Mazars 2020 C-suite
- 58% expect higher turnover levels in 2020 than in 2019 and almost three quarters (71%) expect growth in 2021
- Economic and technological trends are likely to have a greater impact on business over the next 3-5 years; companies confident in their ability to respond
- Shift to long-term investments suggests that organizations are preparing to make reset
Mazars, the international audit, tax and consulting firm, has launched its new “Mazars 2020 C-suite” barometer, a comprehensive report on the visions and perspectives of business leaders for 2021, based on insights from more than 500 C-suite leaders from around the world.
“Our first C-suite barometer, which has collected the views of business leaders around the world during the second half of 2020, aims to provide knowledge to help companies and others stakeholders to better understand this historic moment,” says Hervé Hélias, CEO and President of Mazars, “We explored what companies have been doing, how the pandemic has affected their views on short- and long-term priorities, what they intend to do, expected transformations, and more. This crisis has affected us all and it is encouraging to see that the majority of companies are positive about their turnover levels in 2020, and that most expect to grow in 2021,” adds Hervé Hélias.
Surprising optimism
The survey, carried out in the third quarter of 2020, showed that companies are generally optimistic about the future. Despite the difficult environment, the majority (58%) expect to end 2020 with higher revenues than in 2019. And with regard to 2021, managers were even more positive: 71% expect higher revenues than in 2020.
Numbers that don't cancel out the less positive scenario: the impact of the crisis caused by Covid-19 is evident in the 35% who said their revenues will be lower than in 2019. The report also reveals a more negative outlook among 40 of the additional respondents, through a pulse survey, in the fourth quarter of 2020, with more executives worried about their revenue falling in 2021.
Latin American respondents have the most optimistic outlook: 91% say they have a positive view of growth in 2021, well above the global average of 71%.
Looking to the future, business leaders predict that economic and technology-related trends will have the biggest impact on their business. The good news is that they are confident in their ability to manage these trends: 90% of companies feel prepared to respond to technological trends.
The risk of climate change
Despite the fact that climate change is increasingly on the agenda of the media, regulators and public opinion, only 20% of those interviewed say they expect this trend to have the greatest impact on their business: the lowest percentage on the list. The figure is slightly higher among companies in Western Europe (25%), suggesting that this concern is higher on the executive agenda of organizations located there, but it is lower than 20% in Latin America, Africa, Eastern Europe, the Eurasian Commonwealth of Independent States (CIS) and the USA.
Climate risk is also the trend with which leaders feel least comfortable: 28% indicated they were not confident in their ability to respond to this trend, a figure that compares with 10% for trends in technology and innovation.
Commenting on these results, Rudi Lang, Partner at Mazars says that “the expectations of governance, ethics and social responsibility or climate change are a reflection of what is commonly included in the acronym ESG (Environmental, Social e Governance). I think there is a common understanding that ESG targets will impact business in all sectors, albeit to varying degrees. My prediction is that the weight of ESG will increase over time.”
Significant business transformations in the next 3 to 5 years
In the next three to five years, business leaders expect to make several business transformations, including technological transformations (50%), transformations related to performance improvement (47%) and the development of new services, markets and business models (46%). Cultural transformation was considered the least likely change at an organizational level, with 40%.
Ready for a resetthe shift to long-term investments
The Mazars 2020 C-suite report also explores whether an activity generates more impact in the short term (up to a period of one year) or the long term (one year or more). Activities including external growth opportunities, corporate strategy and R&D/innovation are considered long-term and activities such as reducing headcount, responding to immediate funding needs and managing suppliers are classified as short-term. Opinions varied substantially depending on company size, location, sector of activity and function. For example, among executives in the automotive, industrial production and financial services sectors, sustainability is included in long-term activities, but those in the technology and telecommunications sectors consider it to be relatively short-term.
Overall, executives, especially in companies led by women[1], This can be seen in all regions except Africa, specifically South Africa, which expects an increased focus on short-term activities, including immediate financing and efficiency/cost reduction, and a relatively reduced focus on some long-term activities, such as talent search and corporate strategy.
Mark Kennedy, Partner at Mazars, concludes that “we carried out this survey because it is essential for us, as a professional services company, to understand what is happening in the market and with our clients. I was struck by the positive mood for this year. It shows that investing in resilience is never wasted and should be at the top of any business agenda.”
[1] Women-led companies refer to organizations in which more than 50% of the main decision-makers are women.
About Mazars
A Mazars is a leading international audit, tax and advisory firm that aspires to build the economic foundations of a prosperous and just world. Operating through an integrated partnership, Mazars works as a single team, able to leverage expertise, scale and cultural proximity to deliver exceptional, tailor-made services in audit and accounting, tax, financial advisory, consulting and legal services.[3].
With European origins, Mazars is present in more than 90 countries and territories and has 40,400 professionals - 24,400 in the UK. partnership and 16,000 via Mazars North America Alliance - dedicated to helping clients leverage business opportunities and act with confidence.