customer service.
29
This may
explain why CEOs see social media
users as having a much lower level of
infuence than customers despite the
fact that many of their customers are
using these channels.
Looking beyond corporate walls,
nearly half of CEOs plan to put more
effort into reducing their organisations
environmental footprint in the coming
year. Meanwhile, 41% plan to focus
more heavily on non-fnancial
reporting, which often more fully
refects a companys worth and the
value it contributes to society.
to recruit and retain good people.
And workers who feel valued talk
more favourably about their employer.
That matters more than ever, when
disaffected employees can reach
thousands of customers with a
single tweet.
CEOs also increasingly recognise the
importance of collaborating with
government both to promote their
own commercial interests and to build
a sustainable business ecosystem. They
see developing a skilled workforce as
one such shared responsibility (see
Figure 14).
Nearly two-thirds of CEOs think
governments should play a major role
in ensuring the stability of the fnancial
system and creating a strong national
infrastructure, too although they
question how well governments have
risen to the challenge. Yet, as the
success of the private and public
sectors becomes increasingly
intertwined, its becoming evermore
important for business and
government to work honestly and
effectively together.
Surviving and thriving
amid disruption
In conclusion, trust is the prerequisite
for everything CEOs hope to achieve
as they move from risk management
to resilience. Businesses efforts to
target the right opportunities, increase
customer demand and loyalty and
improve operational effectiveness
are only as effective as their ability to
build trustworthy relationships with
all their stakeholders.
CEOs are recognising the need to align
their strategies around a stronger social
mandate starting from the top and
through it create organisations that are
more agile, adaptable and resilient.
This means developing a deep
understanding of the changing needs
of a growing range of stakeholders
across existing and new markets,
and investing to engage and
empower them. Networks of trusted
relationships, with shared vision,
values and objectives, are helping to
build strong yet fexible ecosystems
that can not only survive, but fourish
amid disruption.
From risk management to resilience
How can you complement your longer term planning and strategy with
real-time tools to improve operational decisions and continually adjust your
course as necessary?
How can you effciently anticipate and execute in an environment of constant
change, turning scenario planning from a theoretical exercise into a real
decision shaper?
How can you complement your enterprise risk management systems with
a stronger focus on strategic and systemic risks and ensure that the right
behaviour and culture are in place across your organisation and wider networks?
Targeting the right opportunities
Picking the right initiatives for investment is critical to success, especially in
tough times. What criteria should you use to ensure that your investments are
targeted to where they can best deliver value?
Organisations are increasingly aware that opportunities in growth markets are
highly nuanced. How do you evaluate the specifc opportunities offered in these
diverse and diverging markets, both newer and more established?
How can you ensure that youre effectively assessing opportunities in mature
markets, and drilling deep enough to fnd growth in specifc sectors and
segments?
Concentrating on the customer
Businesses havent changed their focus on customers. But theyre keeping a
closer eye on costs as are their customers. How can you best target highly
disparate and ever-changing markets in order to fnd growth opportunities?
Theres so much information out there about customers. How can you best
capture and standardise this data across all your markets, and turn your IT
systems into a powerful tool to understand shifting buyer preferences and
improve customer loyalty?
How can you use digital channels to better communicate with your customers,
co-create products, capture customer insights, increase loyalty and measure
your impact in all of these areas?
How can you innovate more effectively and effciently and focus more on the
customer in your innovation strategy and processes?
The following questions, derived from the conversations weve had with CEOs,
focus on some of the biggest challenges facing todays business leaders as they
strive to fnd growth and stay competitive through constant turbulence.
Improving operational effectiveness
Bottom line growth is of critical importance to organisations. But how do
you ensure that you continue to create value, invest for growth and have
the fexibility to bounce back from disruption?
In order to take advantage of new opportunities before competitors do, how
can you create the right degree of fexibility in your organisational structure
and processes, which allows you to quickly deploy resources across your
organisation to where theyre most needed?
What should you be on the lookout for entering into a partnership or
jointventure?
Employees and their interactions with customers are critical for long-term
success. Do you have the right people, processes and information to engage
with customers as effectively as possible?
How can you create networks of formal and informal trusted relationships
which go beyond contractual terms to target a shared vision, set of values
andobjectives?
Building trustworthy relationships
How can you create the mutual trust necessary for your employees to take
personal responsibility for doing the right thing, even as each of them is
increasingly exposed to the front line of customer interaction?
How can your board members and senior executives lead by example,
to embody the values and behaviour core to your organisation?
How can you more effectively support skills development in the markets
in which you operate?
It makes sense to focus on how a countrys resources can improve the
competitiveness of your local operations, whether its the talent pool, capital
or raw materials. But what do you have that governments might be interested
in accessing, and how can you collaborate for mutual success?
Working with a wide range of other stakeholders is critical to succeeding in
your markets. How can you best understand and meet the needs of customers,
suppliers, local communities and other groups within the ecosystem in which
you operate?
How can you build more transparency into your reporting that better
communicates how youre working to create shared value in the markets in
which you operate?
social and environmental
responsibility should be inherent
not only in government authorities
and the state but also in any
commercial company in any
country. The world of the future
depends on solidarity in this area:
the uniting of resources, efforts and
initiatives from all economic
entities.
Andrei Dubovskov, President and
CEO, MTS OSJC, Russia
since were running scale businesses at a distance,
every person leading each of those businesses is invested
with trust from the centre. The leaders of our businesses
have the authority to make decisions about the business
they run. ...So part of becoming agile is creating a culture
that invests its people with trust. ...our approach is to
create a culture that empowers people and within the
context of a set of shared values provides them with the
freedom to take action. That gives you tremendous
strength, fexibility, and agility.
Carl Sheldon, CEO, TAQA, United Arab Emirates
Larry Fink
Chairman and Chief Executive Offcer
BlackRock Inc.
US
Martin Blessing
Chairman of the Board of Managing Directors
Commerzbank AG
Germany
Steve Holliday
Chief Executive Offcer
National Grid Group Plc.
UK
Alex C. Lo
President
Uni-President Enterprises Corporation
Taiwan
Dr. Joo Bento
Efacec Capital SGSP SA
Portugal
Dr. John Coustas
President and Chief Executive Offcer
Danaos Corporation
Greece
Jos Gall
Chief Executive Offcer and Director
Lojas Renner
Brazil
Alex Arena
Group Managing Director
HKT Ltd.
Hong Kong, China
Andrei Dubovskov
MTS OJSC
Russia
Sndor Csnyi
OTP Bank Plc.
Hungary
Alison Cooper
Chief Executive
Imperial Tobacco Group
UK
Andrew Brandler
CLP Holdings Ltd.
Hong Kong, China
Artem Konstandyan
Promsvyazbank (PSB)
Russia
Pertti Korhonen
Outotec Oyj
Finland
Piyush Gupta
Chief Executive Offcer and Director
DBS Group
Singapore
Karen Agustiawan
President Director and Chief Executive Offcer
PT Pertamina (Persero)
Indonesia
Stephen A Elop
Nokia
Finland
Yasuchika Hasegawa
Takeda Pharmaceutical Company Ltd.
Japan
CEO survey participants
Aireen Omar
AirAsia Berhad
Malaysia
Yves Serra
Georg Fischer Ltd.
Switzerland
Alonso Quintana
ICA
Mexico
Peter Terium
RWE AG
Germany
Julio Patricio Supervielle
Grupo Supervielles CEO
and Banco Supervielles Chairman
Argentina
Seymur Tari
Turkven
Turkey
Valentina Stanovova
Senior Vice-President
Capital Group
Russia
Carl Sheldon
TAQA
UAE
Dr. Weihua Ma
China Merchants Bank Co. Ltd.
China
Shikha Sharma
Managing Director and Chief Executive Offcer
Axis Bank Limited
India
Peter Tortorici
GroupM Entertainment Global
US
Jean- Pascal Tricoire
Schneider Electric SA
France
Anders Nyrn
Industrivrden AB
Sweden
A.M. Naik
Executive Chairman
Larsen & Toubro Limited
India
Douglas D. Tough
International Flavors & Fragrances, Inc.
US
To read quotes from interviews and watch selected videos, visit www.pwc.com/ceosurvey
In total, we conducted 1,330 interviews
with CEOs in 68 countries between
5September and 4 December 2012. By
region, 449 interviews were conducted
in Asia Pacifc, 312 in Western Europe,
227 in North America, 165 in Latin
America, 95 in Central and Eastern
Europe, 50 in Africa and 32 in the
Middle East. The interviews were
spread across a range of industries,
with further details by region and
industry, available on request.
The majority of interviews were
conducted by telephone, with some
country exceptions: interviews were
conducted face-to-face in Africa and the
Philippines; postal surveys were used
in Japan and Korea; and online surveys
were completed in Australia, Iceland
and Singapore. The US and Greece also
used a mixed approach of telephone
and online. In addition, members
of our global CEO panel were invited
to take part online, with 230 CEOs
providing their views. All interviews
were conducted in confdence and on
an unattributable basis.
The lower thresholds for inclusion in
the top 30 countries are companies
with more than 100 employees or
revenues of more than US$10 million.
This is raised to 500 employees or
revenues of more than $50 million
in the top ten countries by GDP size.
Forty-one percent of the companies
had revenues of $1billion and over,
and a further 35% had revenues of
over $100 million up to $1billion.
Additionally, 18% had revenues of up
to $100 million. Company ownership
is recorded as private for 48% of the
companies, with a further 48% listed
on at least one stock exchange.
To better appreciate CEOs perspectives
for 2013, we also conducted in-depth
interviews with 33 CEOs from fve
continents over the fourth quarter of
2012. Their interviews are quoted
in this report, and more extensive
extracts can be found on our website
at http://www.pwc.com/ceosurvey
where you can explore responses by
sector and location.
PwCs extensive network of experts
and specialists has provided input into
the analysis of the survey. Our experts
span many countries and industries.
Note: Not all fgures add up to 100%,
due to rounding of percentages and
to the exclusion of neither/nor and
dont know responses.
Research methodology
and key contacts
This is the 16th Annual PwC Global CEO Survey
Weve conducted interviews with CEOs in 68countries
worldwide, adjusting the number of interviews in line
with each countrys GDP to ensure CEOs views are
fairly represented.
For further information on the
survey content, please contact:
Suzanne Snowden
Global Thought Leadership
+44 20 7212 5481
suzanne.snowden@uk.pwc.com
For media related enquiries,
please contact:
Mike Davies
Director of Global Communications
+44 20 7804 2378
mike.davies@uk.pwc.com
PwC helps organisations and individuals create the value theyre looking for. Were a network of frms in 158 countries with more than 180,000 people who are
committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and fnd out more by visiting us at www.pwc.com.
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the
information contained in this publication without obtaining specifc professional advice. No representation or warranty (express or implied) is given as to the accuracy
or completeness of the information contained in this publication, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility
or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision
based on it.
2013 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member frms, each of which is a separate legal entity.
Please see www.pwc.com/structure for further details.
The Design Group PwC UK 21352
www.pwc.com.cy/ceo-survey
Country summary: Key fndings in Cyprus
Adapting to
the new reality
January 2013
32
CEOs in Cyprus
25%
of CEOs are very
confdent about their
revenue growth
prospects over the next
3 years
25%
of CEOs view organic
growth in the domestic
market and the
development of new
products/services as
the main growth
opportunities
Foreword 3
Confidence in growth 4
What worries the CEOs 7
Achieving best management 9
Changes in the headcount 13
Potential opportunities and investment
priorities
15
Business environment 18
Conclusion 21
PwC Cyprus 22
Table of contents
Notes:
Not all fgures add up to 100% due to rounding of percentages and to the exclusion of neither/nor and dont know responses.
The Eurozone group includes Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Italy, Netherlands, Portugal and Spain.
Key fndings in Cyprus 3
Foreword
The past year was very challenging for
businesses in Cyprus with the recession,
the lack of market liquidity and the
economic uncertainty being the
prevailing factors that are expected to
continue in 2013.
Globally economic volatility and
disruption have escalated, countries,
economies and companies are more
interconnected and interdependent than
ever before and risks that were thought
improbable have become the norm.
We live in a new reality and we must
learn to sail in high winds. To do this,
companies need to develop resilience
and effectively manage the immediate
impact of events with a capacity to adapt
in changing conditions. We are helping
our clients so as not only to survive
through the storm but to be successful
in the new reality.
Our survey aims to communicate the
thinking and concerns of CEOs and
stimulate a debate on the challenges
faced by businesses today and their
response. Economic recovery is
dependent on having a vibrant and
successful private sector creating jobs
and making investments for the future.
The 16th Annual Global CEO Survey
was launched on 22 January 2013 at the
Annual Meeting of the World Economic
Forum in Davos and we are very pleased
to present the second Cyprus CEO
survey which examines the views of 32
Cypriot business leaders.
Evgenios C Evgeniou
CEO, PwC Cyprus
This year the global survey gathers
insights from over 1,300 CEOs and
focuses on their actions aimed at
creating responsive organisations that
are able to absorb shocks and turn
adversity into opportunity.
In view of the fact that the interviews
were carried out at a period of great
economic uncertainty, the fndings
portray the complex and rapidly
changing business landscape, the
confdence levels of CEOs and reveal
their views on where growth
opportunities lie given the state of the
economy.
Personally I would like to thank the 32
CEOs that have taken the time to share
with us their views, contributing to our
effort to provide insights on the
challenges they face as well as on the
actions taken to counter them. We
appreciate that their time is valuable
and we feel privileged by their
willingness to participate and make this
survey possible.
Evgenios C Evgeniou
CEO, PwC Cyprus
4 16th Annual Global CEO Survey
Confidence in growth
According to the 16th Annual Global
CEO Survey, the majority (34%) of CEOs
in Cyprus, in the Eurozone (43%)and
globally (45%) are somewhat confdent
about their companys prospects for
revenue growth over the next 12
months.
Just 6% of Cypriot CEOs stated very
confdent about their revenue prospects
at a time where percentages reached
36% globally and 20% in the Eurozone.
It is worth noting that confdence levels
have remained stable compared to the
previous year, as the same percentage of
6% has stated very confdent in the
same question. The percentages both
globally and in the Eurozone have
decreased by 4 and 2 percentage points
respectively, indicating that businesses
have become more reserved in their
projections as the crisis continues.
However, CEOs in Cyprus appear more
optimistic about their companys
prospects for revenue growth over the
next 3 years. The percentage of CEOs
who stated very confdent reaches
25%, an increase of 22 percentage
points compared to the percentage
recorded last year. A total of 69% stated
somewhat confdent representing an
increase of 40 percentage points.
In contrast, the percentage of Cypriot
CEOs who are not confdent at all
drops to 3% compared to 45% recorded
last year with the percentage of CEOs
who appear to have confdence in their
Figure 1: Revenue growth prospects over the next 12 months
Q: How confdent are you about your companys prospects for revenue growth over the next 12 months?
companys revenue prospects in the next
3 years being higher in Cyprus (94%)
compared to the global (90%) and
Eurozone (82%) percentages.
According to the survey, Cypriot CEOs
seem to regain their optimism regarding
their companys prospect for revenue
growth despite the fact that the past
year was challenging with the effects of
the global and Eurozone crisis unfolding
in Cyprus.
2011
2012
6%
34%
31%
28%
20%
43%
24%
13%
36%
45%
15%
4%
C
y
p
r
u
s
E
u
r
o
z
o
n
e
G
l
o
b
a
l
Not confdent at all
Not very confdent
Somewhat confdent
Very confdent
Dont know/ Refused
6%
32%
29%
32%
22%
42%
24%
12%
1%
1%
40%
44%
12%
3%
C
y
p
r
u
s
E
u
r
o
z
o
n
e
G
l
o
b
a
l
Figure 2: Revenue growth prospects over the next 3 years
Q: How confdent are you about your companys prospects for revenue growth over the next 3 years?
D
o
n
't
k
n
o
w
/

R
e
f
u
s
e
d
25%
30%
46%
69%
52%
44%
3%
12%
8%
3%
4%
1%
2%
1%
Global Eurozone Cyprus
D
o
n
't
k
n
o
w
/

R
e
f
u
s
e
d
3%
32%
47%
29%
41%
42%
19%
17%
7%
45%
9%
2%
3%
2%
1%
2012
2011
When respondents in Cyprus were asked
about the prospects of the global
economy during the next 12 months,
only 13% of them replied that they
believe that the global economy will
improve during the next year. 34%
believe that it will stay the same,
whereas the majority (53%) believes
that the global economy will further
decline.
Slightly more optimistic percentages are
recorded at a Eurozone level where 16%
of the CEOs believe that the global
economy will improve, 45% that it will
remain the same and 39% that it will
decline.
Globally, 18% of the CEOs believe that
the global economy will improve, 52%
that it will stay the same and 28% that it
will decline.
Figure 3: Prospects of the global economy
Q: Do you believe the global economy will improve, stay the same, or decline over the next 12 months?
The unprecedented economic challenges left
companies straggling with squeezed liquidity.
Demetra, the largest public investment company on the
island, has managed to come out of the economic
meltdown with a strong cash position; and the
challenge now is to capitalise on the opportunities
brought about by the crisis. We are looking to promote
investments in the energy and infrastructure sectors
that will contribute in accelerating economic growth
and help revive the economy.
Dr Nicos Michaelas
General Manager
Demetra Investment Public Ltd
Cyprus Eurozone Global
Decline
53% Stay the
same
34%
Improve
13%
Don't know/
Refused
1%
Decline
39%
Stay the
same
45%
Improve
16%
Don't know/
Refused
2%
Decline
28%
Stay the
same
52%
Improve
18%
Uncertain economic growth and the
governments response to fscal defcit
and debt burden may have a negative
impact in business activity.
This is confrmed by 91% of Cypriot
CEOs, 86% of CEOs in the Eurozone and
81% of CEOs at a global level.
What worries the CEOs
Figure 4 : Potential economic and policy threats
Q: How concerned are you about the following potential economic and policy threats to your business growth prospects?
Respondents who stated extremely or somewhat concerned
41%
43%
51%
54%
61%
69%
71%
81%
31%
30%
39%
37%
69%
62%
82%
86%
66%
41%
38%
41%
88%
34%
88%
91%
0 10 20 30 40 50 60 70 80 90 100
Bribery and corruption
Inflation
Protectionist tendencies of national
governments
Exchange rate volatility
Lack of stability in capital markets
Over-regulation
Government response to fiscal deficit
and debt burden
Uncertain or volatile economic growth
%
Cyprus
Eurozone
Global
Even though CEOs at a global and
Eurozone level agree that the increasing
tax burden is the biggest business threat
to their growth prospects, Cypriot CEOs
appear anxious about their inability to
fnance growth. The percentage of CEOs
in Cyprus who responded that they are
concerned about their inability to
fnance growth reached 91%.
Cypriot CEOs also stated that they are
concerned about the shift in consumer
spending and behaviours (84%), and the
increasing tax burden (69%). Changing
91% of Cypriot CEOs are concerned about their
inability to fnance growth compared to 39% of CEOs
globally.
91%
39 %
consumer behavior is a key issue
concerning all CEOs as consumers now
focus more on the cost and reduce their
spending.
The availability of skills, named as the
second biggest business threat at a
global level, does not appear to pose a
big threat for Cypriot CEOs possibly due
to the increasing unemployment.
Figure 5 : Potential business threats
Q: How concerned are you about the following potential business threats to your growth prospects?
Respondents who stated extremely or somewhat concerned
Energy costs were identifed as the
biggest business threat during the
survey carried out last year. The
explosion at the Mari naval base and
its consequences created conditions
that caused concerns to the Cypriot
CEOs regarding the costs of energy.
This percentage dropped from 94%
to 63% this year.
Increasing tax burden
Availability of key skills
Energy and raw material costs
Shift in consumer spending and behaviours
Speed of technological change
New market entrants
Inability to finance growth
Lack of trust in your industry
Supply chain disruption
Inadequacy of basic infrastructure
Inability to protect Intellectual Property and customer data
69%
16%
63%
84%
31%
34%
91%
44%
34%
41%
13%
67%
36%
57%
58%
31%
36%
58%
46%
25%
22%
22%
62%
58%
52%
49%
42%
40%
39%
37%
35%
35%
34%
Achieving best management
The 16th Annual Global CEO Survey
focused on the approach CEOs take to
managing their organisations and on
their strategy. CEOs need to adjust to the
new business environment in order to
take advantage of the new opportunities
and effectively deal with the economic,
policy and business threats.
CEOs in Cyprus appear to prefer a
centralised approach to management
with 75% of the respondents stating that
strategic decision making is done at a
senior executive and board level and just
22% encouraging all staff to get
involved in strategic decision making. A
similar picture was recorded at a global
and Eurozone level.
CEOs in Cyprus focus their strategy on a
few carefully selected initiatives (81%)
rather than nurturing many strategic
initiatives and allowing the strongest to
succeed (19%). Respective percentages
reached 74% in the Eurozone and 68%
globally.
Half of the Cypriot CEOs said that they
are diversifying their supply chain and
are working with more partners across
more varied geographies. Contrary, 38%
is increasing concentration in their
supply chain turning to fewer trusted
partners.
As regards to their approach to risk
management, CEOs in Cyprus stated
Figure 6: Extent of strategy change in the next 12 months
Q: To what extent do you anticipate your companys strategy to change over the next 12 months?
28%
63%
9%
Cyprus
32%
54%
14%
Global
28%
63%
9%
Cyprus
No change
Somewhat change
Change in fundamental ways
32%
49%
18%
Eurozone
that accountability is centralised
(88%) and 53% primarily allocates
risk management resources to
predicting high-impact risk events.
The majority of Cypriot CEOs anticipates their companys strategy to change over the next 12 months with 9% anticipating
fundamental changes, 63% moderate changes and the remaining 28% no changes at all. More fundamental changes are
anticipated by CEOs at a global and Eurozone level with the respective percentages reaching 18% and 14%.
The percentage of CEOs who are expecting moderate changes on the other hand drops to 49% in the Eurozone and to 54%
globally whereas, 32% do not anticipate any changes in their strategy over the next 12 months.
Expected changes in Cyprus in the next
12 months mainly concern customer
growth as well as retention and loyalty
strategies (94%). This appears to be a
global trend as similar changes in their
strategy are anticipated by 82% of CEOs
globally and by 80% of CEOs in the
Eurozone.
A total of 69% of Cypriot CEOs also
anticipate changes in their strategies for
managing talent, their organisational
structure, an increase in technology
investments and in their approach to
managing risk.
Figure 7 : Expected changes in the next 12 months
Q: To what extent do you anticipate changes at your company in the following areas over the next 12 months?
77%
61%
45%
29%
66%
56%
69% 55%
Respondents who stated Some change or A major change
Taking into consideration company and market data, we have every reason to
believe that the outlook for the organisation in the following years is very positive.
Our sector could contribute to the growth of the economic by providing low
interest loans to companies operating in various sectors of the economy. In order
to overcome the new economic conditions we will develop a fexible plan of action
and restructuring.
Dr. Nearchos Ioannou
General Manager
Limassol Cooperative Savings Bank
Customer growth/retention/ loyalty
strategies
Strategies for managing talent
Organisational structure
Increase in technology investments
Increase in R&D and innovation capacity
Approach to managing risk
M&A, joint venture or strategic alliance
Increase in capital investment
Investment in managing corporate
reputation
Divestiture plans
94%
69%
69%
69%
50%
69%
63%
50%
50%
41%
80%
71%
75%
65%
61%
58%
58%
45%
55%
39%
82%
77%
74%
74%
67%
62%
61%
64%
53%
29%
In recent years, the economic crisis has
forced businesses worldwide to proceed
in cost reductions. This was refected in
the past two surveys with the majority
of CEOs viewing cost reductions as the
most effective approach to be followed
in the upcoming year.
Beyond cost reductions, CEOs will also
resort to a series of other restructuring
activities in order to adapt to the
changing economic conditions, with
strategic alliances and joint ventures
being at the top of their list.
Figure 8: Restructuring activities initiated in the past 12 months
Q: Which, if any, of the following restructuring activities have you initiated in the past 12 months?
16%
19%
19%
19%
24%
31%
36%
77%
18%
20%
22%
20%
21%
33%
34%
87%
34%
19%
22%
13%
22%
38%
38%
97%
Ended an existing strategic alliance or joint venture
"Insourced" a previously outsourced business process
or function
Divested majority interest in a business or exited a
significant market
Completed a cross-border M&A
Completed a domestic M&A
Outsourced a business process or function
Entered into a new strategic alliance or joint venture
Implemented a cost-reduction initiative
Figure 9: Restructuring activities planned in the next 12 months
11%
16%
15%
26%
28%
31%
47%
70%
16%
16%
17%
26%
20%
35%
48%
80%
41%
25%
16%
28%
25%
50%
56%
94%
0 10 20 30 40 50 60 70 80 90 100
End an existing strategic alliance or joint venture
"Insource" a previously outsourced business process or
function
Divest majority interest in a business or exit a significant
market
Complete a cross-border M&A
Complete a domestic M&A
Outsource a business process or function
Enter into a new strategic alliance or joint venture
Implement a cost-reduction initiative
%
Cyprus
Eurozone
Global
31%
33%
35%
37%
41%
48%
50%
56%
20%
27%
25%
30%
39%
46%
41%
48%
38%
31%
41%
38%
41%
44%
41%
47%
0 10 20 30 40 50 60 70
Volunteering/ community work
Board level diversity
Philanthropy or social enterprise
initiatives
Approach to tax planning and tax
contribution
Non-financial reporting (incl.
corporate responsibility reporting)
Reducing environmental footprint
Workforce diversity and inclusion
Framework to support a culture of
ethical behaviour
%
Cyprus
Eurozone
Global
Figure 10: Restructuring activities planned in the next 12 months
Q: To what extent does your organisation plan to focus on the following priorities over the next 12 months?
CEOs, with percentages reaching 47% in
Cyprus, 48% in the Eurozone and 56%
globally plan to focus on creating a
framework which supports a culture of
ethical behaviour during the upcoming
year. 44% of the Cypriot CEOs plan to
focus on reducing their environmental
footprint while 41% will be focusing on
workforce diversity and inclusion,
non-fnancial reporting including
corporate responsibility reporting and
social initiatives. 38% of CEOs in
Cyprus will focus on volunteering and
community work as well as on their
approach to tax planning and tax
contribution. Finally a percentage of
31% of CEOs in Cyprus are planning to
focus on board level diversity.
Respondents who stated increase our
focus somewhat or increase our focus
signifcantly
A total of 44% of Cypriot CEOs say that
the headcount of their company globally
has decreased over the past 12 months.
38% say that their headcount has
remained the same whereas only 18% of
the respondents stated that their
headcount has increased over the past
year.
In Cyprus, the percentage of CEOs who
stated that their headcount has
decreased by more than 8% reached
28%. This percentage is higher by 14
percentage points compared to the
Eurozone and by 21 percentage points
compared to the global results.

Figure 11: Changes in the headcount over the past 12 months
Q: What happened to headcount in your company globally over the past 12 months?
9%
9%
38%
3%
13%
28%
Don't know/ Refused
Increase by more than 8%
Increase by 5-8%
Increase by less than 5%
Stay the same
Decrease by less than 5%
Decrease by 5-8%
Decrease by more than 8%
Cyprus
3%
15%
12%
21%
25%
11%
7%
7%
Don't know/ Refused
Increase by 5-8%
Stay the same
Decrease by 5-8%
Global
Eurozone
1%
7%
8%
18%
27%
16%
11%
14%
Don't know/
Refused
Increase by more
than 8%
Increase by 5-8%
Increase by less
than 5%
Stay the same
Changes in the headcount
9%
9%
38%
3%
13%
28%
Don't know/ Refused
Increase by 5-8%
Stay the same
Decrease by 5-8%
9%
9%
38%
3%
13%
28%
Don't know/ Refused
Increase by 5-8%
Stay the same
Decrease by 5-8%
But what do CEOs think for the future?
Do they expect their headcount to
decrease even further? How will the
crisis affect them?
The percentage of CEOs in Cyprus who
expects their headcount to decrease over
the 12 months increases to 50%.
However, smaller decreases are
expected during this year as the
percentage of CEOs who anticipate a
decrease of more than 8% drops to 9%
compared to 28% who stated that they
have experienced such decrease during
the past 12 months (fgure 11). 32% of
Cypriot CEOs say that they expect the
headcount of their company to stay the
same and just 9% expects an increase in
their headcount.

