Sustainability and long term growth prospects are what’s keeping Australian company directors awake at night, according to the Australian Institute of Company Directors (AI
CD) Director Sentiment Index 2018 (Click here to access the report).
Other issues troubling the sleep of Australian directors include:
- Structural change/changing business models
- Corporate culture
- Business reputation in the community
- Data security
Do these issues resonate with you? What about the following trends identified in the report as having the biggest potential impacts:
- Positive Impact:
- Big data
- Increased transparency
- Automation
- Negative Impact:
- Mass retirement of older workers
Australian directors have a generally optimistic outlook for both the Australian and international economies, with NSW directors most optimistic for their state, and WA directors most pessimistic for theirs. While directors expect lower unemployment in the next 12 months, they also anticipate increases in inflation, wages and the ash interest rate over the same period. Growth is still expected, including an increase in profits. However, there is growing pessimism regarding the level of government red-tape and corporate reporting requirements.
Directors are also focusing more on corporate culture, with the three most significant ways of changing corporate culture being:
- Regularly featuring culture on board and audit committee agendas
- Capturing data on key cultural indicators
- Communicating the ethical position of the board and business
As you reflect on your own business, are these issues similar or different to your own circumstance, and how these issues may impact your business. Most importantly, how prepared are you to face what is looming on the horizon. Avondale Business School is well-placed to help you position your organisation to ensure you enjoy success.