For the private company C-suite, productivity is top-of-mind more than ever before. Deloitte’s new Private Company Outlook, asked 100 leaders about their approach to increasing outputs in the next 12 months. Among the C-level, presidents, board members, and partners/owners perspectives is that companies are prioritizing new and existing talent:
According to the study, organizations will also largely rely on capital investment to fund productivity improvements: 87% say their organization will finance investments in productivity with equity of some kind, either from new or existing investors, or both.
Moreover, companies that can’t increase productivity expect to face slower business growth and declining valuations. Respondents from larger organizations (annual revenues $500 million and above) are likely to experience slower business growth (56%) if they can’t meet productivity goals. Among smaller companies (annual revenues under $500 million), 55% of leaders say their company valuation will decline.
While less than 10% of respondents said AI is currently improving productivity, the large majority (87%) expect it to within three years. However, respondents from larger companies (annual revenues $500 million and above) are significantly more likely to prioritize investments in advanced technology like AI (44%) compared to 16% of smaller companies (annual revenues under $500 million).
“Efforts to improve productivity range from investments in human talent, including hiring and reskilling, to leveraging emerging technology like AI. Private company leaders see the success of these efforts as paramount to ensuring business stability and growth in the next year and beyond,” said Wolfe Tone, vice chair, and U.S. Deloitte Private leader.
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Source: Deloitte US