Figure 12: Changes in the headcount over the next 12 months
Q: What do you expect to happen to headcount in your company globally over the next 12 months?
0
10
20
30
40
50
Don't know/ Refused
Increase by 5-8%
Stay the same
Decrease by 5-8%
3%
11%
12%
22%
28%
14%
5%
4%
3%
2%
5%
16%
32%
22%
11%
9%
9%
3%
6%
31%
38%
3%
9%
%
Cyprus
Eurozone
Global
Potential opportunities and investment
priorities
CEOs in Cyprus view organic growth in
the domestic market (25%) and the
development of new products or services
(25%) as the main opportunities for
growth over the next 12 months
followed by new operations in foreign
markets (22%), organic growth in
existing foreign markets (16%) and a
new M&A, joint venture and strategic
alliance (13%).
Similar views were recorded at a global
level with 32% of CEOs agreeing that
organic growth in the existing domestic
market is the main opportunity for
growth within the next year. CEOs in
the Eurozone on the other hand see
organic growth in existing foreign
markets (25%) and new product or
service development (25%) as the main
growth opportunities.
It is worth mentioning that according to
the Professional Services report entitled
Driving jobs and growth in Cyprus
and commissioned by PwC Cyprus,
services is the backbone of the Cyprus
economy. The development of services
should be seen as an opportunity to
leverage our strengths as a country.
Figure 13: Growth opportunities for the next 12 months
Q: Which one of these potential opportunities for business growth do you see as the main opportunity to grow your business in the
next 12 months?
19%
Organic growth in existing
domestic market
New product or service development
32%
25%
New M&A/ joint ventures/ strategic
alliances
Organic growth in existing foreign
market
New operation(s) in foreign markets Dont know / Refused
13%
17%
25%
25%
25%
18%
16%
17%
25%
22%
8%
11%
1%
1%
According to the fndings of the survey,
Cypriot CEOs consider Russia (34%) as
the most important country for their
overall growth prospects in the next 12
months followed by the UK (19%) and
Germany (19%), China (13%), USA
(6%), Brazil (3%), India (3%) and Japan
(3%).
CEOs at a global and Eurozone level
agree that the top four countries in order
of importance are China, USA, Brazil
and Germany.
Figure 14 : Important countries for overall growth prospects
Q: Which countries, excluding the country in which you are based, do you consider most important for your overall growth
prospects over the next 12 months?
3%
19%
34%
3%
19%
3%
6%
13%
3%
2%
11%
1%
17%
9%
19% 19%
26%
29%
5% 5%
6%
7%
8%
10%
12%
15%
23%
31%
Japan Canada UK Indonesia Russia India Germany Brazil USA China
Chart Title
The majority of all survey participants
stated that growing their customer base
is the top investment priority for the
next 12 months. Enhancing customer
service is among the top priorities for
CEOs in Cyprus (53%), while the second
priority for CEOs both in the Eurozone
and globally is the improvement of
operational effectiveness.
Only 22% of the Cypriot CEOs stated
that R&D and innovation is included
among their top 3 investment priorities.
This is also confrmed by the
Professional Services survey mentioned
earlier, in which innovation was
identifed as an area for improvement
for our country.
Figure 15 : Top investment opportunities
Q: What are your top 3 investment priorities over the next 12 months?
The ability of a business to have liquidity without bank lending
and the ability of maintaining strong associates and clientele,
as well as the insights to understand the needs of customers
and associates, the promptness in decision-making and the
creation and supply of new services in relation to dignity and
respect create perspective for the future. At the same time
management needs to have soul and pride.
Stelios Georgallides
General Manager
Kentriki Insurance Ltd
2%
9%
19%
26%
27%
32%
33%
38%
49%
51%
1%
3%
6%
17%
32%
19%
33%
30%
42%
48%
52%
28%
22%
13%
22%
34%
53%
34%
66%
0 10 20 30 40 50 60 70
Don't know/refused
Other
Securing raw materials or
components
Manufacturing capacity
Implementing new technology
Filling talent gaps
R&D and innovation
New M&A/ joint ventures/
strategic alliances
Enhancing customer service
effectiveness
Growing your customer base
%
Cyprus
Eurozone
Global
Business environment
The various stakeholders appear to have
considerable infuence upon private businesses
with CEOs taking initiatives for strengthening
their stakeholder engagement programmes.
The following groups have been identifed by
the CEOs in Cyprus as having some or
signifcant infuence on their business
strategy:
Customers and clients (94%)
Industry competitors and peers (91%)
Government and regulators (88%)
Providers of capital such as creditors and
investors (78%)
Supply chain partners (66%)
Local communities (63%)
Users of social media (56%)
Employees including trade unions and work
councils (50%)
The media (41%)
Non Governmental Organisations (6%)
In the context of the economic reorganisation, the
information technology industry can play a key
role as a facilitator for increasing productivity,
reducing operating costs and creating new jobs,
which in turn will support sustainable economic
growth.
Countries that promote innovation and invest in
new innovative technologies, infrastructure and
training as well as in the development of skills for
their society will be those that will ensure a
comparative advantage in the global market
arena.
Dr. Adamos Christodoulou
Managing Director
NewCytech Business Solutions Ltd
The survey confrms the fact that
businesses have a clear view regarding
the role and the priorities of the
Government, viewing fnancial sector
stability as a top priority. 97% of Cypriot
Figure 16: Areas that should be the Governments priority
Q: Which three areas should be the Governments priority today?
97% of Cypriot CEOs believe that the governments
priority today should be to ensure fnancial sector
stability.
97%
CEOs seem to believe just that. Financial
sector stability however concerns all
businesses as high percentages which
reach 63% and 84% were recorded
globally and at a Eurozone level
0
10
20
30
40
50
60
70
80
90
100
Addressing the risks of climate change and
protecting biodiversity
Reducing poverty and inequality
Maintaining the health of the workforce
Improving the country's infrastructure
Creating and fostering a skilled workforce
Securing natural resources that are critical to
business
Ensuring financial sector stability
17%
37%
18%
60%
57%
28%
63%
17%
35%
18%
38%
58%
26%
84%
9%
28%
13%
59%
44%
31%
97%
%
Cyprus
Eurozone
Global
respectively. 59% of CEOs in Cyprus
stated that the governments priority
today should be improving the countrys
infrastructure and 44% creating and
fostering a skilled workforce.
When examining the role of the
government, the majority of CEOs in
Cyprus do not agree that the
government has been effective at taking
Figure 17: The role of the government
Q: Thinking about the role of the Government in the country in which you operate how strongly do you agree or disagree with the
following statements?
actions which support the business
environment such as ensuring fnancial
sector stability and reducing regulatory
burden on corporations.
68%
56%
45%
45%
48%
41%
45%
30%
85%
63%
54%
50%
59%
55%
46%
53%
91%
81%
69%
66%
63%
72%
47%
97%
0 10 20 30 40 50 60 70 80 90 100
The government has reduced the regulatory burden on
corporations
The government has been effective in helping create a skilled
workforce
The government helps companies secure access to natural
resources (e.g. raw materials, water, energy)
The government has maintained a level playing field despite
having stakes in private enterprises
The government is driving convergence of global tax and
regulatory frameworks
The government supports innovation in the private sector
The government is taking adequate steps to improve the
country's infrastructure (e.g. electricity, water supply,
transport, broadband)
The government has been effective at ensuring financial
sector stability and access to affordable capital
%
Cyprus
Eurozone
Global
Respondents who stated disagree or disagree strongly
97% of Cypriot CEOs believe that the government has
not been effective at ensuring fnancial sector
stability and access to affordable capital.
97%
Conclusion
According to the fndings of the survey,
CEOs in Cyprus, for the second
consecutive year, are less confdent
about their companys prospects for
revenue growth over the next 12 months
in comparison to the CEOs on a global
and Eurozone level. However, Cypriot
CEOs are more optimistic about their
companys revenue growth prospects
over the next 3 years with a percentage
of 25% stating very confdent
representing an increase of 22
percentage points compared to the
percentage recorded last year.
The fact that Cypriot CEOs are more
optimistic for the future than they were
one year ago, may be attributed to the
fact that natural gas is expected to
create economic opportunities.
Reaching a fnal agreement on the
memorandum of understanding will
reduce uncertainty and in the end
companies will adapt to the new reality.
Investment and Development is the
answer to the recession and
unemployment.
The top investment priorities in the next
year focus on customers with CEOs
emphasising on growing their customer
base and enhancing their customer
service. CEOs view the uncertain
economic growth, the governments
response to fscal defcit and the lack of
stability in capital markets as the biggest
economic and policy threats to their
growth prospects. They also appear
anxious about their inability to fnance
growth, the shift in consumer spending
and behaviours, the increasing tax
burden as well as the cost of energy and
raw materials.
The past year was particularly
challenging for businesses and the cost
reduction initiatives which are expected
to continue confrm that the year ahead
will be even more challenging.
According to the survey CEOs believe
that the government has not been
effective at taking actions which support
the business environment saying that
ensuring fnancial sector stability and
improving infrastructure should be
governments priority today.
The survey fndings indicate that threats
are now coming harder and faster
forcing organisations to become more
agile and adaptable. Cypriot CEOs are
well aware of the challenges they are
forced to face as well as the
opportunities that may arise from this
unstable environment. They follow
domestic and global developments and
are actively taking steps for managing
the downside.
Uncertainty is the only certain
characteristic of todays business
environment and successful
organisations are pursuing resilience to
survive and grow. We are confdent that
Cypriot business leaders will pursue the
changes and strategies necessary to
overcome the diffculties and
successfully exit the current crisis.
PwC Cyprus
We are striving to offer our clients
the value they are looking for,
value that is based on the
knowledge that our teams draw
from 180.000 experts in 158
countries and based on experience
adapted to local needs. PwC
Cyprus focuses on two main areas:
Assurance & Advisory Services and
Tax & Legal Services. We work
closely with our clients. We ask
questions. We listen. We learn what
they want to do, where they want
to go. From all our international
knowledge we share with them the
piece that is more suitable for them
and thus we support them on how
to achieve their goals.
In the operation of the worlds
capital markets we play an
important role and as business
advisors we help our clients solve
complex business problems. We
aim to improve their ability to
manage risk and improve
performance. At the same time we
take pride in our quality services
which help to improve
transparency, trust and consistency
of business processes.
Our position is strengthened with
our almost 1.000 professionals and
our offces throughout Cyprus.
Our Financial Assurance services comprise of statutory and regulatory audit
services, which include evaluation of information systems, advisory services for
capital market transactions, accounting and regulatory issues for all types of
businesses through specialist industry divisions:
Financial Services (FS), Consumer and Industrial Products and Services (CIPS) and
Technology, Information, Communications, Entertainment and Media (TICE).
Our Risk Assurance Consulting (RAC) offers expertise on internal audit services,
internal controls optimisation, corporate governance and reporting, as well as
assurance and advisory services related to security and controls of information
technology systems including Enterprise Resource Planning (ERP) systems (e.g.
SAP, Oracle, Navision), Project Implementation Assurance (PIA), Computer Assisted
Audit Techniques (CAATs), Spreadsheet Integrity and IT Risk Diagnostic and
Benchmarking. A particular focus of the team is in supporting the fnancial services
industry on matters related to regulatory compliance, licensing and risk
management.
Our Performance Improvement Consulting (PIC) is offering specialist advisory
services on strategy and operational effectiveness, process improvement, cost
reduction, people and change and sustainability issues.
Our Deals & Corporate Finance (DCF) provides consulting on M&As, valuations,
feasibility studies, transactions support and crisis Management.
Assurance & Advisory Services
Our PwC networks tax and legal services include Global Compliance Services, Direct
and Indirect Tax Services, Services to Small and Medium Enterprises and Legal
Services.
Global Compliance Services
Comprising the whole spectrum of company administration and corporate statutory
compliance services, bookkeeping, accounting and payroll services as well as
specialised services such as private client services, advice on establishment and
administration of local and international business companies, collective investment
schemes, UCITS, investment frms and trusts.
Direct tax services
Corporate: Advisory Services for tax planning, international tax structuring, mergers
and buyouts and other business issues, tax returns administration, agreement with
Tax Authorities and obtaining tax rulings.
Personal: Tax planning, completion submission and agreement of tax returns, tax
services to expatriates, pensioners and other non-Cypriot individuals.
Indirect Tax Services
VAT: Advisory services for VAT, VAT recovery and VAT minimisation and tax
compliance (administration of VAT returns, communication with VAT authorities,
agreement of disputed assessments, etc).
Services to Small and Medium Enterprises (SME)
The Services to Small and Medium Enterprises are addressed to individuals, small
and medium - sized enterprises with local activity and cover the whole spectrum
of accounting, tax, VAT, family business and fnancial structuring and statutory
compliance services.
Legal Services
The legal frm, full member of the PwC international network, offers legal services
that cover the whole spectrum of corporate and business law, including advising and
representing clients in M&A transactions, re-organizations, European Union law
and Competition law, setting up and regulating private companies, setting up joint
ventures and other forms of businesses and carrying out legal due diligence.
Tax & Legal Services
Designed by: PwC Cyprus (Marketing & Communications Department)
www.pwc.com.cy/ceo-survey
PwC Cyprus helps organisations and individuals create the value theyre looking for. Were a member of the PwC network of frms in 158 countries with close to
180,000 people. Were committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and fnd out more by visiting us at
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
2013 PricewaterhouseCoopers Ltd. All rights reserved. PwC refers to the Cyprus member frm, and may sometimes refer to the PwC network. Each member frm is
a separate legal entity. Please see www.pwc.com/structure for further details.
Contacts for PwC Cyprus
PwC gratefully acknowledges the
contribution of the 32 Cypriot CEOs who
have taken part in the 16th Annual
Global CEO Survey: Cyprus Summary.
Special thanks to the CEOs who have
provided us with their comments:
Dr. Adamos Christodoulou
Managing Director
NewCytech Business Solutions Ltd
Mr Stelios Georgallides
General Manager
Kentriki Insurance Ltd
Dr. Nearchos Ioannou
General Manager
Limassol Cooperative Savings Bank
Dr Nicos Michaelas
General Manager
Demetra Investment Public Ltd
Acknowledgements
Download the main report,
access the results and explore the
CEO interviews from our 16th
Annual Global CEO Survey online at
www.pwc.com/ceosurvey.
Evgenios C Evgeniou
CEO
T: 00357 22 555 000
evgenios.evgeniou@cy.pwc.com
Liakos M Theodorou
Head of Assurance & Advisory
T: 00357 25 555 000
liakos.m.theodorou@cy.pwc.com
Costas L Mavrocordatos
Head of Tax & Legal
T: 00357 22 555 000
costas.mavrocordatos@cy.pwc.com
16th Annual Global CEO Survey contact
Konstantina Logotheti
Senior Manager
Marketing & Communications
T: 00357 22 555 108
konstantina.logotheti@cy.pwc.com
Innovare per crescere
www.pwc.com/it/ceosurvey
Analisi dei risultati italiani della
16th Annual Global CEO survey
Dealing with disruption:
Adapting to survive and thrive
16th Annual Global CEO Survey - Addendum Italia
Sezione1: Executive summary
p.7
| Sezione 2: Fiducia e prospettive di crescita
p.11
| Sezione3: Opportunit e minacce
p.17
|
Sezione 4: Priorit strategiche
p.23
| Sezione 5: Agenda manageriale
p.32
| Sezione 6: Organizzazione e Leadership
p.39
|
Industry highlights
p.45
42
Top Manager
italiani
PwC | gennaio 2013
3
Nellultimo decennio la volatilit e lincertezza del sistema economico hanno raggiunto livelli
mai conosciuti prima.In un mondo globalizzato, dove gli Stati, le economie e le imprese sono
interdipendenti come non mai, rischi che sembravano improbabili stanno diventando sempre pi
frequenti. Per i Top Manager di tutto il mondo attendersi linattendibile ormai la quotidianit.
In occasione dellincontro annuale del World Economic Forum di Davos, stata presentata la
16th Global CEO Survey che fotografa il livello di fducia sullo sviluppo globale e del proprio
business di 1.330 CEO provenienti da oltre 68 Paesi e il loro punto di vista sulle sfde del mercato.
Lanalisi che segue concentra lattenzione sulle risposte dei Top Manager italiani confrontandole,
a seconda dei temi, con le medie globali o con le risposte dei Paesi a noi pi vicini. Siamo certi
che le indicazioni che emergono possano essere un valido confronto per chi ogni giorno nella
propria azienda affronta le sfde quotidiane che il mercato impone.
Un ringraziamento speciale alle oltre 40 imprese nazionali che partecipando alla Survey ci hanno
permesso di realizzare il rapporto italiano.
Ezio Bassi
PwC | Territory Senior Partner
1.330
Top Manager
mondiali
68
Paesi
16th Annual Global CEO Survey - Italia | Innovare per crescere
4
16th Annual Global CEO Survey:
messaggi chiave
Soltanto il 36% dei CEO nel mondo molto fducioso sulla
crescita della propria Societ nei prossimi 12 mesi, dato in
calo rispetto al 40% che lanno scorso si dichiarava molto
fducioso sulla crescita di breve periodo, e al 48% del 2011.
Considerando leconomia globale, il 28% dei CEO ritiene
che caler ulteriormente nel 2013 e solo il 18% prevede
un miglioramento contro un 52% che prevede rester
invariata. Anche se le previsioni dei CEO rimangono negative,
rappresentano comunque un miglioramento rispetto allanno
passato, quando il 48% dei CEO prevedeva un declino
delleconomia nel 2012.
A essere meno fduciosi nella crescita del proprio fatturato nel
breve periodo sono i CEO dellEuropa Occidentale.
Con una recessione in corso, soltanto il 22% si dichiara
fducioso sulle prospettive di crescita, in calo rispetto al 27%
dellanno scorso e il 39% del 2011. Anche nel Nord America la
fducia nella crescita nel breve periodo in calo al 33% (era il
42% nel 2012) e nellAsia-Pacifco al 36% (42% nel 2012).In
controtendenza, invece, i CEO dellAmerica Latina.
Il livello di fducia di breve periodo cresciuto lievemente
rispetto allanno passato raggiungendo il 53%.A livello
nazionale si misurano ampie differenze: i pi fduciosi sono i
CEO in Russia, con il 66% che crede nella crescita del fatturato
nel 2013, seguiti dallIndia (63%) e dal Messico (62%).
In generale, la fducia dei CEO stabile per il lungo periodo;
il 46% si dichiara convinto delle prospettive di crescita per i
prossimi tre anni, stabile rispetto allanno scorso.
Le principali preoccupazioni dei CEO
Con il persistere delle diffcili condizioni economiche
aumentano le preoccupazioni dei CEO: al primo posto le
continue incertezze sulla crescita economica (81%), al secondo
le misure correttive dei Governi per il defcit di bilancio (71%),
seguite dalla regolamentazione eccessiva (69%) e linstabilit
dei mercati di capitali (61%). Le preoccupazioni riguardo alla
regolamentazione eccessiva hanno raggiunto il livello pi alto
dal 2006. Alla richiesta di valutare la risposta del Governo in
merito, i CEO sono ancora pi chiari: appena il 12% ritiene
che i Governi dei loro Paesi abbiano ridotto il peso della
regolamentazione nellanno passato.
Alla domanda sui principali fattori di rischio per la crescita
delle aziende, i CEO hanno citato anche il crescente peso delle
tasse (62%), la disponibilit di risorse umane con competenze
chiave (58%) e il costo dellenergia e delle materia prime
(52%).
Affrontare lincertezza
Per costruire Societ in grado di vivere e prosperare
nellincertezza, i CEO seguono tre strategie specifche: puntare
su selezionate opportunit, valorizzare la relazione con il
cliente e migliorare leffcienza operativa.
1. Focalizzarsi su selezionate opportunit. Circa il 68% dei
CEO si focalizza su iniziative specifche accuratamente
valutate. Considerate tutte le opzioni disponibili,
selezionano pochi investimenti strategici e concentrano
le risorse fnanziarie per massimizzare le probabilit di
successo.
PwC | gennaio 2013
5
16th Annual Global CEO Survey:
messaggi chiave
Una delle principali sfde per i dirigenti resta la ricerca
delle persone giuste e il loro mantenimento in azienda; la
disponibilit di competenze chiave citata come una delle
principali minacce alle prospettive di crescita, menzionata
dal 58% a livello globale.
In tale prospettiva, non sorprende che pi di tre quarti dei
CEO (77%) preveda di modifcare le strategie di gestione
dei propri talenti nei prossimi mesi, e circa un quarto di
questi (23%) preveda di fare modifche sostanziali.
I CEO riconoscono la necessit di costruire un clima di
fducia con una cerchia pi vasta di stakeholder. Il 37%
teme che la mancanza di fducia nel settore in cui opera
potrebbe mettere a rischio la crescita dellazienda, mentre
il 57% intende concentrarsi in modo pi incisivo sulla
promozione di una cultura etica. Inoltre, circa la met dei
dirigenti (49%) intende prestare maggiore attenzione
alla riduzione dellimpatto ambientale delle proprie scelte
manageriali nei prossimi 12 mesi.
2. Valorizzare la relazione con il cliente. Quasi la met
dei CEO (49%) ritiene che i cambiamenti nelle
abitudini di acquisto dei consumatori rappresentino
una seria minaccia; il 51% dichiara che la priorit
negli investimenti dei prossimi 12 mesi la crescita
della base clienti. L82% dei CEO progetta di
modifcare le strategie per la crescita e fdelizzazione
della clientela - il 31% intende cambiare in modo
radicale il proprio approccio commerciale.
3. Migliorare leffcienza operativa. Gli investimenti per
migliorare leffcienza operativa sono una priorit
per i CEO. Il 77% ha adottato iniziative di questo
tipo nei 12 mesi passati e il 70% intende farlo nei
prossimi.
Occupazione e ricerca di nuovi talenti
I CEO si rivelano cauti per quanto riguarda gli aumenti di
personale per lanno in corso. Il 45% pensa di fare nuove
assunzioni nel 2013 (in calo rispetto al 51% del 2012),
mentre il 23% progetta di ridurre i livelli di forza lavoro.
Se si osserva quali settori assumono e quali riducono i
posti di lavoro, si ottiene un quadro interessante. I CEO
che pensano di assumere nuovo personale operano
nel settore dei servizi alle imprese (56%), ingegneria e
costruzioni (52%), distribuzione (49%) e sanit (43%).
Al contrario, i CEO che prevedono di ridurre il personale
sono attivi nel settore bancario (35%), nelle industrie
metallurgiche (32%) e nel settore della carta e legname
(31%).
6
Agenda
Analisi ed elaborazione
PwC | Strategy
Nicola Anzivino, Partner
Edoardo Scornajenghi, Manager
Editorial Board
PwC | Marketing & Communications
Cindy Evers | Giuseppina Floris
Realizzazione grafca
PwC | Marketing & Communications
Giulia Caldiroli | Claudio Loguercio
7
17
32
45
11
23
39
48
Sezione 1
Executive summary
Sezione 3
Opportunit e minacce
Sezione 5
Agenda manageriale
Industry highlights
Sezione 2
Fiducia e prospettive di
crescita
Sezione 4
Priorit strategiche
Sezione 6
Organizzazione e
Leadership
Appendices
Quotations originali
PwC | gennaio 2013
7
Sezione 1
Executive summary
16th Annual Global CEO Survey: obiettivo e partecipazione
Lobiettivo della survey raccogliere il sentiment
sulle tendenze economiche globali e nazionali
degli ultimi mesi del 2012 e dei prossimi anni con
particolare focus sul 2013.
Per questa edizione, a livello mondiale, 1.330
CEO di aziende pubbliche e private, di settori e
dimensioni diversi hanno condiviso con noi il loro
pensiero.
Per lItalia sono stati intervistati 42 Top Manager,
che ci hanno permesso di defnire un quadro
completo e signifcativo della business vision dei
CEO di aziende italiane.
16th Annual Global CEO Survey - Italia | Innovare per crescere | Sezione 1: Executive summary
8
1
Innovare per crescere: key Italian messages
1
PwC | gennaio 2013
9
1. Fiducia e prospettive di
crescita
2. Priorit strategiche
3. Agenda manageriale e
organizzazione
aziendale
Le prospettive di crescita per il 2013 sono ancora limitate per lItalia e per gli altri Paesi europei. Un possibile
rallentamento della crescita cinese e lincertezza negli USA sono due incognite signifcative per la crescita
prospettica a livello nazionale e mondiale.
La stabilit dei mercati fnanziari condizione necessaria per implementare nuovi piani di sviluppo.
Il Governo Italiano ha agito bene sul tema stabilit negli ultimi 12 mesi ma servono nuove politiche di
supporto allinnovazione e alla crescita secondo lopinione dei CEO intervistati.
Innovazione di prodotto e di processo e sviluppo internazionale soprattutto verso i BRIC e gli Stati Uniti sono le
priorit strategiche delle Societ italiane per crescere in nicchie globali ad alta specializzazione industriale e
valore aggiunto.
Gli investimenti strategici saranno incentrati su: I) riorganizzazione industriale attraverso linternazionalizzazione e
il right sizing, II) investimenti in tecnologia per rendere pi effcace lattivit di Ricerca & Sviluppo,
III) miglioramento della fessibilit operativa sfruttando le opportunit della digital transformation nel settore
manifatturiero e dei servizi.
Il diffcile accesso ai fondi per fnanziare la crescita e landamento dei costi della materie prime e dellenergia sono
le principali minacce per lo sviluppo prospettico delle Societ italiane ed europee.
Lagenda manageriale sar focalizzata su: I) ridisegno organizzativo con valorizzazione dei nuovi talenti,
II) ottimizzazione della supply chain per sfruttare le migliori opportunit globali, III) qualifcazione del personale
per avere nuove leve manageriali di gestione, IV) etica dei comportamenti di business, V) reputazione aziendale,
VI) impatto ambientale delle scelte aziendali e VII) corporate social responsibility e relativi sistemi di non-fnancial
reporting.
Le scelte di outsourcing ed offshoring saranno sempre pi collegate alla necessit di innovare sia a livello di prodotto sia
di processo, con opportunit di reshoring nelle economie avanzate.
Ricambio e nuova crescita manageriale a livello di leadership team e riassetto dei piani di retribuzione dei top manager
sono temi importanti per le Societ nei prossimi anni.
Visione, capacit di motivare e di innovare sono le caratteristiche principali dei leader del futuro secondo le interviste
condotte per la Survey.
LAgenda dei CEO per i prossimi 12 mesi: ACTION Points
Agilit e fessibilit come elementi distintivi per adattarsi ai trend emergenti e anticipare i
cambiamenti di business servendo al meglio i propri clienti.
Clienti: nuovo focus manageriale incentrato su una strategia dual-track,
Big Bets globali e strategie specifche per mercato.
Transformation: pensare a nuovi prodotti e processi capaci di creare valore attraverso
limplementazione di modelli di business innovativi.
Organizzazione: right sizing e ridisegno organizzativo per allinearsi ai cambiamenti del
business model aziendale nelle attuali situazioni dincertezza.
Iper-velocity nel processo di decision making e riconsiderazione della business segmentation
per competere in contesti complessi creando nuovi talenti manageriali.
Nuove competenze distintive aziendali con la creazione di network tra agenti nella catena
del valore caratterizzati da alta specializzazione industriale.
16th Annual Global CEO Survey - Italia | Innovare per crescere | Sezione 1: Executive summary
10
1
PwC | gennaio 2013
11
Sezione 2
Fiducia e prospettive di crescita
Fiducia nella crescita delleconomia
Lo sviluppo mondiale si sta clusterizzando fortemente tra
economie in crescita e Paesi in diffcolt.
A livello mondiale i CEO rimangono incerti sulle
prospettive delleconomia per i prossimi 12 mesi, il 28%
prevede una fessione rispetto al 2012.
Anche i CEO italiani percepiscono il 2013 come un anno
ancora diffcile, sostanzialmente allineato al 2012.
Ritiene che leconomia globale
migliorer, rimarr stabile o
subir una fessione nei prossimi
12 mesi?
16th Annual Global CEO Survey - Italia | Innovare per crescere | Sezione 2: Fiducia e prospettive di crescita
12
2
Scenari internazionali
Secondo lei, quanto probabile
che si verifchino i seguenti
scenari?
In quale misura la sua azienda
sarebbe in grado di far fronte
ai seguenti scenari, se si
verifcassero entro 12 mesi?
Le preoccupazioni dei CEO riguardano un ampio spettro di
criticit per le prospettive di crescita del loro business.
I CEO a livello mondiale vedono il rallentamento della
crescita cinese e la recessione negli USA, in relazione
al debt ceiling, tra gli scenari internazionali futuri pi
probabili.
Le aziende in Europa e in Italia, sono solo parzialmente
preparate ad affrontare queste criticit con potenziali
impatti sulle loro prospettive di crescita.
PwC | gennaio 2013
13
2
Crescita dei ricavi
I CEO italiani sono meno fduciosi dellanno scorso nelle
prospettive di crescita dei ricavi delle proprie aziende a 12
e 36 mesi, complessivamente la fducia ai minimi rispetto
agli ultimi 4 anni. Il gap di fducia rispetto ai CEO di altri
Paesi europei signifcativo a 12 mesi.
La differenza di fducia nelle prospettive di crescita
dei ricavi a 12 e 36 mesi da parte dei CEO dellEuropa
Occidentale, rispetto agli USA e alla media mondiale,
correlato alle prospettive di risoluzione dei problemi
macroeconomici dellEurozona.
Quanto si sente fducioso delle
prospettive di crescita dei ricavi
della sua azienda nei prossimi 3
anni?
Quanto si sente fducioso delle
prospettive di crescita dei ricavi
mesi?
14
Se focalizziamo adesso i nostri sforzi, ci sono molte probabilit che quando le cose
andranno meglio, saremo nella condizione di fnalmente accelerare
Fonte: CEO intervistato, PwCs 16th Annual Global CEO Survey
2
Le priorit del Governo
In un periodo di incertezza economica, la stabilit dei
mercati fnanziari diventa un requisito essenziale per una
nuova fase di crescita economica, soprattutto in Europa.
In particolare in Italia, il 74% dei CEO ritiene che il
Governo abbia un ruolo fondamentale nel garantire la
stabilit del settore fnanziario, in Germania il valore
ancora pi alto con l86%.
Ad oggi, quali tre aree
dovrebbero costituire le priorit
del Governo?
PwC | gennaio 2013
15
2
Leffcacia delle azioni del Governo
Permangono forti dubbi in merito alla capacit dei Governi
di supportare le aziende private in Europa nellaffrontare le
prospettive di crescita del futuro.
Emerge un dato positivo in relazione alle misure poste dal
Governo Italiano nellultimo anno nel garantire stabilit al
settore fnanziario.
Oltre 90% degli intervistati italiani ritiene che le azioni
del Governo siano ancora insoddisfacenti in relazione al
sostegno allinnovazione, alla formazione del personale e
alla semplifcazione normativa per le imprese con un gap
signifcativo rispetto a Germania e Francia.
Se pensa al ruolo del Governo
nel Paese in cui esercita la sua
attivit, in quale misura
daccordo o in disaccordo con le
seguenti affermazioni?
16
2
PwC | gennaio 2013
17
Sezione 3
Opportunit e minacce
Opportunit di business
Innovazione e sviluppo nei mercati internazionali
rappresentano le principali opportunit di crescita nei
prossimi 12 mesi per le Societ italiane.
Allattenzione dei top managers italiani anche selezionate
operazioni di natura straordinaria quale leva per accelerare
la crescita.
Solo il 12% dei CEO in Italia punta sul mercato domestico,
da evidenziare il forte gap rispetto al dato tedesco e medio
mondiale.
Quali delle potenziali
opportunit di crescita aziendale
elencate la principale per la
crescita della sua azienda nei
prossimi 12 mesi?
16th Annual Global CEO Survey - Italia | Innovare per crescere | Sezione 3: Opportunit e minacce
18
3
Crescita internazionale
Quali sono i Paesi, ad esclusione
di quello in cui risiede, che
considera pi importanti per le
prospettive di crescita generali
mesi?
Nei Paesi indicati, quale
obiettivo spera di raggiungere nei
prossimi 12 mesi?
I CEO italiani vedono una signifcativa opportunit in
relazione allespansione allestero. Cina e Brasile sono i
Paesi pi attrattivi, ma anche gli Stati Uniti rimangono tra
i principali mercati a cui i CEO guardano per crescere a
livello internazionale.
Il diversi settori industriali hanno dinamiche di
internazionalizzazione diverse per area geografca
in ragione della dinamica della domanda locale e
dellattrattivit per lo sviluppo di nuovi siti industriali.
Lobiettivo principale delle scelte di internazionalizzazione
allargare la base clienti. In particolare, si intende
perseguire questo obiettivo negli Stati Uniti (77%),
Cina (74%) e Brasile (57%).
Il secondo obiettivo prioritario lacquisizione/sviluppo di
siti industriali con lobiettivo di servire i mercati locali in
modo pi competitivo e veloce.
PwC | gennaio 2013
19
Le opportunit di crescita
geografca individuate dai
CEO italiani e tedeschi sono
allineate
3
Sviluppo prospettico delle economie emergenti
Le economie emergenti saranno caratterizzate da trend
di crescita eterogenei, sia in termini produttivi sia di
consumi prospettici, con signifcative implicazioni
strategiche per le Societ europee.
La presenza strategica a livello commerciale e industriale
nei mercati emergenti deve essere analizzata in modo
congiunto nel lungo termine dalle Societ italiane, lalta
fessibilit diventa un fattore chiave per affrontare al
meglio i possibili scenari di business prospettici.
Cina, Vietnam, India e Indonesia sono i principali mercati
in cui si attende una crescita dei consumi signifcativa
nei prossimi anni in relazione allo sviluppo della classe
media nei principali centri urbani.
20
3
Minacce economiche e politiche
Di seguito un elenco di fattori
di natura politica ed economica
potenzialmente destabilizzanti
per le prospettive di crescita.
Quanto preoccupato/a, nel
caso lo sia, per ciascuno di essi
riguardo le vostre prospettive di
crescita?
Incertezza, instabilit economica e nuove azioni
governative di natura fscale sono le principali minacce alla
crescita secondo i CEO italiani, una percezione condivisa
dai CEO tedeschi e francesi.
Leccesso di regolamentazione viene visto come un freno
alla crescita da quasi il 70% dei CEO italiani intervistati,
dati ancora superiori sul tema sono registrati in Germania
e Francia.
PwC | gennaio 2013
21
3
Criticit legate al business
Laumento dellimposizione fscale, il costo delle materie
prime e il diffcile accesso al credito per fnanziare la
crescita sono i principali fattori di rischio per le imprese
italiane.
In particolare laumento della pressione fscale, tema da
sempre prioritario per le aziende nazionali, assume un
rilievo senza precedenti: l86% dei CEO italiani vede come
criticit per il business un eventuale incremento della
tassazione.
Oltre allaumento dei costi delle materie prime, la capacit
di fnanziare la crescita preoccupa molto i CEO italiani:
sono infatti consapevoli che la crescita dimensionale delle
loro aziende per sostenere la competizione internazionale
strettamente legata alla disponibilit di adeguate risorse
fnanziarie.
Diseguito un elenco di fattori
di natura aziendale che
rappresentano potenziali
minacce per le prospettive di
crescita.
Quanto preoccupato/a, nel
caso lo sia, per ciascuno di essi
riguardo le vostre prospettive di
crescita?
22
3
PwC | gennaio 2013
23
Sezione 4
Priorit strategiche
La nostra visione orientata al cambiamento, al cambiamento di noi stessi, al cambiamento dei trend chiave nel
settore in cui competiamo, per procedere con nuove strategie, nuovi prodotti e nuove modalit di gestione della nostra
organizzazione al fne di tenere il passo ed, anzi, accelerare rispetto agli altri
Cambiamento nelle strategie
Volatilit, incertezza e complessit dellattuale
contestoeconomico richiedono un ripensamento delle
scelte strategiche del passato.
Infatti, un approccio tattico non permette di affrontare
in modo strutturato la stabile instabilit del mercato
globale.
I CEO italiani ritengono un cambiamento di strategia nei
prossimi 12 mesi necessario (76%), valori superiori rispetto
a quanto registrato dai CEO di altri Paesi europei. Tuttavia,
il bisogno di un cambiamento radicale si fortemente
ridimensionato rispetto allo scorso anno (dal 33% al 12%)
allineandosi a quello degli altri Paesi presi a riferimento tra
le economie avenzate (Germania, Francia e USA).
In quale misura prevede che
la strategia della sua azienda
cambier nei prossimi 12 mesi?
16th Annual Global CEO Survey - Italia | Innovare per crescere | Sezione 4: Priorit strategiche
24
4
Approccio strategico
Confronto tra una serie di
affermazioni alternative in
merito allapproccio gestionale
della sua azienda in un ambito
competitivo complesso e
mutevole.
Per ciascuna alternativa indichi
la situazione che, secondo lei,
pi probabile che si verifchi.
I dati raccolti della survey indicano che i CEO si stanno
focalizzando su poche ma ben defnite iniziative strategiche,
accuratamente selezionate.
Il dato italiano coerente con i risultati raccolti dalle
interviste con i CEO tedeschi e statunitensi.
Si evidenzia un crescente utilizzo della pianifcazione
strategica attraverso la metodologia dello scenario-
planning, molto dinamico e adattabile allattuale situazione
rispetto alle tradizionali metodologie adottate in fase di
maggiore stabilit economica.
PwC | gennaio 2013
25
4
Le priorit di investimento
La necessit pressante di adattarsi a obiettividi crescita
ambiziosi attraverso parametri di ritorno fnanziario
sugli investimenti molto precisi spinge i CEO a rivedere
il funzionamento delle proprie imprese. Pi della met
dei CEO italiani, infatti, afferma che il miglioramento
delleffcienza operativa tra le prime 3 priorit di
investimento per questanno.
Ricerca & Sviluppo collegata allinnovazione di
prodotto/processo, ampliamento della base clienti ed
inplementazione di nuove tecnologie sono le altre priorit
chiave dinvestimento dei CEO italiani.
Quali sono le vostre 3 principali
priorit di investimento nei
prossimi 12 mesi?
26
Agilit e adattabilit operativa e
organizzativa per affrontare in modo
effcace ed effciente scenari di business
inattesi
Un punto chiave del nostro vantaggio strategico la capacit di organizzare la produzione e progettare la spply
chain in partnership con altre Societ. Questo ci da la possibilit di allargare o ridurre la nostra scala di attivit in
modo veloce ed effciente. Cerchiamo di rendere la nostra organizzazione suffcientemente fessibile affch sia in
grado di rispondere ai cambiamenti della domanda
4
Change management
In che misura prevede modifche
nella sua azienda in ciascuna
delle seguenti aree nei prossimi
12 mesi?
Lo sforzo dei CEO italiani per realizzare il cambiamento
strategico nei prossimi 12 mesi focalizzato sulla
ridefnizione della struttura organizzativa attraverso la
gestione dei talenti; sulle strategie di retention e di
sviluppo della base clienti; e sullinnovazione attraverso il
potenziamento della funzione Ricerca & Sviluppo con nuovi
investimenti in tecnologia.
Inoltre, nellagenda strategica dei CEO italiani spicca il tema
della reputazione aziendale, aspetto signifcativo anche per
le aziende tedesche.
PwC | gennaio 2013
27
Focus su iniziative di
Value Strategy piuttosto
che Growth Strategy nelle
economie avanzate
Considerando che leconomia globale ed il ritmo della vita sono, in tutti i loro
aspetti, sempre pi veloci, neessario diventare pi agili ed effcienti in tutto,
compresa la gestione aziendale. necessario snellire le operations e la struttura, in
modo da essere in grado di reagire pi rapidamente alle condizioni di mercato
4
87%
Cina
67%
USA
Innovazione: sentieri di crescita
Per crescere in un contesto macroeconomico complesso e
molto competitivo occorre puntare su specifche iniziative
dinnovazione in relazione al segmento industriale di
appartenenza.
Un percorso di crescita intensiva si ottiene attraverso
linnovazione:
di Prodotto sia nel design sia nei materiali utilizzati;
di Processo che comprende innovazione di Sistemi
(Big data, Advanced Analytics, Social Technologies),
di Produzione (Robotica, Modellizzazione digitale,
Stampa 3D, Green Manufacturing) e di Modelli di
Business (Circular Economy, Frugal Innovation, Mass
Customisation).
Manageriale (Processi decisionali, organizzazione,
gestione delle risorse, pianifcazione, reporting e risk
management).
28
89%
Germania
87%
Giappone
73%
69%
Economie in via di sviluppo
Economie avanzate
Incidenza % della spesa R&D del settore manifatturiero sul
totale spesa R&D di ogni Paese
Incidenza % delle esportazioni del settore
manifatturiero sul totale esportazioni
Il settore manifatturiero chiave per lo
sviluppo dellinnovazione e per la crescita delle
esportazioni sia nelle economie avanzate sia in
quelle in via di sviluppo.
4
Fonte: Elaborazione PwC dati OECD Eurostat
Infuenza degli stakeholder
Se pensa allampia realt
dei stakeholder, in quale
misura ritiene che esercitino
uninfuenza?
I CEO italiani sono sottoposti ad una signifcativa infuenza
dei concorrenti, del Governo e dei propri dipendenti nelle
scelte strategiche, e intendono investire in programmi
per rinforzare la partecipazione anche dei clienti nella
defnizione degli obiettivi aziendali.
PwC | gennaio 2013
29
4
Partecipazione degli stakeholder alla defnizione degli obiettivi aziendali
Nei piani dei CEO italiani sono previsti investimenti per
rinforzare ulteriormente la partecipazione degli stakeholder
alla defnizione degli obiettivi aziendali.
I dipendenti ed i clienti sono le due tipologie di stakeholder
con i programmi di partecipazione pi signifcativi.
In quale misura pensa di
rafforzare il programma di
partecipazione?
30
4
Processo decisionale strategico
Confronto tra una serie
diaffermazioni alternative in
mutevole.
La responsabilizzazione manageriale nelle scelte
strategiche aziendali vista come modalit gestionale per
creare maggior valore nelle Societ Italiane.
La complessit di business affrontata attraverso una
maggiore responsabilit responsabilit del middle
management a livello di decisioni strategiche, soprattutto
nelle aziende di piccole e medie dimensioni.
PwC | gennaio 2013
31
Non abbiamo un unico modo di fare le cose n abbiamo
un solo referente governativo al quale porre tutte le
domande. Il nostro approccio, invece, quello di creare
una cultura che fornisca alle persone - nellambito di un
insieme di valori condivisi - la libert di agire. Ci consente
di avere straordinaria forza, fessibilit e agilit
Il capitale umano fondamentale per la crescita di
qualsiasi Societ
4
16th Annual Global CEO Survey - Italia | Innovare per crescere | Sezione 5: Agenda manageriale
32
Sezione 5
Agenda manageriale
Attivit di ristrutturazione
Quali attivit di ristrutturazione
ha avviato negli ultimi 12 mesi
e quali pensa di avviare nei
prossimi?
In relazione al perdurare della crisi, i CEO in Italia e
nel resto del mondo hanno focalizzato le attivit di
ristrutturazione negli ultimi 12 mesi su attivit di right
sizing, attraverso iniziative di riduzione dei costi,
outsourcing e Alleanze e JV.
Da evidenziare il crescente interesse per le opportunit
di Alleanze strategiche e JV nei prossimi mesi (24% negli
ultimi 12 mesi, 45% nei prossimi).
PwC | gennaio 2013
33
Negli ultimi 12 mesi Italia Mondo Negli prossimi 12 mesi Italia
Riduzione dei costi 83% 77% Riduzione dei costi 81%
Outsourcing 38% 31%
Outsourcing 38%
24% 36%
45%
Alleanze strategiche e
joint venture

Alleanze strategiche e
joint venture

5
Outsourcing, offsourcing e reshoring: nuove scelte manageriali
Nei prossimi anni, la crescita dei salari nei Paesi emergenti
e le diffcolt nel reperire risorse con competenze tecniche
adeguate spingeranno le aziende a possibili scelte di
reshoring in relazione ad alcune attivit industriali.
Le scelte di localizzazione industriali saranno caratterizzate
da crescente complessit e interconnessione con i target di
crescita di innovazione in termini di prodotto/processo delle
Societ operanti nelle economie avanzate.
34
Reshoring: i driver prospettici
Incremento del costo del lavoro nei mercati emergenti;
Velocit di risposta ai clienti nelle economie avanzate;
Riduzione del costo del lavoro locale grazie ad accordi
con i sindacati nelle economie avanzate;
R&S pi vicina alla produzione;
Riduzione dei costi di trasporto e logistica;
Attivit di manufacturing, design e sviluppo accorpati in
un unico sito;
Problemi di qualit nei mercati emergenti;
Diffcolt nellassumere personale con le giuste
competenze nei mercati emergenti.
5
PwC | gennaio 2013
35
M&A e joint ventures
In quali regioni ha intenzione
di realizzare unacquisizione
o fusione, una joint-venture o
unalleanza strategica?
Le Societ con bilanci forti e risorse fnanziarie disponibili
si muoveranno in modo aggressivo per realizzare nuove
acquisizioni a contenuto strategico, nei mercati di
riferimento e in quelli adiacenti.
I CEO dei Paesi europei si focalizzeranno sul consolidamento
regionale e prevedono future operazioni sia in Europa
occidentale sia orientale. LEuropa di forte interesse anche
per futuri investimenti da parte degli operatori cinesi e
statunitensi.
5
36
La gestione del rischio
Per confrontarsi sempre pi con un panorama mutevole, i
CEO comprendono che il risk management sempre pi una
funzione chiave a supporto del business e non di ostacolo
alla crescita aziendale.
I CEO italiani e a livello mondiale stanno centralizzando le
attivit di risk management, focalizzando le prorprie risorse
su poche iniziative per la gestione del rischio di eventi ad
alto impatto.
mutevole.
5
PwC | gennaio 2013
37
La gestione della supply chain
mutevole.
Nella supply chain i CEO prevedono dei cambiamenti con
lobiettivo di ridurre i rischi di dipendenza da specifci
fornitori.
La maggioranza dei CEO italiani (55%) sta diversifcando
la supply chain delle propria Societ con la scelta di un
maggior numero di partner in diverse aree geografche.
Lanalisi competitiva internazionale evidenzia trend
fortemente diversifcati per settore industriale.
5
38
Le altre priorit dei CEO
Sempre pi la reputazione e la credibilit aziendale sono
collegate a temi un tempo considerati soft, quali il
comportamento etico, limpatto ambientale delle scelte
aziendali, e il reporting non-fnanziario.
Guardando oltre i confni italiani in USA e Cina emerge
come priorit la pianifcazione fscale.
In quale misura la sua azienda
intende concentrarsi sulle
seguenti priorit nei prossimi 12
mesi?
5
PwC | gennaio 2013
39
Sezione 6
Organizzazione e Leadership
16th Annual Global CEO Survey - Italia | Innovare per crescere | Sezione 6: Organizzazione e Leadership
40
Numero di dipendenti: situazione attuale e prospettica
I CEO italiani hanno limitate aspettative di crescita per
quanto riguarda loccupazione nei prossimi 12 mesi.
I segnali di diffcolt in relazione allattuale incertezza
economico-fnanziaria sono evidenti in termini di nuove
assunzioni anche in Francia e Germania, dove invece il trend
negli ultimi 12 mesi era stato abbastanza positivo.
Qual la situazione in merito al
numero di dipendenti della sua
azienda negli ultimi 12 mesi?
Quali sono le sue previsioni per i
prossimi 12 mesi?
6
PwC | gennaio 2013
41
Iniziative sullorganizzazione aziendale
mutevole.
Il 57% dei CEO italiani investir nella creazione di forza
lavoro competente, una priorit anche a livello mondiale.
Negli ultimi anni sono state implementate politiche di
incentivazione del personale ad ampio spettro, fnalizzate
allaumento della produttivit aziendale.
6
42
Sviluppo della leadership in azienda
I CEO hanno adottato numerose strategie per lo sviluppo
della leadership in azienda, ottenendo risultati soprattutto
attraverso i programmi di coinvolgimento del middle
management nel processo decisionale strategico e di
rotazione in diversi funzioni aziendali.
In Italia prevediamo che aumenteranno i nuovi
talenti manageriali e i leader stranieri o caratterizzati
da background multiculturali, al fne di affrontare
adeguatamente linternazionalizzazione di business.
Per sviluppare la leadership,
mettete in pratica qualcuna delle
seguenti strategie?
In quale misura tali strategie
forniscono buoni risultati?
6
PwC | gennaio 2013
43
Le qualit dei leader
Quali sono gli aspetti che
ammira in un leader?
Tre stili di leadership sono apprezzate dai CEO globalmente:
By Vision: quella preferita dai CEO a livello globale
(43%). Questo tipo di leader possiede vision a lungo
termine, competenze adeguate al ruolo e capacit di
riconoscere e implementare aree di innovazione.
By Example: il 32% dei CEO apprezza la leadership by
example in virt della capacit di motivare, di gestire
le incertezze e di prendere decisioni con tempestivit.
By Politics: solo il 15% dei CEO sceglie la leadership by
politics. Questi leader sono caratterizzati soprattutto
dallattenzione alletica e al pragmatismo della gestione
aziendale.
Le persone hanno bisogno di uno scopo.
La marginalit non la sostanza della quale sono fatti
i sogni. Ed anche senza arrivare al punto di parlare di
sogni, non si possono motivare le persone ad agire,
creare e ispirare altri senza aver dato loro uno
scopo specialmente quando i tempi sono diffcili
6
44
I compensi dei manager
I CEO italiani avvertono la necessit di allineare
maggiormente i compensi dei manager ai rischi assunti e
alle condizioni di mercato.
Questo allineamento tra raggiungimento degli obiettivi e
compensi sar sempre pi importante al fne di premiare il
merito dei manager nella gestione di impresa.
In che misura daccordo con le
seguenti affermazioni in merito
allallineamento delle prestazioni
dei dirigenti con le esigenze
dellazienda e, pi in generale,
con quelle degli stakeholder?
6
PwC | gennaio 2013
45
Industry highlights
16th Annual Global CEO Survey - Italia | Innovare per crescere | Industry highlights
46
Industry highlights
Banking & Capital Markets

