A.T. Kearney survey: Two thirds of local CEOs donaa‚¬a„¢t expect significant recovery in 2011

One of the main conclusions of the survey conducted by consultancy firm A.T. Kearney is that nobody is expecting a quick recovery after the crisis. In addition to that, two thirds of the respondents believe the crisis will continue to affect them until the end of 2011, while one third are so blinded by the level of uncertainty that they can’t say when will the crisis stop affecting their businesses, the survey found.

While crisis has a clear impact on all industries, only 10 percent of the CEOs interviewed see a low effect of crisis on their own industry compared to the other ones.

Although many respondents represent international players and are known to have initiated various ample actions, only 13 percent are expecting that they will receive relevant support from their international holdings. 90 percent of top managers from Romania believe the state can play a big role in stopping crisis.

Banks, foreign direct investors and top industry players are seen among other players which can have a relatively high impact in stopping the crisis.

Michael Weiss, partner and country manager with A.T. Kearney comments:

“Because most companies believe that a solution for stopping the crisis effects lye outside the company, there is the tendency towards next year in a “wait to survive mode ” without taking any significant step changes in respect of market approach and business model. Moreover, compared to other states, we have surprisingly high expectations that the state can and will aid us in overcoming the crisis. ”

“Everybody initiated cost control actions within past year and a half, but instead of structural changes to the business model, most measures were limited to headcount reduction, freezing salaries and new hires and stopping investments”, explains Michael Weiss. While these measures are fitting to a short term crisis – more and more business leaders see themselves in a vicious circle of low motivated staff, aggressive competitors and a shrinking market size while at the same time strategic and operative shortcomings that were tolerated during the growth time are becoming more and more visible. This is happening during a time when most of the big players have finished their multi-year restructuring

projects.

A.T. Kearney’s update on CEO-panel in Romania covers feedback from top companies, across all industry sectors, employing a variety of business models and sizes. As most of the companies are finalizing the planning for 2011, the survey aims to highlight how crisis perceptions and measures will reflect in next year’s priorities of CEOs agenda and companies.

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