Tough but interesting year for CEOs

The world of the CEO in 2006 will become increasingly colourful and challenging, opening up increased potential for growth and opportunity, along with a commensurate set of challenges and risks. Some of these will fall within the span of their control or influence, others falling outside of that.

Of the numerous factors requiring consideration, planning, and proactive and reactive action, key is that of leadership development and strengthening. As is often said, charity begins at home, and CEOs should first and foremost focus on themselves.

At the recent Eskom African Business Leaders Forum, attended by over 600 political, social and business leaders from across as many as 20 or more African countries, the overwhelming consensus was that the future success, growth and sustainability of the continent`s economic and social well-being is empirically dependent on the ongoing development of leaders of substance, integrity and capability.

As the economic hub of the continent, SA has more than a perfunctory role to play. Despite its economic strength and strategic positioning, it cannot operate in isolation from the rest of the continent, or ignore its plight. The development of leaders cannot, therefore, be left to a handful of political and business leaders - it is the responsibility of every CEO. This is best achieved by ensuring the sustainability of each company`s growth, profitability and success.

This is where the other challenges come to the fore. 2006 will see increased pressure - formally and informally - on businesses to conclude their compliance with black economic empowerment (BEE) and industry charters.

Life is too short for second bests. Make sure you are giving to and getting the most from life.

Bryan Hattingh, CEO of Cycan

The balanced scorecard component of procurement will play a big hand in this; companies will be unwittingly removed from preferred supplier lists, particularly those of big corporate, parastatal and public sector entities.

A word of caution here: CEOs must not simply make their companies BEE-compliant for the sake of compliance - they must ensure the vital elements of synergy, shared values, meaningful inter-dependency and collaboration are part of the deal.

CEOs have little direct influence over elements such as the brain drain, inflation, the bank rate, the oil price and the prevalence of HIV/AIDS, all of which are predicted to rise in the year ahead. By the same token, they cannot ignore them.

We`ve seen an increase in 2005 of labour unrest and action. Whether or not we are directly affected by it, it has an impact on business at large.

The entry of multinational players has been on the rise, chiefly in the banking sector. This introduces a whole new set of interesting dynamics and challenges.

It is vital for CEOs not to become myopic and parochial in their thinking, notwithstanding that some of the factors mentioned can easily cause us to lose sight of the macro issues, such as the ability to compete on a global basis. This does not mean that all companies should be preparing themselves for offshore activities - we simply need to be able to stack up against similar businesses on the First-World stage.

The war for talent will continue, predominantly with an emphasis on equity employment. While there is an increasing number of exceptionally talented and energised black professionals who are not opportunistic in their approach, demand will continue to exceed supply for some time to come.

How a company fares in addressing the war for talent - not only attracting it but retaining, developing and maximising it - starts with the energy, passion commitment, vision and example set by the leader of the business: the CEO.

In order to maximise this responsibility, it is vital that a CEO take time to review his life and its purpose, as well as his values, aspirations and passions, and to ensure these are being pursued, embraced and fulfilled in everything he does, both in the workplace and in his private life.

So, if you are a CEO reading this, I urge and challenge you to continually strive for greatness, recognise that you are much more than what you have become, and that your best is yet to come.

Life is too short for second bests. Make sure you are giving to and getting the most from life.

Take time out to review it, plan it, and be sure to spend most of your time doing things that energise and impassion you because that`s what your life and work will express. This way, you can pass your enthusiasm onto those who work for you and with whom you come into contact with on a day-to-day basis.