I CEO del settore Banking e Capital Markets sono fduciosi per le prospettive di crescita delle loro Societ -
quasi il 90% si aspetta un incremento nella crescita dei ricavi nel prossimo anno. Limitati i timori in relazione
al tracollo dellEuro: solo il 19% reputa che tale evento sia probabile. Per contrastare la crisi, glisforzi
manageriali sono focalizzati sul miglioramento delleffcienza operativa, sullindividuazione di nuove modalit
per attirare talenti, e sullo sviluppo di nuove strategie per creare valorein relazione ai cambiamenti regolatori,
tecnologici, e nelle aspettative dei clienti.
Technology
I CEO del settore Technology ripongono molta fducia nelle proprie capacit di sviluppo delle proprie
aziende - oltre l80% dei CEO intervistati si aspetta un incremento dei ricavi nei prossimi anni. Lattenzione
dei top manager rimane concentrata nel breve termine su operazioni di acquisizione e joint venture, e
sullintroduzione di nuovi prodotti e servizi. La priorit strategica linvestimento in R&S ed innovazione,
necessari per alimentare la crescita soprattutto in America Latina, nel Sud - Est asiatico e in Nord America,
prevedendo una contestuale crescita dei livelli di occupazione.
Entertainment & Media
Il cambiamento delle modalit di spesa e dei comportamenti dei consumatori, e la rapidit di evoluzione delle
tecnologie di riferimento rappresentano temi centrali per i CEO del settore. Crescente il ruolo di consumatori,
clienti e degli utenti dei social media, che infuenzano sempre pi le strategie di business, portando il focus dei
CEO sul rafforzamento dei programmi di engagement e partecipazione degli stakeholder. Si registra inoltre
una preoccupazione crescente in relazione ai rischi legati alla propriet intellettuale e alla conservazione dei
dati dei consumatori.
Healthcare
I CEO del settore ritengono che lesperienza del paziente debba avere un ruolo sempre pi centrale
nellerogazione dei servizi. Le nuove tecnologie contribuiranno al miglioramento della qualit delle
prestazioni, e allo stesso tempo,al fne di riproporzionare la struttura di costi ai nuovi ridotti budget del
settore, consentiranno di rendere le attivit pi effcienti. Critico il ruolo delle risorse umane: i CEO del settore
pianifcano lincremento degli investimenti per creare una forza lavoro sempre pi competente.
Industrial Manufacturing
Un terzo dei CEO del settore prevede uno sviluppo ancora negativo per leconomia: molta preoccupazione
soprattutto in relazione al prezzo dellenergia e delle materie prime. Per contrastare la crisi il focus sugli
investimenti in R&S, sullo sviluppo di alleanze con i player della supply chain, e sulleffcienza produttiva - ma
non sul ridimensionamento del personale. La Cina diventa un mercato chiave per lo sviluppo industriale del
futuro.
Power & Utilities
Pi del 90% dei CEO del settore Power & Utilities riconosce la grande infuenza dei clienti sulle proprie
strategie di business - oltre l80% prevede di rafforzare i programmi di engagement con tali stakeholder
chiave. I CEO prevedono un focus degli investimenti su effcienza operativa, e sullimplementazione di nuove
tecnologie. Sempre pi importanti forme di partnership con i player della supply chain per sviluppare insieme
soluzioni in tema di smart energy, e valorizzare le opportunit di crescita offerte dai mercati locali presidiati.
Retail & Consumer
I CEO del settore prevedono una crescita organica negli esistenti mercati domestici come principale opportunit
di espansione nei prossimi anni, ma mantengono lattenzione anchesui mercati emergenti. Social media, smart
phones, shopping online: le abitudini di consumo e di spesa dei consumatori cambiano ed i CEO del settore
ritengono che dovranno cambiare anche le strategie di crescita e di fdelizzazione dei cliential fne di soddisfare
i bisogni dei consumatori in modalit sempre nuove. Preoccupazioni sia per i prezzi delle materie prime che
dellenergia con i relativi impatti sulla marginalit di business.
PwC | gennaio 2013
47
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48
Appendices
Allegati
PwC | gennaio 2013
49
Quotations originali
Lingua originale
If we put the effort in now, theres a good chance that as things improve
well be in good shape to accelerate away.
Our focus is very much on disruption - disrupting ourselves, disrupting the
trends that have been established in the industry and moving forward with
new strategies, new products, and new ways of managing our organisation
in order to keep pace and indeed accelerate the pace beyond others.
One key point of our strategic advantage is the capability to orchestrate
the production and engineering value chain we create in partnership with
other companies. That gives us the ability to scale up or scale down quickly
and effciently. We try to ensure our organizational structure is suffciently
fuid so that we can respond quickly to changes in demand.
Given that the global economy and the global pace of life is getting faster in
all aspects, one needs to become more agile and effcient about everything
- including running a company. Its essential that you streamline operations
and become leaner wherever you can, so as to be able to react more quickly
to changing market conditions.
We dont have one way of doing things nor do we have one point of
authority to which all questions have to be directed. Instead, our approach
is to create a culture that empowers people and - within the context of a set
of shared values - provides them with the freedom to take action. That gives
you tremendous strength, fexibility, and agility.
Human capacity is key to any companys growth. The second important
factor is R&D.
People need a sense of purpose. Gross margins are not the stuff of which
dreams are made. And even without going so far as to talk of dreams, you
cannot inspire people to take action, create or motivate without instilling a
sense of purpose, especially when times are diffcult
Traduzione
Se focalizziamo adesso i nostri sforzi, ci sono molte probabilit che quando le cose
andranno meglio, saremo nella condizione di fnalmente accelerare
La nostra visione orientata al cambiamento, al cambiamento di noi stessi,
al cambiamento dei trend chiave nel settore in cui competiamo, per procedere
con nuove strategie, nuovi prodotti e nuove modalit di gestione della nostra
organizzazione al fne di tenere il passo ed, anzi, accelerare rispetto agli altri
Un punto chiave del nostro vantaggio strategico la capacit di organizzare la
produzione e progettare la spply chain in partnership con altre Societ. Questo ci
da la possibilit di allargare o ridurre la nostra scala di attivit in modo veloce ed
effciente. Cerchiamo di rendere la nostra organizzazione suffcientemente fessibile
affch sia in grado di rispondere ai cambiamenti della domanda
Considerando che leconomia globale ed il ritmo della vita sono, in tutti i loro
aspetti, sempre pi veloci, neessario diventare pi agili ed effcienti in tutto,
compresa la gestione aziendale. necessario snellire le operations e la struttura, in
modo da essere in grado di reagire pi rapidamente alle condizioni di mercato
Non abbiamo un unico modo di fare le cose n abbiamo un solo referente
governativo al quale porre tutte le domande. Il nostro approccio, invece, quello
di creare una cultura che fornisca alle persone - nellambito di un insieme di valori
condivisi - la libert di agire. Ci consente di avere straordinaria forza, fessibilit e
agilit
Il capitale umano fondamentale per la crescita di qualsiasi Societ
Le persone hanno bisogno di uno scopo. La marginalit non la sostanza della
quale sono fatti i sogni. Ed anche senza arrivare al punto di parlare di sogni, non si
possono motivare le persone ad agire, creare e ispirare altri senza aver dato loro uno
scopo specialmente quando i tempi sono diffcili
50
Contatti
Nicola Anzivino
Partner | Strategy
email: nicola.anzivino@it.pwc.com
PwC | gennaio 2013
51
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www.pwc.pl/ceo-survey
16. coroczne badanie Global CEO Survey
1. Perspektywy wzrostu / 2. Zagroenia dla rozwoju / 3. Dziaania restrukturyzacyjne /
4. Szanse na rozwj / 5. Zmiany strategiczne / 6. Zarzdzanie firmami i ksztatowanie
przywdztwa
Polska
perspektywa
1330
88%
68%
Restrukturyzacja i zarzdzanie
w trudnych czasach
czonkw zarzdw
najwikszych globalnyych firm
polskich prezesw obawia si
niestabilnoci gospodarczej
polskich prezesw planuje
intensyfikacj prac
badawczo-rozwojowych
2 16. coroczne badanie Global CEO Survey: Polska perspektywa
Na caym wiecie w badaniu PwC CEO Survey 2013 wzio udzia 1330 czonkw zarzdw
najwikszych globalnych firm. Badanie przeprowadzone zostao w ostatnim kwartale zeszego roku.
Podobnie jak to miao miejsce w latach poprzednich, przeprowadzilimy take oddzielne
dodatkowe badanie wrd polskich firm. W tym roku przeprowadzilimy w sumie 73 wywiady
z czego 20 czonkw zarzdu polskich firm zgodzio si wzi udzia w badaniu globalnym,
a pozostali udzielili odpowiedzi ankieterom wsppracujcej z nami firmy badawczej na potrzeby
uzupeniajcego badania krajowego.
O badaniu
16. coroczne badanie Global CEO Survey: Polska perspektywa 3
Szanowni Pastwo!
Szesnaste badanie PwC Annual Global CEO Survey przeprowadzono wrd 1330 menederw
zarzdzajcych frmami w59krajach. Tak jak w poprzednich latach pytalimy respondentw
onajistotniejsze z ich punktu widzenia trendy we wspczesnej gospodarce oraz o ich plany
dotyczce zmian w strategii dziaania i rozwoju frm.
Globalna gospodarka nadal zmaga si z efektami potnego kryzysu, rozpocztego zaamaniem
fnansowym w latach 2007-2008. Wci aktualne s obawy dotyczce sytuacji instytucji
fnansowych, szczeglnie tych silnie zaangaowanych w krajach Europy Poudniowej,
przeywajcych obecnie najwikszy kryzys, zwizany ze szczeglnie trudn sytuacji fnansw
publicznych. W caej Europie Zachodniej w roku 2012 mielimy do czynienia z recesj, a w tym
roku spodziewany wzrost PKB niewiele przekracza zero. Przedua to niepokj menederw
wiatowych frm o rozwj sytuacji w najbliszych miesicach. Jednoczenie wci bardzo silne
s pytania o kierunki w jakich zmierza globalna gospodarka w duszej perspektywie i o to, jak
przygotowa frmy do czekajcych nas zmian.
Prowadzone rokrocznie badanie PwC umoliwia ledzenie zmian nastrojw panujcych
w globalnych korporacjach. Pozwala obserwowa prawdopodobne kierunki strategicznych
dziaa, majcych na celu dostosowanie do wyzwa stawianych zarwno przez globalny
kryzys, jak i przez gbsze trendy strukturalne. Wraz z ankiet wiatow, przeprowadzilimy
po raz kolejny dodatkowe badania polskiej perspektywy. Polskim menederom zadalimy
pytania podobne do tych, na ktre odpowiadali respondenci z caego wiata. Prezentowane
w tym raporcie wyniki daj ciekawy materia do przemyle. Zachcamy do lektury
i zapraszamy do dyskusji i refeksji nad optymalnymi strategiami rozwoju frm w naszym kraju.
Wstp
Olga Grygier
Prezes Zarzdu
PwC
Witold M. Orowski
Gwny Doradca Ekonomiczny
PwC
Podsumowanie
W badaniu PwC CEO Survey 2013 wzio
udzia 1330 czonkw zarzdw
najwikszych globalnych firm. W Polsce
przeprowadzilimy 73 wywiady. Badanie
przeprowadzone zostao w ostatnim
kwartale roku 2012.
Opinie respondentw dotyczce
perspektyw wzrostu ich firm z jednej
strony s zgodne z tym, czego moemy
si spodziewa w roku
charakteryzujcym si wysokim
stopniem niepewnoci na caym
wiecie, z drugiej strony pozwalaj nam
wej w nowy rok z pewn doz
optymizmu. Silne przekonanie
co do wzrostu przychodw swoich firm
w cigu 12 miesicy wyraa 36%
uczestnikw ankiety (wobec 40% rok
wczeniej). Nieco wikszy jest optymizm
wobec perspektyw wzrostu przychodw
w okresie 3-letnim tu odsetek silnie
przekonanych co do wzrostw wynis
46% (wobec 47% rok temu).
Polscy menederowie, cho wci
pozostaj pesymistyczni wobec sytuacji
w krtkim okresie, wykazuj wicej
optymizmu w duszym horyzoncie
czasowym. Tylko 26% (wobec 28% rok
temu) twierdzi, e przychody ich firm
zdecydowanie wzrosn w cigu
najbliszych 12 miesicy, ale ju 45%
(wobec 33% rok temu) wyraa podobne
oczekiwania co do okresu
3-letniego. Ostrono polskich
menederw moe wynika z ich
gbokich obaw co do rozwoju globalnej
sytuacji gospodarczej. A 88%
ankietowanych wyraa gbokie
obawy co do moliwych waha wzrostu
PKB w Polsce w najbliszym czasie.
Nieco mniej (67%) niepokoi
niestabilno kursu walutowego.
Polscy menederowie relatywnie nisko
oceniaj skal zagroe natury
mikroekonomicznej. Dostpno
kluczowych umiejtnoci, zmiany
technologiczne czy problemy z ochron
wasnoci intelektualnej budz u nich
mniejsze obawy ni rednio na wiecie.
wiadczy to midzy innymi o tym,
i wiadomo narastania globalnych
procesw natury strukturalnej wci
dociera do naszego kraju z pewnym
opnieniem.
W ramach koniecznej restrukturyzacji
firmy, zarwno w Polsce (45%
odpowiedzi), jak i za granic (70%
odpowiedzi) planuj kompleksowe
programy restrukturyzacji kosztw,
zazwyczaj zwizane ze zmniejszaniem
zatrudnienia. W sumie a 32% polskich
firm planuje redukcje zatrudnienia
w cigu najbliszych 12 miesicy.
Jest to co prawda mniej ni w Europie
Zachodniej (40%), ale wicej ni
rednia dla wiata (25%) i naszego
regionu (24%).
A 55% ankietowanych w Polsce i 57%
na wiecie zaley na promocji zachowa
etycznych. Ma to zwizek z czstym
identyfikowaniem gbokich przyczyn
obecnego kryzysu w braku tego rodzaju
kultury zachowa w najwikszych
wiatowych korporacjach.
Zarwno w Polsce, jak i na wiecie
ponad 30% ankietowanych upatruje
szans przede wszystkim w dalszym
rozwoju organicznym na rynkach
lokalnych. Tylko 12% polskich
menederw (wobec 21% w zeszym
roku i 25% na wiecie) widzi szanse
w dziaaniach innowacyjnych. Dobr
informacj wydaje si to, i 68% z nich
planuje intensyfikacj dziaa
w dziedzinie prac badawczo
-rozwojowych. Take 12% polskich firm
bdzie szuka moliwoci rozwoju
na nowych rynkach zagranicznych
(wzrost z 5% w zeszym roku).
W okresie niepewnoci zmienia si
podejcie do zarzdzania firm. Z jednej
strony stopniowej centralizacji ulega
proces decyzyjny, a z drugiej firmy
staraj si zapewni sobie jak najbardziej
zrnicowan baz kontrahentw.
A 82% menederw w Polsce (66%
na wiecie) deklaruje, e strategiczne
decyzje w ich firmach podejmowane
s na poziomie kierownictwa wyszego
szczebla. Coraz bardziej scentralizowan
odpowiedzialno za zarzdzanie
ryzykiem deklaruje 71% menederw
w Polsce i 63% na wiecie.
Decentralizacja i zrnicowanie
dominuje natomiast w podejciu
do zarzdzania acuchem dostaw.
Firmy staraj si wsppracowa z jak
najwiksz liczb partnerw deklaruje
to 64% ankietowanych w Polsce i 50%
na wiecie.
Ciekawe zarwno z punktu widzenia
sposobu zarzdzania firmami, jak
i z perspektywy ksztatowania postaw
przyszych liderw s opinie
menederw dotyczce sposobu
i mechanizmu wynagradzania kadry
kierowniczej. Tylko 24% ankietowanych
w Polsce (wobec 36% na wiecie) zgadza
si ze stwierdzeniem, i modele
wynagrodze uzalenionych
od wynikw nie dziaaj naleycie.
Natomiast 55% ankietowanych w Polsce
(wobec 36% na wiecie) uwaa,
e obecna struktura bonusw dla
kierownictwa nie jest wcale zbyt
skomplikowana.
trend ten, cho w dalszym cigu
dominujcy, nie by ju tak uniwersalny.
Odsetek uczestnikw ankiety silnie
przekonanych o tym, e przychody ich
firm wzrosn w cigu najbliszych 12
miesicy, wci niestety spada z 40%
rok wczeniej do 36% obecnie. Z drugiej
jednak strony, cho tendencja ta jest
wci silna w Ameryce Pnocnej
(spadek z 42% do 33%) i Europie
Zachodniej (spadek z 27% do 22%),
to w naszym regionie (Europa rodkowa
i Wschodnia) wida ju popraw
nastrojw (wzrost odsetka ocen
optymistycznych z 41% do 42%).
Wyniki w skali globalnej wskazuj
na nieco wikszy optymizm
1. Perspektywy wzrostu
Podobnie jak w poprzednich latach
analiz wynikw CEO Survey
zaczynamy od przedstawienia pogldw
respondentw dotyczcych perspektyw
wzrostu sprzeday zarzdzanych przez
nich przedsibiorstw. S one zgodne
z tym, czego moemy si spodziewa
w roku charakteryzujcym si
wahaniami nastrojw oraz wysokim
stopniem niepewnoci na caym wiecie,
a w szczeglnoci w Europie. Z drugiej
strony wyniki te pozwalaj nam wej
w nowy rok z pewn doz optymizmu.
Rok temu mielimy do czynienia
z gwatownym i wsplnym dla
wszystkich rejonw wiata
pogorszeniem nastrojw. W tym roku
w odniesieniu do perspektyw wzrostu
przychodw w okresie 3-letnim, cho
i tu odsetek menederw silnie
przekonanych co do wzrostw
nieznacznie spad (z 47% do 46%).
Menederowie najwikszych firm
na wiecie dostrzegaj wic pogorszenie
sytuacji w krtkim okresie, ale wykazuj
znacznie wicej ufnoci
co do dugookresowych perspektyw
rozwojowych swoich firm.
Podobnie jak miao to miejsce rok temu,
polscy menederowie wci pozostaj
pesymistycznie nastawieni co do sytuacji
ich firm w krtkim okresie. Tylko 26%
procent z nich twierdzi, e ich przychody
zdecydowanie wzrosn w cigu
Odsetek respondentw silnie przekonanych co do wzrostu w cigu
najbliszych 12 miesicy
rdo: Badanie wasne PwC
2007 2008 2009 2010 2011 2012
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Odsetek respondentw silnie przekonanych co do wzrostu w cigu najbliszych 12 miesicy
3 lata
12 miesicy
3 lata
12 miesicy
Polska
wiat
-40% -20% 0% 20% 40% 60% 80% 100%
Perspektywy wzrostu przychodw firm (% odpowiedzi)
Raczej przekonany co do wzrostu Przekonany co do wzrostu
Raczej nieprzekonany co do wzrostu Zdecydowanie nieprzekonany co do wzrostu
wiat Polska Europa Zachodnia CEE
Menederowie najwikszych firm
na wiecie dostrzegaj pogorszenie
sytuacji w krtkim okresie, ale
wykazuj znacznie wicej ufnoci
co do dugookresowych perspektyw
rozwojowych swoich firm.
najbliszych 12 miesicy w porwnaniu
z 28% rok wczeniej. Jest to z jednej
strony znacznie poniej redniej dla
naszego regionu i wiata, ale z drugiej
nieco lepiej ni rednia dla Europy
Zachodniej, z ktr wi nas
najcilejsze wizy gospodarcze.
Wyranie poprawiy si
za to oczekiwania polskich menederw
dotyczce perspektyw rozwojowych
firm w duszym okresie. Podczas gdy
rok temu jedynie 33% z nich byo
zdecydowanie przekonanych co wzrostu
przychodw w cigu najbliszych trzech
lat, to w badaniu tegorocznym tak
silnym optymizmem wykazuje si
a 45% ankietowanych.
Warto te zauway, e gdy zsumujemy
liczby tych, ktrzy wykazuj
zdecydowany i umiarkowany optymizm
co do wzrostu przychodw ich firm,
wyniki dla Polski i przecitne dla caego
wiata s nieomal identyczne.
Zsumowany odsetek umiarkowanych
i zdecydowanych optymistw
w horyzoncie 12-miesicznym
jest dokadnie taki sam i wynosi 81%,
a w horyzoncie 3-letnim wynosi
odpowiednio 89% w Polsce i 90%
na wiecie. Mona wic powiedzie,
e wrd polskich zarzdzajcych
firmami odsetek optymistw jest rwny
redniej wiatowej, cho jest to optymizm
ostroniejszy.
Perspektywy wzrostu przychodw frm (% odpowiedzi)
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2. Zagroenia dla rozwoju
Ostrono polskich menederw moe
wynika z ich gbokich obaw
co do rozwoju globalnej sytuacji
gospodarczej, a zwaszcza
co do perspektyw rozwojowych
Zachodniej Europy. A 44% z nich
(wobec 32% na wiecie) uwaa,
e sytuacja pogorszy si w cigu
najbliszych 12 miesicy, a tylko 11%
(wobec 18% na wiecie) wierzy w jej
popraw. Pesymizm ten jest specyficzn
cech naszego regionu, cho nie
przekada si on w peni na gorsze
oczekiwania co do perspektyw
rozwojowych konkretnych firm.
Brak przeoenia wzmoonych obaw
co do rozwoju sytuacji globalnej
na perspektywy wasnej firmy moe
wynika z tego, i pesymistyczne oceny
maj charakter do oglny. Gdy
pytamy o konkretne negatywne
wydarzenia mogce mie wpyw
na wiatow gospodark, obawy
polskich menederw okazuj si
umiarkowane:
tylko 4% z nich (wobec 16%
na wiecie) wierzy w moliwo
rozpadu strefy euro,
15% (wobec 25% na wiecie) wierzy
w moliwo ograniczonego dostpu
do surowcw z powodw konfliktw
militarnych lub handlowych,
8% (wobec 20% na wiecie) wierzy
w cyberatak lub inne zagroenie
Internetu.
Polscy menederowie wykazuj si take
wzgldnym optymizmem dotyczcym
rozwoju sytuacji w kraju. Nie wierz
w moliwo wystpienia w Polsce
niepokojw spoecznych obawy
co do tego wyraa tylko 7%
ankietowanych. Tylko 26% wierzy
w moliwo wystpienia w Polsce recesji
w roku 2013 (21% w to powtpiewa).
To, e ponad poowa pytanych (53%) nie
ma zdania w tej kwestii, jest take
interesujcym wynikiem, pokazujcym
jak zrnicowane sygnay napywaj
z rynku. Pokazuje to, jak duy jest popyt
na wiarygodn prognoz dotyczc
oczekiwanego tempa rozwoju naszego
kraju w cigu najbliszych kilkunastu
miesicy.
Znaczna niepewno towarzyszca
prognozie tempa rozwoju polskiej
gospodarki w najbliszych miesicach
przekada si na wzmoony niepokj
respondentw. A 88% ankietowanych
wyraa gbokie (30%) bd sabsze
(55%) obawy co do moliwych waha
wzrostu PKB w Polsce w najbliszym
czasie. Silny niepokj budzi take:
moliwa reakcja wadz pastwowych
na problem zaduenia oraz potencjalna
niestabilno na rynkach kapitaowych.
Wci istotnym i budzcym powane
obawy czynnikiem jest niestabilno
kursw walutowych, cho tu odsetek
zaniepokojonych jest mniejszy, ni miao
to miejsce wczeniej 67% obecnie
wobec 81% rok temu. Ze zrozumiaych
wzgldw polscy menederowie wci
jednak obawiaj si tego czynnika
bardziej ni ich odpowiednicy
na wiecie.
Ciekawym wynikiem, ktry
obserwowalimy take rok temu, jest
mniejsza obawa polskich menederw
dotyczca tendencji
protekcjonistycznych wadz
Opinia o rozwoju sytuacji na wiecie w cigu nadchodzcych 12 miesicy
(% odpowiedzi)
polepszy si pogorszy si
Przekonanie co do moliwoci zmaterializowania si zagroe (% odpowiedzi)
pastwowych. Moe ona wynika
z tego, i zarzdzaj oni
przedsibiorstwami o mniejszej skali
i protekcjonizm moe si dla nich
w krtkim okresie okaza korzystny,
moe to te oznacza wiksz wiar
w wolnorynkowe pogldy rzdzcych.
Obawy menederw budz te
zagroenia natury biznesowej. W tym
przypadku jednak poziom zaniepokojenia
jest nieco mniejszy ni moliwymi
negatywnymi tendencjami
makroekonomicznymi zagroenia
natury biznesowej budz niepokj rednio
45% ankietowanych w Polsce i na wiecie,
a natury makroekonomicznej
odpowiednio 63% i 60%.
Polscy menederowie najbardziej
obawiaj si negatywnych tendencji
makroekonomicznych.
Relatywnie duy niepokj wrd
polskich menederw budz moliwe
zmiany zachowa konsumentw (77%),
potencjalny wzrost kosztw energii
i surowcw (64%) oraz moliwo
wzrostu obcie podatkowych czyli
te zagroenia biznesowe, ktre w silnym
stopniu zwizane s z obecn sytuacj
makroekonomiczn. Zagroenia natury
strukturalnej, takie jak dostpno
kluczowych umiejtnoci, zmiany
technologiczne czy problemy z ochron
wasnoci intelektualnej, zdaniem
polskich menederw nie s a tak
niepokojce.
Tak wyranego podziau nie wida
natomiast w wynikach globalnych. Tutaj
jednym z najbardziej niepokojcych
czynnikw jest dostpno pracownikw
z kluczowymi umiejtnociami. Wiksze
s te obawy dotyczce zmian
technologicznych czy te problemw
z ochron wasnoci intelektualnej.
wiadczy to midzy innymi o tym,
i wiadomo znaczenia globalnych
procesw natury strukturalnej wci
dociera do naszego kraju z pewnym
opnieniem.
Makroekonomiczne zagroenia dla rozwoju (% odpowiedzi)
Biznesowe zagroenia dla rozwoju (% odpowiedzi)
Dziaania restrukturyzacyjne planowane na nastpnych 12 miesicy
3. Dziaania restrukturyzacyjne
Utrzymujca si niepewno i obawy
co do tempa rozwoju gospodarki
polskiej i wiatowej wymuszaj
na firmach kontynuowanie dziaa
restrukturyzacyjnych, sucych
wzrostowi odpornoci na ewentualne
kolejne zawirowania.
Struktura planowanych na 2013 rok
dziaa restrukturyzacyjnych nie
zmienia si w stosunku do roku 2012.
Firmy zarwno w Polsce (45%
odpowiedzi), jak i za granic (70%
odpowiedzi) planuj przede wszystkim
kompleksowe programy restrukturyzacji
kosztw. W roku 2012 dziaania takie
podjo odpowiednio 52% firm w Polsce
i 77% firm na wiecie.
Na drugim miejscu wrd planowanych
dziaa w Polsce jest wyprowadzenie
na zewntrz (outsourcing) procesw lub
funkcji biznesowej (30% odpowiedzi),
na wiecie natomiast czciej
planowanym krokiem jest zawarcie
nowego aliansu strategicznego lub
joint-venture (47% odpowiedzi).
Z podobn sytuacj mielimy take
do czynienia w roku 2012.
Nasze badania potwierdzaj tez,
i outsourcing jako dziaanie
restrukturyzacyjne nie jest procesem
jednokierunkowym. W roku 2012 19%
firm na wiecie i 21% firm w Polsce
ponownie przejo do realizacji procesy
wyprowadzone wczeniej na zewntrz.
W roku 2013 dziaania takie planuje
odpowiednio 16% i 12% ankietowanych
menederw.
Niestety, planowane kompleksowe
restrukturyzacje kosztw nieodzownie
zwizane s ze zmniejszaniem
zatrudnienia. Plany polskich
menederw s w tej kwestii podobne
do zachodnioeuropejskich. W sumie
a 32% z nich planuje redukcj
zatrudnienia w swoich firmach w cigu
najbliszych 12 miesicy. Jest
to co prawda mniej ni w Europie
Zachodniej, gdzie redukcje planowane
s w 40% firm, ale wicej ni rednia
dla wiata (25%) i ni wynik dla Europy
rodkowej i Wschodniej (24%).
Oczekiwana zmiana liczby pracownikw (% odpowiedzi)
Koncentracja na optymalizacji obcie
podatkowych
Koncentracja na budowaniu kultury
zachowa etycznych
W zwizku ze specyficznymi cechami
obecnych zawirowa ekonomicznych
ankietowani przez nas menederowie
planuj take inne dziaania
dostosowujce ich firmy do nowej
sytuacji lub zmniejszajce ujawnione
w czasie kryzysu ryzyka. Jednym
z takich dziaa jest planowany przez
znaczn cz respondentw wzrost
koncentracji na dziaaniach sucych
optymalizacji obcie podatkowych.
Deklaracje takie zoyo 47%
menederw w Polsce i 37% na wiecie.
Dziaania optymalizacyjne maj
niewtpliwie zwizek ze wzmoonymi
obawami dotyczcymi ewentualnych
podwyek podatkw.
Interesujcy jest take duy odsetek
menederw planujcy zwikszenie
koncentracji na dziaaniach budujcych
kultur zachowa etycznych w firmach.
Dziaania takie pragnie zintensyfikowa
55% ankietowanych w Polsce i 57%
na wiecie. Ma to zwizek z czstym
identyfikowaniem gbokich przyczyn
obecnego kryzysu w niedostatku tego
rodzaju kultury zachowa
w najwikszych wiatowych
korporacjach.
50
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40
30
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Polska Polska
wiat wiat
4%
7%
14%
17%
42%
30%
41%
40%
pewien wzrost pewien wzrost
pewien wzrost pewien wzrost
znaczcy wzrost znaczcy wzrost
znaczcy wzrost znaczcy wzrost
Odsetek respondentw upatrujcych szans rozwojowych w poszczeglnych
przedsiwziciach
4. Szanse na rozwj
Niepewne czasy gospodarcze to nie
tylko obawy i konieczno
restrukturyzacji, ale take okres,
w ktrym pojawiaj si nieznane lub
niezauwaane do tej pory szanse
rozwojowe. Zarwno w Polsce, jak
i na caym wiecie ankietowani przez
nas menederowie szukaj ich przede
wszystkim w dalszym rozwoju
organicznym na rynkach lokalnych.
Taka ostrono w poszukiwaniu
nowych moliwoci charakteryzuje
przede wszystkim zarzdzajcych
firmami w regionie Europy rodkowej
i Wschodniej, gdzie gwnie takich
szans upatruje a 40% ankietowanych.
W Polsce jest to 33%, a na wiecie 32%.
Nieco innych szans na rozwj szuka
bd w przyszym roku menederowie
w krajach Europy Zachodniej. Po 25%
z nich skupi si przede wszystkim
na rynkach zagranicznych, na ktrych
ich firmy ju dziaaj lub
na opracowaniu nowego produktu lub
usugi. Jest to zrozumiae, zwaywszy
na niekorzystne perspektywy
rozwojowe w tej czci wiata, ale take
z racji na dojrzao tamtejszych rynkw
i nasycenie ju istniejcymi produktami.
Dla wikszoci polskich menederw
moliwo wejcia na rynek z wasnym
innowacyjnym produktem wci wydaje
si by dziaaniem mao interesujcym
tylko 12% z nich upatruje szansy w takich
dziaaniach. Co ciekawe, jest to mniej ni
w badaniach zeszorocznych, gdzie tak
moliwo rozwojow jako gwn
postrzegao a 21% ankietowanych
w naszym kraju.
Z drugiej strony w porwnaniu
z ubiegorocznymi badaniami znacznie
wzrosa liczba polskich menederw,
ktrzy bd szuka moliwoci rozwoju
na nowych rynkach zagranicznych. Rok
temu gotowo tak deklarowao tylko
5% ankietowanych, w tym toku jest
to ju 12%. Polskie firmy coraz czciej
widz w kryzysie szans na ekspansj
ze swoimi dobrymi jakociowo
i jednoczenie stosunkowo tanimi
produktami i usugami.
Zakres oczekiwanych zmian w przedsibiorstwie w cigu 12 miesicy (% odpowiedzi)
Procent menederw planujcych zmiany strategii frmy
5. Zmiany strategiczne
intensyfikacji prac badawczo
-rozwojowych (68%), jest to take
obszar, w ktrym najczciej planowane
s zmiany fundamentalne (22%).
Oznacza to, e cho wci nie
dostrzegaj oni w nowych produktach
szans rozwojowych w krtkiej
perspektywie, to najwyraniej widz
takie szanse w duszym okresie czasu.
Ponad 60% polskich menederw
planuje take zmiany w podejciu
do zarzdzania ryzykiem (66%) oraz
w sposobie zarzdzania talentami
(63%). Plany te szczeglnie w zakresie
zarzdzania ryzykiem s oczekiwan
reakcj na identyfikowane rda
i mechanizmy obecnych wiatowych
problemw gospodarczych.
Z drugiej strony nie ma planw
dotyczcych istotnych zmian
strategicznych w obszarze fuzji i przej
(34% odpowiedzi). Jest to obszar,
w ktrym wida najwiksze rnice
pomidzy zarzdzajcymi firmami
w Polsce i na wiecie, gdzie zmiany
strategii planuje a 61% ankietowanych.
75%
68%
Szybko zmieniajce si warunki
ekonomiczne powoduj konieczno
staej gotowoci do zmiany strategii
firmy. Nie jest wic zaskakujce,
e a 75% menederw w Polsce i 68%
na wiecie planuje takie zmiany w cigu
najbliszych 12 miesicy. Zmiany
te jednak w wikszoci przypadkw
(odpowiednio 60% i 54% odpowiedzi)
nie bd fundamentalne.
Dobr informacj wydaje si to,
e znaczny odsetek polskich
menederw planuje zmiany
wiat
Polska
Zarzdzanie w okresie niepewnoci (%odpowiedzi)
W okresie niepewnoci zmienia si
podejcie do zarzdzania firm. Z jednej
strony stopniowej centralizacji ulega
proces decyzyjny, z drugiej firmy staraj
si zapewni sobie jak najbardziej
zrnicowan baz kontrahentw.
Tendencje te widoczne s zarwno
w wynikach dla Polski, jak i w badaniu
globalnym, przy czym w naszym kraju
s one nieco silniejsze.
6. Zarzdzanie firmami
i ksztatowanie przywdztwa
A 82% menederw w Polsce (66%
na wiecie) deklaruje, e strategiczne
decyzje w ich firmach podejmowane
s na poziomie kierownictwa wyszego
szczebla. Tylko 18% ankietowanych
w naszym kraju, wobec 31% na wiecie,
deklaruje, i wszyscy pracownicy
zachcani s do angaowania si w proces
podejmowania strategicznych decyzji.
W tym samym kierunku zmierza ewolucja
podejcia do zarzdzania ryzykiem oraz
do wyboru inicjatyw strategicznych.
Coraz bardziej scentralizowan
odpowiedzialno za zarzdzanie
ryzykiem deklaruje 71% menederw
w Polsce i 63% na wiecie. Wybr
strategii w oparciu o kilka starannie
dobranych inicjatyw deklaruje natomiast
odpowiednio 63% i 68% ankietowanych.
-24%
odpowiedzialno za zarzdzanie ryzykiem
jest coraz bardziej scentralizowana
odpowiedzialno za zarzdzanie ryzykiem jest
coraz bardziej zdecentralizowana
zwikszamy koncentracj w naszym acuchu
dostaw, zmniejszajc liczb zaufanych partnerw
wprowadzamy zrnicowanie w naszym acuchu dostaw,
wsppracujc z wiksz liczb partnerw w rnych regionach
strategiczne decyzje s podejmowane na poziomie
kierownictwa wyszego szczebla i zarzdu
wszyscy pracownicy s zachcani do angaowania si
w proces podejmowania strategicznych decyzji
nasza strategia jest oparta na kilku starannie
wybranych inicjatywach
prbujemy wielu rnych inicjatyw strategicznych,
z ktrych wybierana jest najlepsza
zasoby z zakresu zarzdzania ryzykiem alokujemy gwnie na
potrzeby przewidywania zdarze wysokiego ryzyka
zasoby z zakresu zarzdzania ryzykiem alokujemy gwnie na
potrzeby radzenia sobie z konsekwencjami zdarzenia
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Stosowanie narzdzi ksztatowania przywdztwa (% odpowiedzi)
Decentralizacja i zrnicowanie
dominuje natomiast w podejciu
do zarzdzania acuchem dostaw.
Firmy staraj si wsppracowa z jak
najwiksz liczb partnerw deklaruje
to 64% ankietowanych w Polsce i 50%
na wiecie, tak by zapewni sobie
bezpieczestwo na wypadek zawirowa
spoecznych lub politycznych w rnych
czciach wiata. Zrnicowanie
to moe take odzwierciedla obawy
co do perspektyw przetrwania
niektrych kontrahentw na rynku.
Centralizacja zarzdzania firmami
oznacza, i bardzo istotne dla
dugookresowego rozwoju firmy staje
si zarwno przygotowanie
odpowiednich nastpcw dla obecnej
kadry kierowniczej, jak i opracowanie
efektywnych metod wyaniania
przyszych liderw.
Praktyki stosowane w polskich firmach
s w tym obszarze bardzo zblione
do tych stosowanych na wiecie.
Najczciej stosowane narzdzia to:
angaowanie menederw niszego
szczebla w podejmowanie decyzji
strategicznych (78% w Polsce wobec
79% na wiecie), dedykowane programy
rozwoju (odpowiednio 66% i 68%) oraz
rotacje pomidzy funkcjami
(odpowiednio 63% i 62%). Promowanie
rnorodnoci oraz aktywne
planowanie sukcesji s natomiast
w Polsce stosowane zauwaalnie
rzadziej (o odpowiednio 36% wobec
56% oraz 55% wobec 71%).
Nie ma te specjalnych rnic w ocenie
skutecznoci poszczeglnych
programw. Wszystkie s przez
stosujce je firmy oceniane generalnie
jako skutecznie, a i wyniki dla Polski
s bardzo zblione do wynikw
globalnych. Jako najefektywniejsze
oceniane jest angaowanie menederw
Ocena skutecznoci programw rozwoju przywdztwa (% odpowiedzi)
niszego szczebla w podejmowanie
strategicznych decyzji, nastpnie
aktywne planowanie sukcesji oraz
dedykowane programy rozwoju.
Wszystkie one zebray okoo 90%
pozytywnych ocen polskich
i wiatowych menederw, cho rednie
oceny w naszym kraju s nieco wysze.
Ciekawe zarwno z punktu widzenia
sposobu zarzdzania firmami, jak
i z perspektywy ksztatowania postaw
przyszych liderw s opinie
menederw dotyczce sposobu
i mechanizmu wynagradzania kadry
kierowniczej. Dane te pokazuj z jednej
strony do spore zrnicowanie ocen
pomidzy poszczeglnymi
menederami, ale take nieznaczne
rnice pomidzy pogldami
menederw w Polsce i na wiecie.
Szczeglnie wiele przeciwstawnych
odpowiedzi otrzymalimy na trzy
pytania: o zaleno sposobu ustalania
wynagrodze czonkw kierownictwa
od ocen interesariuszy, o ocen stopnia
komplikacji struktury bonusowej oraz
o ocen mechanizmu wynagradzania
menederw uzalenionego od wynikw.
dedykowany program rozwoju dla osb na stanowiskach kierowniczych
praktyki u boku kierownictwa wyszego szczebla
rotacje pomidzy funkcjami i nowe wyzwania
programy promujce rnorodno wrd liderw biznesu
zachcanie do globalnej mobilnoci i zdobywania dowiadcze midzynarodowych
angaowanie menederw poniej poziomu zarzdu
w podejmowanie decyzji strategicznych
aktywne planowanie sukcesji, wcznie z identyfkowaniem kilku nastpcw
W trudnych czasach
menederowie bior na siebie wicej
odpowiedzialnoci oraz ryzyka.
Opinia o modelach wynagradzania kierownictwa (% odpowiedzi)
Bardzo podobna liczba ankietowanych
udzielia pozytywnych i negatywnych
odpowiedzi na pytania o zaleno
wynagrodze od ocen interesariuszy.
Zarwno w Polsce, jak i na wiecie byo
to okoo 30%. Opinie s tu podzielone
i krajowi menederowie nie rni si
w tej rnorodnoci zda od redniej
wiatowej. Wyranie wida za to rnice
w polityce poszczeglnych firm.
Z inn sytuacj mamy do czynienia
w dwch pozostaych przypadkach.
Tutaj zdania te s podzielone, ale
rozkadaj si one nieco inaczej wrd
menederw polskich i globalnych.
A 55% ankietowanych w Polsce nie
zgadza si ze stwierdzeniem, e obecna
struktura bonusw dla kierownictwa jest
zbyt skomplikowana na wiecie zdanie
takie podziela 36% respondentw.
Nieco mniejsze ale te widoczne rnice
pomidzy wynikami polskimi
i globalnymi obserwujemy w przypadku
oceny modeli wynagrodze
uzalenionych od wynikw. 24%
menederw w Polsce i 36% na wiecie
uwaa, e nie dziaaj one dobrze.
Jeli zgodzimy si z popularn
w ostatnim czasie diagnoz, i rde
obecnego kryzysu gospodarczego naley
upatrywa w zbyt wysokiej skonnoci
do ryzyka menederw wynagradzanych
w oparciu o krtkookresowe wyniki
przedsibiorstw, to mona
wywnioskowa, i polscy ankietowani
nieco rzadziej uwaaj te diagnozy
za suszne lub te nie wycigaj z nich
a tak silnych wnioskw jak zarzdzajcy
firmami w innych czciach wiata.
Zmieniamy sposb
ustalania wynagrodze
dla czonkw kierownictwa
w odpowiedzi na reakcje
interesariuszy i ogu
Polska Polska Polska Polska Polska wiat wiat wiat wiat wiat
Wynagrodzenie oraz wyniki
powinny by ustalane
z uwzgldnieniem
podejmowanego ryzyka
Modele wynagrodzenia
uzalenionego od wynikw
nie dziaaj jak naley
Musimy dostosowa
warunki wynagrodzenia
do warunkw rynkowych,
aby utrzyma najbardziej
utalentowanych
pracownikw
Obecna struktura bonusw
dla kierownictwa jest zbyt
skomplikowana
silnie si zgadzam silnie si nie zgadzam nie zgadzam si zgadzam si
Zaprezentowane wyniki bazuj na zaoeniu, e uzyskane informacje ze rde innych ni PwC, s kompletne i dokadne we wszystkich aspektach.
PwC zakada, e uzyskane dane i odpowiedzi s zgodne z prawd, w zwizku z czym nie dokonywano przegldu lub jakiejkolwiek innej weryfkacji
otrzymanych danych. Niniejsza analiza jest pewn interpretacj otrzymanych danych i nie moe by traktowana jako ostateczna rekomendacja, czy te
porada odnonie wyboru metod dziaania lub jako sugestia w zakresie zastosowania konkretnych rozwiza. Dokumentu tego nie naley traktowa jako
substytutu konsultacji z profesjonalnymi doradcami. W zwizku z powyszym PwC nie przyjmuje odpowiedzialnoci wobec adnego podmiotu, ktry bdzie
bez konsultacji z profesjonalnym doradc wykorzystywa informacje zawarte w niniejszej analizie.
2013 PwC Polska Sp. z o.o. Wszystkie prawa zastrzeone. W tym dokumencie nazwa PwC odnosi si do PwC Polska Sp. z o.o., frmy wchodzcej
w skad sieci PricewaterhouseCoopers International Limited, z ktrych kada stanowi odrbny i niezaleny podmiot prawny.
www.pwc.pl/ceo-survey
Kontakt
Olga Grygier
Prezes Zarzdu
+48 22 523 4214
olga.grygier@pl.pwc.com
Mateusz Walewski
Ekonomista
+48 22 746 6956
mateusz.walewski@pl.pwc.com
Witold Orowski
Gwny Doradca Ekonomiczny
+48 22 523 4394
witold.orlowski@pl.pwc.com
PwC ayuda a organizaciones y personas a crear el valor que estn buscando. Somos una red de frmas presente en 158 pases con ms de 180.000 profesionales comprometidos
en ofrecer servicios de calidad en auditora, asesoramiento fscal y legal y consultora. Cuntanos qu te preocupa y descubre cmo podemos ayudarte en www.pwc.es
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Limited; cada una de las cuales es una entidad legal separada e independiente.
Escanea este cdigo QR
con tu smartphone para tener
ms informacin sobre la
Encuesta Mundial de CEOs
o accede a www.pwc.es
LosCEOscoincidendeforma
unnimeenelcambioradical
quehasufridoenlosltimos
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acontecimientosimprevisibles.
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enmarchalosgobiernos
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fscalesoelaumentodelos
preciosdelaenergaydelas
materiasprimas,entrelas
principalesamenazasparalos
primerosejecutivos.
LasestrategiasdelosCEOs
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centrandoenapostarpor
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reteneryfdelizarasusclientes
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Lospresidentesyconsejeros
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negociosydelaeconoma
mundialen2013.Las
perspectivasmejorancuandose
lespreguntaporellargoplazo
tresaos.
Las claves
www.pwc.es
Gestionar lo
imprevisible
Lasestrategiasdelos
CEOsparacrecerenun
entornovoltil
Resumenejecutivo
Dcimosexta Encuesta Mundial de CEOs. Foro Econmico Mundial de Davos
Contacto
Carlos Mas
PresidentedePwC
Telfono:915684955
carlos.mas@es.pwc.com
Amenazas econmicas y de
negocios
Losprimerosejecutivosdestacandos
tiposdeamenazas:econmicasy
polticasydenegocio.Entrelasprimeras,
lasmssealadastantoporlosCEOs
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incertidumbreeconmica,lasmedidas
queestnponiendoenmarchalos
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fscales,lavolatilidaddelosmercadosy
lasobreregulacin.Encuantoalos
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Estrategias para crecer en un
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laefcienciadelasoperacionesdesus
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Oportunidades de negocio y
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empleo
El48%delosCEOsespaoles,
porejemplo,creequeen2013
lasprincipalesoportunidades
denegociovendrndel
crecimientoorgnicodesus
empresasenelexteriorydela
entradaennuevosmercados
extranjeros.Mientrasqueun
26%estimaqueelaumentode
susingresosvendrporel
lanzamientodenuevos
productosyservicios.
Encuantoalasperspectivas
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Sloel36%delosprimerosejecutivos
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ingresosdesuscompaasenlos
prximosdocemeses.Respectoala
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52%delosCEOsconsideraquesta
permanecerigualen2013,un28%
queempeorarysoloun18%estima
quemejorar.
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ao.Un44%prevquela
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otrospasesdenuestroentorno
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Eldocumento,porprimeravez,
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enfuncindelcrecimientomedio
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primerodeellosestintegradoporlos
pasesencrecimientoperoconriesgos
dedesaceleracin,entrelosquese
encuentraEstadosUnidos,Alemania,
Francia,ReinoUnidooJapn.
ejecutivosespaolesel25%delos
mundialesafrmahaberreducido
suplantillaen2012yun48%de
nuestrosCEOsporel23%delos
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seguirhacindoloen2013.En
menormedida,menosdel10%
deempresaslohacendeforma
explcitabajodicha
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existendiferencias
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modelodenegocioentreunas
empresasyotras.
Enelsegundo,formadoporaquellos
estadosqueestluchandoporquesus
economasemprendanestasenda,se
encuentranEspaa,Italia,Portugaly
Grecia.Untercero,locomponen
Indonesia,BrasilySudfrica,quecrecen
abuenritmoysequeestimaacelerenese
crecimiento.Y,porltimo,uncuarto
grupo,integradoporpasescon
economasqueestncreciendopero
estnenfasededesaceleracin,como
China,IndiaoArabiaSaud.Las
opinionessetornanmsoptimistas
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enlosprximostresaoslasituacin
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Preparados para lo imprevisible
La confanza de los CEOs en
la evolucin de los negocios,
estancada
LosCEOsdetodoelmundocoindicenensealarelcambioradical
quehasufridoelentornoenelquesemuevensuscompaasy
reconocenqueseenfrentanamsamenazasyqueestassonms
complejasquenunca.Poreso,entiendenquedebengestionarestos
riesgosdeformadistintaacomolohanvenidohaciendohastaahora.
Laconfanzadelospresidentesyconsejeros
delegadostantomundialescomoespaolesenel
crecimientodesusnegociosydelaeconomaseguir
estancadaen2013.Sihablamosdellargoplazotres
aoslasexpectativasmejoran.
Por decimosexto ao consecutivo PwC ha presentado en el World
Economic Forum de Davos su Encuesta Mundial de CEOs. El informe
recoge la opinin de 1.330 presidentes y consejeros delegados de 68
pases de todo el mundo 50 espaoles sobre el futuro de la economa,
de sus negocios y de cmo crecer en un entorno tan voltil.
Informe completo
Tambin puedes descargarte
el pdf completo con la
decimosexta Encuesta Mundial
de CEOs de 2013 con el
cdigo QR que encontrars
en la contraportada de este
documento.
% de CEOs que asegura tener mucha confanza en el
crecimiento de sus negocios en 2013 (por pases)
Evolucin del % de los CEOs que asegura
tener mucha confanza en el crecimiento
de sus empresas (2010-2013, espaoles vs
mundiales)
Principales amenazas polticas y
econmicas (CEOs espaoles vs
CEOs mundiales)
Principales amenazas de negocio (CEOs
espaoles vs CEOs mundiales)
Incertidumbre
econmica
Complejidad de los sistemas fscales
Precio de la energa y de las materias primas
Cambio en el comportamiento de los consumidores
espaa
mundial
contestaciones ceos mundiales
espaa
global
global
Medidas de los
gobiernos contra el
dfcit fscal
Sobreregulacin
Volatilidad de los
mercados
Qu pases considera ms importantes para el crecimiento
de sus negocios
88%
82%
60%
64%
81%
71%
69%
61%
72%
62%
68%
52%
62%
49%
Rusia
66%
Alemania
31%
Italia
21%
Reino Unido
22%
EEUU
30%
EEUU
Brasil
China
Alemania
Mxico
62%
Brasil
44%
India
63%
China
40%
Japn
18%
Corea
6%
Francia 13%
Espaa
20%
2010 2011 2012 2013
31%
48%
40%
36%
23%
31% 30%
20%
espaa
contestaciones ceos espaoles
23%
22%
15%
18%
31%
32%
negocios
losmsdestacados.
entorno voltil
compaas.
perspectivas de
empleo
denegociovendrndel
lanzamientodenuevos
quemejorar.
ao.Un44%prevquela
comoItaliaoFrancia.
explcitabajodicha
existendiferencias
empresasyotras.
econmicamejore.
estancada
Informe completo
documento.
mundiales)
CEOs mundiales)
Incertidumbre
econmica
espaa
mundial
espaa
global
global
Medidas de los
gobiernos contra el
dfcit fscal
Sobreregulacin
Volatilidad de los
mercados
de sus negocios
88%
82%
60%
64%
81%
71%
69%
61%
72%
62%
68%
52%
62%
49%
Rusia
66%
Alemania
31%
Italia
21%
Reino Unido
22%
EEUU
30%
EEUU
Brasil
China
Alemania
Mxico
62%
Brasil
44%
India
63%
China
40%
Japn
18%
Corea
6%
Francia 13%
Espaa
20%
2010 2011 2012 2013
31%
48%
40%
36%
23%
31% 30%
20%
espaa
23%
22%
15%
18%
31%
32%
negocios
losmsdestacados.
entorno voltil
compaas.
perspectivas de
empleo
denegociovendrndel
lanzamientodenuevos
quemejorar.
ao.Un44%prevquela
comoItaliaoFrancia.
explcitabajodicha
existendiferencias
empresasyotras.
econmicamejore.
estancada
Informe completo
documento.
mundiales)
CEOs mundiales)
Incertidumbre
econmica
espaa
mundial
espaa
global
global
Medidas de los
gobiernos contra el
dfcit fscal
Sobreregulacin
Volatilidad de los
mercados
de sus negocios
88%
82%
60%
64%
81%
71%
69%
61%
72%
62%
68%
52%
62%
49%
Rusia
66%
Alemania
31%
Italia
21%
Reino Unido
22%
EEUU
30%
EEUU
Brasil
China
Alemania
Mxico
62%
Brasil
44%
India
63%
China
40%
Japn
18%
Corea
6%
Francia 13%
Espaa
20%
2010 2011 2012 2013
31%
48%
40%
36%
23%
31% 30%
20%
espaa
23%
22%
15%
18%
31%
32%
semuevensuscompaas,
primerosejecutivos.
momentoactualseestn
mundialen2013.Las
tresaos.
Las claves
www.pwc.es
Gestionar lo
imprevisible
Lasestrategiasdelos
CEOsparacrecerenun
entornovoltil
Resumenejecutivo
Contacto
Carlos Mas
PresidentedePwC
Telfono:915684955
semuevensuscompaas,
primerosejecutivos.
momentoactualseestn
mundialen2013.Las
tresaos.
Las claves
www.pwc.es
Gestionar lo
imprevisible
Lasestrategiasdelos
CEOsparacrecerenun
entornovoltil
Resumenejecutivo
Contacto
Carlos Mas
PresidentedePwC
Telfono:915684955
www.pwc.co.uk/ceosurvey
Dealing with
disruption
Adapting to survive
and thrive
Country Summary: Key fndings in the UK
January 2013
2 PwC 16th Annual Global CEO Survey Country Summary: the UK
Leaders and their organisations are
now operating in a world where
uncertainty and volatility have
increased to unprecedented levels,
and economic growth varies widely
between countries and regions.
Its against this background that
we have conducted our 16th PwC
Annual Global CEO Survey.
Our study shows that UK CEOs
have been focusing on short term
challenges; that they expect economic
diffculties to continue, and that they
are concerned with building resilience
into their organisationsboth to meet
those challenges and seize future
opportunities.
Resilience combines a short-term
ability to ride out the immediate
impact of shocks, with the fexibility
to future-proof the organisation
by adapting, over the longer term.
Resilience is a quality thats becoming
ever more important in todays highly
connected world, where previously
isolated risks have become both
contagious and commonplace.
In this context, our study highlights
three priorities that UK CEOs are
intending to focus on: frst, reshaping
their operations for growth in a
changing world; second, building
and in some cases re-building
relationships and trust, and fnally,
fnding and keeping the talent they
need to succeed.
This years research covers more than
60 countries and includes the views of
over 1300 CEOs, as well as many PwC
specialists, providing valuable insights
which we hope will stimulate debate
over the coming months.
Ian Powell
Chairman and Senior Partner
Foreword:
The hunt for growth
and resilience
Ian Powell
Chairman and Senior Partner
Our study highlights three
themes on which UK CEOs say
they want to focus their attention:
1. Reshaping their operations
for a changing world.
2. Building and in some cases
re-building relationships
and trust with stakeholders.
3. Finding and keeping the talent
they need to succeed.
PwC 16th Annual Global CEO Survey Country Summary: the UK 3
Reshaping for a
changing world
Across the globe, profound structural
changes are creating a new world
order. With the European economy
largely fat and the US remaining
fragile, opportunities to expand are
concentrated in growth markets.
UK CEOs are actively reshaping their
businesses for this, with three-quarters
anticipating changes in their companys
organisational structure over the
coming year.
Some 83% plan cost-reduction initiatives
in 2013, well above the global average.
Strategic deals are also on the agenda,
with over half of UK respondents
having entered a new strategic alliance
or joint venture in the past year,
and 60%the highest proportion
in Western Europeplanning to do
the same in the coming year.
While 30% are contemplating cross-
border M&A, a much higher proportion
are planning a domestic deal 43%
of UK CEOs, compared to a Western
European average of just over a
quarter and just 11% in Germany.
This suggests that UK businesses see
more opportunity than their European
counterparts to generate growth in
their matureand currently subdued
home market.
However, it may also be a signal that
UK CEOs are more concerned about
the risks associated with overseas
acquisitions or are struggling to fnd
acceptable international targets.
Either way, the focus on the low
growth home market is perplexing.
This overly domestic focus is borne out
by the fact that only a third of UK CEOs
say Chinas GDP growth rate falling
below 7.5% would be bad news for
their business. This is a far lower
proportion than in Germany, which
has more exposure to Chinas economic
fortunes through higher exports and
more China-based operations.
1

