Key Insights from the Latest CxO Priorities Study

Insights from the Horváth CxO Study

Horváth, a global management consultancy, has released its sixth annual CxO Priorities Study, shedding light on the crucial concerns of business leaders in growth, profitability, operations, and digital transformation. Here’s a summary of the report’s significant findings.

Changing Priorities

This year, there has been a notable shift in the ranking of priorities among executives. At the helm is the drive to enhance cost and profit structures, spurred by rising costs and pressure on margins. Following closely, transformare digitală—including the integration of AI technologies—takes second place, with securitate cibernetică claiming the third spot.

Additionally, themes focused on people and the restructuring of processes round out the top five priorities. A noteworthy addition this year is inovație, which has made its way into the top ten.

When it comes to the manufacturing sector, innovation leaps to third place. Ralf Sauter, a partner at Horváth, emphasizes that “excellence in core business is strategic for manufacturers,” suggesting that refining product offerings is critical to fulfilling customer demands and securing long-term value.

Manufacturing Focus

Manufacturing entities are also redirecting focus toward international production și supply chain optimization, moving up three positions from last year. Sauter remarks, “A balanced global value chain is essential for resilience, especially given the ongoing trade tensions.”

Macroeconomic Influences

As for the macroeconomic landscape, surveyed executives predict that trade conflicts and tariffs will emerge as the primary threats to business performance in 2025. Interestingly, the service sector sees tariffs positioned as the fourth-most significant challenge, with shifting interest and inflation rates topping the list.

Moreover, non-tariff trade barriers—such as regulations and disruptions in the supply chain—pose additional hurdles, particularly for companies involved in the physical goods industry.

Workforce Dynamics

Workforce-related strategic considerations, such as talent availability, skill development, and cultivating a leadership-centered culture, are of paramount importance for executives moving into 2025. Although the talent crunch has slightly eased, strategies for global footprint and ongoing AI evolution present fresh obstacles.

Revenue Optimism

Across diverse industries, there is an optimistic outlook for revenue growth in 2025. Expectations suggest modest year-on-year growth driven by both volume and price hikes, yet this growth is more closely tied to operational discipline than in previous years. As Sauter points out, “Companies realize that charting a path back to growth amidst technological upheaval and global shifts necessitates a dual focus: excellence and efficiency in core operations, coupled with proactive structural transformation.”

Changing Sustainability Perspectives

Remarkably, attention to sustainability has been steadily declining since 2021. Once a priority in the top two, it now holds the twelfth position, marking its lowest ranking yet. Sauter notes, “Sustainability has transformed into an operational rather than strategic focus, with companies adhering to obligations while investing where they see business sense.”

Despite this drop, a majority remain committed to their net-zero ambitions, with fewer than 20% contemplating postponement of targets, while about 15% aim to achieve them ahead of schedule.

Survey Methodology

For this study, Horváth polled over 1,000 executives and board members from sizable firms across 30+ countries and 15 different industries.

Concluzie

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