Future-fitting SA businesses

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Technology, and the speed of technology, and skills are two of the country’s CEOs most significant business concerns which also include cyber threats. This was the finding of PwC’s most recent Annual Global CEO Survey, which was released locally recently, at the African Pride Hotel in Melrose Arch, Johannesburg. This follows its global release in Davos at the World Economic Forum (WEF).

Dion Shango, CEO of PwC Southern Africa, who presented the Survey, says technology is transforming the workplace and changing their people for the digital to retain and deploy them is a responsibility of organisations.

Relationship between technology and talent

“As we enter the Fourth Revolution 41% of CEOs believe headcount will be reduced. Just under half (44%) of CEOs say automation and technologies will affect this. However, digital also creates demands and many CEOs believe it will lead to net job creation and not net job losses.”

While adopting new technologies is paramount for survival, CEOs recognise the skills challenges it brings to their organisations and to society. “The relationship between technology and talent is a critical area that may determine the future of companies and even economies,” he adds.

New technologies are disrupting industries and pushing companies to develop new talent that will not only survive the digital age but thrive in it. “Ensuring an optimal relationship between man and machine means developing the right skills and making sure organisations and their employees are future fit.”

Macro threats

Macro threats to growth include social instability, over-regulation, unemployment, uncertain economic growth, an increasing tax burden and exchange rate volatility. Here the gap between the SA CEO and their global counterparts is quite pronounced – by some 20% or more. For SA CEOs social instability is a big concern (98%), with over-regulation, unemployment, and uncertain growth all ranking in the 90 percent – all up from last year, except for the exchange rates ranking.

These issues that stand in the way of the country’s growth. All of them require local solutions, says Shango. “The level of concern over these issues amped up because of political happenings. It is hoped that in the future the government will understand this that business and government can work together to tackle these issues together.”

Trust

Last, but not least, trust will continue to be a topical issue as the loss of trust has profound consequences. CEOs say they are feeling the heat from stakeholders; especially SA CEOs.

“Business is not an island and must contribute to social progress. It must be a force for good and contribute to making the country a better place for all citizens. This means having a set of values that are demonstrated consistently and then living them. The purpose of the organisation must be demonstrated through these. The most important job of the CEO is that to drive the purpose and value culture elements through the organisation. It is important the CEO leads by example,” says Shango.

The Survey entailed interviews with 1,293 global companies in 85 countries in the fourth quarter of 2017. In South Africa 41 interviews were carried out with local CEOs; all of which were included in the global survey.