Also, at a time when the UK Government
is encouraging businesses to invest in
innovation to drive high-value exports,
UK CEOs are half as likely to name
R&D as a top three priority over the
next 12 months as Western European
CEOs (17% versus 41%). And only half
of UK CEOs say they intend to increase
R&D capacity over the coming year,
compared to two-thirds of German
and three-quarters of French CEOs.
Instead, UK CEOs say theyre keener to
invest in growing their customer base
and improving operational effectiveness.
The challenge is to understand how
and where UK businesses will generate
growth in the future. Our experience
shows that many recognise the need to
be present in fast-growth economies,
but end up targeting the UK, US or
Western Europe because these markets
are more familiar and promise returns
on investment within a shorter
timeframe. We believe sustainable,
longer-term growth requires a longer-
term view. Additionally, with many
1 Source: PwC UK Economic Outlook November 2012, page 26
Figure 1: Priorities for UK CEOs over the next 12 months
Q: What are your top 3 investment priorities in the next 12 months?
Base: All UK CEOs (63)
Lower R&D may point to
a shorter-term view
For some time, there have been
signs that business leaders have
become increasingly short-term in
their outlook. Risk aversion and
scepticism about the benefts of
R&D have institutionalised a cycle
of lowered expectations that looks
more to quarterly performance
rather than a longer-term view
of where new growth might come
from. These fgures suggest that
short-termism is now entrenched
in the minds of UK business
leaders.
Norman Lewis,
Director, PwC
New M&A /
joint ventures /
strategic alliances
Filling
talent gaps
Enhancing
customer service
Growing your
customer base
Improving
operational
effectiveness
CEOs often in the position for shorter

terms, the role company boards and
strategy teams play in supporting
longer-term change is a vital one.
Events over the past few years appear
to have undermined trust in public
and private institutions. Against this
background, an ability to establish
trust among all stakeholders is a vital
part of the resilience companies need
to foster. This is underlined by the fact
that regulators now talk openly about
changing the culture of organisations
reinforcing the view that companies
need to focus on cultures and behaviours
alongside policies, procedures and
mission statements.
UK CEOs score higher than most other
CEOs on the intention to build a
framework to support a culture of
ethical behaviour over the next year.
However, 60% of UK CEOs say theyre
not concerned about trust in their
own industry. One area where trust
appears to be under strain is executive
remuneration. But while 60% of UK
CEOs admit that executive incentive
pay structures are too complex,
only three in ten say theyre taking
action to change them.
CEOs that actively engage in building
and sustaining trust may fnd that they
will help to create and sustain longer-
term value for all stakeholders.
Widening stakeholder relationships
A few years ago, Imperial would
have seen shareholders as the key
stakeholder, and almost the only
stakeholder we really focused on.
Its absolutely valid and right for a
plc to focus on driving shareholder
returns, but the reality is you do
that through focusing on other
stakeholders. Thats the key shift
that weve made over the last couple
of years: if we want to drive those
shareholder returns weve got
to get other stakeholders right.
That means changing our approach
in terms of our employees, in terms
of our customers and in terms
of our suppliers.
Alison Cooper,
CEO, Imperial Tobacco Group
Figure 2: CEOs strengthening their engagement programmes with users
of social media
Q: For those stakeholders with some or signifcant infuence, to what extent are you
strengthening your engagement programme?
Base: All CEOs in those countries with who say social media has some/signifcant infuence on their
business strategy (UK=35, US=89, Spain=30, Japan=75, China & HK=61, India=42)
Building relationships
and trust
Spain India
China and HK
US
Japan
UK

Social media changes the
game with consumers
Leaders who recognise how
their relationship with consumers
has changed forever also know
that data is the ingredient that
will help them thrive.
Matthew Tod,
Partner, PwC
Virtually all UK CEOs talk about
strengthening their organisations
engagement with customers, and 87%
are planning to change their strategies
for customer growth, retention
and loyalty. At the same time, 91%
against a global average of 78%
are seeking to strengthen their
engagement programmes with
users of social media.
However, establishing the right
approach to reputation management
in the age of social media and rising
transparency is a major challenge.
In its Global Risks 2013 report, the
World Economic Forum highlights
the rising threat from digital wildfres
that can turn local events into global
corporate crises in a few hours.
Companies need to understand how
to manage such risks whilst using
the insights social media provides
to build competitive advantage.
Our experience shows that the
companies that make the most
effective use of social media tend
to do two things. First, they use
social networks not as a one-way
communications channel, but as a
forum for hosting dialogue, learning,
and seeing themselves from their
stakeholders point of view. Second,
they use it not just to react to events,
but also to monitor, anticipate and
head off future issues.
UK CEOs portray themselves as
custodians of a reliable pipeline of
future leaders, with 84% claiming to
have an active succession planning
programme in place. And nine out of
ten say their strategic decision-making
processes involve managers below
board-level, the highest proportion
of any major economy, bar the US.
However, there seem to be challenges
here. The availability of key skills
remains a concern for two-thirds of
UK CEOs, higher than anywhere else
in Western Europe.
In addition to this, a similar proportion
are planning to increase investment in
building a skilled workforce over the
next three years, while an even higher
proportion 83% see a need to change
their talent management strategies in
the next year. This seems to indicate
that while UK CEOs voice a deep
commitment to developing people,
many organisations are still fnding it
diffcult to implement and enforce the
right strategy to ensure an effective
talent pipeline.
Another reason why organisations may
be struggling to develop the talent they
need is because they oversee fewer
dedicated executive development
programmes than the global average,
and are much less likely to actively
encourage future leaders global
mobility and international experience.
When asked what should be the
Governments priorities for business,
four out of fve CEOs point to creating
and fostering a skilled workforce
the highest response rate in any
country surveyed, and well above
the global average of 57%.
These fndings may be a refection of
the worrying tendency for some UK
companies to take a short-term view
and stay in their comfort zone, or
look to government to drive talent
strategies. Skills and talent are the
lifeblood of the UKs economic future
and smarter, more forward-looking
companies will invest in them.
The need to invest in skills
In the US and the UK, the statistics
on the number of kids doing science,
technology, engineering and maths
show that were not creating enough
people with the necessary skills
today to fuel the industry in the
future. So an awful lot of work has
to be done by companies like ours to
ensure understanding of the jobs
and rewards that are there, to
keep people doing subjects that,
in both the US and the UK,
they view as harder.
Steve Holliday,
CEO, National Grid Group Plc
Finding talent,
developing talent
Figure 3: The leadership pipeline
A. Shadowing senior executives B. Rotations to different
functions/challenges
C. Encouraging global mobility
and international experience
60%
76%
51%
56%
25%
58%
38%
42%
59%
66%
41%
67%
US France UK Germany
Base: All CEOs in those countries (UK=63, Germany=36, France=38, US=167)
As UK CEOs attempt to build greater
resilience in their organisations, they
must also scour the horizon for new
sources of growth. When asked
which non-domestic market is most
important to their overall growth
prospects next year, UK CEOs put the
United States frst at 24%, followed
by China (19%), Germany (11%)
and France (11%).
This represents a slightly more
dispersed focus than last year, when
40% cited the US, with China and
Germany equal second on 26%.
UK CEOs in this years survey also
quote a wider variety of other markets,
such as Singapore and the UAE.
But a greater proportion also said
they were unsure where to look.
Its against this changing backdrop
that companies need to build a platform
for future global growth. Currently,
UK CEOs have a tendency to look
closer to home, with 38% a higher
fgure than in any other major Western
European country citing organic
domestic growth as their main
opportunity to expand. Only 14%
regard organic growth in an existing
foreign market as the key opportunity,
against 36% of German and 37%
of French CEOs.
These fndings may be infuenced by
the markets in which companies have
existing operations: for example,
over a third of German frms have
operations in East Asia, against only
14% of UK companies. This disparity
Looking forward:
the hunt for growth
Figure 4: This years global investment priorities
Q: Which one of these do you see as the main opportunity to grow your business in the next 12 months?
Base: All respondents (1,300) and All CEOs in those countries (UK=63, Germany=36, Russia=41, Brazil=45, China & HK=132, US=167)
should be of critical interest both to the
UK business community and government.
However, more positively, UK companies
stronger presence in markets such
as the Middle East and Australasia
suggests they can close the gap if they
commit themselves to doing so.
The opportunity to build revenues in
growth markets is underlined by the
confdence of companies based in
them. In Western Europe (including
the UK), around one-third of CEOs are
very confdent over revenue growth
for the next three years. However, the
proportion of Mexican CEOs voicing
strong confdence over future revenue
growth however is 61%, rising to 79%
across Africa, and an overwhelming
85% in India. The long-term impact
0
10
20
30
40
50
60
70
Global Total
Russia
Brazil
US
China & Hong Kong
UK
Germany
Improving
operational
effectiveness
Implementing
new technology
Growing your
customer
base
Filling talent
gaps
New M&A /
joint ventures /
strategic alliances
Enhancing
customer
service
Securing raw
materials or
components
Manufacturing
capacity
R&D and
innovation
%
Global economic shifts
The shift in the global economic
centre of gravity is clear; but there
are still major challenges for the
emerging economies to sustain their
recent strong growth. At the same
time, there are huge opportunities
for Western companies in the
emerging markets but also great
competitive challenges from fast-
growing emerging market
companies.
of such differences is refected in the
latest update of PwCs World in 2050,
which has E7 counties overtaking
G7 in terms of purchasing power just
four years from now, and in absolute
GDP terms before 2030.
For UK businesses seeking growth,
these shifts encapsulate both the
challenges and the opportunities ahead.
How long will current uncertainties
persist? How reliably can they look
forward, and how far? Where should
they target growth, and why? UK
businesses have been concentrating
on survival, but the route to growth
will mean embracing change,
resilience, and extending their
plans over the longer term.
Figure 5: Where UK frms have key operations
Q: In which regions does your business have key operations?
Latin America
Western
Europe
South-East
Asia
Africa
Middle East 22%
North America
11%
South Asia
Central and
Eastern Europe/
Central Asia
East Asia
89%
8%
25%
10%
17%
14%
Australasia 21%
25%
Base: All UK CEOs (63)
UK businesses are relatively strong
in the kind of tradable services
that may grow strongly in future
decades due to rising demand from
the BRICs and other emerging
economies such as creative
industries, business and fnancial
services, university education and
healthcare/pharmaceuticals. So we
should see the rise of these emerging
markets as an opportunity to be
grasped for UK business rather
than a threat.
John Hawksworth,
chief economist at PwC
information contained in this publication without obtaining specifc professional advice. No representation or warranty (express or implied) is given as to the accuracy
or completeness of the information contained in this publication, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility
or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision
based on it.
The Design Group PwC UK 21352
Key contacts
Further reading
For further information on the
survey content, please contact:
Vicki Boaden
PwC UK Client & Market Development
+44 20 7212 6621
victoria.boaden@uk.pwc.com
For media related enquiries,
please contact:
Derek Nash
PwC Media Relations
+44 20 7804 3058
derek.nash@uk.pwc.com
UK Economic outlook - November
http://www.pwc.co.uk/the-economy/publications/uk-
economic-outlook/ukeo-november-2012-full-report.jhtml
The World in 2050
http://www.pwc.co.uk/the-economy/
issues/the-world-in-2050.jhtml
www.pwc.co.uk/ceosurvey
2013 US CEO Survey
Creating value in uncertain times
16th Annual Global
CEO Survey 2013
US Executive Summary
The experiences they will be able to pass on to
the next generation will shape a new perspective
on the importance of resilient leadership through
uncertainty. Persistent, ethical and pragmatic
were the words many CEOs used to describe traits
of historical leaders they most admire.
I would like to thank all who participated in the
survey, particularly the CEOs who took the time to
sit down with us to share their perspectives on the
opportunities and challenges businesses are facing
today. Their insights greatly informed our survey,
and you can view our interviews with them, along
with the full report, at www.pwc.com/usceosurvey.
Bob Moritz
US Chairman, Senior Partner
PwC
Overview
US CEOs in our 16th Annual Global CEO Survey
are showing less confdence for growth in the next
year but are optimistic about the longer-term horizon.
They are far more confdent in their companys ability
to navigate through the anticipated volatility expected
over the next three years.
As youll discover in our report, todays CEOs
are focused on building resilient organizations.
Theyre setting the foundation for long-term growth
by fnding new ways to extend their competencies.
Theyre sharing value as well as risks as they
increasingly operate within networks of alliances
and partnerships.
Half of the 167 US CEOs participating in our survey
have been heading their company for less than fve
years. The operating environment over the past few
years has been unlike anything seen before, so this
group has admittedly learned a lotand gained
a lot, too.
Leaders most admired by
US-based CEOs
We asked CEOs, As a leader, can you
share an example from literature or history
where someone exhibited good leadership?
What did you admire about their actions?
These leaders topped the US CEOs list.
Base: 130. Source: PwC, 16th Annual Global CEO
Survey, January 2013. #1 Winston Churchill
He explained the reality of what
people faced and he mobilized them
to deal with it.
Nelson Mandela
Excellent moral leadership, a skill that
has been lost or forgotten in the new era.
Australian CEO
#2 Abraham Lincoln
He understood the greater good and
he understood the bigger picture.
#3 Ronald Reagan
His mantratrust, but verifyis
a very good leadership skill.
Leaders most admired by CEOs globally
1. Winston Churchill
2. Steve Jobs
3. Mahatma Gandhi
4. Nelson Mandela
5. Jack Welch
6. Abraham Lincoln
7. Margaret Thatcher
8. Ronald Reagan
9. John F. Kennedy
10. Napoleon Bonaparte
Base: 1,351. Source: PwC, 16th Annual Global CEO Survey, January 2013.
1 16th Annual Global CEO Survey 2013US Executive Summary
The additive effect of a decades worth
of volatile global growth cannot be under-
stated. Short-term confdence is faltering:
A third of US CEOs are very confdent their
companies will see revenue growth over the
next 12 months, down from 41% in 2012.
Of course, CEOs have historically been
less bullish about short-term prospects;
2013 is shaping up as a pivotal year. CEOs are redirecting investments
and strategies against a backdrop of global fscal and economic uncertainties.
They are honing approaches, focusing on organic growth, their customers,
and operational effectiveness. Heres what the 167 US-based CEOs tell us
theyre doing to adjustand to set the foundation for new growth.
#1 Building resilience to disruption
Expect more strategic alliances and partnerships this year. CEOs are seeking
to increase their companies ability to swiftly respond to demand changes
by collaborating with partners more closely or by diversifying to best ensure
uninterrupted business operations through a range of scenarios.
#2 Taking the home-feld advantage
Look for a sharpened focus on the US market this year. CEOs are planning
to consolidate advantages on their home turf. Theyre considering domestic
deals, and 41% see expanding their customer base in the US as the main
avenue for growth in 2013.
#3 Siding with the customer
Expect interest in predictive analytics and other customer-oriented strate-
gies to keep growing. CEOs are setting the customer as their beacon to build
businesses that last. Getting the right read on changing customer demands
will help on a number of fronts: where manufacturing is located; where to
consider acquisitions; how to spend precious R&D funds; and where to
form alliances to extend competencies.
Confidence falters for US CEOs
How confident are you about your companys prospects for revenue growth over the next
12 months? Over the next three years?
Next 12 months
Next 3 years
47%
54%
30%
19%
Next 3 years
(2012 survey)
3%
7%
Not confident about prospects
of revenue growth
Very confident about
prospects for revenue growth
US CEOs
Bases: US 2012: 161; 2013: 167. Sources: PwC, 15th Annual Global CEO Survey, January 2012;
PwC, 16th Annual Global CEO Survey, January 2013.
Creating value in uncertain times
according to our survey, confdence in near-
term growth has only surpassed 50% twice
in the past decadein 2008 and 2007.
Push out the horizon three years, and CEO
spirits revive. They are far more confdent
in their companies ability to navigate the
anticipated volatility.
PwC 2
Growth How prepared are we for greater competition in the
US market?
4 Talent How will we foster the next generation
of leaders in our company?
12
Deals How can we take advantage of a potentially healthier
deals market in 2013?
6 Customer focus How can we more effectively put our customers
at the center of our growth initiatives?
13
Risks What can we do to make our company more resilient
to signifcant and unpredictable risks?
7 Sustainability What more can we do to prepare for global
constraints on critical natural resources?
14
Tax How can we forge ahead amid uncertainty about tax
and regulations?
9 Social media Do we really *like* social media? 16
Operations What are the most important transformations
in operations that our company needs?
10 Cybersecurity How do we get to a place where cyberattacks
are less of a threat to our network?
17
Supply chain How can we shore up our supply chain so that
its better able to withstand disruptions?
11
Based on what we heard in the 16th Annual Global CEO Survey, these are some of the questions US CEOs will be asking themselves and their management teams as they pursue growth
in the year ahead. PwC surveyed 167 business leaders based in the US. Weve grouped their responses into the following issues.
US CEO agenda for 2013
How prepared are we for
greater competition in the
US market?
Two goals head the growth agenda in
2013 for many US CEOs: capturing more
share in existing markets, whether in the
US or internationally, and making greater
use of acquisitions or strategic alliances
to advance that aim.
What has changed? Just a year ago,
US CEOs saw growth drawn more evenly
across a range of potential opportunities.
Surely, weak prospects for Europe
(where 47% of US CEOs said they have
key operations) and less clear growth
trajectories in some fast-growing econo-
mies matter. As does increasing competi-
tion in international markets. For example,
this year, a higher percentage of German
CEOs said that China became a more
important market than the US.
Yet the range of potential outcomes in
the US factor in, too. Tilting positively
US CEOs see US market expansion as primary growth driver in 2013
What do you see as the main opportunity to grow your business in the next 12 months?
Organic growth in
existing domestic
market
New M&A/joint
ventures/strategic
alliances
New product or
service development
Organic growth in
existing foreign market
New operation(s) in
foreign markets
41%
22%
17%
16%
4%
Increased share in
existing markets
New product or
service development
New geographic
markets
Mergers and
acquisitions
New joint ventures
and/or strategic
alliances
38%
26%
16%
13%
6%
2012 2013
Note: There were variations in the survey question from year to year. Base: 2012: 161; 2013: 167.
Sources: PwC, 15th Annual Global CEO Survey, January 2012; PwC, 16th Annual Global CEO Survey, January 2013.
When people ask me whats going to
happen in the next fve years, I throw
up my hands and say, I have no idea
and neither do you. How do you
cope with that degree of uncertainty?
Well, I think frst by having the right
attitude about the process of change
and reinvention. And second, is by
forming partnerships, collaborations
and alliances with other like-minded
companies that have something to
contribute beyond what you can
provide.
Peter Tortorici, CEO, GroupM
Entertainment Global
is a fedgling housing recovery and the
shale gas revolution.
1
It bears repeating: International markets
are crucial to CEOs no matter where they
are based. Foreign revenue now accounts
for around 40% of total revenue for global
companies.
2
And sources of global growth
1 PwC, Shale Gas: A renaissance in US manufacturing? 2011
2 MSCI Global Index.
Growth
4 PwC
and investment fows have been shifting
for some time, with the 2008 fnancial
crisis accelerating the trend. China,
India and Brazil will together add around
$1 trillion to the world economy in 2013.
3
Over the next three yearsas global
competition intensifesCEOs will need
to develop a keener sense of what will drive
growth and how to create sustainable busi-
nesses.
4
That is perhaps what has changed
for CEOs the most.
3 PwC, Global Economy Watch, January 2013.
4 PwC, Growth in new markets: Its all about how, 2012.
China still #1, but German, Canadian and Mexican markets rise in importance
for US CEOs
Which three countries, excluding the US, do you consider most important to overall growth
prospects over the next 12 months?
China 48%
Brazil 24%
India 17%
UK 16%
Germany 12%
Canada 11%
Mexico 9%
China 41%
Brazil 21%
Germany 21%
Canada 20%
UK 15%
India 13%
Mexico 13%
2012 2013
Base: 2012: 161; 2013: 167. Sources: PwC, 15th Annual Global CEO Survey, January 2012; PwC, 16th Annual Global
CEO Survey, January 2013.
This is the manufacturing heartland. It always has been, and if we can develop
[shale gas] resources and take advantage of them, we have an opportunity to see
real and sustained growth, not only from an economic development standpoint
across all sectorsresidential, commercial, as well as industrialbut the spin
off that fows from additional manufacturing in this area. This is the greatest
opportunity weve had in years in this country to reposition ourselves again as
a leader in manufacturing and in advanced technologies.
Anthony Alexander, President and CEO, FirstEnergy, Oct. 5, 2012
US CEOs are more intent on M&A in 2013
than their global peers, and theyre concen-
trating on consolidation and expansion in
the US market. Consider that 42% of US
CEOs said theyre planning to complete
a domestic deal this year. It will mark a
signifcant uptick if theyre able to deliver:
30% said they completed a domestic deal
in 2012.
The US deals market, while in better shape
than some markets elsewhere, remains
restrained. Increasing interest in strategic
alliances is a factor,
1
yet the fundamentals
for growth in the deals market are in place.
Interest rates are low and over $1 trillion
in cash sits on corporate balance sheets.
1 PwC, Navigating Joint Ventures and Business Alliances,
2012.
How can we take advantage
of a potentially healthier
deals market in 2013?
Fiscal and economic uncertainties
loom large, yet there are some sector-
specifc shifts in play that may drive
activity. Sweeping reforms in the
Affordable Care Act are likely to spur
consolidation as healthcare revenue
models change.
2
Another example:
Financial services companies continue
to pursue divestitures to bolster capital
levels and unlock asset value.
In fact, divestitures have been important
representing around a third of deal volume
in 2012and they are expected to retain
a prominent strategic position in 2013 for
US and European CEOs. Companies are
tapping into a variety of exit options in
this market.
3
CEOs based outside North America are
a second source for US activity: 30% of
global CEOs said they plan an acquisition
or alliance in North America, led by phar-
maceuticals & life sciences (52%); power &
utilities (44%); transportation & logistics
(42%); and technology CEOs (39%).
2 PwC, Health reform re-elected: ACA implementation in
tough fscal times, 2012.
3 PwC, Corporate exit strategies: Selecting the best strategy
to generate value, 2012.
Were about a $1.5 billion system
right now. To compete in this market,
we need to probably be in the $3 to
$5 billion dollar range Therefore,
one would think that consolidation
is something that will likely occur,
just as it is occurring in many other
places across the country.
Dr. Larry Kaiser, President and CEO, Temple
University Health System
Domestic deals, alliances on 2013 agenda for US CEOs
Which, if any, of the following restructuring activities have you initiated in the past 12 months?
Plan to initiate in the coming 12 months?
Completed deals
in 2012
Planning deals
in 2013
Domestic M&A
US CEOs
30%
23%
25%
42%
42%
28%
22%
57%
24%
19%
19%
36%
28%
26%
15%
47%
Cross-border M&A
Divestitures/
market exits
New alliances/JVs
Global CEOs
Base: US: 167; Global: 1,330. Sources: PwC, 15th Annual Global CEO Survey, January 2012;
PwC, 16th Annual Global CEO Survey, January 2013.
Deals
6 PwC
US CEOs recognize theyll have to work
around a fock of new risks, from global
debt burdens to social media scrutiny.
Growth strategies should factor in how
government policies could shock the
economy90% of US CEOs worry about
uncertain or volatile economic growth,
a greater share than their global peers.
In their view, potential outcomes for 2013
are wide-ranging. On average, CEOs expect
more than one major risk event to occur.
The future increasingly depends on
unpredictable risks far beyond core
operationsfnancial meltdowns or cyber
breaches, to name two. Scenario testing
offers one example of concrete measures
some business leaders are taking to better
understand where their companies vulner-
abilities lie.
What can we do to
make our company more
resilient to signifcant
and unpredictable risks?
US CEOs rate a wide range of possible high-impact risks
How likely are the following scenarios to occur? And how would your organization cope with
the following scenarios if they happened within the next 12 months?
0% 10% 20% 30% 40% 50%
40%
60%
80%
100%
CEOs who think its likely to occur
C
E
O
s

w
h
o

t
h
i
n
k

i
t
s

l
i
k
e
l
y

t
o

h
a
v
e

n
e
g
a
t
i
v
e

i
m
p
a
c
t
Chinas GDP growth
falling below 7.5%
Chinas GDP growth
falling below 7.5%
Recession
in the US
Recession
in the US
Cyberattack or
major disruption
Cyberattack or
major disruption
Military or trade
tensions affecting
access to natural
resources
Military or trade
tensions affecting
access to natural
resources
Natural disaster
disrupting a major
trading/
manufacturing hub
Natural disaster
disrupting a major
trading/
manufacturing hub
Break-up
of the Eurozone
Break-up
of the Eurozone
Health crisis Health crisis
Major social unrest
in the country in which
you are based
Major social unrest
in the country in which
you are based
Base: 167. Respondents who stated likely to occur and respondents who stated it would have a negative impact.
Source: PwC, 16th Annual Global CEO Survey, January 2013.
I dont think that organizations that
are slow to adjust and that are reactive
are going to thrive in the years ahead.
So we are going to invest time, resources
and attention to become a more
innovative organization, and to do
it quickly.
Steven H. Lesnik, Chairman, President and CEO,
Career Education Corporation
Risks
Another comes from the modern, fexible
supply chainone area of operations that
has been tested heavily in recent years.
Companies are now working more closely
with a range of supply chain partners to
ensure they can quickly scale up or down
in response to sudden changes in demand.
1

Agility requires thinking about the
system, not just the enterprise. US CEOs
are responding by engaging more broadly
across sprawling networks. More than half
1 PwC, 10Minutes on supply chain fexibility, 2013.
We need to fnd a way to create trust so that we can look beyond the next year.
We need to create confdence and a partnership between government and business,
so that CEOs worldwide and their leadership teams put that money into capital
expenditures and people and building better opportunities for the future. Because
buying back your shares is only a short-term solution. It does not solve the long-
term growth that is necessary to have a high-performing stock.
Larry Fink, Chairman and CEO, BlackRock, Inc.
of US CEOs said their strategies are infu-
enced by local communities, users of social
media, industry competitors and peers,
governments and regulators, as well as
those closer to their operations. They
also plan to strengthen engagement with
a majority of their infuential stakeholders.
These steps all add up to businesses building
resilience to move forward and grow in an
increasingly uncertain environment.
8 PwC
Tax issues top US CEO concerns, with
almost three-quarters concerned (of which
40% are extremely concerned) about how
tax reform could potentially slow activity,
turn profts into higher tax bills and make
them less globally competitive.
Taxes are particularly thorny for global
companies. And while much is changing
more countries continue to take steps
to ease the tax compliance burden on
business
1
few CEOs expect overall relief
on global tax standards anytime soon.
More than two-thirds of US CEOs said
that governments are not succeeding in
harmonizing global tax and regulatory
frameworks.
1 PwC, World Bank and IFC, Paying taxes 2013.
How can we forge ahead
amid uncertainty about
tax and regulations?
Fiscal policy, tax uncertainties weigh heavily on US CEOs
How concerned are you about the following potential business, economic and policy threats
to your growth prospects?
Government response to fiscal
deficit and debt burden
Uncertain or volatile economic
growth
67%
53%
35%
39%
Over-regulation
44% 30%
40% 25%
US CEOs Global CEOs
Base: US: 167; Global: 1,330. Respondents who stated extremely concerned. Source: PwC, 16th Annual Global
CEO Survey, January 2013.
The global community of regulators
as well as the political classesare
keen on ensuring the stability of the
fnancial system. And that implies a
completely new order, a new set of
rules to play by. In these cases, its not
uncommon to wind up in a situation
of regulatory overreach.
Piyush Gupta, CEO and Director, DBS Group,
Singapore, 16th Annual Global CEO Survey
Yet despite being much more concerned
about taxes than their global counterparts,
US CEOs are only marginally more likely
to take a closer look at their approaches
to tax planning and contribution (40% vs.
37% globally).
Keep an eye on tax policy in 2013. Reforms
can drive up tax bills, but well-targeted
changes can increase business confdence
and open new opportunities.
Tax
US CEOs continue to keep costs in check.
Last year, 81% implemented cost-cutting
measures. In 2013, 71% are planning cuts.
In an environment of pricing pressure and
slow demand growth, every element of
direct and SG&A expense is getting a fresh
look. Businesses are redoubling efforts to
analyzeand scrutinizedynamics on
many fronts, including customer demand,
labor costs, technology, transportation
and regulatory/tax regimes.
Yet CEOs are seeking more from opera-
tional leaders than holding the line on
costs. Theyre also being asked to create
value and contribute to growth. Forty-
four percent of US CEOs are investing
to increase their companys operational
effectiveness.
What are the most
important transformations
in operations that our
company needs?
Underlying every business model is an
operating model that marshals assets,
partners, technologies and systems to actu-
ally make things happen. Thus CEOs seek
opportunities for competitive advantage in
their operating models to offer customers
more and to do so at a lower cost.
Such opportunities lie in core processes
like product innovation, supply chain and
service delivery; or in transforming corpo-
rate functions like procurement, tax and
marketing. Leading companies take a global
view, and some are seeing performance
gains from setting up a global business
services structure that integrates functions
and focuses them on customer needs.
1
1 PwC, 10Minutes on creating value from Global Business
Services, 2012.
Fast pace of strategic change drives cost agenda for US CEOs
To what extent do you anticipate your companys strategy will change over the next 12 months?
Any of the following areas over the next 12 months? Which, if any, restructuring activities do
you plan to initiate in the coming 12 months?
61%
expect some level
of strategic change
in their companies
in 2013
68%
anticipate changes
to their companys
organizational
structure
29%
plan to outsource
a business
process or
function
17%
plan to insource
a previously
outsourced business
process or function
Base: 167. Source: PwC, 16th Annual Global CEO Survey, January 2013.
I see more movement toward looking
at population health management
and the fact that we need to learn
how to manage the chronic diseases
in a population, which account for
so much of the healthcare dollar.
Joel Allison, President and CEO, Baylor
Health Care System
Given that the global economy and
the global pace of life are getting
faster in all aspects, one needs to
become more agile and effcient
about everythingincluding running
a company. Its essential that you
streamline operations and become
leaner wherever you can, so as to
be able to react more quickly to
changing market conditions.
Anders Nyrn, President and CEO,
Industrivrden AB, 16th Annual Global
CEO Survey
Operations
10 PwC
A recent host of factors, including market
and demand volatility, the speed of process
automation, transparency needs, and even
disruptions due to natural disasters have
led to questions about what strong supply
chain performance looks like. Companies
that run the supply chain as a strategic
asset want their suppliers to be true
partners in helping them cope with
the ups and downs.
1
In the year ahead, more than half of US
CEOs (53%) plan to strengthen engagement
1 PwC, Next-generation supply chains: Effcient, fast and
tailored, 2012.
with key suppliers to both minimize costs
and maximize supply chain fexibility and
delivery performance. Globally, industries
most focused on supply chain engagement
include industrial manufacturing (84%),
consumer goods (80%), energy, oil and
gas (79%) and technology (76%).
Theyll have a full agenda. In many cases
theyll be collaborating on delivery issues
and requirements to tailor products to
different consumer needs; 43% of US
CEOs said 2013 will bring more shifts in
consumer spending behaviors. Many US
CEOs are concerned about energy and
How can we shore up our
supply chain so that its
better able to withstand
disruptions?
raw material costs (41%). Theyll be
looking at how low-cost options for shale
gas change sourcing options, in addition
to other benefts of reshoring.
2
A more sustainable supply chain is of
interest, too. Reducing the companys envi-
ronmental footprintmuch of which falls
along the supply chainmakes the radar
(43%). But sustainability doesnt come
without signifcant challenges: The use of
low-cost and best-cost country sourcing
can make it more diffcult to control envi-
ronmental and social risks.
2 PwC, 10Minutes on US manufacturing resurgence, 2012.
CEOs to strengthen engagement with partners to fortify supply chains against array of risks
How concerned are you about the following potential business, economic and policy threats to your growth prospects?
Protectionist tendencies of national governments
Shift in consumer spending and behaviors
Energy and raw material costs
Inability to protect intellectual property and customer data
Bribery and corruption
Supply chain disruption
US CEOs Global CEOs
90% 81%
54% 58%
47% 51%
43% 49%
43% 42%
41% 54%
41% 52%
36% 34%
27% 35%
24% 41%
23% 35%
Base: US: 167; Global: 1,330. CEOs who responded extremely or somewhat concerned, select answers shown.
Every crisis is also a learning
experience and an opportunity
to deepen your crisis management
capabilities. But our operations are
now scaled so broadly that we have
to accept the fact that there are some
events that just arent predictable.
A degree of fragility is part and
parcel of the system.
Peter Tortorici, CEO, GroupM Entertainment
Global
Supply chain
Talent availability remains a signifcant
concern for CEOs everywhere. In an age
in which companies are increasingly
differentiated by the talent they can
deploy, this shouldnt come as a surprise.
1

