Corporate complexity continues to increase and having executives capable of managing it is the key to a corporation’s success, according to a global executive survey by KPMG.
The survey, released during the World Economic Forum found that 70% of global corporate executives found developments in regulatory compliance, information management, government oversight, changing operating models and tax policies are all contributing to increasing complexity and is proving to be a company’s biggest challenges.
The survey found the challenges to be increasingly complex because many are global in scope, and the majority of respondents said they expect things to become increasing complex over the next two years.
A majority of the 1,400 executives surveyed said their company will need to take additional actions to manage the complexity.
Despite the challenges, more than 70% also said increasing complexity also provides new opportunities, potentially helping their business gain a competitive advantage, create better strategies for growth, improve efficiency or expand into new markets.
Chief financial officers are among the most important executives in managing complexity and finding opportunities among the many sources of corporate complexity. Business In Vancouver recently interviewed Peter Blake, the CEO of Burnaby-based Ritchie Bros. Auctioneers (TSX:RBA) about the valuable contributions and leadership CFOs provide a business. (See “Putting the ‘chief’ in chief financial officer” – Issue 1109, January 25-31).
BIV is highlighting the strengths and contributions of B.C.’s top CFOs in its first annual B.C. CFO of the Year award, presented in partnership with the Institute of Chartered Accountants of BC. Nominations are being received until February 15, 2011. To nominate a CFO, visit www.biv.com/cfoawards/