Hungarian CEOs surveyed: the ability to adapt is key

PwC Hungary conducted its Hungarian CEO Survey for the fourth time, in partnership with the Confederation of Hungarian Employers and Industrialists (MGYOSZ) and the Hungarian Association of Executives (MOSZ). 170 chief executives have been interviewed in Hungary between October and December 2014; the results were published in March 2015. PwC Hungary CEO Nick Kós told our magazine that executives believe in the pulling power of the global and the Hungarian economy less and less, but they remain to be optimistic as regards their own company’s revenues. Last year 64 percent of CEO expected economic growth – this year this ratio was 46 percent; as for their own company’s revenues, 82 percent of chief executives were optimistic. Instead of emerging markets CEOs put their trust in developed countries, for instance 30 percent of Hungarian CEOs consider Germany to be the main target in expansion – this ratio is 5 percentage points higher than last year. Hungarian CEOs are increasingly worried about the government’s measures to reduce the budget deficit (83 percent) and about overregulation (76 percent). Márta Szűcs, PwC Hungary’s partner in the accounting business line stressed that CEOs are also concerned with a lack of professionals: they find it hard to find well-trained and adaptable professionals to fill certain positions. 72 percent of CEOs want a competitive and efficient tax system from the government (global average: 67 percent), 68 percent count on the state in training skilled and adaptable workforce (global average: 60 percent) and 63 percent hope for a business environment that supports innovation (global average: 30 percent). Globally 66 percent of executives said the regulatory environment has the biggest influence on the stability of their company – the same ratio was 59 percent in Hungary. 51 percent of Hungarian executives can imagine a situation where they would have new competitors coming from another sector. At the same time 28 percent of them plan to enter a new sector or have already done so. For Hungarian CEOs technology remains to be key mainly in security matters: 76 percent focus on technologies ensuring IT security. 60 percent mentioned mobile technologies capable of customer involvement, 47 percent named community-based business processes and 41 percent talked about cloud computing. CEOs opined that one of the most important tools for constant development and retaining market position can be joining forces with new partners, e.g. with suppliers, customers, trade organisations – said participants of the global survey. In Hungary customers were the number one choice in such partnerships (59 percent), followed by business networks and trade organisations (58 percent) and suppliers (57 percent). Nick Kós concluded that Hungarian CEOs calculate with significant changes in regulations in the sector, in customer behaviour and in the number of competitors in the next five years. For the majority of them the most important characteristic of executives will be flexibility and the ability to adapt.