Directors, Executives See Uncertainty, Volatility Threatening Corporate Strategy
One in three U.S. board members and executives are “very concerned” that the climate of uncertainty and volatility may pose a significant threat to their corporate strategy, and more than three in four worry that management tends to use outdated assumptions in setting strategy, according to a survey by the Board Leadership Center of KPMG LLP, the audit, tax and advisory firm.
KPMG’s latest Roundtable Series gathered over 1,200 corporate directors and senior executives across 17 cities to share their views on the board’s role in calibrating strategy. Thirty-two percent of those surveyed said they are “very concerned” that management tends to use “more of the same” assumptions regarding key factors and uncertainties in setting strategy, and another 46 percent said they are “somewhat concerned.”
Survey respondents ranked economic uncertainty (61 percent), technology and innovation (58 percent), and government regulation (57 percent) as having the most significant impact on the company’s strategy or the assumptions underlying it.
