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Gartner Lists 7 Major Concerns for CEOs in 2009|
- By CXOtoday Staff, Mar 20, 2009 1200 hrs IST
- Tags : economic downturn, research firm Gartner, seven greatest concerns in 2009, CEOs, Mark Raskino, Jorge Lopez, restructuring, globalisation, regulation
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As businesses struggle to remain profitable in the face of economic downturn, research firm Gartner has identified the seven greatest concerns for CEOs in 2009.
"CEOs are confronting reduced revenues and profits and need to restructure their businesses accordingly," said Mark Raskino, vice president and Gartner fellow. "As a consequence, CIOs should plan for extraordinary requests in 2009 for work and changes."
"Today's CEO concerns provide an advanced look at what will become CIO priorities in six to 18 months," said Jorge Lopez, vice president and distinguished analyst at Gartner. Lopez said Gartner has identified these concerns based on more than a dozen sources of CEO insights, its own analysis of business and economic trends, and changes in the IT landscape.
The seven major concerns for CEOs in 2009 are as follows.
Restructuring is impacting companies in a number of ways from organisational restructuring in the form of layoffs, financial restructuring through de-leveraging of financial structure, corporate restructuring via entity consolidation, and finally industry restructuring through the failure and survival of different players and business models.
Can't write off fast enough. CEOs will have to pare the corporate efforts down to those that are central to the company's short-term survival while not killing off its future. Both talent raids and layoffs will place more pressure on the human resource department and its systems, as will sourcing based on financial reengineering, both of which will add to the IT workload.
Loss of business and governmental trust. The institutions that were once counted on to safeguard the economy seem to have failed, and the lack of transparency in the economic system has been exposed. There has been a subsequent loss of trust, as well, amid fears that other unknowns are awaiting.
Globalisation instability. The disparity of growth between developed and emerging nations is driving tensions as policy differences become more apparent. At the same time, rapid and large changes in strategies for growth, risk and currency are in need of reappraisal as long-term assumptions about fuel prices and supply logistics change.
New major regulation coming. With the current recession and the crisis of business confidence, CEOs should expect new governmental oversight of their business dealings.
Government as the new emerging market. The recession has shifted the growth dynamics of the global economy away from private industry to government.
Green is not going away. While Gartner does not expect green to necessarily be "top of mind" in 2009, it will still have a place at the table as long as CEOs believe it is a useful part of reducing the break-even point of the business.
Gartner also details what a CIO's priorities should be based on these CEO concerns over the next six to 18 months.
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