Private business
leaders rebooting
for recovery

Measured optimism in cautious times

As Ireland continues to reopen and deal with the economic impact of COVID-19, Irish private businesses face a defining moment. The fallout from the pandemic and the impact of Brexit will influence the landscape for Irish indigenous business for many years ahead.

The pandemic has been an extraordinary test of resilience for every organisation. Private businesses are rising to meet the challenge.

Business leaders moved rapidly to protect the health of their employees, customers and businesses. Their next set of decisions as we emerge from the wave of rolling lockdowns will speak to their resilience, purpose and values. If they plan now and do this right, it will help define their businesses for a generation.

At a time when the local and global economy can only improve, it's unsurprising to see that three quarters of CEOs are positive about the prospects for the global economy. They are also hopeful of growth within their own organisations. However, their confidence is somewhat tempered in the wake of the shocks that 2020 brought. Only a little over 10% say that economic growth will improve significantly over the next 12 months.

Private business leaders predicting growth

Private business CEOs have not lost their belief in their own organisation's potential performance. Organisations have to be resilient and realistic if they are to succeed and grow in the future. This is particularly true in times of disruption and uncertainty.

With most businesses severely disrupted in the last 12 months, one way or another, private business leaders have had to react quickly. They have taken unprecedented steps to protect their employees' and customers' health. Technology has been key to facilitating business as usual and continuing to serve customers. At the same time, businesses are trying to build their resilience for the challenges that still lie ahead.

Businesses that have remained nimble and have adapted in an agile way to the challenges have been best placed to weather the pandemic. They have pivoted to remote working or finding new ways of serving their customers through online sales.

As business leaders have managed immediate issues in the past year, organic growth as the means of controlling your destiny is the clear focus for the year ahead. It's not surprising that Irish private business leaders are focused on growth from within. Internal operational efficiencies, the launch of new products and services, and organic expansion are all seen as key sources of growth for the next 12 months.

Support and simulus need to continue

2020 was a test for everyone, as COVID-19 disrupted lives and livelihoods. The health and safety of people remained top of mind for private businesses. They reconfigured their operations to combat shrinking economies and an uncertain future.

However, the impact the pandemic has had on jobs has been most severely felt amongst private Irish businesses. Those in the retail, hospitality and construction sectors are the worst hit. As businesses continue to adapt and respond, restoring demand and supporting jobs are key areas of focus for private business leaders. More incentives and a continuation of capital and liquidity-related support will help maintain employment and recover lost revenues. In particular, supports that will help with employment restoration, investment, cash flow and measures to stimulate demand are needed to combat the threats that businesses still have to face.

Rebooting for recovery and digital transformation

The focus for many Irish private business leaders has been surviving the last 12 months. However, now is the time to reboot their recovery with a focus on digital.

The pandemic demolished any lingering doubts about the benefits of digital transformation. Some businesses seamlessly transitioned online, while others struggled. Recognising this, 83% of Irish private business leaders are planning on increasing their investment in digital over the next 12 months.

Accelerating your digital journey requires an understanding of the value of data and analytic tools, and a commitment to upskilling your workforce. Transformation must be part of a cultural shift supported by highly engaged leaders. Delivering transformation is dependent on the people in the company. Digital transformation requires operating model change and transcends different teams and functions.

It's imperative that any digital transformation has an employee change programme that embeds new ways of working. The programme should also drive performance in the organisation. Having these key elements in place should realise the benefits of digital transformation.

Climate change gradually becoming a priority for CEOs

CEOs have a critical role to play in solving challenges like the impact of climate change and environmental damage. Progressive leaders are considering how to make climate action central to their business strategy now.

Asking any one industry to save the world is unrealistic. But private business leaders are, in many ways, uniquely positioned to use their strengths, market position and capabilities to generate positive returns locally and globally.

Private businesses have always been able to create value by driving rapid transformation. They can act faster and be more nimble than larger organisations. That means they can turn their attention to decarbonisation and sustainability and make change a reality.

Global CEOs are slightly ahead of their Irish private business counterparts in explicitly factoring climate change and environmental damage into their strategic risk management activities.

Private business CEOs within Ireland need to be aware that investors are demanding greater climate change accountability. Many consumers are demanding more transparent environmental practices. Embracing sustainable business is becoming a must to remain competitive.

Ensuring that climate and the environment are areas of top priority isn't just a responsible reaction, it is now a business imperative.