Dec. 17, 2004--A recent PricewaterhouseCoopers Trendsetter Barometer revealed that 60% of CEOs surveyed expect their companies' productivity to increase over the next 12 months.
The study, which surveyed more than 360 CEOs of America's fastest growing privately held companies, revealed that 21% of CEOs predict "much greater" growth, while 39% say they look forward to "somewhat greater" growth. Those expecting productivity jumps also anticipate a 23% increase in revenues over the next year, as opposed to 17% from those who aren't predicting improved productivity.
"These business leaders have a track record for faster growth," said Jay Mattie, U.S. Private Company Services Assurance Services Leader. "They have developed a corporate culture that values efficiency."
Seventy-eight percent of CEOs cited advancements in IT applications as one of the largest reasons for the sunny forecast, while 73% said holding off on new hires was a factor. Also worth noting, 22% of CEOs feel domestic outsourcing is a contributor to increased productivity, while 9% find foreign outsourcing or off shoring a bigger influence.
The number one reason cited for the expected spike in productivity by 98% of CEOs was their workforces own performance and efficiency.
The study also shows that having a positive projection may indeed be a self-fulfilling prophecy. Those seeing revenue growth after prophesizing higher productivity have increased their revenue at twice the pace of other fast-growth companies over the past five years, 447% as opposed to 206%, respectively. With that healthy revenue growth comes job growth and of the 82% who expect to increase hiring next year, past studies have shown they have actually done it at an 11% clip, as opposed to 7.4% for all others.