More than half of US CEOs point to the
availability of key skills as a potential
threat to growth in 2013. With talent widely
recognized as central to powering growth,
more CEOs are taking action. In fact, nearly
three-quarters of US CEOs expect to change
their talent management strategies, with
18% prepared to make major changes in
the coming year.
To do that, they are willing to commit
resources, with 65% of US CEOs planning
to invest in creating and fostering a skilled
workforce in their home country. But they
also dont expect to do it alone: 68% of
US CEOs said building a skilled workforce
should be a top government priority. They
also believe theres considerable room for
improvement, with only 3% saying that the
government has been effective in doing so.
Where else will they focus when it comes
to talent? For those who agree employees
are important stakeholders, 80% plan
to strengthen employee engagement
programs. They also are focusing on
1 PwC, 10Minutes on talent priorities, 2012.
developing their leadership pipelines,
including active succession planning
(89%) and programs to encourage
diversity among business leaders (64%).
They say that the most effective of these
strategies include involving managers
in strategic decision-making and active
succession planning.
How will we foster the
next generation of leaders
in our company?
CEOs identify the most effective strategies for managing the leadership pipeline
How effective are the following options at developing your leadership pipeline?
Involving managers below board level in
strategic decision-making
Active succession planning including
identifying multiple successors
Rotations to different functions/challenges
Encouraging global mobility and
international experience
Dedicated executive development program
Programs to encourage diversity among
business leaders
Shadowing a senior executive
US CEOs Global CEOs
84% 70%
74% 59%
51% 52%
50% 51%
47% 59%
46% 44%
20% 29%
Base: US: 167; Global: 1,330. Respondents who stated very effective or somewhat effective.
There is clearly a supply-demand
issue when it comes to top-level talent
globally. Given the demographics, the
technology changes that were seeing
today, and the economic environment
in which were operating, the supply-
demand issue is not going to go away
overnight.
L. Kevin Kelly, CEO, Heidrick & Struggles
Talent
12 PwC
CEOs are rallying their organizations
around the customer in 2013. It is the
clearest refrain from this years survey.
This is a top three investment priority for
CEOs (63%); expanding their customer
base is where more US CEOs believe
their main opportunities lie.
Whats different this time? A lotand US
CEOs are signaling theyll invest time and
money to catch up. Nearly half of US CEOs
worry that shifts in consumer spending and
behaviors threaten their companies growth
prospects. But this isnt just about retailers
and the intense online competition they
face. Its never been easier for a customer
to walk away from an established company
relationship, regardless of the industry.
Consider that orders for many US contract
manufacturers go global from day one. In
the power & utilities industry, which until
recently had a virtually captive customer
base, 80% of senior executives acknowledge
that shortcomings in customer engagement
could limit the potential impact of smart
grid technology.
1
Thus getting closer to the customer is
escalating into putting the customer at
the heart of the company. Ninety percent
of US respondents said they are
1 PwC, The shape of power to come, 2012.
strengthening their customer and client
engagement programs.
In the CEOs corner are evolving technology
tools, such as predictive analysis, that open
the door to a deeper understanding of their
customers behaviors and help to measure
success.
2
Collaboration initiatives provide
another example: Leading companies
2 PwC, The third wave of customer analytics,
Technology Forecast: Reshaping the workforce with the
new analytics, 2012.
How can we more
effectively put our
customers at the center
of our growth initiatives?
CEOs show disparity in customer-centered investment priorities
What are your top three investment priorities over the next 12 months?
0% 20% 40% 60%
US CEOs ranking
customer as a top three
investment priority
Growing your
customer base
Enhancing
customer
service
South Africa
US
Mexico
Africa
Western Europe
Global
Asia Pacific
Japan
China & Hong Kong
Latin America
India
Russia
Brazil
Bases: Western Europe: 312; Asia Pacifc: 449; Japan: 162; China & Hong Kong: 132; India: 73; US: 167;
Latin America: 165; Brazil: 45; Mexico: 110; Russia: 41; Africa: 48; South Africa: 56.
Some of the key elements in IFFs
success model are based around
customer intimacy and consumer
insights. It all starts with the
consumera rich and robust
understanding of what they want,
where theyre going, but, most
importantly, what they want
in the future.
Douglas D. Tough, Chairman and CEO,
International Flavors and Fragrances, Inc.
confgure their supply chains for specifc
customer segments, adopting collaborative
planning with customers and suppliers.
Companies with the strongest customer-
centered DNA have CEOs who double as
the chief customer offcer, in spirit if not
in title.
Customer focus
CEOs investing more to secure natural resources
How strongly do you agree or disagree that the government helps companies secure access
to natural resources (e.g., raw materials, water and energy)? How much does your company
plan to increase its investment over the next three years to secure natural resources that are
critical to business in the country in which you are based?
Agree that the government helps
companies secure access to natural
resources (e.g., raw materials, water,
energy)
Plan to increase investment over the
next three years in securing natural
resources
20%
52%
17%
35%
Emerging-market
CEOs
Developed-market
CEOs
Base: Emerging-market CEOs: 671; Developed-market CEOs: 659. Respondents who stated Agree or Agree
strongly and who stated small increase, some increase or a signifcant increase.
Energy is on the radar for US CEOs, with
41% of US CEOs and 52% of global CEOs
concerned about rising energy costs as a
threat to growth prospects.
Global energy demand is set to grow
more than one-third between now and
2035.
1
Environmentally, thats unsustain-
able. On this path, not only will green-
house gas emissions soar, but energy will
become thirstier. Water needed for energy
1 World Energy Outlook 2012, OECD/IEA, November
2012.
production is set to grow at twice the rate
of energy demand, due to more diversity
in the energy supply.
2
Add a trend toward
greater interactions between fuels, markets
and prices, and the result is little immunity
from global energy market fuctuations.
3
Thus CEOs are intent on securing natural
resources now, including energy, water and
raw materials. Over the next three years,
35% of developed-market CEOs plan to
2 Ibid.
3 Ibid.
What more can we do
to prepare for global
constraints on critical
natural resources?
Sustainability
14 PwC
increase investment in securing natural
resources, and 52% of emerging-market
CEOs said the same.
Beyond securing what theyll need,
CEOs will make energy effciency and
water conservation measures pay off
in both cost and reputation; 43% of US
CEOs plan to increase efforts to reduce
their companies environmental impacts.
Other stakeholdersincluding
employees, local communities, govern-
ments and supply chain partnersare
important, too. Half of US CEOs plan
to increase their companies focus on
a framework to support a culture of
ethical behavior. Nearly one-third plan
to increase their focus on non-fnancial
reporting, giving stakeholders a better
view of the companys worth and the
value it contributes to society.
Environmental and social issues get more CEO attention
How concerned are you about lack of trust in your industry as a threat to your growth prospects? To what extent does your organization plan
to focus on the following priorities over the next 12 months?
US
Lack of trust in your industry? Framework to support
a culture of ethical
behavior
Reducing
environmental
footprint
Social enterprise
initiatives
Non-financial reporting
(including corporate
responsibility reporting)
27%
Global
39%
50% 43% 30% 30%
56% 48% 35% 41%
Base: US: 167; Global: 1,330. Respondents who stated extremely or somewhat concerned and increase our focus somewhat or increase our focus signifcantly.
Sustainability is important to our customers, and increasingly its become very
important to our employees who want to see the company as a highly responsible,
sustainable organization. Beyond that, its just good business. The triple bottom
line of environmental and consumer safety and proftability all come together,
and reduced waste generates savings for the company.
Douglas D. Tough, Chairman and CEO, International Flavors & Fragrances, Inc.
Increasingly sophisticated investors, regu-
lators and customers reward greater trans-
parency. On the other hand, new disclosure
rules and viral reaction cycles punish frank
talk. Whats a CEO to do?
Opting out of social media is no longer a
viable option. Customers, competitors and
employees are all participants in a global
fow of information about a companys
brand and industry. And 69% of US adult
online users are connected to at least one
social media platform.
1
Word-of -mouth
marketing has turned into instantaneous
reviews by customers56% of consumers
say they are more likely to recommend a
1 Social Networking, Pew Internet Project, 2012.
Do we really *like*
social media?
brand after liking it on Facebook.
2
One
in three social media users say they prefer
to use the platform over the phone for
customer service.
3
Thus many businesses today are experi-
menting with social media, taking steps
like embedding digital tools and methods
into workfow. The more advanced are
social by design, not by refex. They are
converging customer, sales and social
data to empower the sales process, using
measurement and analytics to improve
predictability. The fully engaged are seeing
results in increased revenue and loyalty.
CEOs recognize the power of their online
dialogues; 53% of US CEOs said social
media users infuence their business
strategy. The viral nature of social media
puts company behaviorinternal and
externalpotentially on display. The
heightened reputational risk is not lost
on business leaders: 50% of US CEOs
said theyre increasing their focus on
supporting a culture of ethical behavior.
2 10 Quick Facts You Should Know About Consumer
Behavior on Facebook, Constant Contact and Chadwick
Martin Bailey, 2011.
3 State of the Media: The Social Media Report, Nielsen,
2012.
US CEOs catching up to rise of social media
To what extent do users of social media influence your business strategy?
US CEOs who say social media users
influence their business strategy
US adult online users connected to
at least one social network
53% 69%
Base: 167. Sources: PwC, 16th Annual Global CEO Survey, 2013; Pew Internet Project, Social Networking,
November 2012.
People are communicating differently
today, and I think its important to
stay in touch with the frontlines.
Steve Smith, CEO and President, Equinix, Inc.
Social media
16 PwC
With intellectual property, trade secrets,
fnancial information and even national
security at risk, CEOs and boards are paying
more attention to what once was consid-
ered an IT issue. Cyberattacks are now a
routine part of doing business; among US
CEOs, 31% believe a cyberattack or major
Internet disruption is likely to occur.
Company leaders are acknowledging that
as weve become more reliant on informa-
tion assets, cyberthreats are an intrinsic
part of the digital business ecosystem. And
many are also realizing that cybersecurity
underpins everything they doproduct
and service development, mergers and
acquisitions, and operations. Companies
that are adopting this new mindset have
identifed their most crucial information
assets and prioritized how they will protect
them. Theyre considering cybersecurity at
the outset of business initiatives. Theyre
also evaluating responsibility and account-
ability, with many installing an executive
role or council charged with all aspects
of cybersecurity.
They do recognize the potential damage a
security breach could infict, both fnancial
and reputational; 68% of US CEOs said
How do we get to a place
where cyberattacks are less
of a threat to our network?
that a cyberattack would have a negative
impact on their businesses. CEOs of global
industries that deal in regulated data are
most concerned about the negative impact
of cyberattacks, such as banking (77%),
power & utilities (73%), healthcare (71%)
and communications (71%).
Some CEOs are beginning to view cyberse-
curity as an integral part of their business
strategyone that can even bring advan-
tage. Some 10% of US CEOs said a cyberat-
tack could present an opportunitynot a
threatfor their businesses. Only 4% of
global CEOs felt the same way.
US CEOs anticipating cyberattacks more than global counterparts
How likely is a cyberattack or major disruption of the Internet?
32%
37%
31%
Likely
to occur
Unlikely
to occur
Not sure
US CEOs
35%
44%
Global CEOs
20%
Base: US: 167; Global: 1,330. Source: PwC, 16th Annual Global CEO Survey, 2013.
Cybersecurity
About the 2013 US CEO Survey
PwC conducted 167 interviews with US-based CEOs as a part of the 16th Annual
PwC Global CEO Survey. In all, PwC conducted a total of 1,330 interviews with CEOs in
68 countries between 5 September and 4 December 2012. The interviews were spread
across a range of industries, with further details by region and industry available on request.
The majority of interviews were conducted by telephone, with some country exceptions:
Interviews were conducted face-to-face in Africa and the Philippines; postal surveys
were used in Japan and Korea; and online surveys were completed in Australia, Iceland
and Singapore. The US and Greece also used a mixed approach of telephone and online.
In addition, members of our global CEO panel were invited to take part online, with
230 CEOs providing their views. All interviews were conducted in confdence and on
an unattributable basis. In all, PwC conducted in-depth interviews with 33 CEOs from
fve continents over the fourth quarter of 2012. The Global CEO Survey can be found at
http://www.pwc.com/ceosurvey.
For this report, PwC also conducted in-depth interviews with nine US-based CEOs.
Their interviews are quoted in this report, and more extensive extracts can be found
on our website at http://www.pwc.com/usceosurvey.
Note: Not all fgures add up to 100%, due to rounding of percentages and
to the exclusion of neither/nor and dont know responses.
18 PwC
To have a deeper discussion about the
2013 US CEO Survey fndings, please contact:
Bob Moritz
US Chairman and Senior Partner
1 646 471 8486
robert.moritz@us.pwc.com
Rob Gittings
US Vice Chairman, Client Service
1 646 471 7586
robert.gittings@us.pwc.com
Tom Craren
Partner, Global CEO Survey Advisory Board
1 646 471 6465
tom.craren@us.pwc.com
Advisors
Ed Boswell
David Burg
Michael Compton
Tom Craren
Paul DAlessandro
Michael Hinchcliffe
Ben McConnell
Eileen Mullaney
Kathy Nieland
Scott Olsen
John Potter
Mark Strom
Core editorial team
Cristina Ampil
Nicholas Braude
Emily Church
Francisco Gomez
Dee Hildy
Jessical Melwani
Angela Pham
Craig Scalise
Elizabeth Strott
Deepali Sussman
Peter Vigil
Christine Wendin
Principal author and editor
Emily Church
Project management
Natalie Kontra
Creative
Tracy Fulham
Adiba Khan
Amy Kunz
Samantha Patterson
Tatiana Pechenik
Isabella Piestrzynska
Tanya Rebelo
Adam West
Acknowledgements
PwC 20
www.pwc.com/usceosurvey
PwC helps organisations and individuals create the value theyre looking for. Were a network of frms in 158 countries with more than 180,000 people who are committed to delivering
quality in assurance, tax and advisory services. Tell us what matters to you and fnd out more by visiting us at www.pwc.com.
2013 PricewaterhouseCoopers. All rights reserved. PwC refers to the PwC network and/or one or more of its member frms, each of which is a separate legal entity. Please see
www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
February 2013
Change is the
only choice
Dealing with disruption
16th Annual Global CEO Survey summary:
Key fndings in the Asset Management industry
PwC 16th Annual Global CEO Survey Key fndings in the Asset Management industry 2
Far-reaching changes are taking place, and theyre taking
place faster than ever. In this new era of stable instability,
risks that once seemed improbable and even remote have
become the norm and for CEOs across the world, expect
the unexpected has become the mantra. The only solution
is to build organisations that can thrive amidst disorder:
organisations that are resilient, able to cope with disruption
and emerge stronger than before.
We polled 1,330 CEOs in 68 countries, and talked face-
to-face with another 33 CEOs, in our 16th Annual Global
CEO Survey, to fnd out how theyre creating organisations
that can fourish under stress. Dealing with disruption
shows that CEOs are focusing on a few carefully selected
initiatives to stimulate organic growth; exploring new ways
to attract and keep customers; and balancing effciency
with agility. And to succeed in these three goals, CEOs
are recognising the role that trust plays, and that theyll
have to work hard to repair the bridges between business
and society.
This report is a summary of our key fndings in the asset
management sector, based on interviews with 108 asset
management CEOs in 27 countries, as well as in-depth
interviews with Larry Fink, CEO of BlackRock and
Seymur Tari, CEO of Turkven Private Equity. To see the
full results of the 16th Annual Global Survey, please visit
Asset management CEOs are adapting their
businesses to a radically new post-credit crisis
environment, says Barry Benjamin, PwCs
Global Asset Management Leader. A year ago,
confdence in the global economy was extremely
low. The immediate implications of revenue
pressure, preparing for new regulations and
evolving investor requirements absorbed every
CEOs full attention. 2013s survey reveals that
theyre less gloomy about the economy and are
beginning to tackle the strategic implications
of this new world.
The survey tells us that, to varying degrees,
theyre reshaping their businesses. Apart
from the issues affecting asset management
specifcally, theyre preparing for the historic
rise of emerging-market economies and
transformational effects of digital technology
both issues we explore in our Project Blue
analysis of trends reshaping fnancial services
1
.
CEOs are reshuffing their businesses through
mergers and alliances; theyre refning talent
strategies and re-engineering operations.
One thing is clear: They know that change is their
only choice.
Asset Management industry summary
1 For reports and analysis setting out our perspectives on the way ahead visit
www.pwc.com/projectblue
Introduction
Asset management CEOs are getting
less anxious about economic growth,
but theyre not leaving their frms
futures to chance. While they
recognise that Western economies
fscal diffculties will take time to
resolve, with huge amounts
of cash sitting on the sidelines
and more sustained economic
growth in emerging markets, they
sense opportunity.
According to BlackRock CEO, Larry
Fink, great opportunity awaits those
frms with the right investment
propositions: One of the great
trends that have been muting the
global economies can become a big
opportunity for frms like BlackRock
and that is the enormous amount of
cash thats sitting with corporations,
he says. In the US its $1.7 trillion.
But in terms of the amount of money
thats sitting in bank deposits and low
duration bond funds, were talking
multiple trillions of dollars.
So, its not surprising that asset
management CEOs think their
businesses have better prospects
than the global economy as a
whole. But they recognise that in
order to achieve this growth they
must re-organise their businesses
in some cases radically to meet
clients evolving needs for complete
investment solutions rather than
stand-alone investment products.
Asset managers are looking to joint
ventures, alliances and mergers
as ways of broadening their
capabilities and gaining access to new
markets. In our experience, theyre
looking particularly to do so in the
sought-after spheres of alternative
investments and emerging markets
such as China, India and Brazil.
Under pressure from mounting
regulation and fee reductions, theyre
re-engineering their organisations.
By investing in technology and
outsourcing to specialist service
providers, theyre improving
reporting, becoming more effcient
and cutting overheads. But theyre
no longer as focused on reducing
headcount, especially among
investment professionals, recognising
that investment talent is always in
short supply.
Finally, no 2013 survey of asset
management CEOs outlook could
ignore the increasing levels of
regulation. CEOs view regulatory
compliance as a major challenge,
sapping confdence and adding
to costs.
Finding new routes
to growth
After plumbing the depths last
year, CEO anxiety about the global
economy is lifting. 18% expect the
global economy to improve in the next
12 months, with 51% believing it will
stay the same. This compares with
44% of CEOs who voiced extreme
concern last year. While fscal
diffculties in Europe and the US arent
expected to disappear overnight,
CEOs anticipate a positive resolution
is on the horizon.
When viewing their own businesses,
78% of CEOs anticipate growth in
the next 12 months and 86% predict
growth over three years, refecting
the likely improvement in economic
conditions. These confdence levels
are similar to those in 2012s survey,
although signifcantly lower than in
the 2011 survey, when all the CEOs
surveyed expected their businesses
would grow over three years.
The largest proportion of CEOs,
39%, sees organic growth in their
domestic markets as offering greatest
potential. But refecting the strategic
challenges they face, many are
looking to deploy more fundamental
measures such as mergers, joint
ventures, strategic alliances or
establishing new operations in foreign
markets. 58% plan an acquisition,
joint venture or strategic alliance in
2013 by comparison only 32% and
49% of their banking and insurance
peers respectively plan such radical
courses of action. Whats more,
35% of asset management CEOs are
also planning to divest businesses
showing how theyre shuffing their
product capabilities to meet investors
changing requirements.
In asset management, highly-skilled
teams of portfolio managers make
all the difference to investment
performance. So large asset
management frms buy or ally with
specialist frms in areas such as
alternative investments, as doing so is
easier than building teams in-house.
Whats more, asset managers seeking
to access fast-growing emerging
markets realise that acquisitions or
alliances are the best way to do so.
Seymur Tari, CEO of Turkven Private
Equity, illustrates the superior
prospects of fast-growing emerging
countries such as Turkey. I think
Turkey will do very well for the next
When viewing their own businesses, 78% of CEOs anticipate growth in the
next 12 months and 86% predict growth over three years, refecting the
likely improvement in economic conditions.
86%
78%
10 years at least, he says. Our ratio
of household debt to GDP is 17%.
Our ratio of public debt to GDP is
36%. Thats 53% combined. In many
European countries and in the US
that number is closer to 200%. So we
have a very clean balance sheet. And
that gives Turkey the latitude - if we
wished to do so - to, say, borrow 5% of
GDP every year for the next ten years
to fuel growth, which would provide
a huge stimulus for the economy.
CEOs are looking to countries
like Turkey for growth, whether
through setting up local operations
or attracting assets from local
institutional investors such as
sovereign wealth funds. They have
highest hopes for the Middle East,
India, Latin America and Southeast
Asia. Refecting its economic
diffculties, Western Europe is the
region which they expect least from.
Naturally, CEOs regard growth as
their top investment priority for
2013. As a foundation to achieving
this goal, theyre looking to invest in
improving customer volumes, client
service and operational effectiveness.
A large number of CEOs also see the
importance of investing in technology,
acknowledging state-of-the-art
technologys role in attaining their
other goals.
CEOs acknowledge the need to
reshape their product offerings in
order to meet changing customer
needs. 36% of CEOs place mergers
and alliances among their investment
priorities for 2013, while 18% put
innovation high on the agenda.
In other words, CEOs know they need
to reshape what they offer investors in
a risk-averse, low-growth world where
investors are asking for fresh ideas.
Battling the threats of
austerity and regulation
Volatile economic growth and
government austerity policies remain
the biggest economic and policy
threats to growth, according to 81%
and 77% of CEOs respectively.
But theyre almost equally worried
about new regulations. 71% of CEOs
named over-regulation as a threat.
Many alternative managers will be
regulated for the frst time under
Dodd-Frank in the US and AIFMD in
Europe. And regulators are debating
curbs on shadow banking activities
such as money market funds, while
Basel IIIs higher bank capital
standards and OTC derivative controls
are affecting investment strategies.
Finally, if large asset managers are
designated as systemically important
fnancial institutions, they may also
have to hold more capital.
Regarding potential business threats
to growth, the greatest proportion of
CEOs, 55%, considers the increasing
tax burden as the biggest danger. But
46% also see shortage of portfolio
management talent as an issue.
Refecting the general disaffection
with fnancial services following the
credit crisis and serial scandals,
44% of CEOs voiced concern about
lack of trust in the asset management
industry. Theyre reacting by
designing products that reduce risk
and protect their investors against
uncertainty. Marketing and PR
messaging, similarly, is reassuring
and conservative.
Potentially damaging scenarios such
as a slowdown in Chinese economic
growth, US recession or Eurozone
break-up are all events that CEOs
believe would damage their frms
prospects. Also high on the list is a
cyber-attack or major disruption of
the internet. Yet asset management
CEOs dont rate this as highly as their
peers in insurance, suggesting that
the sector may still be under-prepared
for cyber threats. Some 62% of asset
management CEOs stated it would
have a negative effect, against 80% of
insurance CEOs.
Fundamental change or
incremental adjustment?
Are we at the beginning of a
radical infection point for asset
management? 66% of CEOs intend to
make changes to their frms strategies
over the coming 12 months. Whether
they make far-reaching changes or just
tweak strategies will depend on their
answer to this question. While 10% of
CEOs surveyed anticipate changing in
fundamental ways, 56% think they
will only change somewhat.
Naturally growth and customer loyalty
strategies are CEOs frst priorities.
But they see talent management as
an increasingly important area for
refning strategy; with 73% of those
CEOs planning to change strategy
anticipating doing so in this area.
New models for remunerating
investment professionals are
emerging, just as the importance
of culture and in-house talent
development is increasing.
Refecting the need to re-engineer
their organisations in order to improve
regulatory and client reporting while
minimising risk, CEOs see improving
their approaches to managing risk
as a high priority. Both investors
and regulators are demanding
more transparency and rigorous
management of all risks.
In terms of specifc initiatives that
CEOs have either implemented in
the last 12 months, or plan to in the
next 12 months, they regard cost
reduction as the highest priority.
But theyre also re-engineering
their entire organisations, seeking
to concentrate on core activities by
outsourcing non-core activities to
specialist service providers with scale.
While 51% of CEOs are planning to
hire more people in the coming year,
theyre likely to be hiring for front-
offce jobs like portfolio management
and sales; meanwhile, the back offce
remains under tight control.
Anticipating
stakeholders needs
The client is king in asset
management. At a time of ferce
competition for new business, CEOs
say their clients have more infuence
than any other stakeholder on their
business strategies, with 90% stating
this to be the case. But as the sector
becomes more tightly regulated,
government and regulators come
a close second, with 84% of CEOs
saying theyre infuential.
Social media users are becoming
a recognised stakeholder group.
While asset management frms have
been slow to adapt to the social
networking phenomenon, 50% of
CEOs now acknowledge its infuence.
Indeed, some 70% plan to strengthen
engagement with social media users.
Echoing the emphasis on attracting
and developing talent that runs
through the report, CEOs plan to
invest signifcantly in developing their
workforces. 55% of CEOs plan to
increase their investment in creating a
skilled workforce over the next three
years. But clearly the credit crisis
taught CEOs lessons about the best
way to remunerate their investment
staff. 79% say pay and performance
should be related to the risks taken.
CEOs have mixed views about the
success of government in helping their
industry. Just 41% of CEOs agreed
that government has returned the
fnancial sector to stability after the
crisis. They appear sceptical about the
effects of regulation, with only 13%
of CEOs agreeing that government
has reduced the regulatory burden.
Theyre similarly sceptical about
governments success in helping to
create a skilled workforce. Just 16%
believe theyve done so.
Conclusion
Adapting fast enough
The asset management sector
continues to grapple with volatile and
unpredictable markets, unremitting
regulatory changes that impose
signifcant costs and new risks,
together with investors demanding
enhanced returns and greater
transparency. Each of these factors
creates its own set of challenges and
increases business complexity.
So CEOs need to understand the
potential implications of this complex
set of changes taking place in their
markets, among their stakeholders
as well as in their own organisations.
They have to change and adapt
accordingly. Depending on their
individual circumstances, some will
have to make signifcant changes,
while others might only adjust in
subtle ways.
If you dont evolve and change you
go backwards. Its pure physics,
says BlackRock CEO, Larry Fink.
He sums up the challenge facing asset
management CEOs. Investors cant
simply leave their funds on deposit.
At some point theyll have to start
investing actively once more. But
theyre looking for new ideas and the
frms that provide them will prosper.
Investors cant simply leave their funds on deposit. At some
point theyll have to start investing actively once more.
But theyre looking for new ideas and the frms that provide
them will prosper.
Larry Fink, CEO of BlackRock
Contacts
Barry Benjamin
Global Leader, Asset Management
PwC (US)
T: +1 410 659 3400
E: barry.p.benjamin@us.pwc.com
Claire Clark
Global Asset Management,
Senior Marketing Manager
PwC (UK)
T: +44 20 7212 4314
E: claire.l.clark@uk.pwc.com
Download the main report, access
the results and explore the CEO
interviews from our 16th Annual
Global CEO Survey online at
information contained in this publication without obtaining specifc professional advice. No representation or warranty (express or implied) is given as to the accuracy or
completeness of the information contained in this publication, and, to the extent permitted by law, PwC does do not accept or assume any liability, responsibility or duty
16th Annual Global
CEO Survey
Key findings in the Asset
Management industry
January 2013
PwC
Change is the only choice
Far-reaching changes are taking place, and theyre taking place faster than ever. In this new era of stable
instability, risks that once seemed improbable and even remote have become the norm and for CEOs
across the world, expect the unexpected has become the mantra. The only solution is to build
organisations that can thrive amidst disorder: organisations that are resilient, able to cope with disruption
and emerge stronger than before.

We polled 1,330 CEOs in 68 countries, and talked face-to-face with another 33 CEOs, in our 16th Annual
Global CEO Survey, to find out how theyre creating organisations that can flourish under stress. Dealing
with disruption shows that CEOs are focusing on a few carefully selected initiatives to stimulate organic
growth; exploring new ways to attract and keep customers; and balancing efficiency with agility. And to
succeed in these three goals, CEOs are recognising the role that trust plays, and that theyll have to work
hard to repair the bridges between business and society.

This report is a summary of our key findings in the Asset Management sector, based on interviews
with 108 Asset Management CEOs in 109 countries, as well as in-depth interviews with Larry Fink, CEO
of BlackRock, and Seymur Tari, CEO of Turkven Private Equity. To see the full results of the 16th Annual
Global Survey, please visit www.pwc.com/ceosurvey.
16th Annual Global CEO Survey: Key findings in the Asset Management industry January 2013
2
PwC
Introduction
3
PwC
Introduction
Asset Management CEOs are less gloomy about the economic environment this year. Theyre not so
worried about threats like a break-up of the Eurozone or falling economic growth. So theyre beginning to
prepare their businesses for a new post-credit crisis environment.

As they look forward to the future, they know their businesses need to adapt to investors evolving needs
and to absorb the costs of regulation. In the next 12 months, 66% of Asset Management CEOs see a need
for change. 36% of CEOs place mergers and alliances among their investment priorities for 2013, while
18% put innovation high on the agenda.

Asset Management CEOs are beginning to adapt their businesses for the new world that has emerged
following the credit crisis. Theyre reshuffling their businesses through mergers and alliances, theyre
refining talent strategies and re-engineering operations.

Lets take a look at how.
4
PwC
Upbeat about prospects
78%
of Asset Management CEOs are confident
about the outlook for revenue growth over the
coming year.
5
PwC
Sector CEOs optimistic about their prospects
78% of Asset Management CEOs are confident they can raise the revenues their
companies generate over the coming year.

And theyre even more positive about the long-term picture: 86% are confident of being able
to boost revenues over the next three years.

Their responses reveal increasing optimism about the global economy:

18% of CEOs expect the economy to improve next year and 51% believe it will stay the
same

By comparison, 44% voiced extreme concern last year.
6
PwC
Threats
Volatile economic growth and fiscal
deficit remain the biggest economic
and policy threats to growth,
according to 81% and 77% of Asset
Management CEOs respectively.
7
PwC
Potential threats to growth

of Asset Management CEOs
are concerned about over-
regulation.
Of Asset Management CEOs
named fiscal deficit and debt
burden as a threat.
think volatile or uncertain
economic growth would be
the greatest threat.
71%
77%

81%
8
PwC
But CEOs do not think macro economic and geopolitical
threats especially likely...

Asset Management CEOs are not unduly concerned about macro economic threats,
although they think them more likely to occur than the surveys total sample.
Cyber-security stands out as an area where Asset Management CEOs are less
concerned than their peers.

13
15
16
17
20
25
32
45
12
12
17
14
14
28
34
51
0% 10% 20% 30% 40% 50% 60%
Health crisis
A break-up of the Eurozone
Cyber-attack or major disruption of the internet
Recession in the US
China's GDP falling below 7.5% per annum
Asset management Total sample
Base: All respondents (Total sample, 1,330; Asset Management, 108)
Note: Respondents who stated likely to occur.
Source: PwC 16th Annual Global CEO Survey 2013
9
PwC
So how are CEOs preparing for change?
66%
of Asset Management CEOs will change
their firms strategies in the next 12
months.
10
PwC
CEOs are changing the way they manage their
organisations

Q: Which, if any, of the following restructuring activities do you plan to initiate in the next 12 months?
11
15
16
26
28
31
47
70
16
19
24
26
30
30
55
67
0% 10% 20% 30% 40% 50% 60% 70% 80%
Divested majority interest in a business or exited a significant
market
Insourced a previously outsourced business process or function
Asset management Total sample
11
Base: All respondents (Total sample, 1,330; Asset Management, 108)

PwC
Anticipating stakeholders needs
The client is king for asset
managers CEOs; but regulators are
coming a close second.

12
PwC
Stakeholders influencing business strategies
The three most significant stakeholder groups

January 2013 16th Annual Global CEO Survey: Key findings in the Asset Management industry
13
regard competitors and
peers as important
stakeholders.
view government and
regulators as significant
stakeholders.
view customers and clients
as influential.
83%
84%

89%
PwC
Moving forwards

CEOs need to understand the potential implications of this complex set of changes
taking place in their markets, among their stakeholders as well as in their own
organisations.

They have to change and adapt accordingly.

Depending on their individual circumstances, some will have to make significant
changes, while others might only adjust in subtle ways.
14
PwC
Making change a continual occupation...
16th Annual Global CEO Survey: Key findings in the Asset Management industry
15
January 2013
If you dont evolve and
change you go backwards.
Its pure physics.

Larry Fink, CEO
BlackRock, US
PwC
For more information, please contact:
Barry Benjamin
Global Leader, Asset Management
T: +1 410 659 3400
E: barry.p.benjamin@us.pwc.com

Claire Clark
Global Asset Management, Senior Marketing Manager
T: +44 20 7212 4314
Download the main report, access the results and explore the CEO interviews
from our 16th Annual Global CEO Survey online at
16
January 2013
16th Annual Global CEO Survey: Key findings in the Asset Management industry
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this
publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this
publication, and, to the extent permitted by law, PwC does do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or
refraining to act, in reliance on the information contained in this publication or for any decision based on it.
2013 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for
further details.

121203-144542-EA-OS
Deali ng wi th di srupti on
16th Annual Global CEO Sur vey

Key findings in the
automotive industry
January 2013

PwC
Welcome

Far-reaching changes are taking place, and theyre taking place faster than ever. In this
new era of stable instability, risks that once seemed improbable and even remote have
become the norm and for CEOs across the world, expect the unexpected has become the
mantra. The only solution is to build organizations that can thrive amidst disorder:
organizations that are agile and adaptable, able to cope with disruption, and emerge
stronger than before.
We polled 1,330 CEOs in 68 countries, and talked face-to-face with another 33 CEOs, in
our 16th Annual Global CEO Survey, to find out how theyre creating resilient
organizations that can flourish under stress. Dealing with disruption shows that CEOs
are focusing on a few carefully selected initiatives to stimulate organic growth; exploring
new ways to attract and keep customers; and balancing efficiency with agility. And to
succeed in these three goals, CEOs are recognizing the role that trust plays, and that
theyll have to work hard to repair the bridges between business and society.
This report is a summary of our key findings in the Automotive sector, based on
interviews with 90 CEOs in 32 countries, as well as an in-depth interview with Yves Serra,
President and Chief Executive Officer, Georg Fischer Ltd., Switzerland. To see the full
results of the 16th Annual Global Survey, please visit www.pwc.com/ceosurvey.
2
J anuary 2013 16th Annual Global CEO Survey Key findings in the automotive industry
PwC
Contents
Page
Introduction 4
What worries CEOs the most 9
What CEOs are doing
Targeting pockets of opportunity 13
Concentrating on the customer 16
3
PwC
I ntroducti on
4
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I ntr oducti on
Automotive CEOs are a lot like their peers across industries. Theyre less confident this
year and theyre worried about threats like economic volatility or lack of availability of key
skills.

But there are some key differences too. For example, a lot more automotive CEOs see
energy costs as a potential problem 72% are concerned, compared to just 52% of the
total sample. And 71% of automotive CEOs are somewhat or extremely concerned about
exchange rate volatility, compared with the overall average of just 54%.

Thats understandable in a global sector. This year we see strong signs of how the industry
is changing. Chinas importance is dramatic; so is the concern about getting the natural
resources the industry will need.
5
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The di srupti ve decade
30%
of automotive CEOs are very confident
they can raise the revenues their
companies generate over the
coming year.
6
PwC
Automoti ve CEOs confi dence levels r eflect
tur bulent ti mes
There have been many disruptions in the past decade. Far-reaching changes are
happening and happening faster than before. Automotive CEOs tend to react more
strongly to ups and downs. Only 30% are very confident of revenue growth over the next
12 months, compared to 36% of CEOs overall. But theyre still significantly more
optimistic than during the depths of the crisis.
Q: How confident are you about your companys prospects for revenue growth over the next 12 months?
Base: All respondents 2013 (Total sample, 1330, Automotive, 90); 2012 (Total Sample, 1258; Automotive, 104); 2011 (Total sample, 1,201; Automotive, 50); 2010 (Total sample,
1,198; Automotive, 50); 2009 (Total sample, 1,124; Automotive, 62); 2008 (Total sample, 1,150; Automotive, 59)
7
PwC
And theyr e not as hopeful looki ng far ther out

While most CEOs are significantly more confident when looking forward 3 years, thats
not true for the automotive sector. Only 33% of automotive CEOs are very confident of 3
year growth, compared to 46% of the total sample.
Base: All respondents (Total sample, 1330; Automotive, 90)
8
PwC
What worri es CEOs the most?
82%
of automotive CEOs are concerned
about volatile or uncertain economic
growth.
9
PwC
Thr eats to gr owth ar e loomi ng
71% say currency fluctuations are a
concern.

71% also think government
responses to fiscal deficit and debt
burden could hurt growth.

72% see them as a concern,
compared to 52% of the overall
sample.
Exchange
rate
volati li ty
Defi ci ts
and debt

Raw
materi al
and
energy
costs
10
PwC
Economi c and poli cy thr eats could hur t pr ospects

Most automotive CEOs are concerned about a range of macroeconomic factors, with
uncertain growth and exchange rates heading the list. However, an increasing tax burden
and potential threats to the supply chain stand out as a concern as well.

Q: How concerned are you, if at all, about each of the following threats to your growth prospects?
Note: Respondents who stated extremely or somewhat concerned
concerned.
11
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So what are CEOs doi ng?
12
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Targeti ng pockets of opportuni ty
32%
of automotive CEOs say that China is
one of their top 3 growth markets for the
coming 12 months.
13
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The top mar kets for gr owth thi s year r eflect the
i ndustr ys changi ng global footpr i nt
Still an automotive
powerhouse
Its tied with Brazil as this years #2
growth destination for automotive
CEOs.
Is growing strongly
23% of automotive CEOs say it will
be a top growth market this year.
USA Brazi l

Its the worlds biggest
automotive market and the
top destination for growth.
32% of automotive CEOs say its one
of their top markets
Chi na
14
PwC
Manufactur i ng capaci ty and customer s top the li st
of obj ecti ves i n Chi na
Nearly two-thirds of automotive CEOs who are looking to China as a growth market
intend to build manufacturing capacity there in the next 12 months. Thats far more than
across our overall sample. Growing their customer base is critical too.

Q: Which of the following objectives do you hope to achieve in the next 12 months?

15
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Concentrati ng on the customer
86%
of automotive CEOs say that customers
have a significant influence on their
strategy.
16
PwC
Automoti ve CEOs ar e focused on customer s
86% say customers and
clients have a significant
impact on their strategy.
Thats much higher than the overall
average.

87% of automotive CEOs
are changing customer
growth/retention/loyalty
strategies.
Thats consistent with their peers
across the overall sample.

43% see improving it as one
of their top 3 investment
priorities.
And nearly as many are planning to
invest in growing the customer base
too.
Customer
I mpact
Changi ng
course
Better
customer
servi ce
17
PwC
Plan to strengthen
engagement with
customers
Automoti ve CEOs ar e looki ng to i ncr ease customer
di alogue

Just what are they doing? Our
experience suggests that theyre:

Co-creating
Reaching out on social media (here,
too, many say theyre planning to
strengthen engagement)
Developing a stronger digital
presence

92%
18
PwC
Developi ng the new technologi es customer s want
How to choose?
Listen to the customer.
Dont place all your eggs
in one basket.
40% of automotive
CEOs say they nurture
many strategic
initiatives, allowing the
strongest to succeed,
rather than focusing on
just a few key plans.

We trai n our people to
be close to our
customers so as not to
mi ss new trends, and
cooperate wi th our
customers to bri ng them
soluti ons.
Yves Serra, President and Chief Executive Officer, Georg Fischer
Ltd., Switzerland

19
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I mprovi ng operati onal effecti veness
46%
of automotive CEOs say its one of their
top 3 investment priorities. That puts it
#1 on their list.
20
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Cost r educti on r emai ns a top pr i or i ty
But outsourcing is less popular than in the overall sample

21
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People ar e the key, whether you talk about
customer ser vi ce, i nnovati on, or new mar kets
50% of automotive CEOs are
concerned about the availability of
key skills.
80% of automotive CEOs say their
companies use active succession
planning and 79% are involving
managers below board level in
decision-making.

63% of automotive CEOs say theyll
increase investment in creating and
fostering a skilled workforce and 47%
will invest more in maintaining the
health of the workforce too.
The ri ght
ski lls
Developi ng
leaders
I nvesti ng
22
PwC
I ts a questi on of trust
64%
of automotive CEOs are working harder
to engage local communities.
23
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Automotive CEOs are making their organizations more
agile, more appealing and more profitable. But as weve
argued in our main report, if theyre to succeed in these
three goals, theyll also have to repair the bridges between
business and society. Like their peers, CEOs also recognize
the important role that business can play in addressing
societal challenges and improving national outcomes.

Trust isnt just an essential part of the customer
relationship, its the glue that binds an organization and all
its stakeholders together and there are now many more
stakeholders to consider. Thanks to the social media
revolution, many of these stakeholders also have an
unprecedented amount of clout.

24
PwC
Automoti ve CEOs ar e li steni ng
Automotive CEOs tell us that a whole range of stakeholders are influencing their business
strategies.
Q: How much influence do the following groups have on your strategy?
25
PwC
And theyr e r eachi ng out

These CEOs are generally working harder to strengthen their engagement too.

Q: For those stakeholders with some or significant influence, to what extent are you strengthening your engagement program?
Base: All respondents (Total sample, 420-1285; Sector, 21-88)
Note: Respondents who answered some or significant influence to Q14a. For some categories sample sizes are small and should be viewed as indicative only.
concerned.
26
PwC
Wor kfor ce pr i or i ti es ar e at the top of CEOs li st of
outcomes theyd li ke to achi eve i n thei r home
countr i es

Q: How much does your company plan to increase its investment over the next 3 years to achieve the following outcomes in the country in which you are based?
Note: Respondents who stated some increase or a significant increase

27
PwC
Most automoti ve CEOs ar e commi tted to r educi ng
thei r companys envi r onmental footpr i nt
28
Q: Please indicate to what extent your organization plans to focus on reducing
environmental footprint over the next 12 months.

