7 RESILIENCE LEVERS

The impact of the Covid-19 pandemic, along with the disruption of traditional business models has led to a pressing need for businesses to transform

From rebalancing of social purpose and profit, to changing consumer and employee demands, this transformation will be underpinned by a resilience based on flexibility, future planning, and new technological tools.

G20 businesses are having to address this rise of working from home in different ways – by implementing new systems, by developing new employee recruitment and retention strategies and by reducing their real estate footprint (72% of G20 companies have permanently reduced or intend to reduce their real estate footprint in the next 12 months). As a result, 45% of G20 companies are expecting their employees to work remotely at least 50% of the time as part of the ‘new normal’, and as many as 95% of businesses are expecting remote working to occur at least 10% of the time.

Companies have also been forced to consider new ways of measuring productivity and demonstrating agility, including through the use of analytics – with 88% agreeing that their company has become more agile through its use.

of G20 organisations are expecting their employees to work remotely at least 50% of the time

plan to adjust their approach to retain and attract top talent in 2022

Our data shows that flexible working - along with demographic, border, immigration and pay changes - have all led to a skilled employee shortage, with companies losing an average of 12% of turnover as a result. More than a quarter (26%) of businesses believe that workforce issues will likely harm their company in the near term; as a result, businesses will have to reconsider their business models to ensure they can continue to attract top talent – something 88% of businesses say they plan to do in the next year.

It is undoubtedly, however, within the digital sphere that transformation will be accelerated – underpinned by the accelerated adoption of digital technologies during the pandemic (including automation, machine learning and AI), the leveraging of data, the redundancy of legacy systems, a swiftly evolving digital economy and new expectations around digital from all stakeholder groups, including consumers, customers, employees, suppliers, and partners.

Digital transformation

As part of their digital transformation, our data highlights how businesses are embracing disruptive economic models driven by blockchain- powered technologies such as cryptocurrency, NFTs and other digital assets. Two-thirds of G20 businesses are currently piloting or exploring how blockchain and digital assets can play a role in their offering, with a noticeable increase in commercial opportunities around these applications over the last 12 months – ranging from the use of cryptocurrency for financial transactions to investing in virtual assets.

One consequence of these new digital-first strategies is a considerable pressure upon G20 business leaders to integrate and implement innovative business models over the next 12 months – something 42% of businesses feel they must do. Another consequence is a likely shortage in tech workforce and skills (something 26% of businesses expect to happen). As a result, there will likely be a shift in skills development to help fill this gap; CIOs will also have a greater role in driving company strategy, transformation, and both top- line and bottom-line growth.

Despite the seemingly inevitable and relentless march of digital transformation, businesses would be wise to remember that transformation is as much about culture change and a human-centred approach as it is about tech; building resilience requires cultural change to ensure that employees have opportunities to develop new capabilities, as well as systems to drive productivity in this hybrid environment. The two must go hand-in-hand to ensure the success of a transformation strategy.

Four in Ten

BUSINESS LEADERS REPORTED EXTREME PRESSURE TO INTEGRATE TECHNOLOGY AND INNOVATION OVER THE NEXT 12 MONTHS

However,

66%

OF ORGANISATIONS REPORTED A STRUGGLE TO DIGITALISE OVER THE LAST 12 MONTHS

INSIGHTS

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It’s a New World for CFOs - FTI Consulting CFO Survey Report 2021–2022

January 10, 2022 - CFOs are busy and faced with increasing demands on their limited time. The difference from previous years lies in the new environment in which they are operating, where CFOs are finding new challenges around each turn. Amidst all the “traditional” areas that CFOs must lead, there’s a new list of responsibilities and the added pressure of fostering culture and engagement that is amplified with a remote and virtual workforce. CFOs must adapt to the ever-increasing “doing more with less,” but now in a new environment.

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Lessons for leaders communicating online during a crisis

July 8, 2021—More CEOs are actively engaging on social media than ever before: over 40% of CEOs across the FTSE 100, CAC 40 and DAX 30, a trend that has been accelerated during the past year as CEOs were forced to lead from home. This presents its own risks, but also opportunities when managing a crisis given the fact that CEO-shared content receives considerably higher engagement than content shared by company channels.

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Pandemic Provides Catalyst for Business Transformation

November 26, 2021—Adam Bradley and John Maloney, Senior Managing Directors in our Business Transformation team, explore the key operational areas that businesses should be considering to ensure that they are ready to harness potential opportunities and able to survive and thrive going forward.

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