Northern Ireland’s company bosses and CEOs are leading the way when it comes to embracing the ‘fast fail’ culture in an effort to make their companies as innovative as possible, according to the Northern Ireland edition of the KPMG Global CEO Outlook.
It found that the majority of Northern Ireland CEOs (chief executives) it surveyed want their employees to feel empowered to innovate without worrying about negative consequences if the initiative fails, higher than the result returned from their global peers. That culture is also more embedded in Northern Ireland with most CEOs surveyed reporting that their companies have a culture in which ‘fast-failing’ unsuccessful innovation initiatives are celebrated, significantly higher than the global survey.
Leaders in Northern Ireland aren’t afraid to give their teams the scope to try new ideas which may have a risk of failure and that opens up a world of potential.
It is an attitude which will help companies sharpen their innovative edge, said John Hansen, Partner in Charge of KPMG in Northern Ireland.
“Successful CEOs know they need their companies to be as innovative as possible and it’s clear that the right environment is being created in Northern Ireland to do just that. Our leaders aren’t afraid to give their teams the scope to try new ideas which may have a risk of failure and that opens up a world of potential.
“This level of freedom will no doubt make sure that Northern Ireland companies are at the cutting edge of innovation in the years to come.”
The survey also revealed a group of Northern Ireland leaders exploring new markets, tackling disruption head on and ensuring their businesses are resilient enough to deal with cyber threat by investing in technology and talent.
The majority of those surveyed in Northern Ireland agree or strongly agree that they need to improve their innovation processes and execution, a sharp increase on last year’s report and more than the global average. Meanwhile, two thirds of Northern Ireland CEOs said they are transforming their leadership team to build resilience.
To achieve growth, emerging markets are likely to play a big part in exporting with most of those surveyed planning to target less developed economies, higher than the global average and an increase on last year’s report where 68% of Northern Ireland leaders said they were looking to emerging markets.
In 2019, a majority of Northern Ireland CEOs say that a strong cyber strategy is critical to build trust with key stakeholders, up sharply from 16% in 2018. When it comes to automation, only a small fraction of Northern Ireland CEOs have implemented artificial intelligence in automating some of their processes.
A majority of Northern Ireland CEOs say that, with an average CEO tenure of five years, the need to act with agility has increased.
Northern Ireland’s leaders continue to lead the way when it comes to disruption.
The report also revealed that Northern Ireland’s leaders continue to lead the way when it comes to disruption. Most said they are actively disrupting the sectors within which they operate, rather than waiting to be disrupted, compared to just two thirds on a global basis. Although still strong, the reading is slightly lower than last year’s at 92%.
All of those surveyed expect top line revenue growth over the next three years. There was a similar robust showing from headcount expectations with all those surveyed expecting to increase employee number over the next three years, although only a small fraction in NI see it increasing by more than 5% compared to around one third globally.
KPMG’s 2019 Global CEO Outlook gives business leaders some great insights into what is on the radar for chief executives across the globe and raises some important and interesting ideas around what leaders should doing to maintain competitive advantage despite the uncertainty.
When global leaders were asked by KPMG to name the big-ticket risks on the horizon, they identified climate change, disruptive technology and economic nationalism. It is interesting that while Brexit risk dominates locally, it is not relevant in the Global CEO outlook. Indeed, it is environmental and climate change that tops the international risk agenda. A global economic slowdown is also a cause for concern and so too is the threat to traditional business models from disruptive technologies.
So how do global leaders plan to maintain company growth and competitiveness with unpredictable and fast changing risks? It appears that in 2019 the key to success will be a combination of: agility; utilising disruptive technology; transformation of operating models; resilience; skills and customer focus.
We see that agile CEOs now need to expand their senior management team and enhance the skills of their workforce. In 2019, agile leaders will increasingly support their organisations to use artificial intelligence (AI) to unearth insights from the vast amounts of data that the company has traditionally stored. This will allow for faster and better decision-making and help to ramp up company performance.
This article was first published in Ulster Business Magazine and is reproduced here with their kind permission.