49% of sector CEOs say theyll increase their focus on reducing their
environmental footprint, and another 40% say theyll continue
maintaining their current emphasis.
No change:
40%
PwC
For mor e i nfor mati on, please contact:
Or vi si t www.pwc.com/ ceosurvey

Acknowledgements
PwC gratefully acknowledges the contribution to the 16th Annual Global CEO Survey: Key findings in the automotive
industry provided by:
Yves Serra, President and Chief Executive Officer
Georg Fischer Ltd., Switzerland

Ri ck Hanna Feli x Kuhnert Tom McGucki n
Global Auto Leader
T: +1 313 394 3450
E: richard.hanna@us.pwc.com

European Auto Leader
T: +49 711 25034 3309
E: felix.kuhnert@de.pwc.com

Asia Pacific Auto Leader
T: +86 21 2323 33588
E: thomas.e.mcguckin@cn.pwc.com

Download the main report, access the results and explore the CEO
interviews from our 16th Annual Global CEO Survey online at
29
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information
contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the
information contained in this publication, and, to the extent permitted by law, PwC does do not accept or assume any liability, responsibility or duty of care for any consequences
of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
2013 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see
www.pwc.com/structure for further details.
121211-130640-EA-OS
February 2013
Coming through
stronger
Key fndings in the Banking and Capital Markets industry
PwC 16th Annual Global CEO Survey Key fndings in the Banking and Capital Markets industry 2
organisations that are agile and adaptable, able to cope
with disruption and emerge stronger than before.
We polled 1,330 CEOs in 68 countries, and talked face-
to-face with another 33 CEOs, in our 16th Annual Global
CEO Survey, to fnd out how theyre creating resilient
organisations that can fourish under stress. Dealing with
disruption shows that CEOs are focusing on a few carefully
selected initiatives to stimulate organic growth; exploring
new ways to attract and keep customers; and balancing
effciency with agility. And to succeed in these three goals,
CEOs are recognising the role that trust plays, and that
theyll have to work hard to repair the bridges between
business and society.
This report is a summary of our key fndings in the banking
and capital markets (BCM) sector, based on interviews
with 149 industry leaders in 49 countries. To see the full
results of the 16th Annual Global Survey, please visit
Banking and capital markets organisations still
face diffcult challenges ahead. Organisations are
facing a new normal, which includes the radical
impact of new capital, liquidity and customer
protection regulations. They will need to address
the impact as part of their wider strategic rethink
and re-orientation, said Robert Sullivan, Global
Banking and Capital Markets Leader at PwC. But
many organisations are now beginning to put the
crisis behind them and move onto the front foot
competitively. What marks out the front runners
has been the decisive way they have cleaned up
their balance sheets, simplifed and rationalised
operations and adjusted to a tougher funding and
regulatory environment. These organisations are
also reshaping their strategies and operations
for the rapidly changing competitive landscape,
including the shift in global investment and
growth and changes in customer understanding,
engagement and expectations created by new
technology
1
.
Businesses that have yet to take the necessary
steps will increasingly fnd themselves on
the back foot competitively. Many are still
saddled with an excessive amount of bad debt
and overly costly and complex operations.
They are also reacting to events rather than
seeking to anticipate and take advantage of
the developments ahead. There is still time for
them to respond. But they could fnd themselves
struggling to sustain investment and market
share if they fail to move soon.
Banking and Capital Markets
industry summary
1 PwCs Project Blue framework explores the major trends that are reshaping the
competitive environment for fnancial services businesses around the world and
the markets and societies in which they operate (www.pwc.com/projectblue)
Introduction
Banking and capital markets CEOs are
upbeat about their growth prospects.
But they recognise that success will be
hard won.
With funds for acquisition limited,
organic growth in domestic markets is
the primary focus for growth within
many BCM businesses. This demands
a closer focus on evolving customer
expectations and renewed efforts to
strengthen operational effectiveness.
At a time when customer trust is
strained, many BCM businesses are
also focusing on how to re-engage
with customers and employees as
they seek to reinvigorate their social
mandate.
Where BCM organisations are looking
to expand beyond their domestic
markets, China and the US are seen as
offering the greatest growth potential.
Many organisations are also stepping
up investment in new technology as
they seek to keep pace with a fast
evolving marketplace and target
unfolding pockets of opportunity.
Prospects for growth
Nearly 90% of BCM CEOs are
anticipating increased revenues over
the coming12 months and next three
years. But turnovers are coming back
from a generally low level in recent
years and extreme pressure on risk-
weighted assets (RWA) has reduced
risk-taking and returns. Therefore, the
expected revenue gains may not lead
to a signifcant rebound in return on
equity (RoE) in the near future. There
is also a major challenge in ensuring
organisations have the right people in
the right places to take full advantage
of revenue growth opportunities.
The views of industry leaders on the
prospects for the economy are still
mixed, with 19% believing it will
improve over the next 12 months
and 26% deteriorate, though this is
a much less pessimistic outlook than
2011 (52% anticipating decline).
Recession in the US has supplanted
the break-up of the Eurozone as the
most threatening economic scenario.
Seventy per cent of BCM CEOs
say that recession in the US would
have a damaging impact on their
business and 34% believe it is now
likely, suggesting that confdence in
policymakers ability to fx the fscal
cliff and debt ceiling is tentative at
best. More than 60% say that a break-
up in the Eurozone would have a
negative impact, but only 19% believe
it is now likely.
So what do BCM CEOs see as the main
opportunities for growth? The number
one priority for most industry leaders
is building up their share of existing
markets (see Figure 1). In keeping
with this objective, nearly 90% are
planning to change their strategies for
managing customer growth, loyalty
and retention (more than 30% are
anticipating major changes). Building
up the customer base and improving
service are among the three chief
investment priorities for the coming
year. Martin Blessing, Chairman of
the Board of Managing Directors,
Commerzbank AG, Germany, said:
We believe that, especially in our
home market, growth can mainly
come from gaining market share
against the competition. We believe
the underlying growth trends will be
slow. So we have to just be better than
the competition in these markets, and
that is also one of the reasons why we
have to keep costs under control.
Most industry leaders believe that the prospects for the economy are still
mixed, with 19% believing it will improve over the next 12 months and
26% deteriorate
26%
19%
Figure 1: Strategies for growth
Which one of these potential opportunities for business growth do you see as the
main opportunity to grow your business in the next 12 months?
Global Banking All FS
(1330) & Capital (351)
Markets
(149)
Organic growth in existing domestic 32% 44% 43%
market
New product or service development 25% 26% 25%
Organic growth in existing foreign market 17% 13% 11%
New M&A/ joint ventures/strategic 17% 13% 14%
alliances
New operation(s) in foreign markets 8% 4% 7%
Dont know/Refused 1% 0% 0%
Source: 16th PwC Annual CEO Survey. Number of respondents to question in brackets.
Few CEOs see acquisition or alliances
as the main route to growth, though
nearly half are anticipating at
least some increase in deal focus.
Highlighting the cautious approach,
Dr. Weihua Ma, President and
Chief Executive Offcer of China
Merchants Bank Co. Ltd, said:
We have several things to consider
on expansion. Firstly, since the
international fnancial crisis has yet
to be resolved, especially in Europe,
we must continue to be cautious.
Then theres our bank: we have to
use our limited capital sparingly. The
next factor is experience: we must
accumulate international experience
in management and improve it.
Internationalisation is necessary in
todays day and age, and banks should
certainly serve outbound enterprises
and citizens. In fact, we have already
established a CMB branch in New
York the frst Chinese bank in that
city since Foreign Bank Supervision
Enhancement Act of 1991. And we
have acquired Wing Lung Bank
in Hong Kong. We need a process
to digest and accumulate those
initiatives, and, of course, we aim to
seize further opportunities to develop
ourselves.
Regionally, BCM CEOs continue
to see the strongest potential in
Asia, Africa and Latin America (see
Figure 2). But developed markets
are also an important part of the
picture. The proportion of industry
leaders anticipating expansion of
key operations in North America has
increased since last year. In turn,
the easing of Eurozone concerns is
refected in a more confdent outlook
for Western Europe, with more than
half of BCM CEOs planning to step
up operations, compared to less than
30% in last years survey.
How realistic are these expectations?
The strong economic growth and low
penetration of banking services in
Asia, Africa and Latin America leave
room for considerable further growth
(see Figure 3). Patricio Supervielle,
CEO of Grupo Supervielle, Argentina,
said: We are in an environment that
has tremendous opportunity, so lets
make the most of it. Argentina has
a very low penetration of fnancial
services and it is here that we see both
a challenge and an opportunity.
To capitalise on the potential,
emerging market banks are going
to have to keep pace with the more
complex needs of industry, more
exacting customer expectations, the
increase in regulatory scrutiny and
demands for greater transparency.
Figure 2: Regions targeted for growth
In the next 12 months do you expect your key operations in these regions to decline,
stay the same or grow? Respondents anticipating growth
(170-533) & Capital (36-125)
Markets
(15-42)
Latin America 81% 78% 82%
South-East Asia 81% 72% 79%
Africa 74% 88% 78%
South Asia 73% 75% 78%
Middle East 70% 76% 72%
East Asia 66% 71% 75%
North America 62% 57% 61%
Australasia 58% 47% 57%
CEE/Central Asia 57% 50% 51%
Western Europe 33% 55% 40%
We have several things to
consider on expansion. Firstly,
since the international fnancial
crisis has yet to be resolved,
especially in Europe, we must
continue to be cautious.
Dr. Weihua Ma, President and
Chief Executive Offcer of China
Merchants Bank Co.
A still largely untapped growth
frontier is SME lending. In China, for
example, some 90% of the countrys
40 million small businesses are
reportedly unable to get bank loans
2
.
New capital rules are going to create
further challenges for SME lending,
in developed as well as emerging
markets, providing further impetus for
the development of non-bank credit.
BCM organisations in the US are
facing tighter scrutiny and regulation.
But many have been able to relinquish
the bulk of their troubled assets and
are once again moving onto a growth
footing. The immediate threat to
EU banks has abated. But they may
have further to go before they can
put themselves on a surer long-term
footing. PwC estimates that European
banks hold around 2.5 trillion in
unwanted loans portfolios
3
. At 800
billion, non-performing loans (NPLs)
are only one part of the non-core
assets. The bulk are loans that are
performing, but are no longer central
to the banks strategies
4
. Holding
these assets ties up excess capital and
inhibits banks capacity to target more
proftable opportunities. Speeding
up exit is therefore going to be a key
priority.
Anders Nyren, President and Chief
Executive Offcer of Industrivrden
AB, a Swedish private equity frm,
said: I think that one has to recognise
that, frst of all, in the US, were seeing
an economy that is steadily improving.
Its not a stellar performance by any
means; and it doesnt represent a
turnaround. But its an economy thats
growing and the growth is broad-
based. South America with Brazil
being the most notable example is
turning around, as well. Personally,
I believe that China and India are also
on the rebound. Africa continues to
grow. All of which is to say that the
global economy might not be in such
a bad shape. However, we still are
faced with the Euro crisis, which has
not been resolved. The Euro crisis
has two aspects. The frst is related
to the liquidity crisis, which has been
addressed by European Central Bank
actions. The second aspect has to do
with the solvency crisis, which is far
from having been solved.
Figure 3: Room for growth
Levels of fnancialisation (i.e. the relative size of the fnancial sector to the economy)
vary around the world

Source: World Bank; PwC analysis
Notes:
1
Australia data if from 2009; Canada GDP and GDP per capita from 2010 but domestic credit from 2008;
Financialisation of G20 members, excluding the EU, 2010
D
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400
350
300
250
200
150
100
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0 10,000 20,000
GDP per capita
30,000 40,000 50,000
GDP, US$ Millions:
= 500
= 2,000
=5,000
Japan
United States
R
2
= 0.36
Canada
1
Australia
1
Germany
France
Italy
South Korea
United Kingdom
Saudi Arabia
Argentina
Russia
Turkey
South Africa
China
India
Indonesia
Mexico
Brazil
In China, for example, some 90% of the countrys 40 million
small businesses are reportedly unable to get bank loans.
90%
2 Bloomberg, 13.09.12
3 PwC media release, 04.01.13
4 De-leveraging non-core assets in a dynamic market: PwC European Debt Portfolio Conference 2012 Summary
China and the US top the list of
national markets seen as most
important to overall growth prospects
(see Figure 4), though BCM CEOs
see recession in the US and a dip in
Chinas growth below 7.5% as among
the most likely and most threatening
macroeconomic scenarios. Brazil is
next up at 11%, a fall from 16% in
2011. Clearly Brazils rapid growth
and future potential make it an
attractive market. However, with
new entrants facing high acquisition
prices and entrenched competition
from existing players, breaking into
the market is proving increasingly
diffcult.
Having people with the required
technical and cultural skills is going
to be crucial to ensure success in
new and emerging markets. It is
notable that 81% see encouraging
global mobility and international
experience and 78% see programmes
to encourage diversity among business
leaders as important in developing
their executive pipeline, though far
fewer actually do this (50% and 58%
respectively).
So what returns should BCM
organisations be targeting? As most
banks become increasingly nationally
focused in the wake of government
pressure, returns will be closely tied
to the real local economy. Many may
thus fnd that they have to settle for
utility RoEs of 10% or less.
Many may be concerned that such
returns are not suffcient to attract
the equity investment they need to
meet new capital demands. Over
time, however, deleveraging and
reduced risk profles could make this a
reasonably attractive risk/reward bet
for many investors better than most
conventional utilities. The challenge
is how to convey the shift to utility
returns to investors who have become
accustomed to seeing the sector as a
growth stock.
Some capital markets focused banks
will be able to sustain a genuinely
global reach and higher returns.
The question here is how many
such institutions the market can
accommodate.
Threats to growth
BCM CEOs once again see the most
signifcant threats to growth as
over-regulation and uncertain and
volatile growth. They have always
faced regulatory change. But the
current upheaval and uncertainty that
surrounds it are taking on an air of
permanence. For many institutions,
meeting the new capital and liquidity
requirements is going to be a diffcult
enough challenge in itself. But they
also face the dilemma of how to
generate suffcient returns when
both capital demands and the cost of
capital are going up.
These challenges are leading to a
rethink of what business is viable in
this new landscape. The underlying
considerations are how to further
reduce RWA. A lot of the resulting
reshaping is sensible. Many banks
were over-leveraged and over-
extended in the lead up to the crisis.
As outlined earlier, it is also vital to
eliminate the drag created by non-core
Figure 4: Countries targeted for growth
Which countries, excluding the country in which you are based, do you consider most
important for your overall growth prospects over the next 12 months? Respondents
targeted up to three countries.
(1330) & Capital (351)
Markets
(149)
China 31% 26% 23%
USA 23% 23% 24%
Brazil 15% 11% 11%
Germany 12% 7% 9%
India 10% 5% 6%
Russia 8% 5% 5%
Indonesia 7% 7% 6%
UK 6% 7% 9%
Canada 5% 3% 3%
Japan 5% 3% 4%
and non-performing business. The
problem is that some banks are opting
for short-term strategic remedies
that could jeopardise their long-term
commercial potential.
A clear case in point is withdrawing
from what might appear to be
peripheral African, Asian and Latin
American markets in an attempt to
reduce RWA, but could be the fastest
growing and most important for key
clients in the future. In short, BCM
organisations could run the risk of
emerging from the crisis recapitalised,
restructured, reformed but out of
step with the new business realities.
The need for a long-term view is
heightened by the timescales of these
changes. Business that might look
proftable now might not be in a few
years time. Institutions will need
to look at the impact on prices and
margins, and judge how best to
target capital where it can secure
the best return.
Further challenges centre on the
variations in regulation around the
world. For example the Independent
Commission on Banking in the UK
suggests ring-fencing the retail
businesses and allows proprietary
trading. In the EU as a whole, The
High-level Expert Group on reforming
the structure of the EU banking sector
(Liikanen Report) puts forward
proposals for the ring-fencing of
trading and wholesale banking
business, including proprietary
trading. In the US, the Volker rules
have directly prohibited proprietary
trading. Global banks may face the
complex juggling act of applying
all three approaches at the same
time if the current proposals are
implemented.
The BCM organisations that are
going to come through stronger are
looking at the overall impact of the
various new regulations, rather than
just dealing with them in isolation.
This will give them a clearer idea of
the strategic implications for their
business. It will also help them to
avoid digging up the road more than
once, as many of the requirements
overlap.
Targeting pockets of
opportunity
Technology is shaping customer
expectations as they come to expect
seamless round the clock interaction
across all channels and the ease and
intuition of the Amazon experience.
Artem Konstandyan, CEO of Russias
Promsvyazbank said: The world is
changing very swiftly in terms of
technology and there is no option
but to go with it. Similarly, the old
business models cant bear the test
of time or meet new challenges and
are being replaced with new business
models and new ideas. The banking
sector is no exception here. The client
wants not just a fnancial product, but
an effcient, convenient and handy
product.
The diffculties of keeping pace with
these evolving demands are refected
in the fact that half of BCM CEOs are
concerned about shifts in consumer
spending and behaviour. In response,
nearly three-quarters of BCM CEOs
are planning to increase investment in
technology and more than two-thirds
develop their capacity for innovation.
A key part of this will how to use all
the payment, social media and other
digital trails people leave. A lot of
this big data is unstructured, but
new techniques allow it to be used
to sharpen customer profling and
hence offer more tailored and targeted
products. The risk is that these
advances would allow social media,
telecommunication and other new
entrants to come in, take control of
the customer relationship and pick off
the most proftable business. However,
less than 30% of BCM CEOs are
concerned about the threat from new
entrants, which is interestingly much
lower than insurers (42%).
Dr. Weihua Ma of China Merchants
Bank Co. Ltd, said: At present, our
biggest challenge is around mobile
payments. Rapid technological
developments have taken us to mobile
internet, information transmission
and the intelligent terminal and
brought about new demand for
fnancial services. We have to lead
the feld on this. And banks are facing
more challenges in todays age of
big data and cloud computing. Mark
Zuckerberg, for example, has created
a new form of internet fnancing that
allows users to strike a deal directly,
without relying on a bank or an
exchange. It sounds very idealistic, but
it does make sense.
Its a matter of trust
Customer engagement
The fallout from a number of recent
scandals ranging from LIBOR to
mortgage mis-selling have further
dented the image of the industry
more than 50% of BCM CEOs see
lack of trust in industry as a threat to
growth. In response, nearly 90% are
seeking to engage more closely with
customers and more than 60% are
working on a framework to support a
culture of ethical behaviour.

The world is changing very swiftly in terms of technology and
there is no option but to go with it. Similarly, the old business
models cant bear the test of time or meet new challenges and
are being replaced with new business models and new ideas. The
banking sector is no exception here. The client wants not just a
fnancial product, but an effcient, convenient and handy product.
Artem Konstandyan, CEO of Promsvyazbank
Just as BCM organisations are
actively cleaning up their balance
sheets, the initial priority is going
to be checking through the business
for vulnerabilities and seeking to
proactively resolve any issues.
The need for transparency and two-
way dialogue is going to be a crucial
part of winning back trust. Shikha
Sharma, Managing Director and Chief
Executive Offcer, Axis Bank Limited,
India, said: And a lot more knowledge
is being shared among consumers.
This means that consumer experience
spreads much faster today than it
might have done in an era of less
connection. The same thing applies
to employees: they live in a connected
world and communicate through
numerous networks. So the word
about change spreads much faster.
And, of course, you are constantly
under media scrutiny. There are many
channels that you have to worry
about. In this respect, it is interesting
to note that BCM CEOs see stepping
up engagement with users of social
media (75%) as more important than
traditional media (58%), refecting
new strategies for interaction
and infuence.
Employee engagement
It is also important to recognise
that successfully re-engaging with
customers is going to be extremely
diffcult without re-engaging with
employees. The challenges are
heightened by the signifcant changes
in employer/employee relationships
and compensation models. Many
employers are moving to a different
employee value proposition that is not
just about being the best payers in
the market.

Creating the right culture is
equally critical, though many BCM
organisations are fnding it diffcult
to translate high level expectations
in areas such as risk awareness
or putting the customer frst into
discernible changes in how people
think and behave in their everyday
activities. They need to dig deeper
into the operations of the business
to make a difference. Culture will
only deliver the driving goals of the
organisation if it is second nature
frmly built into the habits and
routines of staff at all levels. Key steps
include defning the right behaviours,
as well as the reinforcing mechanisms
such as changes in hiring practices,
organisation design, development
programmes, performance
management and rewards.
Bringing together the imperatives
of integrity, transparency and
engagement, Sndor Csnyi, CEO
and Chairman of OTP Bank Nyrt.,
Hungary, said: Clearly, the most
important stakeholders are our clients
because, quite simply, without them
we would be out of business. In fact,
the banking sector across the whole
region has much work to do in terms
of unfulflled commitments to clients.
Certain banking products have
become overly complicated and less
transparent for clients. I believe that
the banking sector should return to
its roots: we should clearly focus on
our traditional role, raising funds and
providing loans, instead of various
speculative activities. Customers are
unaware of the risks associated with
many products offered by the banking
sector. We should take transparency
and fair play towards customers a lot
more seriously.
Government engagement
The need to rebuild trust and
re-engage with customers forms part
of the wider challenge of securing
a social mandate. The relationship
with government is a further element
of this social mandate. Nearly all
BCM CEOs say that governments and
regulators infuence their strategy
and most are looking to step up
engagement.
As governments play a much more
active role in managing the economy
than before the fnancial crisis, bank
proftability is becoming more closely
tied to the fortunes of the economy. It
is therefore important to fnd ways to
infuence government policy (working
alongside clients to highlight the
impact) and seek to make sure that
strategies anticipate and are aligned to
government priorities and investment
plans (e.g. infrastructure investment
and project fnance opportunities).
Patricio Supervielle of Grupo
Supervielle, said: The bank is a
business, but we also feel responsible
for contributing to the countrys
economic development. We have a
business, but if we do not comply
with the objective of being agents of
economic progress through offering
credit, we are not fulflling our
fundamental role of distributing the
savings in the economy.
The potential benefts of a strong
social mandate include a renewed
licence to operate, innovate and
pursue proftable opportunities.
Personnel would be seen in society as
equally deserving of rewards as people
in other sectors. BCM organisations
would also be in a stronger position to
attract quality talent at a time when
many of the brightest candidates are
it is interesting to note that BCM CEOs see stepping up
engagement with users of social media (75%) as more
important than traditional media (58%), refecting new
strategies for interaction and infuence.
75%
58%
looking for more meaning from their
chosen careers.
Investor engagement
Nearly 80% of BCM CEOs are looking
at ways to engage more closely with
investors. This is going to be crucial
at a time of major change within the
industry. Many investors complain
that a lack of transparency and
effective communication is making
it very diffcult to comprehend the
risks BCM organisations are running,
how theyre being managed and the
business models that underpin them.
The result is a defcit of understanding
and trust, which is eroding investment
prospects within the sector.
New benchmarks for improved
transparency are now emerging,
including the recommendations set
out by the Financial Stability Boards
Enhanced Disclosure Task Force.
These emphasise the urgent need
to look beyond narrow compliance
to create a more open culture of
communication. The task force is
also keen to simplify and demystify
complicated risk disclosures, and
make them more consistent and
comparable across the market.
For example, RWA densities and
conversion ratios could be more
clearly defned and communicated.
effectiveness
When growth was surging, a huge
amount of operational capabilities
were bolted on in a hurry, creating
convoluted, complex and overly
expensive operating structures. This
is now a good juncture to rationalise
and simplify these structures as
BCM organisations look to cut costs,
enhance effciency and strengthen
operational oversight. Improving
operational effectiveness is a top three
investment priority for 58% of BCM
CEOs. More than 70% are planning to
change their organisational structure
and more than 60% are pursuing a
cost reduction initiative over next
12 months.
The competitive benefts of
operational simplifcation go beyond
cost reduction to include greater
agility, speedier decision making
and an improved ability to capitalise
on opportunities. Anders Nyren of
Industrivrden AB said: Given that
the global economy and the global
pace of life is getting faster in all
aspects, one needs to become more
agile and effcient about everything
including running a company.
Its essential that you streamline
operations and become leaner
wherever you can so as to be able
to react more quickly to changing
market conditions.
Attracting and retaining
talent
Industry leaders continue to fnd this
an intractable issue, with more than
three-quarters planning to change
their strategy for managing talent
once again more than 70% also
anticipated a shift in the previous two
annual surveys.
More than half of BCM CEOs see the
limited availability of skills as a barrier
to growth, though less than a quarter
of BCM CEOs are planning to invest in
flling talent gaps.
Figure 5: Forces shaping executive rewards
To what extent do you agree with the following statements about alignment of top
executive performance with company and wider stakeholder needs?
(1330) & Capital (351)
Markets
(149)
Pay and performance should be 76% 75% 80%
considered in relation to risks taken
We need to match pay conditions of 69% 68% 72%
our peers in order to retain top talent
We are changing the way we set 34% 40% 37%
executive pay in response to shareholder
and public reaction
Performance-based pay models are not 34% 28% 32%
working as intended
Executive incentive pay structures are 32% 32% 36%
now too complex
Source: 16th PwC Annual CEO Survey. Number of respondents to question in brackets
Competition over pay is still intense,
with nearly 70% of BCM CEOs
believing that they need to match the
rewards their peer organisations offer
to retain top executive talent (see
Figure 5). However, sustaining this
compensation model will be diffcult
if returns continue to come under
pressure. The need for a rethink is
likely to be especially pressing among
BCM organisations targeting lower
risk and reward utility returns.
Three-quarters of BCM CEOs
believe that risk should be factored
into performance evaluation and
pay. Forty per cent have changed
the way they set executive pay in
response to shareholder and public
pressure. The challenge for BCM
organisations is how to create a
coherent compensation framework
that can attract and retain talent,
while refecting risk considerations
and leaving suffcient funds to meet
investor expectations. The diffcult
nature of this balancing act is refected
in the fact that more than 30% of
industry leaders believe that
executive pay structures have
become too complex.
Marking out the winners
from the losers
Banking is grappling with the severe
stresses of a challenging economy, low
interest rates, higher capital demands,
technological developments,
constraints on business (e.g. curbs on
proprietary trading), non-core and
non-performing assets and lower pay
and hence less attractiveness to talent.
Piyush Gupta, Chief Executive Offcer
and Director, DBS Group, said: The
level of external threats today is
much higher than in the past. Over
the last fve, six, seven years, weve
entered a new world a new normal
if you want to call it that. Regulations
are changing faster, technology is
changing faster, the social-political
landscape is changing faster. And
that means that going forward an
organisations ability to respond
speedily to events is going to be
crucial.
In our view, the organisations that are
responding effectively and moving on
to the front foot competitively are:
Exiting underperforming
businesses and assets
Simplifying operations and
identifying opportunities for
competitive advantage
Looking at regulation in the round
to manage cost and strategic impact
more effectively
Improving customer transparency
while sharpening customer
targeting and cross-sale
opportunities
Taking advantage of changing
technologies to improve customer
service, lower costs and increase
speed to market
While the current landscape is
challenging, it also opens up
opportunities. In times of dislocation
and change, the gap between high
and low performers widens. Many
organisations will be unrecognisable
by the end of the decade and the list of
market leaders will be very different
as smart and agile players leapfrog
slower moving competitors.
The level of external threats
today is much higher than in
the past. Over the last fve, six,
seven years, weve entered a
new world a new normal if
you want to call it that.
Piyush Gupta, Chief Executive Offcer
and Director, DBS Group
Contacts
Editorial
Robert Sullivan
Global Leader, Banking and
Capital Markets
PwC (US)
T: +1 646 471 8388
E: robert.p.sullivan@us.pwc.com
Etienne Boris
Partner, Banking and Capital Markets
PwC (France)
T: +33 1 56 57 1029
E: etienne.boris@fr.pwc.com
Kevin Burrowes
UK FS Leader
PwC (UK)
T: +44 (0) 20 7213 1395
E: kevin.j.burrowes@uk.pwc.com
Marketing
ine Bryn
Director, Global Financial Services
Marketing
PwC (UK)
T: +44 (0) 20 7212 8839
E: aine.bryn@uk.pwc.com
Maya Bhatti
Manager, Global Financial Services
Marketing
PwC (UK)
T: +44 (0) 20 7213 2302
E: maya.bhatti@uk.pwc.com
16th Annual Global
CEO Survey
Key findings in the Banking
and Capital Markets industry
January 2013
PwC
Welcome
Far-reaching changes are taking place, and theyre taking place faster than ever. In this new era
of stable instability, risks that once seemed improbable and even remote have become the
norm and for CEOs across the world, expect the unexpected has become the mantra. The only
solution is to build organisations that can thrive amidst disorder: organisations that are agile
and adaptable, able to cope with disruption and emerge stronger than before.
We polled 1,330 CEOs in 68 countries, and talked face-to-face with another 33 CEOs, in our
16th Annual Global CEO Survey, to find out how theyre creating resilient organisations that can
flourish under stress. Dealing with disruption shows that CEOs are focusing on a few carefully
selected initiatives to stimulate organic growth; exploring new ways to attract and keep
customers; and balancing efficiency with agility. And to succeed in these three goals, CEOs are
recognising the role that trust plays, and that theyll have to work hard to repair the bridges
between business and society.

This report is a summary of our key findings in the Banking and Capital Markets (BCM) sector,
based on survey responses from 149 industry leaders in 49 countries, along with in-depth
interviews with CEOs from Axis Bank Limited, China Merchants Bank Co. Ltd, Commerzbank
AG, Grupo Supervielle, Industrivrden AB, OTP Bank Nyrt and Promsvyazbank. To see the full
results of the 16th Annual Global Survey, please visit www.pwc.com/ceosurvey.
2
January 2013 16th Annual Global CEO Survey Key findings in the Banking and Capital Markets industry
PwC
Introduction
3
PwC
Introduction
Banking and Capital Markets CEOs are upbeat about their growth prospects. But they
recognise that success will be hard won.

With limited funds for acquisition and new market development, the key focus is going to
be organic growth in domestic markets. That demands a closer focus on evolving
customer expectations and renewed efforts to strengthen operational effectiveness.

At a time when customer trust is strained, many Banking and Capital Markets businesses
are also focusing on how to re-engage with customers and reinvigorate their social
mandate.

Lets see how.
4
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45%
of Banking and Capital Markets CEOs
are very confident about their ability to
raise revenues over the next 12 months.
A further 42% are somewhat confident.
5
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What worries CEOs the most?
We believe that one challenge for our
organisation, and for banking in Europe, is
the stability of the Eurozone and the
development of the currency. A second
challenge is regulation. Regulation will put
significant pressure on banks and their
profitability. And the third is the way in
which customer behaviour and customer
demand is changing. Customers have lost
significant trust in the banking system, and
they are also changing their behaviour in the
way they interact with banks: there is less
branch usage, but much more internet and
online usage and we have to adapt to that.
Martin Blessing, Chairman of the
Board of Managing Directors,
Commerzbank AG,
6
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Threats to growth are looming
of Banking and Capital
Markets CEOs see the shift
in customer spending and
behaviours as a threat to
growth
Markets CEOs see lack of
trust in the industry as a
threat to growth
Markets CEOs see the
limited availability of key
skills as a threat to growth
50%
54%

54%
7
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The economy remains a concern
Banking and Capital Markets CEOs are very
concerned about a wide range of threats to
growth. Economic growth, regulation and
capital market stability top the list. Those
are all factors mostly out of CEOs control.

But sector CEOs arent waiting for
governments to act. Theyre working on
making their own businesses more resilient
and seeking out pockets of opportunity.

As the economic growth rate in China slows, the demand
for banking credit is sure to decline as well.
Dr. Weihua Ma, President and Chief Executive Officer of China Merchants Bank Co. Ltd
8
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Battling for market share
Most Banking and Capital Markets CEOs are primarily targeting organic growth in their
existing markets, domestic or foreign. A significant proportion is also looking ahead to
new product and service development. Far fewer plan to enter new markets or embark on
acquisitions or alliances as their main source of growth.

9
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So what are CEOs doing?
10
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Countries targeted for growth

China and the US top the list of markets seen as most important to overall growth
prospects, though Banking and Capital Markets CEOs see recession in the US and a dip in
Chinas growth below 7.5% as among the most likely and most threatening
macroeconomic scenarios.

11
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Clearly, the most important
stakeholders are our clients because,
quite simply, without them we would be
out of business.

Sndor Csnyi, CEO and Chairman of
OTP Bank Nyrt., Hungary
12
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Getting closer to customers
Markets CEOs have made
growing their customer
base a top three investment
priority
Markets CEOs anticipate
changes to their strategies
for customer growth,
retention and loyalty

Markets CEOs are planning to
strengthen customer
engagement
71%
87%
89%
13
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Technology is reshaping the market
74% of Banking and Capital Markets CEOs are planning to increase investment in
technology

65% of Banking and Capital Markets CEOs are planning to increase R&D and
innovation capacity

Big data analysis offers significant opportunities to sharpen customer understanding and
targeting. It could also open the door to social media, telecoms firms and other new
competitors. But only 29% of Banking and Capital Markets CEOs are concerned about the
threat from new entrants.

14
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Looking at regulation in the round
81% of Banking and Capital Markets CEOs see over-regulation as a threat to growth, a
consistent theme over the years

But upheaval is part of the new normal. Smart firms are taking a comprehensive approach
to expected changes rather than tackling each new regulation in isolation and developing
strategy to respond to the long-term impact on returns and capital requirements.

15
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58%
of Banking and Capital Markets CEOs
have made investing in improving
operational effectiveness a top three
priority

16
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CEOs are changing how they manage their
organisations
Markets CEOs are planning
a new cost reduction
initiative
Markets CEOs are planning
changes to their
organisational structure

Markets CEOs are
increasing investment in
technology
63%
72%
74%
17
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Contributing to economic
development
The bank is a business, but we also feel
responsible for contributing to the
countrys economic development. We
have a business, but if we do not comply
with the objective of being agents of
economic progress through offering
credit, we are not fulfilling our
fundamental role of distributing the
savings in the economy.

Patricio Supervielle, Grupo
Supervielles CEO and Banco
Supervielles Chairman, Argentina
18
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Getting leaner at Industrivrden AB

Given that the global economy and the
global pace of life are getting faster in all
aspects, one needs to become more agile and
efficient about everything including
running a company. Its essential that you
streamline operations and become leaner
wherever you can so as to be able to respond
more quickly to changing market
conditions.
Anders Nyren, President and
Chief Executive Officer,
Industrivrden, Sweden
19
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Marking out the winners from the losers
Banking is grappling with the severe stresses of a challenging economy, low interest rates,
higher capital demands, technological developments, constraints on business (e.g. curbs
on proprietary trading), non-core and non-performing assets and lower pay and hence
less attractiveness to talent.
The organisations on the competitive front foot are:

Exiting underperforming businesses and assets

Simplifying operations and identifying opportunities for competitive advantage

Looking at regulation in the round to manage cost and strategic impact more effectively

Improving customer transparency while sharpening customer targeting and cross-sale
opportunities

Taking advantage of changing technologies to improve customer service, lower costs
and increase speed to market

20
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61%
of Banking and Capital Markets CEOs are
increasing their focus on ways to support a
culture of ethical behaviour
21
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22
Robert Sullivan
Global Leader, Banking and Capital Markets
T: +1 646 471 8388
E: robert.p.sullivan@us.pwc.com

ine Bryn

Maya Bhatti
Global FS Marketing Director
T: +44(0) 20 7212 8839
E: aine.bryn@uk.pwc.com
Global FS Marketing Manager
T: +44 207 213 2302
E: maya.bhatti@uk.pwc.com
121211-130640-EA-OS
Key findings in the
chemicals industry
February 2013
PwC
Welcome

Far-reaching changes are taking place and theyre taking place faster than ever. In this new era of
stable instability, risks that once seemed improbable, even remote, have become the norm. For CEOs
across the world, expect the unexpected has become the mantra. The only solution is to build
organisations that can thrive amidst disorder: organisations that are agile and adaptable, as well as
able to cope with disruption, can emerge stronger than before.
We polled 1,330 CEOs in 68 countries, and talked face-to-face with another 33 CEOs, in our 16th
Annual Global CEO Survey, to find out how theyre creating resilient organisations that can flourish
under stress. Dealing with disruption shows that CEOs are:
focusing on a few carefully selected initiatives to stimulate organic growth;
exploring new ways to attract and keep customers; and
balancing efficiency with agility.

And to succeed in these three goals, CEOs are recognising the role that trust plays, and that theyll have
to work hard to repair the bridges between business and society.
This report is a summary of our key findings in the chemicals sector, based on interviews with 77 CEOs
in 27 countries, as well as an in-depth interview with Douglas D. Tough, Chairman and Chief Executive
Officer of International Flavors & Fragrances, Inc.
To see the full results of the 16th Annual Global Survey, please visit www.pwc.com/ceosurvey.
2
February 2013 16th Annual Global CEO Survey Key findings in the chemicals industry
PwC
Contents
Page
Introduction 4
What worries CEOs? 8
Strategies that CEOs are using 13
Targeting pockets of opportunity and
concentrating on the customer
14

21
3
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I ntroducti on
4
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I ntr oducti on
Chemicals CEOs are surprisingly confident about revenue growth
this year, considering the range of threats particularly
macroeonomic ones they see looming.

When we looked at the results of this years 16th Annual Global
CEO Survey for the chemicals sector, two major themes stood
out:
1) Growth i n Chi na (and forei gn markets more
generally)
2) The i mportance of i nnovati on and R&D

In both these areas, the results for chemicals CEOs far
outdistanced the overall survey and were the strongest for any
industry sector. Chemicals CEOs say their companies are
committed to serving customers better, by going where theyre
going and developing the products they need.

5
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94%
of chemicals CEOs are confident they
can increase the revenues that their
companies generate over the next 3
years
6
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Chemi cals CEOs ar e r emar kably confi dent about
the futur e
There have been many disruptions in the past decade, from the financial crisis of
2008/2009 to natural disasters such as hurricanes in the Gulf of Mexico. But most
chemicals CEOs expect to master future challenges of the new stable instability. 81% are
confident of generating higher revenues in the next 12 months, while an impressive 94%
are confident of doing so over the next three years.
43
51
51
30
3
16 1
40% 20% 0% 20% 40% 60% 80% 100% 120%
3 years
12 months
Somewhat confident Very confident
Not very confident Not confident at all
Q: How confident are you about your companys prospects for revenue growth over the next 12 months? Over the next 3 years?
Base: All respondents (Chemicals, 77 )
Note: Dont know/refused excluded. Not confident at all for 3 years is 0%.
7
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What worri es CEOs?
84%
of chemicals CEOs are concerned about
volatile or uncertain economic growth
8
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Ther e ar e some clouds on the hor i zon though
is causing anxiety.
61% of chemicals CEOs worry it
could slow done growth, and 30%
are extremely concerned
are going up.
75% of chemicals CEOs are
concerned, far more than across the
total sample.
is the biggest worry.
84% of chemicals CEOs fear it could
slow down growth
Exchange
rate
volati li ty
Raw
materi al
and energy
costs
Economi c
volati li ty
9
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Macr oeconomi c wor r i es domi nate chemi cals
CEOs concer ns
Nearly all of the top threats to growth are related to macroeconomic factors. Chemical
sector CEOs see governments as having a major impact on growth prospects.
51
61
69
54
71
62
52
81
53
55
57
61
65
65
75
84
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Over-regulation
Government response to fiscal deficit and debt burden
Energy and raw materials costs
Chemicals Total sample
Base: All respondents (Total sample, 1330; Chemicals, 77)
Note: Respondents who stated extremely or somewhat concerned. Only the top 8 threats for healthcare CEOs are listed.. List combines economic and policy threats and
business threats.
10
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Chemi cals CEOs dont expect most maj or
di sr upti ons to happen
64
70
52
60
62
71
73
60
10
12
13
14
14
31
40
51
0% 20% 40% 60% 80%
Health crisis (e.g. Viral pandemic, food/water safety crisis)
Cyber-attack or major disruption of internet
Recession in the US
Chinas GDP growth falling below 7.5% per annum
Chemicals CEOs who say scenario is 'likely to occur'
Chemicals CEOs who say scenario would have a 'negative impact' were it to occur in the next 12 months
Q:How likely are the following scenarios to occur? How would your organisation cope with the following scenarios, if they happened within the next 12 months?
Base: All respondents (Chemicals, 77)

but i f they do, there wi ll be a bi g i mpact
11
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Faci ng natur al r esour ce thr eats

Chemicals CEOs are far more worried about
the pending resource crunch than CEOs
across the overall sample, with 75% seeing
energy and raw material costs as a concern
(although some other sectors, like metals
and automotive, also rate these costs as a
serious threat).

More than a third think securing natural
resources should be a government priority,
and almost as many say theyll increase
their own investments in these areas.

52
75
0 20 40 60 80
CEOs who are concerned that
energy and raw materials costs
could threaten growth
28
24
38
36
0 10 20 30 40
CEOS who say that securing
natural resources that are critical
to business should be a
government priority
CEOs who say that they'll increase
investments to secure natural
resources that are critical to
business
Q. How concerned are you about the following potential business threats to your
growth prospects? How much does your company plan to increase its investment
over the next three years to achieve the following outcomes in the country in which
you are based? Which three areas should be the Governments priority today?

%
%
12
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Strategi es that CEOs are usi ng
Targeting pockets of opportunity and
concentrating on the customer
13
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Targeti ng pockets of opportuni ty and
concentrati ng on the customer
73%
of chemicals CEOs say theyre focusing
on a few carefully selected initiatives
14
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Chemi cals CEOs ar e looki ng to for ei gn mar kets to
dr i ve gr owth
The chemicals sector is already global, and CEOs see organic growth in existing foreign
markets as holding the most promise for growth this year. Deals and innovation follow
close behind.

25 23 22 21 8 17 17 25 32 8
0
5
10
15
20
25
30
35
Organic growth in
existing foreign
market
New M&A/ joint
ventures/ strategic
alliances
New product or
service development
Organic growth in
existing domestic
market
New operation(s) in
foreign markets
Q: Which one of these do you see as the main opportunity to grow your business over the next 12 months?
%
15
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Counti ng on gr owth i n emer gi ng mar kets wi th
Chi na leadi ng the way but the US i s i mpor tant
too
More than half of chemicals CEOs say China is one of the countries most important to
their overall growth. Thats more than in any other sector. Thats twenty points higher
than the overall average. Brazil, India and Russia make the top 5 too, with the US coming
in second.

7
4
12
8
10
15
23
31
9
10
12
12
16
21
31
51
0% 10% 20% 30% 40% 50% 60%
Indonesia
Thailand
Germany
Russia
India
Brazil
USA
China
Q: Which countries, excluding the country in which you are based, do you consider most important for your overall growth prospects over the next 12 months?

16
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Why Chi na? Customer s, capaci ty and talent
Like peers across the sample, the #1 objective for chemicals CEOs in China is growing the
customer base. But building manufacturing capacity and accessing local talent are
important too. To serve local customers theyre looking to develop their internal service
delivery capacity. The resource crunch is a factor here too, with 44% saying theyll access
raw materials or components.

12
19
29
24
33
43
30
73
15
21
41
44
44
59
64
79
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Access local sources of capital
Build R&D/innovation capacity or acquire intellectual property
Acquire local operation and customer base
Access raw material or components
Build internal service delivery capacity
Access local talent base
Build manufacturing capacity
Grow your customer base
Q: Which of the following objectives do you hope to achieve in the next 12 months??
Base: Respondents who identified China as one of t heir most important growth markets (Total sample, 414; Chemicals, 39)

17
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60% of chemicals CEOs say
R&D is a top investment
priority over the next 12
months. Thats almost
double the overall average,
and significantly more than
other innovation-driven
sectors.

And 78% of chemicals CEOs
say theyll make changes to
increase R&D and
innovation capacity. Again,
thats more than across the
overall sample.
60%
78%
R&D and i nnovati on ar e a top pr i or i ty
The foundati on of
I FFs strength, and
the opportuni ty we
have for wi nni ng i n
the marketplace, i s
technology and
research and
development. We
spend 8% of our
annual sales turnover
of $3 bi lli on on R&D.
Douglas D. Tough,
Chairman and CEO
International Flavors &
Fragrances, Inc.

Q: What are your top 3 investment priorities in the next 12 months? To what extent do you anticipate changes
at your company over the next 12 months with regards to an increase in R&D and innovation capacity?
18
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Deals sti ll a factor
More chemicals CEOs say they have completed a cross-border M&A over the past 12
months than across the total sample. And more say theyre planning a cross-border M&A
for the next 12 months (39% of chemicals CEOs vs. 26% overall) too. Our other research
on chemical sector transactions suggests that deal values in 2012 have declined, although
overall deal volume for the year looks to be up slightly.*
16
24
19
19
36
14
18
21
30
38
0% 10% 20% 30% 40% 50% 60% 70% 80%
significant market
Note: Does not include all restructuring activities.

*See our quarterly series on industry M&A, Chemical Compounds
19
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43%
of chemicals CEOs say its one of their
top investment priorities for the coming
12 months
20
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79% of chemicals CEOs say
they cut costs last years.
Thats in line with the
results across our sample as
a whole.

And 74% of chemicals CEOs
say theyll implement a cost-
reduction initiative in the
coming 12 months.
79%
74%
Cost-cutti ng i s on the agenda
Q: Which, if any, of the following restructuring activities have you initiated in the past 12 months? Do you plan to
initiate in the coming 12 months?
Note: those who listed implemented a cost-reduction initiative or plan to implement a cost-reduction initiative
21
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Di ver si fyi ng supply chai ns
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is intended to show the correct position and
size of the real text used in this location. To
ensure that you have the correct size, colour
and location of the text, it is recommended
that you select. Overtype this placeholder
text.

The chemical industry has shown a strong
commitment to supply chain security, with
a number of voluntary initiatives in place.

One way CEOs tell us theyre taking action
to head off the possibility of supply chain
disruption is by spreading out the risk.

Nearly two-thirds of chemicals CEOs say
their companies are diversifying their
supply chains and working with more
partners across varied geographies.

And many are working to strengthen
engagement with supply chain partners too.

Chemicals CEOs are
worried about
supply chain
disruption
42%
22
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That sustainability is important to our
customers, and increasingly its become very
important to our employees who want to see
the company as a highly responsible,
sustainable organisation. Beyond that, its just
good business. The triple bottom line of
environmental and consumer safety and
profitability all come together, and reduced
waste generates savings for the company.
Douglas D. Tough, Chai rman and CEO
I nternati onal Flavors & Fragrances, I nc.
23
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Chemi cals CEOs ar e wor ki ng to bui ld tr ust wi th
customer s, employees, and soci ety
.
Most chemicals CEOs say customers
and clients influence strategyand
for 83% the influence is significant
81% of chemicals CEOs are
encouraging global mobility and
involving managers below board
level in strategic decision-making
More chemicals CEOs say theyll
reduce their environmental footprint
and more are focusing on climate
change too.
Li steni ng to
customers
Protecti ng
the
envi ronment
Developi ng
leaders
24
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Chemi cals CEOs ar e li steni ng to a wi de r ange of
stakeholder s
Customers and clients stand out, but industry peers, employees and supply chain partners
are influencing company strategy too.

26
30
40
58
74
78
81
83
90
97
0% 20% 40% 60% 80% 100% 120%
Non Governmental Organisations (NGOs)
The media
Local communities
Employees (including trade unions and work councils)
Chemicals
Note: Respondents answering some or significant influence
concerned.
25
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Chemicals CEOs who see stakeholder groups as influential are generally working harder
to strengthen their engagement with them too.

55
55
55
63
67
67
73
74
79
88
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The media
Non Governmental Organisations(NGOs)
Local communities
Chemicals
Base: All respondents (Total sample, 420-1285; Chemicals, 20-85)
Note: Respondents who answered some or significant influence to Q14a. Please note some categories reflect a small sample size.
concerned.
26
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Chemi cals CEOs ar e also putti ng pr ogr ammes i n
place to develop thei r leader shi p pi peli ne
34
57
58
74
75
81
81
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Shadowing senior executives
Programmes to encourage diversity amongst business
leaders
Rotations to different functions/ challenges
Dedicated executive development programme
Active succession planning including identifying multiple
successors
Involving managers below board level in strategic
decision-making
Encouraging global mobility and international experience
Chemicals
Base: All respondents (Chemicals, 77)
Note: Respondents who stated yes.

27
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And chemi cals CEOs say they ar e commi tted to
r educi ng thei r companys envi r onmental footpr i nt
We will decrease
our focus
significantly
We will decrease
our focus somewhat
No change in our
focus
We will increase our
focus somewhat
We will increase
our focus
significantly
18%
Q: Please indicate to what extent your organisation plans to focus on reducing environmental footprint over the next 12 months?

