\u201cThis year, all leaders will be working hard to decode what the\u00a0post-pandemic<\/a>\u00a0world looks like and redeveloping mid- to long-range business strategy accordingly. In most cases, that will uncover a round of new structural changes to capability, location, products and business models.\u201d<\/p>\n\n\n\n The annual Gartner 2021 CEO Survey was conducted between July 2020 to December 2020 among 465 actively employed CEOs and other senior business executives in North America, EMEA and APAC across different industries, revenue and company sizes.<\/p>\n\n\n\n CEOs Prioritize \u201cDigital\u201d<\/strong><\/p>\n\n\n\n Technology-related change was the second-highest priority for CEOs. When asked about their organization\u2019s top five strategic business priorities for the next two years, respondents gave answers in their own words. CEOs\u2019 responses increasingly included the simple word \u201cdigital,\u201d cited by one in five CEOs in this year\u2019s survey (see Figure 1). Digital capabilities was also the only category in which CEOs intended to increase\u00a0investment<\/a>\u00a0in 2021.<\/p>\n\n\n\n Figure 1: Unprompted Use of the Word \u201cDigital\u201d When CEOs State their Top Business Priorities<\/strong><\/p>\n\n\n\n Source: Gartner (May 2021)<\/p>\n\n\n\n When it comes to specific technologies, CEOs see\u00a0artificial intelligence (AI)<\/a>\u00a0as the most industry-impactful technology. Over 30% of respondents said that quantum computing will be highly relevant to their long-range business plans but are still not quite sure how.<\/p>\n\n\n\n Blockchain,\u00a05G<\/a>, AI and quantum computing are at the forefront of an emerging economic race between the U.S. and China, with one-third of CEOs believing that evolving trade disputes between the two nations over these technologies are a significant concern for their businesses.<\/p>\n\n\n\n Expect a Wave of Mergers and Acquisitions (M&A) \u00a0<\/strong><\/p>\n\n\n\n Within CEOs\u2019 third strategic business priority of \u201ccorporate action,\u201d M&As were the most mentioned item, rising 75% year-over-year.\u00a0This shows that CEOs and senior executives seeking advantage from a cyclical downturn are going shopping for structural inorganic growth.<\/p>\n\n\n\n There was a significant reduction in mentions of \u201csales revenue\u201d within the growth priority category and a significant increase in mentions of \u201cnew markets\u201d across different industries and company sizes, suggesting that CEOs are finding it hard to obtain simple incremental sales revenue growth using the strategies that have served them well in the past.<\/p>\n\n\n\n \u201cTechquisitions can bolster digital business progress, while also providing access to potential fast-growth market sectors,\u201d said\u00a0Mr. Raskino.<\/p>\n\n\n\n CEOs Acknowledge Societal Impacts on Business<\/strong><\/p>\n\n\n\n Over 80% of CEOs expect enduring societal behavior change arising from the pandemic, such as a permanent shift to hybrid work. Shifts in customer behavior are expected as well: The biggest concern among CEOs is that customer demand will be constrained, particularly in industries such as travel, and that consumers and chief financial officers (CFOs) alike will hold back on related expenditures.<\/p>\n\n\n\n \u201cMore use of digital technology and the demand for digital channel flexibility are also within the top three anticipated shifts in customer behavior. This suggests that continuing to improve the way customers are served digitally will be vital,\u201d said\u00a0Kristin Moyer<\/a>, distinguished research vice president at Gartner.<\/p>\n\n\n\n As key matters of sustainability and social justice rise to the foreground of public consciousness in many countries, 39% of CEOs said that taking an active social justice stance is good for business and that their employees are mostly of one mind. This leaves 61% who are tentative around such subjects \u2013 the majority are still not confident and comfortable navigating the business through this area of change. In addition, nearly half of CEOs (45%) said climate change mitigation is having a significant impact on their businesses.<\/p>\n\n\n\n Gartner clients can read more in the report\u00a0\u201c2021 Gartner CEO Survey: The Year of Rebuilding.\u201d<\/a>\u00a0Learn more about CEO priorities in the complimentary Gartner webinar \u201cGartner CEO Survey 2021: The Shift in Business Leader Priorities<\/a>,\u201d taking place May 11, 2021 at 10AM EDT.<\/p>\n\n\n\n![\"\"](\"https:\/\/blog.dubaicityguide.com\/site\/wp-content\/uploads\/2021\/05\/f57aa97a-45de-4bde-ab95-5052192264de-1024x607.png\")
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