In just the last few years, CEOs have faced global pandemics, disrupted supply chains, wars, persistent inflation, and many other upheavals. Any of these issues is enough to throw off a CEO's schedule.
Below are the CEO's 5 priorities for 2024.
1/ Artificial intelligence (AI gene) develops from the experimental stage to large scale
The biggest story of this year (or decade) is the emergence of generation AI (gen AI). This is a real step forward. Thousands of companies in every industry and in every corner of the world have used simple AI genetic interfaces to completely transform every business operation imaginable. But while innovators dominate the headlines, scalers rule the market. CEOs need to learn three things, immediately:
- Which part of the business can benefit?
- How to scale from one application to multiple applications
- How new tools will reshape their industries
2/ How to compete with technology
As the digital era enters its middle age, most companies have begun at least the digital transformation and AI gen. But few companies achieve the results they desire; The reason is often that they have not undertaken the fundamental organizational restructuring needed to extract maximum value from the hard work of digitizing the business.
In the best-selling book Rewired: The McKinsey Guide to Outcompeting in the Age of Digital and AI, McKinsey's guide to outcompeting in the age of digital and AI compiles these insights. Best in business digitalization. Digital winners grow revenues and reduce costs faster than others.
3/ Geopolitics: Overcoming difficulties
As Niels Bohr once said, it is difficult to make predictions, especially about the future. As CEOs watch the changes taking place in the global geopolitical order, they all agree on this point.
One thing is certain: events have an unlikely way of defying experts' expectations. Given this situation, management teams and boards should consider black swans (unpredictable events with high impact) and gray rhinos (possible events with high impact) in their their scenario and building geopolitical resilience will serve them well.
4/ The path to growth
It's strange that growth is always CEO's number one job, but the path to get there is never clear. Sometimes it's about gaining market share; Sometimes it's about expanding into new markets; sometimes it's about taking a left turn into something completely new. The only thing that remains constant are the ten rules of growth.
How will the rules play out in 2024? For many, it will mean rule 4: strengthen your core, using technology to promote growth. For others, it might mean rule 6: grow where you know, by improving sales productivity.
10 Growth Rules for CEOs
- Prioritize competitive advantage. Start with a winning and scalable formula.
- Make friends with trends. Prioritize rapidly growing and profitable markets.
- Don't fall behind. Just following trends is not enough – you need to outperform your competitors.
- Strengthen your core. Focus on growth in your core industry – you can't succeed without it.
- Look beyond the core. Nurture growth in neighboring business sectors.
- Grow where you know. Focus on growing where you have an ownership advantage.
- Be a local hero. Committed to winning at home.
- Go global if you can beat local. Expand internationally if you have a transferable advantage.
- Buy back according to the program. Combine healthy organic growth with mass acquisitions.
- Sometimes you have to shrink to grow. Resolutely trim your portfolio if necessary.
5/ A new look at macroeconomics
Nearly four years after COVID-19, some CEOs are still waiting for macroeconomic certainty.
The big question for leaders is: Will their companies ever return to a pre-pandemic world of 2×2 uncertainties, or has there been a permanent reset of the world? 3×3, where the uncertainties are multiplied?
Leading companies take advantage of uncertainty: they assess their risk tolerance, then invest near the bottom of the cycle. Most rely on scenario planning, which companies need to do regardless of economic trends. Over the past two decades, assets on global balance sheets have grown much faster than GDP – the real economy. But the continuation of that trend is uncertain.
Yet another curve is the rapid movement of assets from the banking system to private markets, and that has big implications for public companies.
Hopefully, the article 5 CEO priorities for 2024 will help CEOs and executives better understand major issues in the upcoming context. One of the biggest challenges for businesses is how to optimize costs while maintaining innovation and growth. Using technology and AI not only brings greater efficiency but also helps businesses optimize resources, reduce costs and enhance competitiveness.
Besides, by using intelligent data analysis technology, CEOs can make quick and accurate decisions based on detailed and complex information. Therefore, integrating technological innovation into business strategy is not just an option, but a deciding factor between success and failure in today's era.
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