CEOs are united on innovation—but divided on routes to growth
29th CEO Survey
The PwC UK CEO Survey reveals the extent to which business leaders have taken decisive and successful steps towards the long-term reinvention of their business. Moves into new sectors and industries made in recent years are paying off for some, as are investments in new products and services.
There is, however, a split in how CEOs plan to play the next phase of growth. Some are preparing moves into new geographies, while others are reinforcing their position in their domestic markets.
Similarly, some are pursuing acquisitions to drive growth and leapfrog into new markets/sectors (27%), though more are looking at M&A to consolidate their position in their core market (32%)—and more still say they have no plans for M&A this year (40%).
Overall, 47% of CEOs say they expect to make at least one major acquisition, worth more than 10% of their total assets, over the next three years.
We see adjacencies to our core in very immature, fragmented sectors that are ripe for consolidation. We acquire the business model best placed to win, provide capital, and supercharge organic growth.
Dominic Blakemore
Compass Group
53%{{53%}}
of UK CEOs say innovation is a critical component of their business strategy, to a large or very large extent (26% to a moderate extent, 19% to a limited extent).
58%{{58%}}
of UK CEOs say 20% or more of their company’s revenue from the last fiscal year came from new products or services introduced in the last three years.
53%{{53%}}
of UK CEOs say their business has started competing in new industries or sectors in the last five years. Of those, 41% say those moves have contributed at least 30% of their revenues in that time.
Although plans around M&A and international expansion differ, there is broader alignment on the role of innovation, with the majority of UK CEOs saying it is a vital component of their business strategy.
Many organisations, however, may not be realising their full innovation potential, by not taking advantage of opportunities such as external collaborations, or rapidly testing new ideas with customers. Others are getting in their own way, with 33% of CEOs agreeing that bureaucratic processes are inhibiting their company’s operational performance.
These gaps and internal barriers blunt an organisations’ ability to capture opportunities when they arise, and it’s showing up at the top. CEOs say their leadership teams can respond to disruption (39% to a large or very large extent) or even anticipate it (34%), but fewer believe their leadership team could convert disruption into new business opportunities (29%).
The vast majority of growth in our economy is going to come from the private sector. It’s going to come from business leaders saying ‘yes, I am going to take a risk on that opportunity, I’m going to invest’.
Rain Newton-Smith
CBI
Carol Stubbings, UK and EMEA Managing Partner, PwC, says: “In today’s market, where industry boundaries are blurring and competition is shifting, standing still is not an option. Growth through innovation, acquisition or expansion demands investment, clear strategic choices and a balance of near-term action with long-term vision. To succeed, leaders must back the right opportunities for their strategy and time horizon, while removing internal barriers and building the leadership and culture needed for innovation to thrive.”
A priority for me is ensuring we have the right leadership—and then getting out of their way. You’ve got to be really careful to not meddle too much.
Michael Topham
Biffa
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PwC perspectives: Unlocking innovation and growth
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Transcript
Explore the key findings of our UK CEO Survey
How the CEO role is evolving in the face of rising scrutiny and a need to reinvent across multiple time horizons.
Leaders look to cloud, AI, data and analytics to transform for growth, but question whether they’re moving fast enough.
While UK CEOs differ on routes to growth, most agree innovation is key for success. Yet some remain hampered by internal challenges.
CEOs share where they are on their AI journey and the steps they’re taking to realise value.
UK CEOs feel less exposed to risk than global counterparts but still expect a challenging outlook.
We’ve spoken with leaders from across industries and sectors to hear their unique insights on the forces shaping the business landscape.
Read exclusive CEO interviews
01/
Avril Palmer-Lavery
Constellation Automotive Group
‘Take risks, gamble and hold your nerve’
On the role of strong leadership, clear communication and shutting out negativity in driving growth.
02/
Louise O’Shea
CFC
Why CEOs are “never fully satisfied”
Why operating in a dynamic sector requires a relentless focus on innovation.
03/
Dominic Blakemore
Compass Group
“Do what only you can do”: CEOs must prioritise
On the value of carving out space to focus on growth and more entrepreneurial thinking.
04/
Russell Barnes
David Lloyd Clubs
“Premiumisation” is key to aggressive growth
On the power of knowing your customer and backing your investment decisions.
05/
Rain Newton-Smith
CBI
‘Hope, confidence and optimism’ can help accelerate UK growth
Why challenging perceived obstacles will be key to creating UK economic growth.
06/
Dhara Vyas
Energy UK
Energy transition is critical to economic growth, resilience and investment
Why a cleaner, smarter energy system is critical to the UK’s resilience and investor appeal.
07/
Michael Topham
Biffa
“Investment grade” policies are key to UK growth, clean jobs and net zero success
On delivering major transformation, keeping pace with regulation and knowing when to be a fast-follower.
08/
Graham Charlton
Softcat
Businesses and government must build stronger foundations for tech success
On taking a structured approach to AI and creating a future-proof team and business.
09/
Lee Perkins
Civica
The right senior leadership team is more important than ever
Why creating, developing and bringing in new leaders should be the priority for every CEO.
10/
Paul Ludlow
Carnival UK & P&O Cruises
A “north star” has never been more important
How knowing where you’re heading will inform better decisions for the short- and long-term.
11/
Mary Huen
Standard Chartered Hong Kong, Greater China and North Asia
CEOs must be connectors, custodians and cultivators in a shifting world
On aligning legacy and innovation to create stronger businesses and relationships.
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