48%
23%
66% of
chemi cals
CEOs say thei r
company wi ll
i ncrease i ts
focus on
reduci ng the
envi ronmental
footpri nt thi s
year.
28
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Download the main report, access the
results and explore the CEO interviews
from our 16th Annual Global CEO Survey
online at www.pwc.com/ceosurvey.
contribution to the 16th Annual
Global CEO Survey: Key findings
in the chemicals industry
provided by:
Douglas D. Tough, Chairman
and Chief Executive Officer,
International Flavors &
Fragrances, Inc., US
Acknowledgements
Antoi ne Westerman J oy Wi nton
Global Chemicals Leader
T: +31 8879 23946
E: antoine.westerman@nl.pwc.com

Global Chemicals Marketing
T: +31 8879 23281
E: joy.x.winton@nl.pwc.com

29
121211-130640-EA-OS
16th Annual Global
CEO Survey
Key findings in the
Communications industry
January 2013
Welcome
Far-reaching changes are taking place, and theyre taking place faster than ever. In this new era
of stable instability, risks that once seemed improbable and even remote have become the
norm and for CEOs across the world, expect the unexpected has become the mantra. The only
solution is to build organisations that can thrive amidst disorder: organisations that are agile
and adaptable, able to cope with disruption and emerge stronger than before.
We polled 1,330 CEOs in 68 countries, and talked face-to-face with another 33 CEOs, in our
PwC
flourish under stress. Dealing with disruption shows that CEOs are focusing on a few
carefully selected initiatives to stimulate organic growth; exploring new ways to attract and keep
customers; and balancing efficiency with agility. And to succeed in these three goals, CEOs are
recognising the role that trust plays, and that theyll have to work hard to repair the bridges
between business and society.
This report is a summary of our key findings in the Communications sector, based on interviews
with 34 Communications CEOs in 34 countries, as well as in-depth interviews with Alex Arena,
Group Managing Director of HKT Ltd, and Andrei Dubovskov, President and Chief Executive
Officer of MTS. To see the full results of the 16th Annual Global Survey, please visit
2
January 2013 16th Annual Global CEO Survey Key findings in the Communications industry
Introduction
PwC 3
Introduction
Communications CEOs are a lot like their peers across industries. Theyre less confident
this year about the global economy and theyre worried about threats like the break-up of
the Eurozone or trouble at home.
But there are some key differences too. For example, a lot more Communications CEOs
are confident about their companys prospect for revenue growth over the next 12 months
88% are either somewhat or very confident compared to 81% of the global sample. And,
Communications CEOs are ahead of the pack when it comes to M&A 53% of them
PwC
Communications CEOs are ahead of the pack when it comes to M&A 53% of them
entered into a strategic alliance or joint venture in the last 12 months, compared with the
overall sample average of just 36%.
Communications CEOs are ready to move on the M&A front, all while maintaining a
fierce focus on customers how to get them, and then how to keep them happy.
4
Revenue growth
PwC
of communications CEOs are very
confident or somewhat confident about
the revenue growth their companies will
generate over the coming year
5
Growth
We are rebuilding the brand, retooling
the staff in terms of skill sets; looking at
the products and services we have to
PwC
6
the products and services we have to
offer. If we put the effort in now, theres
a good chance that as things improve
well be in good shape to accelerate
away.
Alex Arena
HKT, Hong Kong
Concerns about the global economy
PwC
of communications CEOs are extremely
concerned about uncertain or volatile
economic growth.
7
Investment priorities
Q: What are your top investment priorities in the next 12 months?
PwC
8
Base: All respondents (Total sample, 1,330; Communications sector sample size: 34)
0% 10% 20% 30% 40% 50% 60%
R&D and innovation
New M&A / joint ventures / strategic alliances
Global sample
Communications sample
M&A is a top priority
53%
29%
61%
PwC
of communications CEOs
entered into a new strategic
alliance or joint venture in
the last 12 months
Compared to just 36%of the global
sample.
of Communications CEOs
view M&A as the main
opportunity to grow their
business in the next 12
months
Compared to 17% of the global
sample.
of Communications CEOs
plan to initiate either a
domestic or cross-border
M&A in the coming 12
months
Global sample: 32% say they will
initiate a domestic M&A transaction
and 29% say they will initiate a
cross-border M&A transaction
29%
9
Customer Focus
We have had to learn who our
customers are, what their propensity to
PwC
10
customers are, what their propensity to
spend is, what their likes and dislikes
are. So we are changing all of our
customer relationship systems to better
understand and serve the customer.
Alex Arena
HKT, Hong Kong
Customer is King
Communications CEOs are intently focused on customers. Survey results show that
focusing more on growth/retention/loyalty strategies are key priorities for the next 12
months.
Q: To what extent do you anticipate changes at your company over the next 12 months with regards to
customer growth /retention/ loyalty strategies?
51%
60%
PwC
11
47%
44%
51%
31%
0%
10%
20%
30%
40%
50%
Some Change A Major Change
Communications sample
Global sample
Customer is King, continued
When Communications CEOs were asked what their top three investment priorities are
over the next 12 months, two of the top three focus on customers: enhancing customer
service (47%) and growing the customer base (47%).
47% 47% 47%
40%
45%
50%
PwC
12
0%
5%
10%
15%
20%
25%
30%
35%
Enhancing customer service Growing your customer base New M&A / joint ventures / strategic
alliances
The Future
Were forever reaching deeper into
consumers homes. So we are developing
innovations around smart living and
integrating services within the
consumers home. We diversified from
traditional telecoms into pay TV and
entertainment, into music. Now were
diversifying into health services at
PwC
13
diversifying into health services at
home, into education services at home
and being the IT manager at home.
These are the ways that we shore up our
revenue and growth possibilities.
Alex Arena
HKT, Hong Kong
Potential opportunities for business growth
Over the next 12 months
Communications CEOs single out New M&A / joint ventures / strategic alliances as the most likely area to growtheir business
over the next 12 months. This exceeds the global CEO Survey sample (from across all industries). The second most common way
operators see a potential for growth is in new product or service development.
Q:Which of these do you see as the main opportunity to growyour business in the next 12 months?
Communications
18%
Global sample
New Product or Service Development
PwC
14
26%
18%
15%
12%
29%
17%
32%
17%
8%
New Product or Service Development
Organic growth in existing domestic
market
Organic growth in existing foreign
market
New operation(s) in foreign markets
New M&A / joint ventures / strategic
alliances
Base: All respondents (Total sample, 1,330; Communications sector sample size: 34))
25%
Risk
PwC
15
We take disaster recovery not as a box
that you tick, in terms of doing your risk
assessments, but as a real risk.
Alex Arena
HKT, Hong Kong
Change
PwC
16
If I look at the half-life of technological
change, its got shorter and shorter and
we have to run faster all the time to
retain a competitive position.
Alex Arena
HKT, Hong Kong
Threats
A significant portion of our investment
aims to ensure the stable operation of
our networks and backup facilities, and
eliminate the potential threat of cyber
PwC
17
eliminate the potential threat of cyber
attacks. We see cyber attack as a
credible business threat, but do not treat
it as a global one similar to an adverse,
large scale economic challenge.
Andrei Dubovskov
President & CEO
MTS, Russia
Or visit www.pwc.com/ceosurvey
Acknowledgements
PwC gratefully acknowledges the contribution to the 16th Annual Global CEO Survey: Key findings in the
communications industry provided by:
Andrei Dubovskov, President and Chief Executive Officer
Pierre-Alain Sur Sarah Franklin
T: +1 646 471 6973
E: pierre-alain.sur@us.pwc.com
T: +1 415 498 5015
E: sarah.m.franklin@us.pwc.com
PwC
MTS, Russia
Alex Arena, Group Managing Director
HKT Ltd, Hong Kong
To download the main report, access the results and explore the CEO
18
121211-130640-EA-OS
Deali ng wi th Di srupti on
Key findings in the
Healthcare industry
January 2013
PwC
Welcome

mantra. The only solution is to build organisations that can thrive amidst disorder:
organisations that are agile and adaptable, able to cope with disruption, and emerge
organisations that can flourish under stress. Dealing with disruption shows that CEOs are
focusing on a few carefully selected initiatives to stimulate organic growth; exploring new
ways to attract and keep customers; and balancing efficiency with agility. And to succeed
in these three goals, CEOs are recognising the role that trust plays, and that theyll have to
work hard to repair the bridges between business and society.
This report is a summary of our key findings in the Healthcare sector, based on interviews
with 90 CEOs in 27 countries, as well as an in-depth interviews with 2 CEOs. To see the
full results of the 16th Annual Global Survey, please visit www.pwc.com/ceosurvey.
2
J anuary 2013 16th Annual Global CEO Survey Key findings in the healthcare industry
PwC
Contents
Page
Introduction 4
What CEOs are doing
3
PwC
I ntroducti on
4
PwC
The healthcar e i ndustr y i s tr ansfor mi ng
As the healthcare industry adapts to new demands, businesses and governments will
have to change the way they deliver and pay for care

Although every healthcare market has unique characteristics, there are 3 key trends
common to almost all healthcare economies, ushering in a new era of productivity
5
PwC
PwC sees 3 maj or tr ends dr i vi ng the healthcar e
mar ket:
6
1
There is a rebalancing of the public and private sectors
in the financing and delivery of care
Extend partnerships to create sustainable health communities
2
The healthcare sector is industrialising
Disruptive technologies are transforming business models
3
Healthcare is becoming a precision-based industry
Investing in preventive medicine can create long-term cost
savings
PwC
The tr ends wer e vali dated by the data
These 3 trends were validated in this years 16th Annual Global CEO Survey, where we see
Healthcare CEOs leveraging economic and technological resources to transform their
business models. And many of these transformations are concentrated on the consumer:

The vast majority of healthcare CEOs say customers have a significant influence
on strategy

Many also say social media users are influencing strategy

In both cases, most of these healthcare CEOs are working to strengthen
enagement with these stakeholders

7
PwC
The tr ends wer e vali dated by the data, cont
Some of the other results also point to healthcare CEOs focus on the consumerisation
trend more indirectly.:

Healthcare CEOs are much more likely to be looking at JVs and strategic alliances than
peers in other sectors.

More of them are increasing technology investments.

In both cases, the reasons why are probably connected to efforts to reach out more to
patients. And the sectors strong emphasis on cost reduction is also part of efforts to
deliver better value.

8
PwC
49%
of healthcare CEOs are very confident
they can raise the revenues their
companies generate over the next 3
years
9
PwC
Healthcar e CEOs confi dent of futur e success
The healthcare industry is going through a period of profound disruption, as healthcare
CEOs everywhere are well aware. The way in which healthcare is financed and delivered
is transforming. But most CEOs expect to master the challenges. 77% are confident of
generating higher revenues in the next 12 months, while 86% are confident of doing so
over the next three years.
45
37
36
49
15
16
4
6
40% 20% 0% 20% 40% 60% 80% 100%
12 Months
3 Years
Base: All respondents (Healthcare, 90)
10
PwC
What worri es CEOs?
11
PwC
What gover nments do could have a bi g i mpact
is looming.
72% of healthcare CEOs are worried
it could threaten their prospects
is causing headaches.
74 % of healthcare CEOs are
concerned, the same % as last year.
Are generating anxiety
about how governments
will respond to them.
79% of healthcare CEOs fear they
could slow down growth.
Economi c
uncertai nty
Over-
regulati on

Debt and
defi ci ts
12
PwC
Economi c wor r i es top the li st, but ski lls gaps
follow close behi nd.
While economic threats stand out, skills and financing issues are concerns too.

39
62
61
58
81
69
71
52
53
54
62
72
74
79
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Over-regulation
Healthcare Total sample
Base: All respondents (Total sample, 1330; Healthcare, 90)
Note: Respondents who stated extremely or somewhat concerned. Only the top 8 threats for healthcare CEOs are listed.. List combines economic and policy threats and
business threats..
13
PwC
14
Targeting pockets of opportunity


PwC
72%
of healthcare CEOs say theyre focusing
on a few carefully selected initiatives
15
PwC
Healthcar e CEOs ar e stayi ng close to home
Healthcare CEOs are especially focused on organic growth in their existing domestic
markets. Some are also looking to new product or services or deals to help rev up
revenues.

32 25 17 8 17 42 24 20 10 2
0
5
10
15
20
25
30
35
40
45
Organic growth in
existing domestic
market
New product or
service development
New M&A/ joint
ventures/ strategic
alliances
New operation(s) in
foreign markets
Organic growth in
existing foreign
market
Total sample Healthcare
Q: Which one of these do you see as the main opportunity to grow your business over the next 12 months?
16
%
PwC
And looki ng for par tner shi p oppor tuni ti es
Nearly half of healthcare CEOs say they started a new strategic alliance or JV in the past
12 months. Thats far more than ended such an arrangement.
19
16
19
24
36
8
17
17
20
47
0% 10% 20% 30% 40% 50% 60% 70% 80%
significant market
Note: Dont know/refused excluded.
17
PwC
78%
of healthcare CEOs say that customers
have a significant influence on their
strategy.
18
PwC
Healthcar e CEOs ar e li steni ng to customer s and
wor ki ng to ser ve them better
84% are working harder to
engage with customers
Thats nearly all of those who say
theyre influencing strategy.

82% of CEOs are changing
customer growth/ retention
/ loyalty strategies.
And one-third of healthcare CEOs
are making major changes.

priorities.
And even more 50% --are planning
to invest in growing the customer
base too.
Li steni ng
Changi ng
course
Better
customer
servi ce
19
PwC
And theyr e getti ng soci al
text.

Social media gives healthcare providers and
payers a way to have a dialogue with
customers that they havent had in the past.
Many have started to take advantage of the
opportunity to enhance relationships.
58% say social
media users
influence strategy
and 81% of these
CEOs are working to
strengthen their
engagement.

20
PwC
56%
of healthcare CEOs say its one of their
top investment priorities.
21
PwC
Healthcar e CEOs say cost-cutti ng conti nues to be
a pr i or i ty
Last year, 84% of healthcare CEOs told us they were planning to cut costs. And they
followed through the same number said they implemented cost reductions over the past
12 months. Outsourcing was very popular with healthcare CEOs too.
19
31
77
19
46
84
0% 10% 20% 30% 40% 50% 60% 70% 80%
Insourced a previously outsourced business process or
function
Implemented a cross-reduction initiative
22
PwC
What about next year ?
Theyre keeping the pressure on .
16
31
70
14
37
80
0% 10% 20% 30% 40% 50% 60% 70% 80%
function
Implemented a cross-reduction initiative
23
PwC
Davi d Levy
Global Health
I ndustri es Leader
T: +1 646 471 1070
E: david.l.levy@us.pwc.com
24
Chri sti ne Walters
Global Health I ndustri es
Marketi ng Di rector
T: +1 646 471 3359
E: christine.walters@us.pwc.com
PwC firms help organisations and individuals create the value they're looking for. We're a network of firms in 158 countries with more than 180,000 people who are committed to
delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com.
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
121211-130640-EA-OS
Key findings in the industrial
manufacturing industry
January 2013
PwC
Welcome

become the norm and for CEOs across the world, expect the unexpected has become
the mantra. The only solution is to build organisations that can thrive amidst disorder:
organisations that are agile and adaptable, able to cope with disruption, and emerge
organisations that can flourish under stress. Dealing with disruption shows that CEOs
are:
focusing on a few carefully selected initiatives to stimulate organic growth,
exploring new ways to attract and keep customers and
And to succeed in these three goals, CEOs are recognising the role that trust plays, and
that theyll have to work hard to repair the bridges between business and society.
This report is a summary of our key findings in the industrial manufacturing sector,
based on interviews with 173 CEOs in 39 countries, as well as in-depth interviews with:
Mr. Pertti Korhonen, President and Chief Executive Officer, Outotec Oyj, Finland
Mr. Yves Serra, President and Chief Executive Officer, Georg Fischer Ltd.,
Switzerland

2
J anuary 2013 16th Annual Global CEO Survey Key findings in the industrial manufacturing industry
PwC
Contents
Page
Introduction 4
What CEOs are doing
Being a good corporate citizen 23
3
PwC
I ntroducti on
4
PwC
I ntr oducti on
Industrial manufacturing CEOs are a lot like their peers across industries.
Theyre somewhat less confident this year and theyre worried about a
range of threats, particularly around the global economy.
But there are some key differences too, and these reflect the increasingly
global nature of the sector:
More industrial manufacturing CEOs see the cost of energy and raw
materials as a potential problem 73% are concerned, compared to
just 52% of the total sample.
And more industrial manufacturing CEOs (64%) are somewhat or
extremely concerned about exchange rate volatility, compared with
the overall average of 54%.
This year we also see strong signs of the shape of the industrys future:
China continues to play an important role to foster growth.
Concerns about getting the natural resources that manufacturers will
need are looming. In fact, 46% of industrial manufacturing CEOs say
one of their key objectives in China this year is accessing raw materials
or componentsfar more than across the overall sample.
Developing the workforce and reducing the environmental footprint
are top priorities

5
PwC
only
28%
of industrial manufacturing CEOs are
very confident they can raise the
revenues their companies generate over
the next 12 months
6
PwC
I ndustr i al manufactur i ng CEOs outlook subdued
happening and happening faster than before, so CEOs have a lot to cope with. And while
the majority of industrial manufacturing CEOs expect to grow, their outlook is somewhat
more cautious than peers across the total sample.
45
46
36
28
15
21
4
6
40% 20% 0% 20% 40% 60% 80% 100%
Total sample
Base: All respondents (Total sample, 1330; Industrial manufacturing, 173)
7
PwC
What worri es CEOs?
8
PwC
Thr eats to gr owth may be loomi ng for i ndustr i al
manufactur i ng CEOs
64% say currency fluctuations are a
concern, compared to 54% overall.

66% think government responses to
fiscal deficit and debt burden could
hurt growth.

73% see them as a concern,
compared to 52% of the overall
sample.
Exchange
rate
volati li ty
Defi ci ts
and debt

Raw
materi al
and
energy
costs
9
PwC
Thr eats to gr owth may be loomi ng for i ndustr i al
manufactur i ng CEOs
Economic worries dominate their top 5. But the second biggest concern is energy and
raw materials costs. Industrial manufacturing CEOs are far more concerned than peers in
other sectors.

62
54
71
52
81
63
64
66
73
79
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Industrial manufacturing Total sample
Note: Respondents who stated extremely or somewhat concerned. Only the top 5 threats for industrial manufacturing CEOs are listed.. List combines economic and policy
threats and business threats.
10
PwC
So CEOs ar e looki ng ahead

To say were always well-prepared for
changes may not be correct. We do our best
to work through scenari os, opportuni ti es
and threats, and to prepare accordi ngly.

Yves Serra, President and Chief Executive Officer
Georg Fischer Ltd., Switzerland
11
PwC
Most i ndustr i al manufactur i ng CEOs dont expect
the wor st to happen
47
62
66
55
64
74
69
53
12
17
17
17
23
25
32
44
0% 10% 20% 30% 40% 50% 60% 70% 80%
Health crisis (e.g. Viral pandemic, food/water safety
crisis)
A natural disaster disrupting a major
trading/manufacturing hub
Military or trade tensions affecting access to natural
resources
Major social unrest in the country in which you are
based
Recession in the US
Industrial manufacturing CEOs who think scenario is 'likely to occur'
Industrial manufacturing CEOs who state 'it would have a negative impact'

12
PwC
13
PwC
33%
of industrial manufacturing CEOs say
that China is one of their top 3 growth
markets for the coming 12 months.
14
PwC
Counti ng on gr owth i n the BRI Cs plus I ndonesi a
but the US and Ger many make the li st too
The US and Germany, both traditional manufacturing powerhouses, are still making
sector CEOs list of top markets, but China leads, the rest of the BRICs make the top 6 and
newcomer Indonesia shows up at number 7.

7
8
10
15
12
23
31
9
12
13
16
16
27
33
0% 5% 10% 15% 20% 25% 30% 35%
Indonesia
Russia
India
Brazil
Germany
USA
China
Industrial Manufacturing Total sample
Q: Which countries, excluding the country in which you are based, do you consider most important for your overall growth prospects over the next 12 months?

15
PwC
82%
that customers have a significant
influence on their strategy.

16
PwC
I ndustr i al manufactur i ng CEOs ar e li steni ng to
customer s and wor ki ng to ser ve them better
82% say customers have a
significant influence on
their business strategy
And of these CEOs, 88% say they
plan to strengthen engagement too.

77% of CEOs are changing
customer growth/ retention
/ loyalty strategies.
And 24% of industrial
manufacturing CEOs are making
major changes.

priorities.
And even more 43% --are planning
to invest in growing the customer
base too.
Li steni ng
Changi ng
course
Better
customer
servi ce
17
PwC
Developi ng the new technologi es customer s want
R&D and innovation
still a top priority
Industrial manufacturing CEOs
have a strong focus on
innovation. 45% of them said
R&D and innovation is one of
their top 3 investment priorities
over the next 12 months,
compared to just 32% across the
total sample.
And three-quarters of industrial
manufacturing CEOs also say
theyll make changes to increase
R&D and innovation capacity.
We trai n our people to
be close to our
customers so as not to
mi ss new trends, and
cooperate wi th our
customers to bri ng them
soluti ons.
Yves Serra, President and Chief Executive Office, Georg Fischer
Ltd., Switzerland

18
PwC
46%
of industrial manufacturing CEOs say its
one of their top investment priorities.
19
PwC
I ndustr i al manufactur i ng CEOs say cost-cutti ng
conti nues to be a pr i or i ty
Last year, 70% of industrial manufacturing CEOs told us they were planning to cut costs.
Even more ended up trimming the fat this year. 82% said their companies have
implemented a cost reduction initiative over the past 12 months. That continues a long-
term trend in the sector.
19
31
77
17
26
82
0% 10% 20% 30% 40% 50% 60% 70% 80%
function
Industrial manufacturing Total sample
Base: All respondents (Total sample, 1330; Industrial manufacturing , 173)
Note: Dont know/refused excluded. Not all restructuring choices are listed.
20
PwC
Or chestr ati ng the supply chai n
One key poi nt of our strategi c advantage i s the
capabi li ty to orchestrate the producti on and
engi neeri ng value chai n we create i n
partnershi p wi th other compani es. That gi ves
us the abi li ty to scale up or scale down qui ckly
and effi ci ently. We try to ensure our
organi zati onal structure i s suffi ci ently flui d so
that we can respond qui ckly to changes i n
demand. Worki ng thi s way gi ves us a lot of
flexi bi li ty - but at the same ti me, obli ges us to
ensure that all of our partners adhere to the
hi gh professi onal and ethi cal standards we set
for ourselves.

Pertti Korhonen, President and Chief Executive Officer
Outotec Oyj, Finland
21
PwC
The majority of industrial manufacturing
CEOs are increasing their investment in
creating and fostering a skilled
workforce. Its their number #1 priority
looking out over 3 years.
And keeping the workforce healthy ranks
high on their list too.
60%
Addr essi ng the comi ng ski lls gap
22
Q: How much does your company plan to increase its investment over the next 3
years to create and develop a skilled workforce in the country in which you are
based?
Note: 60% represents respondents who stated some increase or a significant increase
and does not include respondents stating a small increase

PwC
Bei ng a good corporate ci ti zen
54%
local communities influence their
business strategies
23
PwC
Industrial manufacturing CEOs are making their
organisations more agile, more appealing and more
profitable. But as weve argued in our main report, if theyre
to succeed in these three goals, theyll also have to repair
the bridges between business and society. Like their peers,
CEOs also recognise the important role that business can
play in addressing societal challenges and improving
national outcomes.

Trust isnt just an essential part of the customer
relationship, its the glue that binds an organisation and all
its stakeholders together and there are now many more
stakeholders to consider.
24
PwC
I ndustr i al manufactur i ng CEOs ar e li steni ng
Industrial manufacturing CEOs tell us that a whole range of stakeholders are influencing
their business strategies.
76
60
57
46
12
23
21
16
11
4
20
31
35
44
37
43
49
43
35
14
3
9
8
4
40
35
35
44
53
82
80% 60% 40% 20% 0% 20% 40% 60% 80% 100%
Non Governmental Organisations (NGOs)
The media
Local communities
Providers of capital (e.g. Creditors and investors)
Employees (including trade unions/ work councils)
Little or no influence Some influence Have significant influence
25
PwC

These CEOs are generally working harder to strengthen their engagement too.

48
60
60
60
62
65
65
78
84
88
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The media
Local communities
Base: All respondents who answered some or significant influence (Total sample, 420-1285; Industrial manufacturing, 40-166)
26
PwC
Most sector CEOs ar e commi tted to r educi ng thei r
companys envi r onmental footpr i nt too
36% wi ll conti nue thei r focus on
reduci ng thei r envi ronmental
footpri nt.

And 55% wi ll i ncrease thei r
efforts.

36%
45%
10%
Q: Please indicate to what extent your organisation plans to focus on
reducing environmental footprint over the next 12 months.
Base: All respondents (Total sample, 1330; industrial manufacturing, 173)

I n tackli ng cli mate change,
I thi nk that were li vi ng
through a pi votal decade.
I ts cri ti cal that sustai nabi li ty
doesn't fall off the agenda.
Pertti Korhonen, President and CEO, Outotec Oyj,
Finland

27
PwC

Acknowledgements
PwC gratefully acknowledges the contribution to the 16th Annual Global CEO Survey: Key findings in the industrial
manufacturing industry provided by:
Pertti Korhonen, President and Chief Executive Officer, Outotec Oyj, Finland
Yves Serra, President and Chief Executive Officer, Georg Fischer Ltd., Switzerland

Barry Mi sthal
Global Industrial
Manufacturing Leader
Stefan Raebsamen
Switzerland Industrial
Urmas Rani a
Finland Industrial
Raymond Mi ngi oni
Global Industrial
Manufacturing Marketing
and Business Development
T: +41 58 792 8239
barry.misthal@ch.pwc.com
T: +41 58 792 2622
sefan.raebsamen@ch.pwc.com
T: +358 9 2280 1746
urmas.rania@fi.pwc.com
T: +1 267 330 1778
raymond.m.mingioni
@us.pwc.com
28
121211-130640-EA-OS
February 2013
Coming to grips
with market
transformation
Key fndings in the Insurance industry
PwC 16th Annual Global CEO Survey Key fndings in the Insurance industry 2
organisations that are agile and adaptable, able to cope
with disruption and emerge stronger than before.
We polled 1,330 CEOs in 68 countries, and talked
face-to-face with another 33 CEOs, in our 16th Annual
Global CEO Survey, to fnd out how theyre creating
resilient organisations that can fourish under stress.
Dealing with disruption shows that CEOs are focusing on
a few carefully selected initiatives to stimulate organic
growth; exploring new ways to attract and keep customers;
and balancing effciency with agility. And to succeed in
these three goals, CEOs are recognising the role that trust
plays, and that theyll have to work hard to repair the
bridges between business and society.
This report is a summary of our key fndings in the
insurance sector, based on interviews with 92 insurance
CEOs in 39 countries. To see the full results of the 16th
Annual Global Survey, please visit www.pwc.com/
ceosurvey.
While many insurance CEOs have fxed their
sights on the immediate challenges of low
interest rates, slowing demand in mature markets
and the resulting pressure on share values,
they cant afford to ignore the transformational
changes on the horizon. As our Future of
Insurance project highlights
1
, the industry is
facing signifcant challenges and opportunities:
trajectories of growth in different parts of the
world are diverging; customers are demanding
more transparent and accessible products;
technology is revolutionising risk analysis and
customer profling; and, the speed of change is
putting existing business models at risk. There is
also a heightened threat of new entrants picking
off proftable business. The insurers that come
out on top will focus keenly on the customer
and have a superior capacity for innovation
and reinvention. Theyll be able to anticipate
change and how it affects them, as well as be
nimble enough to quickly capitalise on emerging
opportunities.
David Law
Global Leader, Insurance
PwC UK
Insurance industry summary
1 For reports and analysis setting out our perspectives on the way ahead
including Insurance 2020: Turning change into opportunity and Life insurance
2020: Competing for a future visit www.pwc.com/insurance
Introduction
Insurers are upbeat about their
prospects, with nearly 90% of the
industry leaders in our latest CEO
survey at least reasonably confdent
about revenue growth over both the
next 12 months and next three years.
This optimism is broadly in line with
other fnancial services sectors.
Specifcally, customers are looking to
insurers to help them manage a more
complex and uncertain environment
(e.g. climate change, geopolitical
instability, etc.), protect increasing
wealth (notably in emerging markets
in Asia, Africa and Latin America),
and fund longer retirements at a time
when people are living longer and
face potentially lower state welfare
benefts. Innovative insurers will be
at the forefront of helping businesses
and society meet these demands.
However, this commercial potential is
also attracting more competition, both
from within and without the fnancial
services sector.
At the same time, were seeing the
beginnings of a transformation in
customer expectations of products
and services, how insurers design,
underwrite and sell them, and
considering the many key changes
originating and developing outside
the sector even what we mean by
insurance. Nearly 60% of industry
leaders (58%) are concerned about
the shift in consumer spending on
insurance products and related
behaviour, a signifcantly higher
proportion than in banking (50%) and
asset management (44%). Moreover,
survey fndings raise questions
about whether or not insurers are
moving quickly enough to keep
pace, with only 16% anticipating the
fundamental strategic shifts that they
may need to make.
Companies in the vanguard are
increasing investment in customer
service, new technology, and talent
as they seek to reinforce customer
acquisition and loyalty. Theyre using
the latest developments in customer
analytics to understand and segment
their customers and distributors
more effectively. Theyre also looking
beyond the industry to scan for
emerging threats and opportunities
that may come under the radar.
Refecting how crucial technology
is in providing insurers with the
necessary insight and operational
agility, 86% of industry leaders plan
to increase investment in technology
over the next 12 months, more than
any other commercial sector in our
survey. (Communications is the only
other sector in which more than 80%
of CEOs plan to increase funding for
technology.)
Cutting across all these competitive
developments is a cultural shift, as
insurers strive to rebuild public trust.
55% of insurance CEOs are concerned
about lack of trust in the industry, a
higher proportion than banks (54%)
and asset managers (44%).
Figure 1: How are you changing your approach to managing your organisation?
To what extent do you anticipate your companys strategy to change over the
next 12 months?
n Global nAsset Management nBanking & Capital Markets nInsurance nAll FS
Source: 16th PwC Annual CEO Survey
Change in
fundamental ways
Somewhat change
No change
Dont know/Refused
Insurers are upbeat about their prospects, with nearly
90% of the industry leaders in our latest CEO survey at least reasonably
confdent about revenue growth over both the
next 12 months and next three years.
90%
Two-speed growth
Despite most industry leaders
optimism about revenue growth in
the near term, most see the prospects
for the overall economy as tentative at
best, with only 15% of insurance CEOs
believing that it will improve over the
next twelve months. Nearly a quarter
expect the economy to decline, though
this is a much less pessimistic outlook
than last year, when nearly half
anticipated worse times ahead.
Recession in the US and falling
growth in China are now seen as
more likely and damaging scenarios
than a break-up of the Eurozone,
though the prospects for growth
in Western Europe are still seen as
limited compared to other regions
(see Figure 2). Insurers confdence
in the prospects for growth in
Western Europe (35% anticipating
an expansion of key operations) is
signifcantly lower than banks (55%),
but ahead of asset management
(30%). Against this backdrop, familiar
problems remain in developed
markets, such as limited product
differentiation and a low perception of
value among clients, which tighten the
squeeze on margins.
So, where will the anticipated revenue
expansion come from? With growth
slowing in mature markets, many
CEOs see greater potential in the still
largely under-penetrated emerging
markets of South America, Asia,
Africa and the Middle East (together,
these regions form what PwC terms
SAAAME). These markets have
seen substantial segments of their
population escape poverty and move
into the middle class in recent years,
and Latin America currently tops the
list of the regions CEOs are eyeing
for growth. In an interview with the
Financial Times in 2012, Martin Senn,
CEO of Zurich Insurance Group,
highlighted Latin America and Brazil
in particular as a key focus for his
group and noted that new members of
the middle class, Buy cars, they buy
homes and they think about pension
solutions, which creates good demand
for insurance products.
2

Asia is also a strong focus for business
expansion, with more than 80%
of industry leaders targeting for
expansion all regions other than
Central Asia. However, the focus on
the Middle East (50%), and to some
extent Africa, has fallen signifcantly
since last year and is much lower than
in fnancial services overall.
The divergent speed of global growth
creates challenges on both sides of
the developed market and SAAAME
divide. Developing competitive scale
in key SAAAME markets is proving
challenging for many Western
insurers, where they often face
licensing and ownership restrictions.
Even where the door is open,
competition is intense and prices and
margins are declining as companies
struggle to build market share. As
more and more trade goes between
the SAAAME economies and misses
the West altogether, there is also a risk
that some Western insurers will fnd
themselves left out of the loop.
To compound this, the move to new
and unfamiliar markets is opening
up insurers to risks about which they
have virtually no data. The $12 billion
losses from the Thai foods of 2011,
prominently from supply chain and
business interruption claims coming
from other countries, were a wake-
up call
3
. Accelerating urbanisation
Figure 2: Regions targeted for growth
In the next 12 months do you expect your key operations in these regions to decline,
stay the same or grow?
Insurance (8-37) All FS (36-125)
Latin America 88 82
South-East Asia 84 79
Africa 67 78
South Asia 88 78
Middle East 50 72
East Asia 85 75
North America 61 61
Australasia 63 57
CEE/ Central Asia 63 51
Western Europe 35 40
2 Financial Times, 24.08.12 (link: http://video.ft.com/v/1801710600001/Zurich-emerges-unscathed)
3 Swiss Re Sigma Natural catastrophes and man-made natural disasters in 2011, 28.03.12
is also affecting risk profles. Over
the next 30 years, some 1.8 billion
people are expected to move into
cities, most of them in Asia and Africa,
thereby increasing the worlds urban
population to more than fve billion
people
4
. Emerging megacities are
concentrating more and more risks in
a small number of locations. In turn,
this concentration is heightening the
potential for major property losses.
To meet these challenges, sharper
and deeper analytics and greater
automation of routine underwriting
will be critical in order to sustain
margins in developed markets and
releasing underwriting resources to
manage the less familiar and rapidly
evolving SAAAME market risks.
Fortunately, there are opportunities
to automate a considerable amount
of mature market underwriting;
the necessary data is there and the
technology is now coming on stream.
When aligned with a re-allocation
of talent within the organisation,
greater automation within mature
markets would have the particular
advantage of allowing underwriters to
concentrate on assessing and pricing
risks in the less data rich markets.
Concentrating on the
customer
The speed with which price
comparison and instant access
insurance via the internet has
taken hold within many markets
demonstrates how quickly the
competitive landscape can change.
Consumers have become accustomed
to the choice and accessibility that
online retailers offer, as well as
the one-click interaction of mobile
apps; they increasingly expect this
transparency and convenience from
insurers. This search for an easy and
intuitive user experience now goes
beyond sales and includes other key
areas of customer experience, such as
claims handling. For example, there
are apps that let policyholders send
claims adjusters a photo when they
are in an automobile accident or suffer
damage to their home. This option
enables policyholders to get their
claim in train then and there.
Moreover, advances in customer
profling and risk analytics are
opening the way for a new generation
of fully customised smart policies.
Examples include the use of telematic
sensors to gauge how carefully people
drive and detect impending health
risks. Further insights could come
from analysing the payments, social
media, and other digital trails that
people leave. As a result, insurers
would have greater certainty over
their exposures, which would allow
them to offer competitive rates yet
sustain margins. In a mature and
highly price sensitive market, such
advances could give smart companies
a real edge.
Most CEOs are conscious of these
developments and their potential
to reshape the key competitive
battlegrounds and business
opportunities within the industry.
Building the customer base and
improving customer service are the
top two priorities for investment (see
Figure 3). As we noted earlier, nearly
60% of industry leaders are concerned
about shifts in consumer spending and
behaviour; in response, nearly 90%
are planning to change their strategies
for managing customer growth,
Figure 3: Investment priorities
What are your top 3 investment priorities over the next 12 months?
Insurance (92) All FS (351)
Growing your customer base 71 68
Improving operational effectiveness 52 53
Enhancing customer service 59 54
New M&A/ joint ventures/strategic alliances 26 26
R&D and innovation 14 16
Filling talent gaps 28 26
Implementing new technology 32 29
Manufacturing capacity 2 6
Securing raw materials or components 1 3
Other 5 4
Dont know/refused 1 1
4 United Nations, Department of Economic and Social Affairs, Population Division, 2009 Revision
Over the next 30 years, some 1.8 billion people are expected
to move into cities, most of them in Asia and Africa, thereby
increasing the worlds urban population to more than fve billion
people. This concentration will heighten the potential for major
property losses.
1.8bn
loyalty and retention (nearly 40% are
anticipating major changes to these
strategies), and almost nine in ten are
planning to strengthen their social
media engagement.
Just how customer-centric they
can become will be the crucial
differentiator in this evolving
marketplace. Steve Kandarian, CEO of
MetLife, has highlighted the difference
between basic customer focus and
realising its full potential. Every
company believes it is customer-
centric after all, if you werent selling
products and services that customers
wanted, you would go out of business.
But there is a difference between
successfully making a sale and being
truly customer-centric, he says. We
need to look at MetLife through our
customers eyes and ask what its
like to do business with us. If we can
give our customers truly outstanding
experiences, I believe we can capture
a lot of value through referrals and
increased sales to existing customers
thats currently being left on the
table.
5

These developments also herald an
important departure in the nature
of insurance as it moves from a
reactive claims payer to preventative
risk manager. Previous analytical
advances have already allowed
insurers to move from hindsight
to insight and hence improve their
understanding of proftability drivers
and segmentation. The next wave of
big data and predictive modelling will
allow insurers to move from insight
to foresight, where they can tailor
interactions and pricing at a customer
level and use real-time data for
decision making.
We will see fnancial service
providers use big data analytics to
design products that adapt to the
changing needs of the household
as they move through different life
stages, says Dr Anand Rao, principal
overseeing innovation in analytics
within the insurance advisory practice
at PwC US. Advice will be tailored
based on age, making it simpler
for consumers and advisors, while
automation and analytics reduce the
complexity of insurance products.
Crucially, these advances also could
allow a major web, social network
or other new entrant to move into
the market. The market reach and
customer profling edge they would
have is considerable. Most established
players face the impediment of
expensive and unwieldy legacy
systems, but new entrants could
develop automated underwriting and
customer relationship management
capabilities from scratch. This would
allow them to undercut established
players, while offering the fast and
responsive coverage people want.
In turn, cloud computing would allow
them to develop a service model built
around cheap and fexible just-in-time
virtual outsourcing.
The central role of
technology
As evidenced by the increasingly vital
role it plays in customer-centricity,
technology is at the heart of the
competitive developments within the
sector, sharpening risk understanding
and customer profling on the one side
and opening the door to new entrants
on the other. Insurers are leading
5 Meet Steve Kandarian on www.metlife.com
Every company believes it is
customer-centric after all, if
you werent selling products
and services that customers
wanted, you would go out
of business. But there is a
difference between successfully
making a sale and being truly
customer-centric
Steve Kandarian, CEO of MetLife
the way in funding, with 86% of
industry leaders planning to increase
investment in technology.
Surprisingly, however, most CEOs
say they arent concerned about the
speed of technological change or
the threat from new entrants (see
Figure 4). Moreover, few insurers
are comfortable with using new data
sources and analytical techniques to
shape decision making. A key element
of this is greater empowerment and
organisation-wide involvement in
decision making, but only around 40%
of industry leaders encourage staff at
all levels to get involved in strategic
decision, and instead use a centralised
and hierarchical approach.
Underlying all of this is an apparent
preference for incremental change
over radical innovation. Only 15%
are planning a major step up in
investment in innovation. There is a
danger that insurers could be caught
fat footed if they dont quicken the
pace of innovation and development.
Rethinking talent
management
A fast-evolving marketplace will
demand new types of skills, new ways
of working, and a fresh approach to
organisational design. Accordingly,
insurance CEOs see the availability
of talent as the biggest threat to
their growth prospects although it
is surprising that less than 30% see
flling talent gaps as a key investment
priority.
Around three-quarters of industry
leaders are planning to change the
way they manage talent and organise
their businesses. Encouraging mobility
is likely to be a key aspect of this
shift as insurers reach into new and
potentially unfamiliar markets more
than half are looking at ways to give
future executives more international
experience and promote greater
diversity in the leadership pipeline.
Competition over pay is still strong,
with nearly three-quarters of industry
leaders believing that they need
to match the rewards their peer
organisations offer to retain top
talent. However, sustaining this
compensation model will be diffcult
as returns continue to come under
pressure and tax demands in many
markets increase (nearly 60% are
concerned about the increasing tax
burden).
More than 80% of insurance CEOs
believe that risk should be factored
into performance evaluation and pay.
Around a third have changed the way
they set executive pay in response to
shareholder and public pressure. The
challenge for insurers is how to create
a coherent compensation framework
that can attract and retain talent,
while refecting risk considerations
and leaving suffcient funds to meet
investor expectations. The fact that
nearly 40% of industry leaders believe
that executive pay structures have
become too complex refects the
diffculty of this balancing act.
Figure 4: Barriers to growth
How concerned are you about the following potential business threats to your
growth prospects?
Insurance (92) All FS (351)
Increasing tax burden 57 58
Availability of key skills 64 56
Energy and raw materials costs 17 30
Shift in consumer spending and behaviours 58 50
Speed of technological change 43 42
New market entrants 42 34
Inability to fnance growth 39 45
Lack of trust in your industry 55 52
Supply chain disruption 18 20
Inadequacy of basic infrastructure 34 36
Inability to protect Intellectual Property 34 31
and customer data
Creating a winning
culture
Ongoing success is likely to require
a cultural shift as insurers seek to
rebuild public trust, meet more
exacting customer expectations, and
stave off potential threats from both
other fnancial services companies
and new market entrants. At the
heart of this shift is an environment
that encourages people to embrace
innovation, engage more closely with
customers, and provide them with
more effective risk solutions.
Because they recognise that it is a
key pillar for a secure and successful
future, many insurers are already
taking steps to change institutional
culture, notably by seeking to engage
more closely with customers. Because
they recognise that a lack of trust in
the industry is a threat to growth,
over 60% of survey respondents
are looking at how to strengthen
their culture of ethical behaviour.
This includes defning the right
behaviours, as well as reinforcing
mechanisms such as changes in hiring
practices, organisational design,
development programs, performance
management, and rewards. However,
many insurers are fnding it diffcult
to translate these objectives into
discernible changes in how people
think and behave in their everyday
activities. Culture will only deliver
the organisations key strategic goals
(e.g. innovation, integrity or sharp
customer focus) if it is second nature
and frmly part of the habits and
routines of staff at all levels.
The need to rebuild trust and re-
engage with customers forms part
of the wider challenge of securing
a social mandate, of which the
relationship with government is an
element. Nearly all insurance CEOs
say that governments and regulators
infuence their strategy, though its
noticeable that fewer of them (76%)
are looking to engage more closely
with government than they are with
customers, supply chain partners, or
users of social media.
For insurers, the potential benefts of a
strong social mandate include a closer
working partnership with government
and society in the development of
effective retirement and health care
solutions. At a time when all FS
businesses face considerable scrutiny,
strengthening the social mandate
could give insurers greater freedom
in how they operate, innovate and
pursue proftable opportunities. This
also could put insurers in a stronger
position to attract quality talent at
a time when many of the brightest
candidates are looking for more
meaning from their chosen careers.
Figure 5: How are you changing the way you view and interact with
stakeholders?
For those stakeholders with some or signifcant infuence, to what extent are you
strengthening your engagement programme?
Insurance (25-91) All FS (90-342)
Customers and clients 90 89
Your supply chain partners 80 71
Users of social media 87 80
Employees (including trade unions 64 72
and work councils)
Providers of capital (e.g. creditors 63 75
and investors)
Government and regulators 76 74
Local communities 61 67
The media 64 59
Industry competitors and peers 63 63
Non Governmental Organisations (NGOs) 57 54
Over three-ffths of survey respondents are looking at how to strengthen
their culture of ethical behaviour.
62%
Conclusion: Separating
winners and losers
This time of relentless and often
disorientating change is creating
threats for some businesses,
opportunities for others, and a
combination of both for many.
The speed at which insurers are able
to anticipate and adapt to change,
rather than simply reacting to events,
will be a key differentiator in the
transformation ahead. To stay in the
game, they will need to think and act
at the same rate as technology and
customer expectations evolve. They
will need to know how competitors
are making better use of new sources
of data and analytical techniques in
order to engage more closely with
customers and price more keenly,
as well as if new competitors are
even going to come from inside the
industry.
In addition, the ability to enhance
trust and satisfaction by putting
themselves in their customers shoes
will be crucial. This will need to take
place alongside smarter targeting
and sharper product design, as well
as the customer understanding that
underpin them. Insurers that can
realise their potential will be able
to offer more responsive policies for
less and increase market share while
maintaining proftability. Businesses
that fail to respond could fnd
themselves priced out of the market,
falling short of customer expectations,
and under threat from aggressive
new entrants. Experience in other
industries, ranging from music to
travel to electronics, shows how
quickly change can occur and how
devastating it can be. Insurers cannot
afford to believe they are immune
from transformational trends.
Insurers that can realise their potential will be able to offer more
responsive policies for less and increase market share while
maintaining proftability. Businesses that fail to respond could
fnd themselves priced out of the market, falling short of customer
expectations, and under threat from aggressive new entrants.
Contacts
David Law
PwC (UK)
T: +44 7710 173 556
E: david.law@uk.pwc.com
Anand Rao
Insurance Advisory Principal
PwC (US)
T: +1 617 530 7923
E: anand.s.rao@us.pwc.com
Claire Clark
Global Insurance, Senior Marketing Manager
PwC (UK)
T: +44 20 7212 4314
Eric Trowbridge
Insurance, Senior Marketing Manager
PwC (US)
T: +1 410 296 3446
E: eric.trowbridge@us.pwc.com
16th Annual Global
CEO Survey
Key findings in the
Insurance industry
January 2013
PwC
Welcome
mantra. The only solution is to build organisations that can thrive amidst disorder:
organisations that are agile and adaptable, able to cope with disruption and emerge
organisations that can flourish under stress. Dealing with disruption shows that CEOs are
focusing on a few carefully selected initiatives to stimulate organic growth; exploring new
ways to attract and keep customers; and balancing efficiency with agility. And to succeed
in these three goals, CEOs are recognising the role that trust plays, and that theyll have to
work hard to repair the bridges between business and society.
This report is a summary of our key findings in the Insurance sector, based on survey
responses from 92 industry leaders in 39 countries. To see the full results of the 16th
Annual Global Survey, please visit www.pwc.com/ceosurvey.
January 2013 16th Annual Global CEO Survey Key findings in the Insurance industry
2
PwC
Introduction
3
PwC
Introduction
Insurance CEOs are upbeat about their companies prospects nearly 90% are very or
somewhat confident about revenue growth.

