BCG+首席执行官展望：谨慎乐观一路前进（2023年3月）-27正式版

ExecutivePerspectivesTheCEOOutlookCaution,Optimism,andNavigatingtheRoadAheadMarch2023每日免费获取报告1、每日微信群内分享7+最新重磅报告；2、每日分享当日华尔街日报、金融时报；3、每周分享经济学人4、行研报告均为公开版，权利归原作者所有，起点财经仅分发做内部学习。扫一扫二维码关注公号回复：研究报告加入“起点财经”微信群。。IntroductiontothisdocumentCoexistingglobalphenomenasuchasmacroeconomicuncertainties,inflation,changesinthelabormarket,etc.,createachallengingenvironmentforcompaniesin2023.InthisBCGExecutivePerspectivesedition,wesharehowC-suitesleadersviewtheworldandarebuildingWesurveyed759globalC-suiteexecutivesacrossindustriestosharesentimentsabouttheircompany'soutlook,theirbiggestconcerns,andhowtheysetstrategicprioritiesintimesofuncertainty.Theresultsprovideuswithafreshoutlookonwhatistopofmindforglobalbusinessleadersinearly2023.resilienceWewillpublishtwoExecutivePerspectivestosharetheinsightsgatheredfromthesurvey.Thisfirsteditionprovidesanoverview,withregionalnuances;thesecondwillprovideadditionaldetailthroughanindustry-levelcomparison.2Executivesummary|Recenteventsprovethedifficultiesofanticipatingfuturedisruptions,makingitcrucialtocutcostwhilefuelinglong-termgrowthHeadinginto2023,C-suiteleadersgenerallyholdacautiouslyoptimisticviewtowardstheircompany'sperformancewhilerecognizinguncertaintyisstillthebiggestchallenge.Uncertaintyisstillhighlyrelevantin2023•

~75%thinkmacrouncertaintyisakeychallenge,withAsianleadersbeingmoreconfidentthanrestoftheworldInthesurvey,onlyhalfoftheC-suiteleadersareexpectingadditionalglobalshocksin2023.However,therecentfailureofSiliconValleyBankandothershowshowdifficultitisforexecutivestoanticipate/predictthefuture,eveninthenear-term.Therefore,itiscrucialforC-suiteleaderstocontinuestrengtheningcost-downeffortsandbuildingresiliencewhilefuelinglong-termgrowth.Inresponsetotheuncertainties,companiesaretakingactiononallfronts,withcostreduction,talent/peopledevelopment,andinnovationbeingthemostimportantones•

Regardlessofregion,costreductionsareakeypriority,withafocusonefficiency,insteadofpurecost-cutting•

NorthAmerica:Particularlyfocusedontalent,bothreducingheadcountandimprovingEVP,toaddresstalentchallenges•

Asia:Hasastrongergrowthmindset,takingmorecustomer/productactions(e.g.,improvecustomerretention)•

Europe:Moreconservativetowardsinnovation,butaremoreactivelyinvestinginclimate&sustainabilityKeyactionsin2023-

