Private company outlook: Productivity has been saved
Perspectives
Private company outlook: Productivity
Learn how leaders are approaching increased productivity
Efficiency. Speed. Competence. For the private company C-suite, productivity is top-of-mind more than ever before. This growing emphasis on performance begs organizations to ask questions like, how can we harness tools like AI to overcome certain productivity barriers? How does this impact our team of talent? And even further, what’s at stake if we fail to increase our productivity altogether?
In Deloitte’s new Private Company Outlook, we take a closer look at 100 private company leaders’ approaches to increasing productivity in the next 12 months. Survey respondents represent the C-level, presidents, board members, and partners/owners, and all sit within private companies in the US with annual revenues of $100 million to $1 billion+. Their input reflects how productivity opportunities and challenges may impact their business priorities. See key findings below or download the full report to learn more.
Productivity takeaways
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Companies are prioritizing new and existing talent
Respondents from larger organizations (annual revenues $500 million and above) said hiring qualified/skilled talent (51%) is the top priority to increase productivity over the next 12 months. Respondents from smaller organizations (annual revenues under $500 million) put reskilling and upskilling at the top of the list (45%).
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Capital investment will fund productivity improvements
Among private company leaders surveyed, 87% say their organization will finance investments in productivity with equity of some kind, either from new investors, existing investors, or both.
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Slower business growth and declining valuations are potential consequences of missing productivity goals
Respondents from larger companies are likely to experience slower business growth (56%) if they can’t meet productivity goals. Among smaller companies, 55% of leaders say their company valuation will decline.
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AI is expected to increase productivity in the next three years
While less than 10% of respondents said AI is currently improving productivity, the large majority (87%) expect it to within three years. However, respondents from larger companies are significantly more likely to prioritize investments in advanced technology like AI (44%) compared to 16% of smaller companies.
Among private companies, increasing productivity has risen to the top of the list of priorities, driving leaders to explore a broad range of resources and solutions to resolve inefficiencies and drive progress. Efforts to improve productivity range from investments in human talent, including hiring and reskilling, to leveraging emerging technology like AI. Private company leaders see the success of these efforts as paramount to ensuring business stability and growth in the next year and beyond.
– Wolfe Tone, vice chair, and U.S. Deloitte Private leader
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Wolfe Tone
Vice Chair, US Deloitte Private Leader | Global Deloitte Private Leader
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