22% of UK CEOs believe their current business will not survive the next decade. Of these, a further 10% believe they have three years or less. Given this objectively stark outlook, it's no wonder that leaders are doubling down on investments in talent and technology. But is this the best approach? Or are there alternative solutions to the CEOs dilemma?
Why is transformation inescapable?
As the rate of change picks up speed, UK CEOs are grappling with the challenge of business transformation. The question on everyone's minds: How can I ensure long-term viability and growth?
A recent PwC report showed that 61% of UK CEOs are focusing on reinventing their business models. Only 39% want to maintain their existing setup.
“Almost every organisation is feeling an imperative to make changes to secure their long-term future."
Antony Cook, Consulting Partner at PwC UK.
It's risky, but an intelligent tolerance to risk is a core feature of competitive organisations. In the face of constant disruption, organisations with a intelligent risk response can "become more agile and adaptable", as well as "build resilience by design". (Sam Samaratunga, Head of Risk, PwC)
How can I invest in the right technology this year?
Cloud Tech as a sector is expected to make great strides in 2023.
But as businesses shift into survival mode, data analysis, business intelligence, and forecasting will also offer a competitive edge.
I recently wrote about the data skills gap in the UK, discovering that 53% of senior executives have identified data and analytics as their top investment priority in the next two years. Key to achieving this is the concept of data centricity.
Data Centricity: "use of data as a shared asset to create intelligence and insights for customers and stakeholders, and to continuously improve decisions, processes, products, and services." EY, CIO Imperative Q1
Interested in realising the benefits of an integrated data strategy? Find out how to close the data skills gap in your organisation.
Successful tech-enabled transformations are not only led by a desire for increased efficiency, but a focus on marrying technological benefits with human insight. The "AI is going to take my job" panic making waves right now is a great example: AI absolutely will automate menial tasks, but the consensus is that it will be a transformative tool for digital and tech roles, not a conqueror.
As Steve Hare, CEO of Sage, says: "Artificial intelligence is freeing up smart people. And companies are retraining and redeploying those people on tasks that add greater value."
How can I invest in the right talent?
Tech in particular is seeing a slew of layoffs, touted as a cost cutting measure after an anomalous few years. Yet across the UK, CEOs plan to increase investment in talent to stay on track for achieving business goals.
A talent strategy doesn't have to be solely acquisition-focused. In fact, 56% of UK CEOs are upskilling their existing workforce in technology - an imperative as technology is now at the heart of most business interactions.
Greater focus on apprenticeships - and providing training tailored to unique business needs - is critical. The UK apprenticeship levy has been criticised for failing to match the standard of our world-leading university sector. Yet in technology, the quality and scope of apprenticeships is nationally recognised.
Grow your digital capability with the BCS apprenticeship scheme for employers.
How can I blend tech and talent?
At the heart of every transformation lies the need for human insight and experience. Yet PwC recently reported that "40% of UK CEOs believe the tech skills and understanding of their teams lag behind the demands of their strategic objectives."
With candidate shortages set to increase as financial stability becomes the primary driver of retention, experts are calling for greater investment in the existing workforce.
"Recruiters and employers should be thinking creatively about how to attract and retain permanent hires to bring about stability, including by taking on more apprentices across a range of age groups, and investing in upskilling and reskilling their existing staff."
Claire Warnes, Partner, Skills and Productivity at KPMG UK
Bridging the gap between goals, technological implementation, and skillsets is not a simple task. But in 2023, I expect some of the weight to be shouldered by an increase in partnerships, flexible working options, external resource, and acquisitions.
What’s the key takeaway?
I truly believe the key word for 2023 is “Change”. To give your business the best chance of thriving, not just surviving, moving with change and not against it is your lifeline.
Focus on getting your house in order. Build a stable base to work off. Make sure retention gets just as much focus as hiring - I wrote not long ago about how a strong culture and EVP is essential for retention.
The people you keep will help you grow and achieve your goals more quickly. When you do look to hire, consider all the solutions available: not just hiring from competitors, but apprenticeships and the potential for internal promotions via training and secondment programmes.
Get things right this year, and you’ll be on track to reap the rewards in 2024.
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