Transforming for the future: CEOs nurture internal innovation in response to changing landscape

In response to change, CEOs transform for the future

KPMG’S 2016 Global CEO Outlook examines how CEOs are responding to shifting operating environments by nurturing innovation. Today’s corporate leaders are considering ways to enable faster internal change and embed innovative capabilities in their organisations.

Godfrey Boyce - KPMG NZ - Partner

Chief Executive

KPMG in New Zealand


Based on responses to KPMG’s 2016 Global CEO Outlook survey, the pace of change continues to accelerate. Almost half of CEOs (41 percent) anticipate that their companies will be significantly transformed over the next 3 years. That’s up from 2015, when just 29 percent of CEOs thought so.

Of those CEOs who expect revenue growth of 10 percent or higher, a majority (51 percent) believe that their company will have transformed into a significantly different entity in the next 3 years. This contrasts with only 38 percent of CEOS projecting less than 10 percent revenue growth believe their company will be significantly transformed into a different entity in the next 3 years.

Top five CEO strategic priorities
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CEO strategies to drive business transformation

What does it take to execute change in a fast-changing environment? Our survey respondents highlighted a number of strategies they are pursuing to drive change and spark innovation.

Become agile. Agility is key, and yet today just 40 percent of organisations are highly capable of responding quickly to developments, according to the KPMG survey. 

The best way to deliver faster, according to 43 percent of CEOs, is by streamlining internal processes.

accelerate the execution of strategy chart

Join forces. The speed, breadth and depth of change require unique skills, cutting-edge technologies and forward-thinking minds. That is why CEOs turns to collaboration to ensure the company stays ahead in all areas.

Collaboration is the top way CEOs plan to derive shareholder value over the next 3 years. Collaborative arrangements are also the top type of deal that CEOs are planning to undertake over the next 3 years.

development plans to drive shareholder value chart

“This is going to be a new type of cooperation,” says Mark Goodburn, Global Head of Advisory, KPMG International. “CEOs are expected to manage the new ecosystem: shareholders, partners, customers, communities they operate in or regulators. While some of these stakeholders are not new, the depth and intensity of relationships that they have with companies will continue to increase.”

Managing these new constituencies requires new capabilities, some of which are still a work in progress at many companies.

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