The past decade saw rising waves of change that eroded the status quo and began to reshape business and operating models, and the very purpose of organizations. The need for agility and innovation has spurred companies to start giving up their enterprise islands in favour of ecosystem collaboration. And attention has turned away from delivering short-term shareholder returns toward driving long-term stakeholder value, with the recognition that human talent is the key value driver at all levels.
Transformation initiatives top the agenda of CEOs in Romania
EY’s CEO Imperative Study in Romania pointed out that, in terms of transformation initiatives, the majority of the CEOs from Romania (88%) intend to initiate new and comprehensive transformation in a time horizon of 12 months and the most significant investment (78%) will be directed towards data and technology. Every leader from Romania (100%) agrees that the companies are expecting to spend more on transformation over the next three years than in the last three years, compared to only 65% of the CEOs globally who endorse this forecast.
The top three trends that impact the companies in Romania are technological and digital innovation, changing customer experiences and expectations and geopolitics. According to the EY reports, global executives expect political risk to remain elevated in the year ahead, with geopolitical risk as their biggest area of concern, thus mirroring the Romanian leaders’ opinions according to the CEO Imperative study.
“Whether we see it data-ﬁrst, sustainable-ﬁrst or innovative-ﬁrst, the future enterprise will require pursuing multiple continuous transformations within the organization, following three interconnected value drivers: putting humans at the centre, adopting technology at speed and driving innovation at scale. Weaving these three value drivers into every aspect of the continuous cross-functional transformation will allow CEOs to maximize their companies’ growth and, ultimately, to drive long-term stakeholder value creation,” says Bogdan Ion, Country Managing Partner EY Romania & Moldova and Chief Operating Officer for EY South-East & Central Europe and Central Asia (CESA).
Coming back to innovation and looking at the data, the research highlights that for the local leaders the top transformation priorities are innovation (72%), culture and purpose (66%) and people and talent (56%).
Leadership for the future
Referring to the role of leadership in the future, all local CEOs agree leadership must manage multiple continuous transformations within the organization and 89% of respondents agree the CEOs must lead disruptive innovation and business reimagination. In addition, 91% agree establishing stakeholder trust will become an increasingly important part of the CEO’s job.
As to the characteristics of effective leaders over the next five years and beyond, the leaders underline transformative mindset, innovation, compassion and trust.