With today’s dynamically changing environment, businesses have become more robust, markets are gone global, competition is on rise, consumers are well informed and products have become questionable due to ease of communicational and advancement in technology. Under such circumstances organization’s CEOs must be well aware of the reality: what got them here, might not get them there! What worked for them maybe a year or two before might not just work for them now.
New developments and new changes in business environment bring in new challenges and require better, more equipped leaders, CEOs and Managers to deal with them. They must learn new skills and ways to deal with these new challenges. And to do so successfully, they first must be aware about what new challenges are coming to their way with every New Year.
Some of the challenges that every CEO has to face in 2016 are listed below:
- No Vision
Some CEOs have no long-term vision. They surely know what they are working on but they don’t know what they are working towards. They are too caught up in dealing with yesterday’s problems, so much that they can’t hardly focus on what tomorrow might bring. On the other hand, even if the CEOs do have a strong vision, they find it hard to convey the same to the rest of the team members.
- Online customers
With the revelation last year that sophisticated robots, not humans, are responsible for nearly 25 percent of Web traffic (at a cost of more than $6 billion), fraud at that level is a serious problem. Effectively reaching audiences online, appearing in natural search results, rising costs of online ad campaigns and privacy concerns related to tracing buying behavior online will be one of the biggest challenges facing businesses this year.
- Government compliance, regulation and litigation.
With increased number of rules, regulations, laws, etc many companies now spend a great deal more on attorneys, compliance staff and consultants. Those funds often come from other areas of operations, including research and innovation. CEOs should be a voice to help policy makers strike the right balance between needed regulatory protections and not stifling growth, investment and innovation.
In a world in which there is no “off the record,” companies need to be truer faster, and CEOs need to think beyond their legal counsel’s advice when they get things wrong.
- Talent Acquisition / Development / Retention
This will always be the hallmark of a great leader. You are only as good as the people you surround yourself with. Rising market opportunities will make it difficult for CEOs to find the right people, retain the right people, and empower them to give their best.
- The Innovator’s Dilemma.
CEOs fail to lead their organization to the future, as leaders, it is a human tendency to be stuck up on one’s own past success rather than focusing on something new and exciting. Chewing on past glory can be tragic for future affairs.
- Staying a step ahead of the economy
CEOs in 2016 will be stocking up on relationship capital, intellectual property and other strategic investments that you can cash in at the end of the year to ride out the coming storm,
- Execution delay
One of the major responsibilities of the CEO is to execute ideas, plans and strategies. Often the responsibility of execution is passed on to the managers. In most cases, the managers will take on the new assignment with great enthusiasm but the drive is tending to fade away. In most cases the ideas are not executed as per the plans. Delay, procrastination, obstacles, undue interventions and excuses delay execution. Again the same ideas are discussed in routine meetings hoping for another execution time line. Even though the leaders try harder to keep their team agile, the execution often takes more time than previously planned. This will make projects even more frustrating for its leaders.
- Adapting to the minimum-wage increase
With rising inflation rate, every employee of the organization seeks to receive some increase in their salaries. This makes CEOs have to make tough decisions to find ways to recoup this lost income. Raising prices on goods and services, outsourcing work to virtual assistants, or reducing staffed hours are now decisions the CEOs will need to make early in 2016, or they will likely see the wage increase affect their bottom dollar negatively.
- Diversity and social issues
Social mobility is down, technological unemployment is rising. Technology companies are starting to focus on getting more diversity in their own organizations, which is a great place to start. But there’s much more that can be done.