At the end of the year, companies begin to carry out their balance and evaluation of the performance obtained, in order to balance the strategies and results in view of corporate objectives. This is how planning for the coming months is carried out, thus welcoming 2023. Vistage, the executive coaching network for CEOs The largest company in the world, in its commitment to measure the Peruvian business pulse, prepared a digital survey of 92 business leaders to find out the key elements applied in strategic planning for their companies.
“Strategic plans in Peruvian companies are usually designed internally and with a short horizon. One of the keys to successful strategic planning is for the leader to be able to capture a direction where to go, a long-term projection, regardless of external factors. The company is a living entity that does not end on December 31 and we are confining it to a twelve-month system.”said Ignacio Mealla, Director of Vistage Peru.
Planning time:
The strategic planning horizon among Peruvian CEOs is short term. 57% of businessmen confessed that their strategic plan is configured based on their annual goals. While, those who decide to apply a long-term strategy (41%), between the next 3 to 5 years.
Simon Sinek, author of the book “The Infinite Game”, stressed the role of companies that best weathered adverse times such as the start of the COVID-19 pandemic, were those that had well-defined long-term goals.
Political scenario in check:
61% of the business owners, executives and managers consulted expressed their concern that the current political dynamics could affect the growth of their companies. The concern of 24% is associated with the international market that is now on alert due to the projections of a recession in the large economies of the United States, the European Union and China.
Financial resources:
79% of Peruvian CEOs use the result of the sales – earnings pairing to measure their results, compared to only 9% who considered the value of the company as a central element of measurement.
The need for constant innovation in the strategic plan is essential to add new lines of business. 42% of the entrepreneurs surveyed are convinced that their companies will begin to generate additional income through new projects that they do not currently have.
34% of business leaders surveyed consider that the availability of financial resources can become a great driver for the growth of their companies in the long term. However, it is worth noting that two other large groups of CEOs also pointed out the need to have human talent and that their company has the ability to adapt to change in a timely manner to face difficulties.
Consulting:
Almost 9 out of 10 respondents remarked that they work on their strategic plans without resorting to hiring third parties such as coaches or advisors. The participation of internal teams when defining goals and strategies is crucial. However, only a small percentage decide to invest in listening to new ideas and acquiring knowledge from peers.
digital transformation:
Regarding the digital adaptation in their companies to ensure productivity and improve the relationship with their different audiences, 41% of those surveyed do not plan to develop a structure for this issue, in parallel with 31% who say they have worked on attracting talent to strengthen their digital area and 28% are projected to hire these professionals in the short term.
Form:
Regarding the ability to face new challenges in personnel, when planning, one must consider the resources that one has and what is needed to start the journey. The majority of respondents (42%) considered bringing in new managers, creating other job positions and executing minor changes to meet the challenges looming in the global landscape. 14% assured that they plan to include training plans for their collaborators.
30% of the business owners, executives and managers consulted have not considered making changes to their board of directors and 48% completely lack this figure in their company. Barely a fifth of the CEOs surveyed (22%) plan to make some changes to their company’s board of directors as part of their strategic plan. Those leaders who promote productivity, effectiveness, empathy, and commitment through a leadership model are often the ones who succeed in meeting their annual goals.