With people living longer and more wealth to protect globally, insurers certainly have
considerable opportunities for growth. But this is also an industry facing accelerating
changes in customer expectations, customer profiling, product design and distribution.

The survey findings raise questions about whether insurers are moving quickly enough to
keep pace, with only 16% anticipating the fundamental strategic shifts that are likely to be
necessary.
4
PwC
39%
of Insurance CEOs are very confident
about their ability to increase revenue
over the next 12 months, and a further
49% are somewhat confident.
5
PwC
6
PwC
CEO concerns:
Top three economic and policy threats to growth

7
of Insurance CEOs are
concerned about the lack of
stability in capital markets.
concerned about over-
regulation.
concerned about uncertain
or volatile growth.
75%
87%

92%
PwC
CEO concerns:
Top three business threats to growth

of Insurance CEOs see the
increasing tax burden as a
threat to growth.
shift in customer spending
and behaviours as a threat
to growth.
skills as a threat to growth.
57%
58%

64%
8
PwC
The economy remains a concern
Insurance CEOs are very concerned about
a wide range of threats to growth. Economic
growth, regulation and capital market
stability top the list. These are all factors
mostly out of CEOs control.

However, they arent waiting for
governments to act. Theyre working on
making their own businesses more resilient
and seeking out pockets of opportunity.

9
PwC
So what are CEOs doing?
10
PwC
Battling for market share
Most Insurance CEOs are primarily targeting organic growth in their existing markets,
domestic or foreign. A significant proportion is also looking ahead to new product and
service development. Far fewer plan to enter new markets or embark on acquisitions or
alliances as their main source of growth.

11
PwC
89%
of Insurance CEOs are changing their
strategies for customer growth, loyalty
and retention.
12
PwC
Getting closer to customers
of Insurance CEOs have
made improving customer
service one of their top
three investment priorities.
made growing the
customer base one of their
top three investment
priorities.
planning to strengthen
customer engagement.
59%
71%

90%
13
PwC
Technology is reshaping the market

86% of Insurance CEOs are planning to increase investment in technology.

63% of Insurance CEOs are planning to increase R&D and innovation capacity.

Big data and other new analytical developments offer significant opportunities to enhance
customer profiling, targeting and the tailoring of products. But they could also open the
door to social media, telecoms firms and other new competitors. More than 40% of
Insurance CEOs are concerned about the threat from new market entrants.
14
PwC
Evolving interactions
87%
of Insurance CEOs are planning to step
up engagement with users of social
media, more than traditional media
(64%).
15
PwC
16
PwC
Government influence is a key factor
95% of Insurance CEOs say that governments and regulators influence their strategy,
almost as many as customers (99%), though far fewer are looking to engage more closely
with government (76%).
17
PwC
Winning back trust
55% of Insurance CEOs see lack of trust in the industry as a threat to growth.

62% of Insurance CEOs are increasing their focus on ways to support a culture of
ethical behaviour.

18
PwC
19
PwC
CEOs are changing the way they manage their
organisations
made improving
operational effectiveness
one of their top three
investment priorities.
planning a new cost
reduction initiative.
planning changes to their
organisational structure.
52%
72%

73%
20
PwC
Competition for talent mounting
skills as a threat to growth.
of Insurance CEOs say they
need to match pay of peers
to retain top talent.
planning to change their
strategies for managing
talent.
64%
74%

21
PwC
On the front foot
The Insurance industry is facing a major changes as growth trajectories in different parts
of the world diverge, customers demand more transparent and accessible products,
technology revolutionises risk analysis, customer profiling and the speed of change puts
existing business models at risk, and new entrants look to pick off the most profitable
business.

The insurers that will come out on top will be more customer-centric and have a superior
capacity for innovation and reinvention. Theyll be able to anticipate change and how it
affects them, as well as be nimble enough to quickly capitalise on emerging opportunities.

22
PwC
David Law Anand Rao
T: +44 7710 173 556
E: david.law@uk.pwc.com
Insurance Advisory Principal
T: +1 617 530 7923
E: anand.s.rao@us.pwc.com
Claire Clark Eric Trowbridge
Global Insurance, Senior Marketing
Manager
T: +44 20 7212 4314
U.S. Insurance, Senior Marketing
Manager
T: +1 410 296 3446
E: eric.trowbridge@us.pwc.com
23
121211-130640-EA-OS
Key findings in the metals industry
February 2013
PwC
Welcome

Far-reaching changes are taking place, and theyre taking place faster than ever. In this new era of
stable instability, risks that once seemed improbable and even remote have become the norm and for
CEOs across the world, expect the unexpected has become the mantra. The only solution is to build
organisations that can thrive amidst disorder: organisations that are agile and adaptable, able to cope
with disruption, and emerge stronger than before.
We polled 1,330 CEOs in 68 countries, and talked face-to-face with another 33 CEOs, in our 16th
Annual Global CEO Survey, to find out how theyre creating resilient organisations that can flourish
under stress. Dealing with disruption shows that CEOs are:
focusing on a few carefully selected initiatives to stimulate organic growth,
exploring new ways to attract and keep customers and

And to succeed in these three goals, CEOs are recognising the role that trust plays, and that theyll have
to work hard to repair the bridges between business and society.
This report is a summary of our key findings in the metals industry, based on interviews with 43 sector
CEOs in 23 countries.
J ames A. Forbes, Global Metals Leader
T: +1 (905) 972 4105 jim.forbes@ca.pwc.com
2
February 2013 16th Annual Global CEO Survey Key findings in the metals industry
PwC
Contents
Page
Introduction 4
What worries CEOs? 9
What are CEOs doing?
3
PwC
I ntroducti on
4
PwC
I ntr oducti on
Metals CEOs are a lot like their peers across industries. Theyre less confident this year and theyre
worried about a range of threats, particularly around the economic situation. Cost-cutting and
operational efficiency are high on the agenda.
There are some key differences too. These reflect the global and energy-intensive nature of the sector:
More metals CEOs (67%) are somewhat or extremely concerned about exchange rate volatility,
compared with the overall average of 54%.
And more metals CEOs see the cost of energy and raw materials as a potential problem 84%
are concerned, compared to just 52% of the total sample.
This year we also see strong signs of the shape of the industrys future:
China continues to be critical to growth 37% say it will be a top market in the coming 12 months.
Concerns about access to natural resources are looming. More than two-fifths of metals CEOs think
securing natural resources should be a government priority, and almost as many say theyll increase
their own investments in these areas.
Most metals CEOs say supply chain partners influence their business strategy, and theyre
strengthening efforts to engage them. Theyre also diversifying the supply chain and working with
more partners across more geographies.
Developing the workforce and reducing the environmental footprint are top priorities.

5
PwC
only
14%
of metals CEOs are very confident they
can raise the revenues their companies
generate over the next 12 months
6
PwC
Metals CEOs less confi dent thi s year

happening and happening faster than before, so CEOs have a lot to cope with. This year
just 14% of metals CEOs are very confident they can raise the revenues their companies
generate over the coming year. That continues last years drop in confidence levels.
Base: All respondents 2013 (Total Sample, 1330; Metals, 43), 2012 (Total Sample, 1258; Metals, 40), 2011 (Total sample, 1,201; Metals, 37), 2010 (Total sample, 1,198;
Metals, 33), 2009 (Total sample, 1,124; Metals, 26), 2008 (Total sample, 1,150; Metals, 25)
46%
4%
30%
46%
33%
14%
50%
21%
31%
48%
40%
36%
2008 2009 2010 2011 2012 2013
Metals Total sample
7
PwC
Metals CEOs see tough ti mes fur ther ahead too
And while the majority of metals CEOs still expect to grow looking further forward over
the next three years, their outlook is still somewhat more cautious than peers across the
total sample.
44
49
46
33
8
14
1
2
40% 20% 0% 20% 40% 60% 80% 100%
Total sample
Metals
Q: How confident are you about your companys prospects for revenue growth over the next 3 years?
Base: All respondents (Total sample, 1330; Metals, 43)
8
PwC
What worri es CEOs?
9
PwC
Thr eats to gr owth ar e loomi ng for metals CEOs
67% of metals CEOs say currency
fluctuations are a concern,
compared to 54% overall.

81% of metals CEOs think it could
hurt growth. Thats a concern shared
by peers across the sample.

84% of metals CEOs see them as a
concern, compared to 52% of the
overall sample.
Exchange
rate
volati li ty
Economi c
uncertai nty

Energy
and raw
materi al
costs
10
PwC
Thr eats to gr owth ar e loomi ng for metals CEOs
Economic worries dominate the list of worries that keep metals CEOs awake at night. But
their single biggest concern is energy and raw materials costs. 84% think they could
threaten growth --- 28 points higher than across the total sample.

69
61
62
54
71
81
52
63
63
63
67
72
81
84
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Over-regulation
Metals Total sample
Note: Respondents who stated extremely or somewhat concerned. Only the top 7 threats for metals CEOs are listed. List combines economic and policy threats and
business threats.
11
PwC
Natur al r esour ce thr eats stand out

Metals CEOs are far more worried about the
pending resource crunch than CEOs across
the overall sample, with 82% seeing energy
and raw material costs as a concern
(although some other sectors also rate these
costs as a serious threat).

52
84
0 20 40 60 80 100
CEOs who are concerned that
energy and raw materials costs
could threaten growth
Metals Total sample
28
24
44
37
0 10 20 30 40 50
CEOS who say that securing
natural resources that are critical
to business should be a
government priority
CEOs who say that they'll increase
investments to secure natural
resources that are critical to
business
Metals Total sample
Q. How concerned are you about the following potential business threats to your growth prospects? How much does your company plan to increase its investment over the next three
years to achieve the following outcomes in the country in which you are based? Which three areas should be the Governments priority today?
%
%
12
More than two-fifths of metals CEOs think
securing natural resources should be a
government priority, and almost as many
say theyll increase their own investments
in these areas.
PwC
Most maj or di sr upti ons dont look li kely to metals
CEOs but they would have a bi g i mpact
63
51
63
70
63
65
84
70
9
12
16
16
16
28
33
53
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Recession in the US
Metals CEOs who say the scenario is 'likely to occur'
Metals CEOs who say 'it would have a negative impact'

13
PwC
14
PwC
37%
of metals CEOs say that China is one of
their top 3 growth markets for the
coming 12 months.
15
PwC
Capi tal i nvestment, Chi na and tr ansacti ons ar e
br i ght spots
70% say theyll make
changes to increase capital
investment this year
That compares to 64% across the
sample overall.

37% say its one of their top
growth markets.
Thats no surprise, with China now
the worlds #1 steelmaker

72% say there will be
changes at their company
with regards to M&A, joint
ventures or strategic
alliances.
And 37% say transactions will be a
top investment priority.
I nvesti ng
Chi na
Deals
16
PwC
Metals CEOs ar e sti ll i nvesti ng i n key ar eas
Improving operational effectiveness can help cut the cost base, its not surprising it heads
up the list of investment priorities for the next 12 months. But growing the customer base,
manufacturing capacity and deals make the list for many CEOs too.

32
33
19
51
49
30
37
37
47
56
0% 10% 20% 30% 40% 50% 60%
R&D and innovation
New M&A/ joint ventures/ strategic alliances
Metals Total sample

17
PwC
79%
of metals CEOs say that customers have
a significant influence on their strategy.

18
PwC
Metals CEOs ar e i nvesti ng i n customer s but ar e
they focusi ng enough on customer ser vi ce?

text.

Growing the customer base is second on the
list of investment priorities for the next 12
months, right after operational
effectiveness.

But surprisingly, relatively few just 21% --
say that enhancing customer service is a top
investment priority this year.

of metals CEOs say
growing the
customer base is a
top investment
priority this year
47%
19
PwC
Metals CEOs ar e changi ng cour se when i t comes to
customer gr owth, r etenti on and loyalty

19%
56%
26%
81% of metals CEOs are
changi ng customer growth/
retenti on / loyalty strategi es

And 26% say theyll make
maj or changes
Q: Please indicate to what extent your organisation plans to focus on workforce diversity and
inclusion over the next 12 months?

A major change
Some change
No change
20
PwC
56%
of metals CEOs say its one of their top
investment priorities.
21
PwC
Metals CEOs ar e maki ng cost-cutti ng a pr i or i ty
19
28
79
0% 10% 20% 30% 40% 50% 60% 70% 80%
Insourced a previously outsourced business process
or function
Metals
Q: Which, if any, of the following restructuring activities have you initiated in the past 12 months? Which, if any, do you plan to initiate in the coming 12 months?
Base: All respondents (Metals, 43)
Note: Does not list all restructuring activities.
Past 12
months:
Coming 12
months:
14
21
74
0% 10% 20% 30% 40% 50% 60% 70% 80%
Insource a previously outsourced business process
or function
Metals
22
PwC
Metals CEOs ar e cutti ng mor e staff than peer s
acr oss the sample
Around 42% of metals CEOs say their companies cut staffing numbers in the past 12
months; thats significantly more than across the total sample.

Q: What happened to headcount in your company globally over the past 12 months?

11
21
7
12
7
9
21
12
12
2
15
12
40% 30% 20% 10% 0% 10% 20% 30% 40% 50% 60%
Total sample
Metals
Decreased by less than 5% Decreased by 5-8% Decreased by more than 8%
Increased by less than 5% Increased by 5-8% Increased by more than 8%
23
Stayed
the same
30
25
PwC
And the tr end looks set to conti nue next year
More cuts look likely next year. Some of them will be deep -- 14% of metals CEOs say their
companies will decrease headcount by more than 8% in the coming 12 months.

Q: What do you expect to happen to headcount in your company globally in the coming 12 months?

14
16
5
2
4
14
22
14
12
2
11
12
40% 30% 20% 10% 0% 10% 20% 30% 40% 50%
Total sample
Metals
Decrease by less than 5% Decrease by 5-8% Decrease by more than 8%
Increase by less than 5% Increase by 5-8% Increase by more than 8%
24
Stayed
the same
33
28
PwC
Despite short-term headcount
headaches, skills are still a big issue for
the industrys future. More than three-
quarters of metals CEOs are increasing
their investment in creating and fostering
a skilled workforce. Its their number #1
investment priority looking out over 3
years.
And keeping the workforce healthy ranks
high on their list too.
A decrease or no
increase in
investment
A small inrease
in investment
Some increase
in investment
A significant
increase in
investment
Don't
know/refused
77%
Addr essi ng the comi ng ski lls gap
Q: How much does your company plan to increase its investment over the next 3 years to create and develop a skilled workforce in the country in which you are based?
Note:77 % represents respondents who stated a small increase , some increase or a significant increase.

25
PwC
How secur e i s the metals supply chai n?
Only about a third of metals CEOs (35%)
are worried about supply chain disruptions.
That may be because sector CEOs are
working closely with partners and
diversifying their supply chains.
A full 86% of metals CEOs say that supply
chain partners are influencing their
business strategy. Of those CEOs, most also
plan to increase their efforts to engage
across the value chain.
And 58% of metals CEOs say theyre
diversifying their supply chain and working
with more partners across geographies.

50
76
58
86
0 20 40 60 80 100
CEOs who say they're diversifying
their supply chain and working
with more partners across more
varied geographies
CEOs who say supply chain
partners are influencing their
business strategy
Metals Total sample
Q. How much influence do the following stakeholders have upon your business
strategy (supply chain partners)?
Which of the following statements most accurately describes the approach you take to
managing your organisation?
%
26
PwC
84%
of metals CEOs say employees influence
their business strategy.
27
PwC
Metals CEOs ar e li steni ng to a wi de r ange of
stakeholder s
Customers and clients stand out, but supply chain partners, employees and industry peers
are influencing company strategy too.

21
26
35
67
77
79
84
84
86
98
0% 20% 40% 60% 80% 100% 120%
The media
Local communities
Metals
Note: Respondents answering some or significant influence
concerned.
28
PwC
Most metals CEOs ar e commi tted to r educi ng thei r
companys envi r onmental footpr i nt
63% of metals CEOs wi ll i ncrease
efforts to reduce thei r companys
envi ronmental footpri nt19%
si gni fi cantly.

And 33% wi ll conti nue thei r
curent focus.

5%
33%
44%
19%
Q: Please indicate to what extent your organisation plans to focus on
reducing environmental footprint over the next 12 months.
Base: All respondents (Metals, 43)

29
PwC
And many ar e i ncr easi ng thei r focus on good
cor por ate ci ti zenshi p mor e gener ally too
That includes working to improve workforce and inclusion and develop or enhance a
framework to support a culture of ethical behaviour.

33
31
41
35
37
56
50
48
14
33
37
47
49
51
53
63
0% 10% 20% 30% 40% 50% 60% 70%
Board level diversity
Volunteering/ community work
Non-financial reporting (incl corporate responsibility reporting)
Philanthropy or social enterprise initiatives
Approach to tax planning and tax contribution
Framework to support a culture of ethical behaviour
Workforce diversity and inclusion
Reducing environmental footprint
Metals Total sample
Q: To what extent does your organisation plan to focus on the following priorities ?
Note: Respondents answering they will increase their focus somewhat or significantly
concerned.
30
PwC
Our metals r espondents came fr om 23 countr i es
all over the wor ld
Canada,
Mexico, US
Austria, Cyprus, France, Germany,
Italy, Poland, Romania, Spain,
Sweden
Argentina,
Brazil
Australia
China, India,
Japan, Korea,
Malaysia,
Vietnam
Nigeria, Other
middle east
31
PwC

J ames A. Forbes
Global Metals Leader
J oy Wi nton
Global Metals Marketing and Business
Development
T: +1 (905) 972 - 4105
jim.forbes@ca.pwc.com
T: +31 88 792 328
joy.x.winton@nl.pwc.com
Download the main report, access the results and
explore the CEO interviews from our 16th Annual
32
121211-130640-EA-OS
Dealing with Disruption:
16th Annual Global
CEO Survey
Key findings in the
Technology industry
January 2013
Welcome
mantra. The only solution is to build organizations that can thrive amidst disorder:
organizations that are agile and adaptable, able to cope with disruption and emerge
PwC
organizations that can flourish under stress. Dealing with disruption shows that CEOs
are focusing on a few carefully selected initiatives to stimulate organic growth; exploring
new ways to attract and keep customers; and balancing efficiency with agility. And to
succeed in these three goals, CEOs are recognizing the role that trust plays, and that
theyll have to work hard to repair the bridges between business and society.
This report is a summary of our key findings in the technology sector, based on interviews
with 154 technology CEOs in 38 countries, as well as an in-depth interview with Stephen
A. Elop, CEO of Nokia. To see the full results of the 16th Annual Global Survey, please
visit www.pwc.com/ceosurvey.
2
January 2013 16th Annual Global CEO Survey Key findings in the technology industry
Technology sector sample demographics
29%
16%
8%
10%
Revenue
32%
39%
Geography
37%
8%
8%
5%
15%
Subsector
PwC
36%
$0 to $100M
$101 to $999M
$1 to $10B
Over $10B
Not stated
29%
Americas
Europe
Africa, Asia, Middle East, Australia
3
26%
8%
Computers & Networking
Software/Information Technology
Semiconductor
Electronics Manufacturing/Distributors
Internet
Other
Contents
Page
Introduction 5
CEO confidence 7
How are CEOs responding?
PwC
Customer focus 15
Prioritising innovation 18
Global expansion 20
4
Introduction
PwC 5
Introduction
Technology CEOs are a lot like their peers across industries. Theyre slightly less confident
this year about the economic outlook.
But there are some key differences too. Competition and industry disruption are more of a
concern due to the fast speed of technological change. At the same time, 58% of
technology CEOs (an increase of 6% from the prior year) are concerned about government
over-regulation.
PwC
over-regulation.
Technology CEOs are actively engaged in multiple actions to better prepare their
organisations to deal with these challenges. Theyre focused on customer growth,
innovation and new products and services.
6
PwC
of technology CEOs are confident they
can raise revenues over the coming year,
compared to the total sample at 81%.
Even more technology CEOs (96%) are
optimistic about increasing revenue over
the next three years, compared to the
total sample at 90%.
7
Employment growth
In line with their peers across industries, 44% of Technology CEOs expect to increase
headcount, and just 16% expect to decrease headcount in contrast to 23% across all
industries.
30
35
40
Q: What do you expect to happen to headcount in your company globally over the next 12 months?
PwC
3
2
11 35 12 13 19
4
5
14 28 22 12 11
0
5
10
15
20
25
30
Decreased by
more than 8%
Decreased by
5-8%
Decreased by
less than 5%
Stayed the
same
Increased by
less than 5%
Increased by
5-8%
Increased by
more than 8%
Technology Total sample
Base: All respondents (Total sample, 1,330; Sector, 154)
8
The global economic outlook for 2013 and for the next three years
seems very uncertain to me. Countries would seem to fall into two
categories. The first category concerns mature markets. The US has
an advantage over Europe in that the US economy seems more flexible
and more able to regenerate and kick-start itself. Europe, however, has
a more rigid structure. The second category concerns new economies,
PwC 9
a more rigid structure. The second category concerns new economies,
which have brighter prospects.
Jean-Pascal Tricoire, President and CEO
Schneider Electric SA, France
Technology CEOs continue to battle with
political threats against growth...
62%
87%
58%
PwC
2012 Technology: 60%
2013 Total Sample: 71%
are concerned about
government
response to fiscal
deficit & debt
burden
10
are concerned about
over-regulation
58%
are concerned about
protectionist
tendencies of
national government
45%
...and economic threats against growth
59%
87%
PwC
are concerned about
lack of stability in
capital markets
2012Technology: 58%
are concerned about
volatile economic
growth
59%
11
are concerned about
exchange rate
volatility
2012Technology: 57%
52%
Business threats against growth
Disruptions caused by technological changes, new market entrants and shifting consumer
spending and behaviour top the list of market threats to growth.
40
42
62
58
48
57
58
64
New market entrants
Q: Howconcerned, if at all, are you about:
PwC
37
35
35
52
34
39
49
40
28
31
38
39
40
46
47
0% 10% 20% 30% 40% 50% 60% 70%
Lack of trust
Security of supply chain
Energy & raw materials costs
IP and customer data protection
Technology Total sample
Note: Respondents who stated extremely or somewhat
concerned.
12
So what are technology CEOs doing?
PwC 13
Change of strategy
PwC
of technology CEOs expect to change
company strategy over the coming year,
compared to the total sample at 68%.
14
Customer growth and investing in R&D and
innovation remain top priorities
38
49
32
51
36
38
48
61
R&D and Innovation
Q: What are your top 3 investment priorities for 2013?
PwC
9
19
26
27
33
38
3
11
25
30
31
0% 10% 20% 30% 40% 50% 60% 70%
Securing raw materials or components
Filling talent gaps
New M&A/joint ventures/strategic alliances
Technology Total Sample
15
Changes ahead for technology
companies
PwC
of technology CEOs anticipate changes
in their customer growth, retention, and
loyalty strategies.
16
Increasing engagement and social media
In line with CEOs from other industries, 90% of technology CEOs are focused on strength-
ening relationships with customers and clients by increasing engagement. In pursuit of new
customers, 84% of technology CEOs are enhancing their focus on social media.
Q: To what extent are you strengthening your engagement programwith the following stakeholders?
77
78
89
80
84
90
Employees (including trade unions & work council)
Customer and clients
PwC
Note: This question was asked only to those who stated the above stakeholders have influence their strategy. Respondents who stated some change or major change are
shown above
concerned.
17
64
68
67
63
78
77
63
65
66
67
76
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The media
Providers of capital
Government regulators
Supply chain partners
Focusing on developing newproducts or services
New entrants are more of a concern for
technology CEOs than the total sample.
On a micro level, the biggest threat for us is always the next disruption around the
corner. Clearly were trying to disrupt our competitors, and theyre trying to disrupt us.
So we are constantly assessing, preparing and trying to out innovate--but thats the
nature of our competitive and exciting industry.
Stephen A. Elop of Nokia Corporation
40%
Growth Opportunity: New products and
services
PwC
technology CEOs than the total sample.
Thus, they are focused on constantly
finding ways to differentiate their products
by providing unique customer experiences.
New products or services are viewed as the
main opportunity for growth by 37% of
technology CEOs versus 25% of the broader
sample of all CEOs.
18
39% 37% 28% 25%
0%
10%
20%
30%
2012 2013
Q: Which one of these potential opportunities for business growth do you see as the main opportunity to growyour business in the next 12 months?
concerned.
We have one of the most geographically balanced business bases in the
sector. In uncertain times like these, this balanced geographical
diversification enables us to keep the companys performance on an
even keel and take advantage of growth avenues, wherever they may be.
PwC 19
even keel and take advantage of growth avenues, wherever they may be.
Jean-Pascal Tricoire, President and CEO
Global operations expansion
Technology CEOs continue to view Latin America as the key region for expanding their
operations, followed by South-East Asia and North America.
74
62
83
81
68
70
76
83
Africa
North America
South-East Asia
Latin America
Q: In 2013 do you expect your key operations in these regions to decline, stay the same or grow?
PwC
33
58
57
77
70
80
74
37
38
46
63
63
64
68
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Western Europe
Australia
Central and Eastern Europe/Central Asia
East Asia
Middle East
South Asia
Africa
Note: Respondents who stated grow co
ncerned.
20
China still in the lead when it comes to new
revenue opportunities
20
25
30
35
Q: Which countries, excluding the country in which you are based, do you consider most important for
your overall growth prospects in 2013?
PwC
31 23 15 12 10 8 7 6 5 5 27 25 19 10 14 8 6 6 4 5
0
5
10
15
20
China US Brazil Germany India Russia Indonesia UK Canada Japan
21
Whats next
Deciding which processes and capabilities need to be global, regional and local isnt just about taking
advantage of growth opportunities; its also about developing the flexibility to survive disruptions,
wherever they may surface. Thats not an easy balance to strike. Weve distilled five key questions
from the feedback CEOs have given us in this years CEO Survey:
Organizations are increasingly aware that opportunities in growth markets are highly nuanced. How
do you evaluate the opportunities offered in these diverse and diverging markets, both newer and
more established?
How can you use digital channels to better communicate with your customers, co-create products,
capture customer insights, increase loyalty and measure your impact in all of these areas?
PwC
22
capture customer insights, increase loyalty and measure your impact in all of these areas?
How can you innovate more effectively and efficiently and focus more on the customer in your
innovation strategy and processes?
To take advantage of new opportunities before competitors do, how can you create the right degree of
flexibility in your organizational structure and processes, which allows you to quickly deploy
resources across your organization to where theyre most needed?
How can you create networks of formal and informal trusted relationships which go beyond
contractual terms to target a shared vision, set of values and objectives?
16th Annual Global CEO Survey Key findings in the technology industry January 2013
Rod Dring Australia Werner Ballhaus Germany Yury Pukha Russia
T: 61 2 8266 7865
E: rod.dring@au.pwc.com
T: 49 211 981 5848
E: werner.ballhaus@de.pwc.com
T: 7 495 223 5177
E: yury.pukha@ru.pwc.com
Estela Vieira Brazil Sanjay Dhawan India Greg Unsworth Singapore
T: 55 1 3674 3802
E: estela.vieira@br.pwc.com
T: 91 80 4079 7003
E: sanjay.dhawan@in.pwc.com
T: 65 6236 3738
E: greg.unsworth@sg.pwc.com
Raman Chitkara
Global Technology Leader
T: 1 408 817 3746
E: raman.chitkara@us.pwc.com
PwC
23
Christopher Dulny Canada Kenji Katsura Japan Douglas Mahony UAE
T: 1 416 869 2355
E: christopher.dulny@ca.pwc.com
T: 81 90 5428 7687
E: kenji.katsura@jp.pwc.com
T: 97 1 43043151
E: douglas.mahony@ae.pwc.com
JianBin Gao China Hoonsoo Yoon Korea Jass Sarai UK
T: 86 21 2323 3362
E: gao.jianbin@cn.pwc.com
T: 82 2 709 0201
E: hoonsoo.yoon@kr.pwc.com
T: 44 0 1895 52 2206
E: jass.sarai@uk.pwc.com
Xavier Cauchois France Ilja Linnemeijer The Netherlands TomArcher US
T: 33 1 5657 10 33
E: xavier.cauchois@fr.pwc.com
T: 31 88 792 4956
E: ilja.linnemeijer@nl.pwc.com
T: 1 408 817 3836
E: thomas.archer@us.pwc.com
Acknowledgements
PwC gratefully acknowledges the contribution to the 16th Annual Global CEO Survey: Key findings in the technology
Stephen A. Elop, President and Chief Executive Officer
Nokia Corporation, Finland
Jean-Pascal Tricoire, President and Chief Executive Officer
121211-130640-EA-OS
Key findings in the trans-
portation & logistics industry
February 2013
PwC
Contents
Page
Introduction 3
CEOs confidence levels
5
What worries CEOs
Macroeconomic threats
Infrastructure gaps
8
Glimmers of hope in Africa and SE Asia
Partnership opportunities
11
Reducing costs, outsourcing
Re-thinking risk
18
Engaging with people
Workforce development
Building diversity and an ethical culture
22
2
February 2013 16th Annual Global CEO Survey Key findings in the transportation & logistics industry
PwC
Introduction
3
PwC
Introduction
16
th
Annual Global CEO Survey polled 1,330 CEOs in 68 countries
109 transportation & logistics CEOs in 43 countries 33 face-to-face
interviews including 2 from the transportation & logistics industry
Far-reaching changes are leading to a new stable instability
The only solution is to build organisations that can thrive amidst
disorder
How are transportation & logistics CEOs in particular dealing with
disruption?
Looking to growth regions like Southeast Asia and Africa
Improving operational efficiency, for example by cutting costs and
outsourcing
Rethinking their risk strategies
Key investment priorities: growing the customer base and improving
customer service; developing the workforce
To see the full results, please visit www.pwc.com/ceosurvey.
4
PwC
of transportation & logistics CEOs are
very confident they can raise the
revenues their companies generate over
the next 12 months
only
24%
5
PwC
T&L CEOs confidence levels reflect turbulent times
Base: All respondents 2013 (Total sample, 1330, Transportation & logistics, 109); 2012 (Total Sample, 1258; Transportation & logistics, 98); 2011 (Total sample, 1,201;
Transportation & logistics, 60); 2010 (Total sample, 1,198; Transportation & logistics, 67); 2009 (Total sample, 1,124; Transportation & logistics, 67); 2008 (Total sample, 1,150;
Transportation & logistics, 50)
44%
25%
31%
60%
36%
24%
50%
21%
31%
48%
40%
36%
0%
10%
20%
30%
40%
50%
60%
70%
2008 2009 2010 2011 2012 2013
Transportation & logistics Total sample
6
PwC
but if it does, there will be a big impact
Most transportation and logistics CEOs dont
expect the worst to happen
57
57
57
58
60
74
70
53
16
23
16
11
24
21
33
40
0% 10% 20% 30% 40% 50% 60% 70% 80%
Recession in the US
Transportation & logistics CEOs who think scenario is 'likely to occur'
Transportation & logistics CEOs who state 'it would have a negative impact'
Base: All respondents (Total sample, 1330; Transportation & logistics, 109)
7
PwC
What worries CEOs?
As far as the global economy is
concerned, the threat is the start of
economic stagnation, which, in turn,
could encourage protectionism across
the various economic blocks. The
solution to stagnation is not
protectionism. Instead, the solution lies
in structural changes that will unlock
productivity and growth potential.
Dr. John Coustas, President & CEO,
Danaos Corporation, Greece
8
PwC
Macroeconomic worries are top of mind for T&L
CEOs
50
52
53
54
58
61
69
72
73
76
0% 10% 20% 30% 40% 50% 60% 70% 80%
Over-regulation
Transportation & logistics
Base: All respondents (Transportation & logistics, 109)
Note: Respondents who stated extremely or somewhat concerned. Only the top 10 threats for transportation & logistics CEOs are listed. List combines economic and policy
threats and business threats.
Source: PwC 16th Annual Global CEO Survey 2013: PwC 16th Annual Global CEO Survey 2013
but energy costs and skills issues are concerns too
9
PwC
44% of T&L CEOs say
theyre concerned that
inadequacy of infrastruc-
ture could hurt growth
44%
62%
Infrastructure gaps are looming too, and T&L
CEOs want governments to take action
Q: What are your top 3 investment priorities in the next 12 months? To what extent do you anticipate changes at your company over the next 12 months with regards
to an increase in R&D and innovation capacity?
37%
62% think it should be one
of the governments top 3
priorities
And 37% are increasing
their own investments in
addressing infrastructure
gaps
10
PwC
We see it as really important to
capture the market in Southeast Asia
with its 600 million population base. It
has a geographical landscape which is
very conducive to air travel as land
transportation is virtually non-existent.
It also has one of the highest growing
GDPs in the world, with a median
population age of about 27 to 28 years,
and it has one of the highest growth
rates in terms of middle income
earners.
Aireen Omar, CEO, AirAsia Berhad,
Malaysia
11
PwC
but glimmers of hope in South-east Asia and Africa
Sector CEOs are less optimistic about regional
growth

33
57
66
62
73
70
58
81
74
81
17
38
47
48
50
53
57
69
80
85
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Western Europe
CEE/ Central Asia
East Asia
North America
South Asia
Middle East
Australasia
Latin America
Africa
South-East Asia
Q: In the next 12 months do you expect your key operations in these regions to decline, stay the same or grow?
Base: All respondents (Total sample, 170-533; Sector, 14-48). Note some regions have small sample sizes so data should be viewed as indicative only.
Note: Respondents who expect operations to grow
12
PwC
Partnering is getting more important
Q: Which, if any, of the following restructuring activities have you initiated in the past 12 months
Note: Respondents who named Enter into a new strategic alliance or joint venture
24% say theyve entered into a new joint
venture or strategic alliance already
And 47% are planning on joining forces
this year
Past 12 months: Coming 12 months:
24%
47%
13
PwC
Naturally, our customers (we call them
our guests) are a big influence on us.
Theyre going to buy our product so we
need to be able to understand them, to
get the right kind of feedback, to be able
to customise our service to their needs.
So they are the key.
Malaysia
14
PwC
Listening to customers

of transportation & logistics
CEOs say customers have a
significant impact on their
strategy.
80%
15
PwC
So theyre changing course to serve customers
better and win their loyalty

Q: To what extent do you anticipate changes at your company over the next 12 months with regards to customer growth /retention/loyalty strategies? Do you
anticipate no change, some change or a major change?
A major change
18%
57%
25%
Some change No change
82%
82% of transportation & logistics CEOs are changing customer
growth/retention/loyalty strategies and 25% say theyll make
major changes
16
PwC
And customers top the list of investment
priorities too
27
26
33
38
51
49
28
28
30
52
57
57
0% 10% 20% 30% 40% 50% 60% 70% 80%
Filling talent gaps
New M&A/ joint ventures/ strategic alliances
Note: Only top 6 choices listed.
17
PwC
57%
of transportation & logistics CEOs say its
one of their top investment priorities.
18
PwC
Transportation & logistics CEOs are making cost-
cutting a priority
20
37
82
0% 10% 20% 30% 40% 50% 60% 70% 80%
Insourced a previously outsourced
business process or function
Q: Which, if any, of the following restructuring activities have you initiated in the past 12 months? Which, if any, do you plan to initiate in the coming 12 months?
Note: Does not list all restructuring activities.
Past
12 months
Coming
12 months
17
27
69
0% 10% 20% 30% 40% 50% 60% 70% 80%
Insource a previously outsourced business
process or function
19
PwC
Rethinking risk
Q: Which of the following statements most accurately describes the approach you take to managing your organisation?
With 59% of
transportation
& logistics
CEOs saying
theyll change
their approach
to managing
risk in the next
12 months,
this picture
may look
different next
year.
Most transportation & logistics CEOs
currently say accountability for risk
management is centralised.
Strategies are evenly split between
predicting high impact scenarios and
preparing for the consequences of
them should they occur.
71
29
0 50 100
Accountability for risk
management is
centralised
Accountability for risk
management is
decentralised
49
47
0 50
We primarily allocate risk
management resources to
predicting high-impact risk
events
We primarily allocate risk
management resources to
our ability to recover from
the consequences should
a risk event occur
20
PwC
Underestimating cyber threats?
34
42
26
31
0 10 20 30 40 50
Inability to protect Intellectual
Property and customer data
Speed of
technological change
Q: How concerned are you, if at all, about each of the following threats to your growth
prospects?
Note: Respondents who stated extremely or somewhat concerned.
CEOs are less worried than
peers across the sample about
their ability to protect IP and
customer data. Theyre also not
as concerned that the speed of
technological change could
pose a risk to growth.

And only 11% of sector CEOs
think a cyber attack or major
disruptions of the internet is
likely; 38% just arent sure. But
58% say such an event would
have a negative impact on their
business.
21
PwC
Engaging with people
Trust is a key word here: you trust
that you have employed the best people
to help you with your expansion plan.
When you have that trust and you
delegate as much as you can, you give
employees the freedom to be creative
and reward them for it. That is
extremely motivating for anyone who
wants to build a career.
Malaysia
22
PwC
It all starts with motivated, engaged employees
of transportation & logistics
CEOs are making changes to how
they manage their people
77%
23
PwC
Investing in the future workforce
Q: How much does your company plan to increase its investment over the next 3 years to create and develop a skilled workforce in the country in which you are
based?
Base: All respondents (Total sample, 1330; transportation & logistics, 109)
Note: 57% represents respondents who stated some increase or a significant increase and does not include respondents stating a small increase
57%
The majority of transportation & logistics CEOs are increasing
their investment in creating and fostering a skilled workforce.
Its their number #1 priority looking out over 3 years.
And keeping the workforce healthy ranks second on their list.
24
PwC
Transportation & logistics CEOs say theyre
working hard to develop their leadership pipeline
33
58
61
68
69
72
79
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Shadowing senior executives
Encouraging global mobility and international
experience
Rotations to different functions/ challenges
Programmes to encourage diversity amongst business
leaders
Active succession planning including identifying
multiple successors
Dedicated executive development programme
Involving managers below board level in strategic
decision-making
Note: Respondents who stated yes.
25
PwC
Most transportation & logistics CEOs are focusing
on workforce diversity and inclusion

47%
40%
10%
Q: Please indicate to what extent your organisation plans to focus on workforce diversity and inclusion over the next 12 months?
Note: Dont know/refused excluded .
Decrease focus No change Increase focus
40%
will continue their focus on
workforce diversity and
inclusion, and
47%
will increase their efforts over
the next 12 months.
26
PwC
Download the main report, access the
results and explore the CEO interviews
from our 16th Annual Global CEO Survey
online at www.pwc.com/ceosurvey.
contribution to the 16th Annual
Global CEO Survey: Key findings
in the transportation & logistics
Dr. John Coustas, President &
CEO, Danaos Corporation,
Greece
Aireen Omar, CEO, AirAsia
Berhad, Malaysia
Acknowledgements
Klaus-Dieter Ruske Peter Kauschke
Global Industry Leader
Tel. +49 211 981 2877
klaus-dieter.ruske@de.pwc.com

Or visit www.pwc.com/ceosurvey
Global Industry Marketing/BD Director
Tel. +49 211 981 2167
peter.kauschke@de.pwc.com

27
121211-130640-EA-OS

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1. 16th Annual Global CEO Survey

CEOs often in the position for shorter

PwC 16th Annual Global CEO Survey Country Summary: the UK 5

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