resettingforgrowthOverall,C-suiteleadersthinktheircapabilitiestoaddressuncertaintiesaregenerallysufficient,butdeficienciesidentifiedinsupplychain,top-line,adaptableorganization,andtransformation.HowleaderscreatecompetitiveadvantageWhileeveryonerecognizesthechallengesfrommacroeconomics,afewplayershavebuiltstrongcapabilitiesandoutperformedindustrypeerswithhigherTSRperformance.Theyhavedonethisbyreinvestingresourcesfreedupfromcostsavingsintogrowthactionstofuellong-termsuccessevenduringdownturns.BCGistherightpartnertoseizetheopportunityofuncertaintyandhelpcompaniesbuildcompetitiveadvantage.3Sampleoverview|Respondentdemographicsandquotas759RespondentssurveyedbetweenJan.30toFeb.21,2023…byrole/businesstitle…byregion…byindustryConsumerGoods21%18%16%29%29%7%7%Tech/Media/Telecom26%19%IndustrialGoodsHealthCare26%11%10%Infra./Trans.&logistics/Travel&tourismFinancialInstitutions27%6%5%9%15%3%1%EnergyInsuranceOther6%6%AsiaEuropeNorthSouthMiddleAfricaPacificAmericaAmericaEast3%CEOBU/RegionCEOCFOCXOwhoreportsdirectlytotheCEOCOOOther1.1.ChiefofStaff,ChiefTransformation/Growth/Customerofficer,ChairmanoftheboardBCGExecutivePerspectivesAGENDAUncertaintyisstillhighlyrelevantin2023Keyactionsin2023—resettingforgrowthHowleaderscreatecompetitiveadvantage5MajorityofC-suiteleadersrecognizinguncertaintyisstillthekeychallengein2023;nonetheless,onlyhalfareexpectingadditionalshocksHowever,only~50%areexpectingadditionalglobalshocksin202351%Expectadditionalglobalshockstheycannotforeseetodaytoimpacttheircompanyin2023273%49%56%49%61%62%Havemoreclaritytodayabouthowtobalancetradeoffsvs.12monthsago2Ofallrespondentsexpectmacro62%57%68%uncertaintytobeakeychallengefortheircompanyin20231Haveenoughcertaintyabouttheircompany'smid-termoutlooktomakelong-terminvestmentdecisions2Asialeadersmoreconfidentthantherestoftheworld58%59%71%1.Surveyquestion:Whatarethebiggestchallengesforyourcompanytoweathertheevolvingglobalheadwindsin2023?2.Surveyquestion:Howdotheevolvingglobalheadwindsanduncertaintiesaffectyourcompany'sdecisionmakingin2023?%ofrespondentsthat"Stronglyagree"or"Agree"tothestatement.Note:AsiaexcludesMiddleEast.Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents6TherecentfailureofSiliconValleyBankandothers-combinedwiththesurveyresults-showshowdifficultitisforexecutivestoanticipatethefutureRecentcollapseofbankshassparkedanew…thatfewexecutivesforesawatthebeginningwaveofconcerns…oftheyearofexecutivessurveyedidentifiedfinancingandcapitalmarketvolatilityasoneoftherisksin20232023/03/171%…leadingtolesspreparednessforfinancialchallenges2023/03/10ofexecutivessurveyedplannedonactionstosecureliquidityin20232023/03/17%ofrespondentstakingfinancialactions<20%18%18%17%2023/03/17IncreasecashreserveSecurefuturefinancingoptionsReducedebt7Source:Media,BCGanalysisbasedonaglobalC-suitesurveywithn=759respondentsHeadinginto2023,executivesviewinflationandeconomicuncertaintiesasbiggestrisks,whiledigital&technologyasopportunitiesExpectedimpactofglobalphenomenaoncompanyperformancein2023Directionofimpact1Magnitude3%ofrespondentswhoexpectapositive/negativeimpactApartfromtheirresponsestoqueriedphenomena,respondentsacrossregionsalsomentionedregulatoryandpoliticalrisksSmallMediumLarge60%Digital/tech/AIdisruptionClimate&sustainabilitycommitmentLikelihood20%%ofrespondentswhobelievephenomenonhasahighchanceofChangesinconsumerexpectations/behavior•

“ChangeinUKgovernment,”“Brexit,”“generalelection,”and“localelections”—mostoftenmentionedbyimpactingtheircompany60%COVID-19/newpandemicoutbreaksLabormarketchangesInflation/risinginterestratesSupplychainchangesEnergycrisisEuropeanrespondents80%WarinCyberrisksUkraine•

