Deloitte business confidence report 2016
The bold organization—innovate, lead, attract
For the second year, Deloitte’s business confidence report took the pulse of 600 of America's top business leaders and examined their levels of confidence to outperform competitors and their views on key business issues like innovation, talent, and bold leadership.
The bold organization
As rapid technological advancements and an uncertain economy shape the business landscape, America’s top executives continue to have a high level of confidence that their organizations can compete. However, America’s top executives also report doubts on how to transform their business effectively for future success. The Deloitte business confidence report 2016: The bold organization—innovate, lead, attract identified three core areas at the crossroads of transformation and confidence:
- Innovation and its relationship with technology
- The increasing pressure to find, develop, and keep the right talent
- The need for bold leadership
Innovation: The C-suite’s narrow approach
Business leaders continue to prioritize innovation. However, it's clear that businesses are not yet investing in solutions to overcome the top issues constraining their innovation. Confidence is not the only ingredient needed to drive innovation. American's top leaders agree on the top three innovation-focused barriers to growth:
- The rapid pace at which technology changes
- The need for new and different skills
- The lack of investments in products or processes
While executives can identify their top business challenges, they are less adept at prioritizing solutions to meet these challenges. Innovation investments are often misdirected, not distributed across the company, or isolated to specific areas.
Talent “brain drain” looming
New technologies and new ways of working are creating a skills gap that many companies are unprepared to meet. Almost half of executives admit they are not investing properly in solving this issue due to the speed at which technology and markets change. Fast-changing, more demanding technologies are shifting the talent emphasis from “tech 2.0” skills, such as collaboration and the ability to work remotely, toward new capabilities, such as adaptability and technology expertise.
The large majority of leaders feel that many of their best managers will leave before joining top leadership. Investing in cutting edge, continuous learning and development programs is an effective strategy companies can use to solve this issue.
The bold leadership requirement
Nearly all executives agreed that bold leadership is required to transform challenges into opportunities for growth, but in today’s business environment, bold leadership in the C-suite is erratic. Most executives concede that their company is not making investments necessary to cultivate and promote bold leaders and do not emphasize bold leadership as they recruit, train, reward, and compensate talent.
The impact of innovation, talent, and leadership on business confidence and transformation
The bottom line
Business confidence and bold action are a requirement in today’s environment. This year’s report stresses that risk taking and bold leadership, along with a more comprehensive approach to innovation, can go a long way toward addressing talent gaps and achieving business priorities. Now more than ever, America’s top leaders are poised to achieve successful business transformation through innovation, bold leadership, and finding and developing the right talent.
For more information, download the infographic.
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