EY CEO Imperative Romania Study: Local CEOs Expect Higher Transformation Spending Over Next Three Years
Over the past decade, growing waves of change have eroded the status quo and started to reshape business and operating models, as well as the raison d’Ãªtre of organizations. The need for agility and innovation has prompted companies to abandon their business islands in favor of ecosystem collaboration. And attention has shifted from generating short-term returns for shareholders to creating long-term value for stakeholders, with the recognition that human talent is the primary driver of value at all. levels.
Transformation initiatives top of CEO agenda in Romania
The imperative study of EY CEOs in Romania highlighted that in terms of transformation initiatives, the majority of CEOs in Romania (88%) intend to initiate a complete new transformation within a 12-month horizon. and the largest investment (78%) will be in data and technology. All Romanian executives (100%) agree that companies expect to spend more on transformation over the next three years than over the past three years, compared to just 65% of CEOs worldwide who approve of this forecast.
The three main trends impacting businesses in Romania are technological and digital innovation, changing customer experiences and expectations and geopolitics. According to EY reports, world leaders expect political risk to remain high in the coming year, with geopolitical risk being their main concern, thus reflecting the views of Romanian leaders according to the CEO study. Imperative.
âWhether we consider data first, sustainability first or innovation first, the future business will require pursuing multiple continuous transformations within the organization, following three interconnected value drivers: people at the center, adopting technology at speed and stimulating innovation when climbing. Integrating these three value drivers into every aspect of continuous and cross-functional transformation will enable CEOs to maximize their business growth and ultimately drive long-term value for stakeholders. Says Bogdan Ion, Country Managing Partner EY Romania & Moldova and Chief Operating Officer for EY South East and Central Europe and Central Asia (CESA).
Returning to innovation and looking at the data, the research highlights that for local leaders, the top transformation priorities are innovation (72%), culture and purpose (66%), and people and talent. (56%).
Leadership for the future
When it comes to the role of leadership going forward, all local CEOs agree that leadership needs to manage multiple ongoing transformations within the organization and 89% of respondents agree that CEOs need to lead disruptive innovation and the reimagining of the business. Additionally, 91% agree that building stakeholder trust will become an increasingly important part of the CEO’s job.
When it comes to characteristics of effective leaders over the next five years and beyond, leaders emphasize the transformative mindset, innovation, compassion, and trust.