Governmentalpoliciesandlawsthatsubsidizeordisadvantagecertaincompanies/sectorsChangesingeopol.situationUncertaineconomicoutlook100%0%35%50%70%80%1.Surveyquestion:Whatistheexpecteddirectionandmagnitudeoftheimpactoftheseglobalphenomenaonyourcompany'sperformancein2023?Countedasoverallpositive(negative)if≥50%ofrespondentsviewitaspositive(negative).2.Surveyquestion:Howlikelyarethefollowingglobalphenomenatoimpactyourcompany'sperformancein2023?Counted%ofrespondentsthatselected"Verylikely"or"Ratherlikely".3.Surveyquestion:Whatistheexpecteddirectionandmagnitudeoftheimpactoftheseglobalphenomenaonyourcompany'sperformancein2023?Weightedaverageresponseshown.Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents8ViewsonglobalphenomenavarybyregionGlobalphenomenamarkedaskeyrisksoropportunitiesin2023byregion•

MostconcernedabouttalentshortageNorthAmericaEuropeAsia•

Dividedpictureonclimate&sustainability1

InflationInflationInflationUncertaineconomicoutlook•

Riskofenergycrisis2Top3risks1EnergycrisisLabormarketespeciallyhigh3

UncertaineconomicUncertaineconomicoutlook•

Particularlypositivetowardclimate&sustainabilitySupplychainoutlook•

Changesinconsumerdemandprovideopportunitiesformany1

Digital/tech/AIdisruptionC&ScommitmentsDigital/tech/AIdisruptionTop2oppor-tunities2ChangesinconsumerChangesinconsumerbehavior2Digital/tech/AIdisruptionbehavior•

COVID-19stillmoreaconcernthanforrestofworld9Note:AsiaexcludesMiddleEast.Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondentsC-suiteleadersgointo2023generallyoptimistic,butlessconfidentabouttheircompany'sabilitytooutperform4/5ofC-suiteleadersoptimisticabouttheircompany'sperformancein2023…%ofrespondents1…butonly~40%confidenttheywilloutperform%ofrespondents1BelowindustryOnparAboveindustry39%OptimisticPessimisticGlobal79%21%Global12%49%83%72%17%28%16%49%35%39%11%50%7%49%44%79%21%Asianleadersaremostconfidentintheircapabilitytooutperformindustryasthere'slessconcernaboutmacrouncertaintiesEuropeanleadersareleastoptimisticaboutcompany'sperformance,likelybecausetheyrecognizeuncertaintiesaroundmacroenvironmentNote:AsiaexcludesMiddleEast.1.Surveyquestion:Whatisyouroutlookonyourcompany’sperformancein2023relativetoitsindustry?Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondentsHigher%vs.otherregionsLower%vs.otherregions10Inresponsetouncertainties,C-suitesleadersareaimingtobringcostdownwhilebuildingcapabilitiestofuelgrowthRespondentsstresstheneedforabalancedfocusoncostandgrowthintimesofuncertaintiesGrowthandcost—typicallyincombination—areontopofeverybody'sprioritylistfor2023…Focusonkeybrandlaunches[...]tobringthecompanytothenextlevelwhilekeepingcostsundercontrol--CFO,pharmaceuticalscompanyManagingcosttothemacroenvironment[...],structuralre-organdseparationofsomeofthebusinessareas,peopleagenda(employeevalueproposition,upskilling,insourcingcriticalskillssuchassoftwareengineering)…andsomespecpeople)indicatewh(e.g.,innovationorxecutive'sfocuswillgo--CIO,telco11Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondentsBCGExecutivePerspectivesAGENDAUncertaintyisstillhighlyrelevantin2023Keyactionsin2023—resettingforgrowthHowleaderscreatecompetitiveadvantage122023Actions|Companiesarepullingleversonallfrontsinresponsetomacrouncertainties—costs,talent,andinnovationarehighestprioritiesPlannedactionstonavigateuncertaintiesin2023%respondents1Actionsrelatedto2023Top2leversMostC-suiteleadersfocusoncostreductiontocombathighinflation.Particularly,theyarelookingtoimproveoperationalefficiency.3%ofrespondentsplanningtotakenoaction

