Enhance Your Value Proposition - Assist Your Clients Staying Relevant

Over three-quarters of executives believe that without a shift in their current business models, the average company in their industry won't survive the next decade. Companies must confront an inescapable reality: continual transformation is essential for survival. The necessity for companies to reinvent themselves to stay competitive, was brought into focus by the most recent PwC Pulse Survey. But what does that mean for us as accountants? What can we do to steer our clients towards transformation, to embrace adaptability and proactive change management? This dynamic landscape presents not just challenges but substantial opportunities for those ready to embrace change.

Key Findings of the Survey

1. Necessity of Reinvention

   The survey highlights that 34% of CEOs believe competitors will fail within three years if they do not alter their business models. This statistic emphasises the high stakes involved in maintaining a competitive edge.

2. Confidence in Current Talent Mix

   A significant majority (76%) of executives are confident in their talent mix and capabilities to execute large-scale business model changes. However, the execution speed remains a challenge, suggesting that companies need support in accelerating their transformation processes.

3. Alignment and Execution Challenges

   There seems to be strong (59%) consensus on what future visions are, but there is less confidence (41%) shown regarding how these visions will be achieved. are less clear. This creates a potential risk area that must be addressed by facilitating strategic discussions and alignment within the organisations.

4. Investment Over Cost Cutting

   Executives are prioritising investment in new technologies and business model innovation over traditional cost-cutting measures. Accountants can guide their clients in making informed investment decisions that align with long-term strategic goals, particularly in areas like generative AI and digital transformation.

5. Cybersecurity and Regulatory Concerns

   With an increasing threat of cyber-attacks and regulatory changes, accountants can play a crucial role in enhancing their clients' resilience through improved risk management practices and compliance strategies.

6. Roadblocks to Reinvention

   The survey identifies several barriers to effective transformation, including the cost of new technologies and the pace of change. Accountants can assist clients in navigating these challenges by optimising resource allocation and providing strategic insights that emphasise efficiency and value creation.

What Actions Should Organisations Take?

To ensure an effective response to the challenges highlighted in the PwC Pulse Survey, organisations should actively undertake the following actions:

1. Strengthen Strategic Alignment

   • Convene regular strategic planning sessions to align the leadership team on the company’s long-term vision and the methods to achieve it. This alignment is essential to ensure that everyone is working towards the same goals and understands their role in the process.

2. Accelerate Change Implementation

   • Prioritise and streamline decision-making processes to increase the pace of change. This may involve delegating more authority to lower levels or establishing cross-functional teams that can act quickly and efficiently.

3. Invest Proactively in Innovation

   • Allocate resources towards new technologies and business models rather than just focusing on cost-cutting. This proactive investment strategy should focus on areas that offer the most potential for growth and competitive advantage, such as digital transformation and artificial intelligence.

4. Enhance Risk Management Practices

   • Develop a comprehensive risk management framework that addresses the new risks associated with a rapidly changing business environment, including cyber threats and regulatory changes. Regular risk assessments should be conducted to identify and mitigate potential vulnerabilities.

5. Cultivate a Culture of Continuous Improvement

   • Encourage a company-wide mindset that embraces change and innovation. This includes training programs to develop skills in new technologies and methodologies, as well as incentives that reward creativity and risk-taking.

6. Improve Internal and External Communication

   • Implement a clear communication strategy that keeps all stakeholders informed about the changes taking place, the reasons behind them, and the expected benefits. This should include regular updates and opportunities for feedback at all levels of the organization.

How can accountants assist clients in their transformation efforts? Read more in CIBA’s handy guide below.

In this guidance document we list key considerations and procedures for accountants, equipping them to offer comprehensive and actionable guidance. This support will help clients manage complex transformations, ensuring strategic alignment and achieving operational success.