Danish CEOs: We are fit for the future - our companies are not

Danish companies are not geared to the future. As organisations they lag behind when it comes to crucial competences that are assessed important for being successful (see factbox).

This is the conclusion of a new survey named "Fit for the future! VL Member Survey 2017”, performed by Copenhagen Business School (CBS) and the market research company Megafon. The survey has been done for the Danish Management Society (VL) on the occasion of the VL Summit 2017 held at CBS on 1 June.

Confident CEOs - poor organisations
The CEOs who assess their own organisations to be "average" at best, give a somewhat different, positive and confident assessment when asked to place themselves in relation to seven key competences. They place themselves "high" or "very high".

"Obviously we find it encouraging that CEOs have high confidence.  However, when they place their own organisations lower, it is somewhat of a drawback. In brutal terms it may sound like CEOs say that "I'm really awesome - such a pity that the majority of my team is not", says Flemming Poulfelt, Professor at Copenhagen Business School.

Remember the rear party
Even if the self-assessment of the CEOs contains a certain element of self-overrating, it is a profound problem if the CEO is high up on the mountain and the staff is not:

"Even the strongest CEO cannot run from the ‘organisational shadow’. If you are too far from the rear party, you might cash in a slap in the face performance-wise. It is certainly an advantage that the CEO is a major strategist and networker, but in all other areas he needs to have a strong organisational ownership," says Flemming Poulfelt.

The forgotten talents
Less than one third of the CEOs indicate that their organisation has a high or a very high focus on active talent management and creating a base of future CEOs.

Similarly, only one out of three respondents find that their company is able to defend itself against disruption or create disruption within their own industry.

"Obviously, if the replacements are in the B or the C league, you are already on your way out of the big league. And if conventional wisdom is alive and kicking internally, it is hard to create the innovation that is required to shape one's own future," says Professor Poulfelt.

A need for innovation
It also turns out that innovation preparedness needs an upgrade. It is thought-provoking that the competence that CEOs place lowest for themselves is among the most debated issues - the data-driven approach, where business intelligence and Big Data form the basis of qualified decisions:

"Danish CEOs do not take advantage of the possibilities of Big Data. One of the explanations may be that they do not possess the right competences. A "mental succession" is needed, concludes Thomas Ritter, Professor at Copenhagen Business School.

Facts
This year, the VL Summit 2017 focuses on management competences, and the survey clearly demonstrates that a strengthening of the companies in relation to the competence requirements of the future is much needed.
In future, it is essential to be data-driven, communicating, socially oriented, adaptable, strategic, talent developing and customer-oriented.
Download the report Fit for fremtiden! VL-medlemsundersøgelse 2017 (only in Danish)

Contact
Flemming Poulfelt, Professor & Vice Dean, Copenhagen Business School
Mobile: +45 40 45 95 40 / e-mail: fp.mpp@cbs.dk  

Thomas Ritter, Professor, Copenhagen Business School
Mobile:  +45 29 65 00 99, e-mail tr.smg@cbs.dk