Executives who fail to adapt to a changing business environment risk irrelevance, says new study from Oxford Economics

• Report stronger financial performance. They are 38% more likely than others to report strong revenue and profit growth.
• Are building a stronger leadership pipeline. They have more mature strategies and programs for hiring skilled talent (85% vs. 64% of others), building diversity (56% vs. 48%), and succession planning (72% vs. 50%).
• Have happier, more loyal employees. Employees from well-led companies are more satisfied (87% vs. 63% of others) and more likely to stay in their jobs if given the chance to leave (75% vs. 54%).

The research program, sponsored by SAP, identifies a rising generation of Millennial executives who are impatient for change and unimpressed with the digital leadership skills of senior management. Survey analysis also suggests a relationship between effective diversity policies, executive leadership, and bottom-line performance.

What does it take to become one of these top performers? According to the study, the best-led companies:

• Embrace digital technologies. They are executing on a company-wide digital vision and embedding technology in all aspects of the organization.
• Simplify decision-making. They make data-driven decisions in real time and distribute decision-making power across the organization.
• Flatten the organization. They are focused on reducing complexity and bureaucracy and offering the latest technology to all employees.
• Build a digital workforce. They are focused on improving digital proficiency among managers and employees and emphasizing transformation readiness and the strategic use of technology.

“These findings should serve as a wakeup call for business leaders,” says Edward Cone, deputy director of Thought Leadership at Oxford Economics. “Your employees, your younger executives, and your financial results are all sending you a clear message about the importance of updating and upgrading leadership skills for the digital age. It’s time to listen and lead—or get out of the way.”

To learn more about the study and download the executive summary, visit www.oxfordeconomics.com/thought-leadership/leaders-2020

About the study

Oxford Economic surveyed more than 2,050 executives and 2,050 non-executive employees in 21 countries and across multiple industries during the second quarter of 2016. The executives surveyed included both C-levels and their direct reports. Roughly 48% of the sample is from the C-suite. Employee roles range from entry-level to line-of-business management.

About Oxford Economics
Oxford Economics is the world leader in global forecasting and quantitative analysis for business and government, and the most trusted resource for decision-makers seeking independent thinking and evidence-based research. Headquartered in Oxford, England, with offices in London, New York, and Singapore, and elsewhere around the globe, the firm employs more than 90 professional economists, industry experts and business editors—one of the largest teams of macroeconomists and thought leadership specialists.