in2023Process/OpmodelredesignOrganizationalsimplification52%47%Costreduction/efficiencies72%EVPenhancementUp-/re-skilling42%41%Talent,people,&organization59%54%45%39%Meanwhile,manyseekgrowthopportunitiesin2023throughup-skillingtalent,techinnovations,etc.Missedopportunityforpreparedness-Techinnovation45%38%InnovationFinancingBusinessmodelinnovationTechfirmsaretakingtheleastfinancingactions(33%),butaremostimpactedbyrecentcollapseofbanksIncreasedfin.plan/forecast/reportAR/APoptimization29%26%SupplierrenegotiationsSupplierdiversification30%26%Supplychain/operationsMymantrainthisareais'Don'tletperfectbetheenemyofgood'-wehavetogofastandwe'vegottoputtransparencyattheheartoftheeffortPriceincreases23%23%Top-line/customersM&A36%Newproduct/servicelaunchesMarket-/product-extensionmergerHorizontalmerger14%13%--ChiefImpactOfficer,Salesforce24%atWEFinDavos1.Surveyquestion:Whatmeaningfulactionswillyourcompanytakein2023tomitigaterisks,accelerateopportunities,orchangetrajectoryofopportunitiesspecificallytorespondtoevolvingglobalheadwinds?Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents132023Actions|Costreductionisthepriorityforallregions;eachregionhasdifferentmixofprioritiesbasedonmarketcontextActionsplannedfor2023tonavigateuncertaintiesbyregion%ofrespondents1Higher%vs.otherregionsLower%vs.otherregions•

ManyC-suiteleadersarethinkingabouttalentactions–

e.g.,TechNorthAmericaEuropeAsiafirmsarenotonlylaying-off,butalsoinvestinginEVP2towininamarketoftalentshortageCostreduction/efficiencies67%71%73%72%Talent/peopleactions52%51%57%58%InnovationFinancing57%•

