Top 5 Challenges for CEOs to Address in 2022
Over the past year, many CEOs have commented that they are experiencing a period of rapidly increasing demand for their goods and services. Although this is the problem that most companies wish for, a collection of headwinds have successfully kept corporate growth rates within reasonable spectrums. The great resignation, supply chain & transportation issues, and increasing inflation are all making it hard to maintain margin while increasing market share.
Stonehill surveyed several CEOs to find out what they predict to be the most challenging items to address in 2022. Surprisingly all individuals interviewed were optimistic about demand, but many saw the following items as necessary to address to achieve significant revenue increases.
Recruiting and Retaining Talent – The number one challenge for almost all companies interviewed is that of recruiting and retaining talent. Unfortunately, as you may notice the word “TOP” has been omitted from the description as many are looking for almost any level of talent that they can find. All sectors seem to be affected, from restaurants to service firms to transportation companies. If there are no people to do work, companies are forced to throttle growth and look for automated solutions to overcome their challenges.
Minimizing Cyber Security Threats – Cyber Security is an imposing term and keeps many executives awake at night. One small hole could allow a bad actor to infect a network, decrease productivity, steal sensitive data, or threaten a corporation to pay ransom for the release of their systems. Unfortunately, all companies have significant exposure to cyber threats and the easiest way to gain access to a network is through an unexpecting user. Cyber readiness, risk audits, training, and technology fortification are all in play for next year.
Building Operational Efficiencies – A reduced labor force is accelerating the need for building operational efficiencies. Companies are spending time looking at their processes, streamlining steps, and becoming more agile in their delivery. Large companies are looking to become as nimble as small, but this is not an easy task. Business process analysis, industrial engineering, and automation are all on the agenda for implementation.
Managing Supply Chain Issues – Small and large businesses alike are starting to be impacted by supply chain issues. The pandemic shut down factories, created upstream bottlenecks, and consumer goods are just starting to feel the brunt of the issues. Anything from a chip shortage reducing the production of Ford automobiles to raw material shortages affecting the production of building supplies. This is being compounded by the fact that labor shortages are limiting the ability to unload shipping containers and transport items to the consumer. If businesses don’t find ways to get their product, growth could be severely impacted in 2022.
Creating Trust with Customers – The last few years has seen a significant shift in a consumer’s connection to a brand. Branding is not just about the customer experience– it is about their connection to what a company stands for. Environmental Social Governance and Sustainability are taking center stage and influencing both investing and purchasing decisions. CEOs are ensuring that their organizations have policies in place, their supply chains incorporate sustainable components, and that they can effectively measure their contribution to the triple P bottom line – planet, people, and profit.
As you can see, there is a lot on the minds of CEOS. The pandemic has created a significant change in the economy and companies are working to adjust their strategy to continue to grow. If you are designing your 2022 strategy or need assistance in tackling one of the identified concerns, contact Stonehill to see how we can help!