New Zealand's leading companies are lagging behind the rest of the world when it comes to digital innovation and are being stifled by the unreasonable expectations of their boards and a skills shortage, a survey shows.
A survey of more than 50 top chief executives has found a drop in confidence across a range of measures. Photo: 123rf
KPMG's survey of more than 50 top chief executives early this year has found a drop in confidence across a range of measures, with 64 percent confident about New Zealand's growth outlook, compared with 74 percent the year earlier.
KPMG New Zealand chief executive Godfrey Boyce said the drop was a "realistic rebalancing" in response to changes in government policies and the global volatility caused by Brexit and the US' protectionist trade policies.
Mr Boyce said it was concerning that almost all local respondents were challenged by the digital transformation required to be competitive and retain customers.
"Right now, more than ever, there's a need for our CEOs to become more globally connected to overcome the risk of geographical and geopolitical isolation," he said.
Just 58 percent were prepared to lead the changes required, compared with the global average of 70 percent.
Mr Boyce said the majority of local chief executives were expecting annual revenue growth to slow to just 2 percent or less over the next three years.
Only a third were confident their leadership team could manage the change projects, and more than three-quarters thought their boards had unreasonable expectations on the return on investment.
"CEOs need to ask if their culture, strategies and business models are facilitating growth or inhibiting it," Mr Boyce said.
"And they need to ensure efforts to improve supply chains, embed smart technology and go digital are not just internal projects but are responsive to the needs of their customers - and executed fast enough to ensure their customers don't become their competitors' customers."