Economy tops list of directors’ concerns: Gartner

The economy is the top concern for board directors in 2022 as they face inflation, a possible recession and long-term economic doubt.

At the 2022 Gartner IT Symposium in the Gold Coast, Tina Nunno, distinguished VP analyst at Gartner said the top three concerns for directors are the recession, long-term economic uncertainty and inflation pressures.

Nunno said to attendees, “Two of the three priorities specifically pointed out in the long-term economy. Private sector leaders are concerned about long-term revenue and the government leaders are worried about their ability to meet the needs for growing public services.”

Nunno explained what is causing this is a mix of factors. 

“If we look at what's next on the board's threat list, we find some of the causes of all of this uncertainty: talent shortages, changing business models, energy costs and shifting customer behaviour,” she said.

“At the same time, we're attempting to deal with a radical increase in cybersecurity attacks globally, such as ransomware as our digital investments have accelerated, so have the number and severity of attacks. While there is a high global demand for our products and services, global supply chains are bent or broken. This has created both long- and short-term challenges and new opportunities for CIOs to contribute.”

The need for long-term sustainable growth

Employees and customers are looking at their leaders to provide long-term sustainable growth according to Adrian Leow, VP analyst, Gartner.

He said, “Sustainable Growth in traditional financial terms means growth that is repeatable without taking on financial debt. With inflation and global interest rates rising, most organisations do not want to take on too much additional debt.

“The definition of sustainable growth has evolved in recent years to include growth that doesn't create societal debt. Growth which is ethical and responsible, particularly around issues of environmental sustainability.”

Kristian Steenstrup, distinguished VP analyst at Gartner explains how IT leaders can assist in sustainable growth in three key ways.

Firstly, leaders should revolutionise work by tech enabling the workforce to create sustainable performance.

Secondly, focus on responsible financial investment, “Responsibly invest financial resources into technologies with both sustainable monetary returns and environmental sustainability.

“Stakeholders are demanding products that at a minimum do no harm and a great competitive advantage to enterprises that can prove they can deliver responsibly and sustainably,” he said.

Lastly, organisations need to implement tough cybersecurity measures.

“Implement resilient cybersecurity to deliver sustainable protection that protects business outcomes without constraint. We can't execute if our systems are down, we can't attract more employees or customers if we have a brand that can't be trusted,” he added.

Athina Mallis travelled to the Gartner IT Symposium in the Gold Coast as a guest of Gartner.