Almost half of Slovenian CEOs believe that their companies will not survive ten years from now if they do not transform business processes immediately, according to a survey by PricewaterhouseCoopers. The forecast has never been so bleak.
49 percent of Slovenian CEOs participating in the survey believe that their companies will not survive if they do not transform their business processes today, and 40 percent at the global level. A decline in economic growth this year is expected by 73 percent of global directors and 78 percent of Slovenian directors. 84 percent of Slovenian directors expect a contraction of the Slovenian economy, it is said the director of the department at the presentation of the research results in Ljubljana for legal services of PwC in Slovenia Sanja Savić.
As the biggest threat that will affect the company’s revenues in the next ten years, directors at the global level highlighted changed consumer habits (56 percent), while Slovenian directors are most worried about the lack of manpower or appropriate work skills (62 percent). Among Slovenians, the following are changed consumer habits (53 percent), disruptions in supply chains (44 percent), transition to new energy sources (42 percent), disruptions in technologies (40 percent) and changes in legislation (38 percent).
The concern of Slovenian directors about the impact of climate change is significantly lower than the global average
In the area of the green transition, the directors emphasize in particular the impact of climate change on cost profiles; globally, about 50 percent expect a moderate, large, or very large impact. The concern of Slovenian directors about the long-term impact of climate change it is significantly lower than the global average. In Slovenia, 51 percent of them believe that they will not suffer under any circumstances damages on physical assets due to climate change, and on a global scale they it is 34 percent of this opinion.
Over the next 12 months, CEOs feel most financially exposed to inflation, economic uncertainty and geopolitical risk. “All three threats are current political and social issues that have filled the front pages of newspapers in the last year,” it is said Savić.
Despite tough business conditions and cost cutting it is only 19 percent of global and 13 percent of Slovenian directors froze employment, which it is according to the findings of PwC, in complete contrast to a survey conducted in 2008 during the previous global economic crisis.
Predictions for the year 2023 is one of the most bleak
Otherwise, they are predictions for the year 2023 is one of the most bleak in the history of the research and means a complete turnaround compared to last year’s outlook, it is warned Savić. “In just one year, we went from record optimism to almost record optimism pessimism. Most of the CEOs surveyed it is sure that it is need to transform the business already today and adapt it to the needs of the future, but because at the same time they are struggling with many short-term challenges and problems, it is time and opportunity for not enough transformation,” it is emphasized.
Nevertheless, many directors also see opportunities in the current tough situation, above all for transformation of business processes. “The world it is clearly learned to live with crises,” it is she added.
In this year’s global survey, which it is 26. in turn, it is 4,410 directors and board presidents from 105 countries participated, including 50 from Slovenia. It was carried out in October and November last year.
Like it is at the round table after the presentation of the results was evaluated by the executive director of the Manager Association Petra Juvančič, you would be more optimistic if the survey were conducted today. According to her, the situation has changed since last fall, mostly for the better. “Undoubtedly, the pressure on the economy remains; also due to the announcement of various reforms, which are accompanied by mixed signals. Companies do not know what awaits them, which triggers a certain amount of pessimism,” it is she said.
Perhaps the interviewed directors in this survey were not so much pessimistic as they were too optimistic in the previous survey, it is assessed by the State Secretary at the Ministry for economy, tourism and sports Matevž Frangež. “The fact that half of the CEOs believe that their company will not survive without transformation, it is can also be understood as good news. It will encourage them to transform, which it does it is crucial,” it is added.
Reminded it is, that the government is preparing a tax reform, which will also be discussed at Tuesday’s coalition summit. “But be aware it is it is necessary that the reform will not be successful if it is not based on a solid social agreement,” it is emphasized.