Higherfocusonimprovingfinancialpositionandtop-lineperformance40%39%49%Supplychain/opsactions29%42%42%Wecontinuetobeprudentandproactivebyfocusingonoptimizinglaborandpurchasedservicecosts,enhancingproductivity,etc.Top-line/customers29%27%36%41%M&A24%23%--ChairmanandCEO,industrial&machineryNote:AsiaexcludesMiddleEast.1.Surveyquestion:Whatmeaningfulactionswillyourcompanytakein2023tomitigaterisks,accelerateopportunities,orchangetrajectoryofopportunitiesspecificallytorespondtoevolvingglobalheadwinds?2.EmployeevaluepropositionSource:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents142023Actions|CuttingcostsandimprovingefficiencyistopofmindforC-suiteexecutives—majorityredesigningopmodel&simplifyingorg.structure>2/3plantotakecostactionsin2023,withdifferentleverstobepulled%ofrespondents1Higher%vs.otherregionsNorthAmericaEuropeAsiaOptimizeorganizationalstructuretoincreaseefficiencyforcost-saving89%2Costreduction/efficiencies67%73%72%Cutdirectspend39%39%37%Asiaalsohasstrongfocusoncost,despitemoreoptimisticperformanceoutlookvs.otherregionsRedesignprocesses/opmodel51%58%51%Ofcompaniesthattakecost78%2actionscuteitherdirectand/orindirectspendingReduceindirectspend42%44%45%47%Simplifyorg.structure46%48%Companiescombinecost-Other4%3%1%cuttingandefficiencyimprovementtotacklecost50%2frommultipleangles"Structuredexpenseefficiencyprogram,""Offshorecallcenteratlowercost,""Evaluateandreducenon-necessaryfixedcostcontainment,""Reduceheadcountanddelaybonuses"Notes:AsiaexcludesMiddleEast.1.Surveyquestion:Whatmeaningfulactionswillyourcompanytakein2023tomitigaterisks,accelerateopportunitiesorchangetrajectoryofopportunitiesspecificallytorespondtoevolvingglobalheadwinds?2.%ofn=543respondentsthatselected"Costactions."Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents152023Actions|RegionsfacedifferentexposuretoglobalphenomenaandtakedifferentactionstoaddresstheenvironmentxxMorethanglobalmeanNorthAmericaEuropeAsiaLessthanglobalmeanglobalmean49%EVP47%Differentactionsprioritizedfor202342%42%39%38%29%32%17%23%22%21%12%7%Lay-offsSupplyTechinno-vationlaunchesNewproductFinancialactionsLay-offs(>10%)EVPenhance-mentSupplychainactionsIncreaseOptimiza-SupplyincashtionofchainNewCustomerproductretention(>10%)enhance-chainmentactionsreservesAR/APactionslaunches123456789Strongactionsonlabormarketchanges:InflationandenergycrisisposinglargeMorelikelytoadjusttheirfinancialpositionasaresponsetoinflationandrisinginterestratesHighfocusonsupplychainasthisposesthe3rdlargestrisktoAsiancompanies14578bothworkforcereductionandtalentretentionrisks,butadjustingfinancesnotdonebyallKeyrisksandopportunitiesLessfocusonsupplychaindespite75%expectingnegativebusinessimpactDespitelabormarketconcerns,lay-offsandtalentretentionaremuchlesscommonvs.NAMR23Highfocusontechinnovationasdigital/techisalargeopportunity—butnotusedforproductlaunchesStrongercustomer&productfocus—morelikelytoviewdemandchangesasopportunity9Highfocusonsupplychainsvs.globalmean6Notes:AsiaexcludesMiddleEast.Surveyquestion:Whatmeaningfulactionswillyourcompanytakein2023tomitigaterisks,accelerateopportunities,orchangetrajectoryofopportunitiesspecificallytorespondtoevolvingglobalheadwinds?Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents162023Actions|Whilegrowthisapriority,C-suiteexecutivesarepolarizedonwhethertotakeactionstoboostgrowthIncreasingspreadbetweenrespondentswhotakenogrowthactionsvs.doubledownongrowthactionsAsiaismostfocusedongrowthaction,whileEuropeisleastinvestedingrowthNorthAmericaAsiaEurope202220237%9%5%5%4%+17%+25%16%16%13%20%18%Withmacrouncertaintybeinglessofaconcern,AsianleadershavethebandwidthtofocusongrowthactionsNogrowthactions7ormoregrowthactionsNote:AsiaexcludesMiddleEast.1.Growthactionsincludebusinessmodelinnovations,techinnovations,horizontalmergers,verticalmergers,market-orproduct-extensionmergers,conglomeratemergers,17productionprocessredesign,employeevaluepropositionenhancement,up-/re-skilling,newproductorservicelaunches.Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondentsInvestment|Companiesareshowingastrongappetitetoinvestonmultiplefronts,withtalentretentionandinnovationatthetopofthelistC-suitesleadersshowstrongappetitetoinvestinmultipleareastoaddresscurrentchallengesandbuildadvantagesClimateandSustainability,%ofrespondentswhoselectedthetopicasacurrentsignificantinvestmentarea1aswellasDigital&AIareexpectedtobetheinvestmentprioritiesinmidtolongMostcompaniesaredeeplyinvolvedinadigitaland/orclimate&sustainabilityjourney,bothrequiresnewcapabilitiestermtoseizetheopportunitiesHighconsensusoncurrentfocusofinvestmenttofostergrowth75%75%71%62%60%58%58%49%%ofrespondentswhoselectedthetopicasasignificantlong-terminvestmentarea147%43%M&A54%54%54%50%49%Talentretention/developmentinnovationProduct/serviceCybersecurityDigital&AIDigital&AIBusiness(internal/(external/modelcustomertransfor-focus)mationHiringProductioncapacity/C&S/ESGC&S/ESGDigital&Digital&Product/CyberAIAIservicesecurity(internal/(external/innovationprocess)customer)processfocus)equipment1.Surveyquestion:Whichofthefollowingareasarecurrently(2022/2023)significantinvestmentareasforyourcompany?Source:"TalentIstheGreatAntidotetoUncertainty",;BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents18Investment|There’sglobalconsensusontopinvestmentareasforfuelinggrowth;regionalnuancesarekeytobuildingadvantage%ofrespondentsstatingthatthistopiciscurrentlyasignificantinvestmentareafortheircompany1NorthAmericaEuropeAsiaRegionaldifferencesHigher%vs.otherregionsProduct/serviceinnovation80%171%71%23173%80%71%2Talentretention/development78%72%21Cybersecurity373%3Businessmodeltransformation63%57%58%56%67%66%NAMRmoreactiveinhiringwhilealsomoreinclinedtolayofftalentHiring63%59%Digital&AI(internal/processfocus)59%60%AsiastronglyleveragingdigitalandAItoaddresschangingconsumerdemandsDigital&AI(external/customerfocus)59%59%M&A48%47%35%53%45%Productioncapacity/equipment44%51%Europeanleadersinvestmorevs.otherregionstoseizeopportunitiesofC&ScommitmentsClimate&sustainability/ESG41%55%Note:AsiaexcludesMiddleEast.1.Surveyquestion:Whichofthefollowingareasarecurrently(2022/2023)significantinvestmentareasforyourcompany?Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents19Capabilities|Capabilitiesfortacklinguncertaintiesaregenerallysufficient,withroomforimprovementespeciallyinsupplychainandtop-lineSelf-assessmentshowscapabilitiesgenerallysufficient1……withsomedeficienciesidentifiedAvg.response&StDev.SelectresiliencedimensionsLargestdeficienciesrelatedto…(%respondents2)Exampleactionstobuildcapability•

