Executives are increasingly optimistic now the Reserve Bank has cut rates. But how long can their companies hold out for the economy to improve?
After another tough year, many business leaders will be looking or hoping to shift gears in anticipation of some sort of economic recovery.
Others may still be battling challenging conditions and trying to find ways to cut costs and grow revenue at the same time.
The best CEOs can usean economic downturn as an opportunity to reset the business while staying focused on their longer-term plans so they are in a good position to grow again when the economy picks up.
“The most important thing is to keep close to your customers and people,” says ServiceNow NZ country manager Kate Tulp when asked to comment on the 2024 CEO of the Year finalists for the Deloitte Top 200 Awards.
“Companies that continue to deliver quality services, support, and products will be the ones that win out. Leaders who have the courage to change direction quickly are the ones that know they have the right technology, systems, and people in place to weather the storm.”
ServiceNow is a long-term sponsor of the CEO of the Year category, which recognised the best executive performance from the previous financial year.
The independent judging criteria include the performance of the winner’s organisation and the extent to which he or she has contributed to that performance and the current strategy.
Fonterra’s Miles Hurrell, Port of Auckland’s Roger Gray and Meridian Energy’s Neale Barclay have been named as finalists in the category.
The recent Mood of the Boardroom survey found New Zealand’s top company chief executives were most worried about managing profit expectations and achieving revenue growth. The good news is that while the economy remains weak, cuts to the Official Cash Rate should help spur economic growth and reduce finance costs for firms. Tulp says balancing short-term business needs with longer-term strategies is a key issue for CEOs at the moment.
“The key is to have an unwavering vision and mission that is anchored in your values, but the key high-performance differentiator is having a dynamic approach to how you implement the strategy.
“We are beyond the time where you can have a set and forget five, 10-year strategy – the world, technology and workforce are evolving too quickly for that.
“Finding a healthy balance will always be a challenge. With finite resources, a CEO’s biggest job will be optimising how you allocate these resources so you can maintain this balance even when circumstances change.”
How CEOs respond to technology advances, especially artificial intelligence (AI) is another key issue, Tulp says.
Globally CEOs are recognising that with proper guardrails in place, generative AI can unlock new opportunities and speed up, scale, or otherwise improve existing business cases.
“In my opinion, AI and automation are essential for tackling ongoing economic challenges. If CEOs focus on streamlining processes and boosting efficiency, businesses can control costs more effectively and increase productivity at the same time. Getting ahead of challenging conditions now is going to be the secret sauce for navigating the next economic cycle.
“One of the biggest obstacles to AI adoption is that it requires a shift in a company’s culture and processes. This has to be led from the top. Leaders who want to effectively navigate their teams through this new AI era, need to foster a culture of experimentation and adaptability.
“AI also requires a bit of housekeeping. Effective AI systems rely on high-quality data, strong governance, and an AI-skilled workforce. These are the foundations that should be the absolute priority for every business leader in the next year.”
The Deloitte Top 200 Awards were established in 1990 and are held annually to recognise and applaud outstanding individual and management team performances among New Zealand’s largest companies and trading organisations.
All the Deloitte Top 200 winners will be revealed at a gala event on Wednesday, December 5. The event will be live-streamed from 7pm on the Herald website.
CEO of the Year finalists - Sponsored by ServiceNow
Fonterra chief executive Miles Hurrell. Photo / Supplied
Port of Auckland CEO Roger Gray. Photo / Dean Purcell
Meridian Energy chief executive Neal Barclay. Photo / Doug Sherring
- This was produced in partnership with the Deloitte Top 200 Awards and sponsors
