More Philippine businesses have recovered from the pandemic with 83 percent of CEOs reporting that their organizations had already rebounded on overall positive sentiment, according to survey results.  

The survey, revealed on Monday, Sept. 11, was conducted by PwC Philippines as Knowledge Partner for the Management Association of the Philippines’ (MAP) International CEO Conference. The July and August Philippine CEO Survey 2023 has a conference theme of “On a Cohesion Course: Leading in the Age of Unlimited Possibilities”. 

Additionally, 79 percent of CEOs remain positive that their organizations will experience revenue growth in the next 12 months, while 87 percent are certain that they will see an increase in revenues within the next three years. 

However, businesses face threats from inflation, macroeconomic instability, cyber risks, and supply chain constraints. To address these challenges, CEOs are reducing operating costs, diversifying product/service offerings, investing in upskilling their workforce, and deploying technology in their operations.

This year’s CEO survey, with 157 leaders from different industries, suggests that companies should adapt to an evolving landscape and capitalize on upskilling their workforce to address persistent concerns regarding economic uncertainties through a strong collaboration between private and government sectors.

The survey shows that 75 percent of CEOs plan to upskill their employees in priority areas, enabling them to learn in the digital age.

In line with last year's survey results, many businesses continue to place a high priority on technology investments. More than 60 percent of businesses are concentrating on implementing cutting-edge technologies like cloud computing and artificial intelligence as well as automating their systems and processes, which can help companies streamline processes, boost productivity, reduce costs, and improve customer experience.

However, the PwC suggests that the people and leadership behind these technological improvements will determine their success.

“To fully realize the benefits of these technologies, organizations must prioritize cultivating a skilled, adaptable, and aligned workforce that is in sync with the organization's culture, mindset, and behaviors,” according to the survey.

A company's value-creation strategy, operational model, workforce, and technological capabilities are the four key areas that must be addressed for transformation to be successful, according to the comprehensive report.

“Digitalization is crucial to business transformation, but that alone does not guarantee value creation or competitive advantage. To create value and gain an edge over competitors, companies must go beyond digitalization and make holistic changes to their value creation model, including their operations, technology strategy, and workforce,” the report said.

Moreover, organizational culture is key to company success. The survey said that about 70 percent of CEOs believe that their employees' actions are typically or frequently in line with the company's beliefs and goals or 61 percent to 100 percent of the time.

Additionally, 54 percent of businesses support disagreement and discussion, while 49 percent are willing to overlook minor failures.

According to the 2023 PwC Global Workforce Hopes & Fears Survey, employees who want to switch employers are less likely than those who plan to stay to find their jobs enjoyable and feel like they can be themselves at work.

It is also stated in the report that employees must have a sense of connection to the mission of the business for it to prosper. Fresh viewpoints can be introduced and groupthink can be avoided by creating a workplace where staff members feel comfortable sharing their ideas. Employees must, however, believe that speaking up won't result in negative consequences to be encouraged to do so.

With this, the PWC and MAP’s survey suggested eight considerations for leaders to ensure their workforce is reinvention-ready:

The first step is to bring its employees along on the journey of transformation as it is a complex process that generates anxiety.

Secondly, it suggests that company leaders must identify the most valuable cases for generative AI to enhance productivity and optimize efficiency among their workforce.

The third one is to consider what it takes to be a skills-based organization where employers must dynamically identify the skills and talent needed to achieve their transformation needs in a world of constant disruption, evolving roles, and talent shortages.

The fourth suggestion is to allow employers to discover their untapped skills hiding in plain sight to unlock greater capability, provide career pathways, and improve staff retention.

Fifth is to create a culture of experimentation, creativity, and a willingness to accept small-scale failures where employers need to encourage new ideas that challenge conventional thinking to reinvent for the future.

Sixth recommendation is to ensure that promotion decisions adequately consider ‘soft skills’ and a proactive approach to diversity and inclusion by building a psychologically safe, inclusive workplace that enables employees to bring their best selves to work and underpins an innovative, dynamic organization.

Investing in building transformative leadership capability is also recommended by investing in a future-fit development program, where leaders need to steer their organization on a path of reinvention in a people-centered way.

And lastly, it is also suggested that leaders should involve employees in climate change solutions so that they should feel a sense of urgency to act since it’s everyone’s responsibility.

The survey shows high hopes for revenue growth in the Philippines, with 79 percent expecting it in the next 12 months and 87 percent in the next three years. 

CEOs are confident about their industry's prospects, and optimism has been growing since the second half of 2022. The country's unemployment rate has improved to 5.8 percent in 2022, driven by consumer spending and remittances from Overseas Filipino Workers.

In the second quarter of 2023, the Philippine economy grew at a slower 4.3 percent, but CEOs remain optimistic about achieving a full-year GDP growth rate of 6-7 percent. 

Infrastructure development, domestic consumption, and the BPO and services sector as key growth drivers in the next 12 months, according to the Philippine CEOs. (Ma. Joselie C. Garcia)