Steering the helm of an organization as CEO is an intricate dance, of course. Being responsible for major corporate decisions, operations and resources – not to mention being the relentless face of the company – demands a blend of forward-thinking leadership and a strategic vision. And so having an overall agenda that drives towards a singular goal in an ever-evolving business landscape is a top priority. Especially since these past few years have been some of the most difficult environments to navigate.
In a recent report titled What matters most? Eight priorities for CEOs in 2024, which includes responses from hundreds of CEOs across the globe, McKinsey & Company reveals eight factors that will take up your CEOs time.
1. Focusing on Gen AI
The biggest emerging technology of the last year would certainly have to be generative artificial intelligence. And the race to understand, manage, and use it to get ahead began a while ago. But, according to McKinsey, “while innovators dominate headlines, it’s scalers that dominate the markets.” With that said CEOs will need to focus on which segments of their company can benefit from Gen AI. How to scale the type of usage across departments. And finally, how these new tools will fundamentally alter their specific industry.
2. Keeping up with technology
While most companies have undergone a digital and AI transformation, many are still not necessarily seeing the expected impact. Often, this is due to the fact that those companies haven’t invested in the organizational rewiring needed. Leading organizations will prioritize digitizing the entire firm.
3. The energy transition
During a year filled with economic uncertainty and supply chain pressures, investors and companies, in general, have held off on committing capital to the shift from fossil-based systems to renewable energy sources. But, according to this report, “what needs to happen is the creation of thousands of new green-technology businesses, in every part of the emerging business system.” In the coming 12 months, CEOs will push ahead with bold moves with regards to sustainability.
4. Knowing what elevates you
“A distinctive capability can lift a company out of the mire of clogged, commoditized markets and onto the high ground of outperformance,” reveals McKinsey. Achieving one strong ability and knowing it well, sets up a company with a competitive advantage. Leaders will be honing in on their organization’s unique superpower.
5. Appreciating middle management
Promotions into senior management aren’t for everyone. (But who’s going to say no to one?) Instead, CEOs will be considering new ways to celebrate and reward middle managers for the work they do and want to continue doing. This year will have companies reconsidering their views about what it means to succeed.
6. Geopolitical resilience
CEOs will have to consider how best to position and shift in order to be successful amid current and ongoing upheaval in the global arena. Anticipating changes and opportunities will set up companies ahead of others. Even if those changes, like the Russian invasion of Ukraine, are completely out of control.
7. Keep growing (obviously)
While growth is always a priority piece for any CEO, the path towards it can be truly unclear and hard to achieve. “Sometimes it’s about seizing market share; sometimes it’s about expanding into new markets; sometimes it’s about making a left turn into something completely new.” The only constant, is that it remains top-of-mind for company leaders.
8. The fluctuating Macroeconomy
Some leaders continue to wait for certainty post-pandemic, but on a macroeconomic level that’s not a likely scenario. In fact, creative leaders have to thrive during instability, leveraging it to gauge their risk tolerance and strategically invest during downturns. Regardless of how the economy shifts, scenario planning is an exercise that CEOs will use if they want to get ahead of the curve.