Createmulti-layersuppliermapping•

Identifypotentialexposuresatthepart,supplier,locationlevel3.3E-2-Esuppliernetworkvisibility26%25%Resilientsupplychain&opsProactivesupplierriskmanagementClickhere

formoredetails•

Adoptnewpricingmodel•

DrovepersonalizationandsalesefficiencywithAIE-commerce&digitalsalesDynamicpricing31%25%Resilientcustomerbase&revenues3.4Clickhere

formoredetails3.3Adaptableorganization&people•

Createthecultureandenvironmentforchange,withleaderenablement•

Makede-averagedworkforceChangemanagement&adapttoagileLeanorg.withefficientprocesses25%26%3.4Businessperformance&transformationreductionandstreamlinestructureClickhere

formoredetails27%18%•

Modernizetechstack•

Adoptazero-trustsecurityapproachforriskmitigationTechfunctionoptimizedforefficiencyCybersecuritySafe&modulartechnology3.4•

Buildanearlywarningsystemandcontinuouslyscantheenvironmentforemergingrisks3.6Riskdetection&managementRiskmeasurementandgovernance19%123451.Surveyquestion:Howwouldyourateyourcompany'scurrentcapabilitiesacrossthefollowingdimensions?2.MinororlargedeficienciesSource:"CEODilemma"seriesBCGExecutivePerspectives;"BecominganAll-WeatherCompany",;BCGanalysisbasedonaglobalC-suitesurveywithn=759respondents20BCGExecutivePerspectivesAGENDAUncertaintyisstillhighlyrelevantin2023Keyactionsin2023—resettingforgrowthHowleaderscreatecompetitiveadvantage21AllCEOsrecognizethemacroeconomicchallenges,butfewplayershavebuiltstrongcapabilitiesandoutperformtheirindustrypeersWhile>70%executivesseemacroeconomicchallenges…Companieswithhighestresiliencecapabilities2outperformtheirindustrypeersonvariousdimensions…12%reportedtohavebuiltupcapabilitiestorespondtouncertainties…higherTSRvs.industryaverageintimesofuncertainty3Leader2Industry13%Deviationfromoverallmedianinppts18%16%13%12%15ppts6%Totalscoreofcapabilityassessment(onascaleof100)10%0%-1%Healthcare-1%-2%-3%ConsumerEnergyFinancialinstitutionsIndustrialgoodsInsurance911.4x…moreoptimisticabouttheircompany'soutlookandperformance…lowerlikelihoodtofacechallengesnavigatinguncertainty6612pptsLeaders2IndustryPeers1.Surveyquestion:Howwouldyourateyourcompany'scurrentcapabilitiesacrossthefollowingdimensions?2.Definedasacompanythatevaluatesitscapabilitiesacross19dimensionasfollows:majorityis5("verygood"),majorityoftherestis4("good")andnodimensionisbelow3("justsufficient").3.CompanyTSRdatabasedonJanuary2022-January2023averages.3.Definedasacompanythathas"verygood"capabilitiesinatleasthalfofthecategories,"good"capabilitiesinatleasthalfofthe22rest,andnodeficiencies.Source:CapitalIQ,BCGanalysisbasedonaglobalC-suitesurveywithn=759respondentsLeadersstrikeabalancebetweencost-cuttingandreinvestingfreedresourcesintolong-termgrowthopportunities~80%ofcompaniesreducedcostsin2022tofreeupresources……comparedwiththeirpeers,leadersactivelyinvestthosefreedresourcestoseizegrowthopportunitiesPlannedgrowthactionsin2023(%ofrespondents)IndustryLeaders+24pptsLargestgapsbetweenleadersandtheirindustryareinthefocusonproductandprocess+15ppts71%56%68%+16ppts65%53%52%innovationforlong-termcompetitiveadvantages,aswellasenhancingemployervalueproposition47%46%30%44%40%38%EnhanceemployervaluepropositiontofosteremployeeretentionUp-/re-skilltobuildcapabilitiesInnovatebusinessmodeltechnologytoenhancetoimproveproductvalueproductsandprocessesInnovateC&Sinvestment1Hiringnewtalents231.Inthelongterm(next3years).Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondentsTwoleadingmovesallcompaniesshouldtakeWhynowisthetimetoactExpectinflationandhighinterestratestoaffecttheircompany'sperformancein2023Cutcostsbypullingmultiplelevers—spendreductions,org.streamlining—toquicklyfreeupfundsforgrowthinvestments82%12Lackcapabilitiesincomprehensivecostmanagementorleanorganization52%97%Investinthefuture,

i.e.,talent/capabilitiesandselectiveboldmoves,totakeadvantageofthedownturnandoutpacecompetitionWilltakeactionin2023toaddressglobalheadwinds;71%plancostreductions24Source:BCGanalysisbasedonaglobalC-suitesurveywithn=759respondentsBCGiswellpositionedtosupportyourorganizationwithcostcuttingandbuildingcapabilitiesthatfostergrowthForanyquestionsreachouttoBCG'sCentralResilienceTeamSupportfullcosttransformationwith…OPERATING-MODELANDPROCESSREDESIGNORGANIZATIONALSTREAMLININGDIRECT/INDIRECTMATERIALSOPTIMIZATIONFULLSTRATEGICOPSTRANSFORMATIONRyojiKimuraGlobalLeader—CorporateFinance&StrategyKimura.Ryoji@Tokyo•

Spansandlayers•

Simplification•

Redundancyelimination…•

Demand•

Activityoptimization•

Techlandscapesimplification•

Leanmanufacturingprocess•

Strategicsourcing•

Digitalsupplychain•

Productionmanagement•

Variancereduction•

Contractmgmt.….AlexanderRoosGlobalCo-Leader—CenterforCFOExcellenceefficiency…10-25%ofaddressablecosts(e.g.,direct,indirectlaborcost)15-15%ofaddressable2procurementspend,incl.ITandtechspendRoos.Alexander@Berlin20-30%oflaborcosts10-20%ofalloperatingcosts$$$$$$$JessicaApothekerManagingDirector&PartnerApotheker.Jessica@Paris…andcapabilitybuildingDigitalandAIC&SEVPandretentionChangemanageme