This document summarizes findings from the 2010 IBM Global CEO Study, which surveyed over 1,500 CEOs globally including 81 from Australia and New Zealand. The key findings were: 1. CEOs see the business environment as increasingly complex, uncertain and volatile. 2. Australian and New Zealand CEOs doubt their ability to manage this complexity more than CEOs elsewhere. 3. The highest achieving companies prioritize creativity, continuous change, and iterative strategy. Australian CEOs are more wary of quick decisions. 4. Australian and New Zealand CEOs place more importance on connecting with customers than simplifying processes to manage complexity.

1. CEO INSIGHT
Findings from IBM Global CEO Study 2010
“If you think you’ve got problems.....”
Thomas Miles, Planning Director, Lavender Aug 2010
thomas.m@lavender.ad

2. 1541 CEOs in 60 countries
inc. 81 Respondents from Australia/New Zealand

3. The world CEOs operate in is increasingly volatile,
uncertain & complex
Incremental change is no longer sufficient
entirely new approaches to tap new opportunities
& overcome challenges to growth

4. “Business at the Speed of Thought”

5. Top External Factors

6. Most Pressing Challenge
2007, 2008, 2009 2010
Coping with Change Complexity
Technology driven

7. Increasing complexity, but A/NZ
CEOs doubt their ability to manage it
Highest in 8 years
Biggest gap than in any other part of the world

8. Globally ‘Creativity’ is seen as the No.1
important leadership characteristic
A/NZs CEOs prioritize ‘Integrity’

9. “Standouts” - what do the highest achieving of companies
do?
1. Pride Creativity
2. Continuous Change
3. Pursue iterative ongoing
strategy

10. While 63% A/NZ CEOs also pursue an iterative
strategic process, they are more wary about relying
on quick decisions than many of their peers

11. Almost all CEOs put ‘getting connected
with customers’ top of their agenda
A/NZ CEOs lead the way

12. A/NZ CEOs place less weight than other CEOs on
simplifying their products & processes to better manage
complexity
Only USA has a smaller percentage
Redesigning operating strategies for speed & flexibility
taking advantage of global efficiencies while addressing local needs

13. So why these findings for the A/NZ CEO?
Hypotheses:
Not exposed to the worst of GFC
Resilience of core industries
A more sheltered less globalized market, but realize it won’t
last
Lack of technology investment
Corporate culture less cut-throat

14. So what should the perfect CEO be doing?

15. Implications for agencies
As agencies have less of a say in boardrooms they can position
themselves as companies that aid creativity
Develop strategies that break paradigms & find new opportunities
(& circumvent middle management)
Develop technological platforms to aid simplification of business
internally
Establish a culture which focuses more on doing, trial & error, beta
testing vs lengthy planning processes