It is a challenging time to be a CEO facing economic uncertainty. Leaders in the C-suite are faced to strike the balance between properly cutting costs and investing for the future. According to a survey from the Boston Consulting Group (BCG), seven-hundred and fifty nine C-suite execs from across the globe worry about macro uncertainty including regulatory and political risks, inflation, and rising interest rates.
The report stresses that CEOS cannot go too deep into cost-cutting measures as this could potentially derail any progress the company has made. BCG has advised companies to define a clear plan for cutting costs that does not involve “slash and burn”, but instead invest in efficiency. Companies have been looking to merge or use new technologies to keep up with the ever changing market.
Moreover, BCG stated that while layoffs are expected, they are not expecting any major layoffs. Many companies understand that they need to focus on talent retention and innovation in this economic settings to stay ahead of their competitors. They must also pay attention to the behavior of their consumers as it has shown massive swings over the recent years.
Gideon Walter, the managing director and senior partner at BCG added that the most important takeaway for CEOS is to embrace the ambiguity, to find pragmatic solutions and come up with innovative ideas.
Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. As part of the “Big Three” strategy consultancy firms, they have gone on to serve many of the world’s most successful and influential organizations. BCG helps clients in the private, public and not-for-profit sectors to develop strategies that deliver results and move markets.
Gideon Walter is a managing director and senior partner at BCG. He graduated with a degree in industrial engineering and management science from Stanford University. He joined BCG in 1997 and has since worked across multiple industries as well as product, commercial and business model topics. Walter also is one of BCG’s global leaders for strategy, with a track record of helping more than 50 of the world’s biggest companies define, develop and implement transformative strategies.
