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The attempt to realise value from the opportunities related to global trends, such as demographic shifts, is one of many factors driving the increase in collaboration between business and its stakeholders.
In last year's report, 57 percent of CEOs agreed or agreed strongly that collaborative business networks would be a defining organisational principal for business. This year's findings also demonstrate the importance of collaboration. More than half of CEOs say that they are collaborating with each of the major stakeholder groups, except NGOs. Many CEOs also say that the influence of their stakeholders has increased over the last three years. Seventy-one percent of CEOs believe the influence of customers and clients has increased, and more than 40 percent say the same about government, investors, peers and the media.
"CEOs believe that agility, customer service, talent, management and reputation are the four most important factors in long-term competitive advantage."
12th Annual Global CEO Survey.
As companies collaborate more with more stakeholders, they are able to gather more information, for example, about the risks their supply chain partners face. But CEOs still see major gaps in the information they need to survive the next 12 months and make decisions about the long-term success of their businesses.
Not surprisingly, most also believe that data about their customers, brand and employees are important or critical to long-term decision-making. However, strikingly low percentages of CEOs say they have comprehensive information in these and other critical areas that contribute to organisational agility. Just 21 percent have comprehensive information about the needs and preferences of customers and clients. Less than one third feel they have all the information they need about reputation (31 percent) and the views and needs of employees (30 percent).
CEOs do not just want more data. They want different kinds of information than the historical financial metrics they already have in abundance. More specifically, they want forward-looking information, which includes non-financial data. For example, the widest gap, 74 points, concerns the information necessary to anticipate customer needs. The second largest gap, is 70 points, between the importance and availability of risk information.
In order to make effective decisions in today's extreme operating conditions, CEOs are trying to see over a horizon that is approaching at high-speed. To meet this challenge, companies need to collaborate more effectively, build relationships that can provide access to better information, and use this intelligence to create the critical balance between short-term and long-term success.
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