Around the world, CEOs are feeling confident about their growth opportunities. 85% of CEOs in Canada and globally are confident in their revenue growth prospects over the next 12 months, while 92% are confident in their growth prospects over the next three years.
When it comes to views on where the growth opportunities are, however, Canadian CEOs diverge from their global counterparts. While close to 35% of CEOs both in Canada and globally see product and service innovation as their major opportunity for business growth over the next 12 months, far more Canadian CEOs (40% compared to 20% globally) see either joint ventures and strategic alliances or M&A as their biggest opportunity. A significant two-thirds (67%) of Canadian CEOs are planning to enter into a new strategic alliance or joint venture over the next 12 months, while 31% plan to complete a domestic M&A.
Canadian CEOs also expect outsourcing business processes to be a major part of their restructuring activities, with 37% of Canadian CEOs planning to outsource activities over the next year, compared to just 25% globally.
These results suggest that Canadian CEOs are focused on growth – and are planning to undertake whatever business activities are required to achieve it. The emphasis on alliances, M&A and outsourcing suggests Canadian CEOs believe they’ve done what they can inside their own organizations – and now are ready to look externally for ways to achieve their strategic objectives - both from a revenue generation perspective and from a cost-savings perspective.