Leaders need to know that the current crisis is unlikely to be the last

There is no denying that the last 12 months have been difficult for businesses of all kinds. Just as they thought they had weathered the effects of the COVID-19 pandemic, war in Ukraine and inflation at an unprecedented rate. The world they thought they knew disappeared, and suddenly, everything consultants and executives were saying about Vuca (volatility, uncertainty, complexity, ambiguity) became all too real. Whether you call it a permacrisis, a polycrisis, or a total storm, leaders have to contend with a variety of problems at once, many of which they’ve never experienced before.

A new annual survey released this week by HLB, a global network of independent professional accounting firms and business advisors, sheds some light on how businesses around the world are coping with this new reality. is assigned. With nearly 600 responses from more than 60 countries, the survey explored the key leadership actions needed during a crisis, the types of actions a CEO should prioritize for his 2023, and future We explored the benefits of thinking long-term for success.

The report shows that flexibility is a core attribute of leaders at the moment. Various areas require corporate agility, such as talent acquisition, digital capability development, and supply chain management. The sign is that executives are balancing finding operational efficiencies today and determining how to innovate and grow for the future, with nearly half choosing between short-term and long-term priorities. It shows that you are focused at the same time.

Integrity is the second highest rated leadership behavior. A leader must be credible to foster trust among stakeholders, and 69% of his survey respondents agree that he clearly defined and communicated purpose.

Accountability is the next most important characteristic of successful leaders in times of crisis. Leaders participating in HLB’s survey appear to see advancing the increasingly important environmental, social and governance (ESG) principles as a key factor. They are well on their way to a more purpose-driven business strategy and are redefining their ESG goals. Of survey respondents, 15% claimed to be completely purpose-driven, and 37% sought to meet broad stakeholder expectations in their ESG goals. But the data also shows that not all leaders are so committed. 40% of respondents only do what regulators ask them to do, and 8% ignore her ESG completely rather than using it as an opportunity for innovation and growth.

And more than half of companies are looking to support growth by adopting new technologies to improve productivity. Respondents identified AI, cloud, and renewable energy technologies as the most important areas for their business over the next five years.

However, it indicates a continuing need to look to current and future plans, with 82% of respondents citing inflation as the top risk to their business and 35% citing talent acquisition as a key weakness. I thought it should be fixed as the next few months.

HLB Global CEO Marco Donzelli said in a press statement: and how to work. What is clear from the survey is that stakeholders are demanding that companies move forward with a flexible mindset, driven by clearly defined objectives and focus on ESG issues. ”

It is also clear that business leaders, like government leaders, must stop thinking that the kinds of events that plague them are once-in-a-lifetime events. Of course, it is difficult to predict the shape of each crisis, but it goes without saying that many more will come. Just as storms and heatwaves once classified as “once in a hundred years” are becoming more and more frequent, our combined world is experiencing formerly extraordinary events, such as skyrocketing energy prices and financial crises. And it seems. increasingly likely. Despite calls for greater domestic self-sufficiency in recent months, the world is still highly interconnected, requiring leaders to pay attention to trends and developments that could bring further shocks. I have.