C-Suite Challenge 2018 Report: The most prevalent response related to managing talent!

C-Suite Challenge™
2018
REINVENTING THE
ORGANIZATION FOR
THE DIGITAL AGE

c-suite challenge 2018 research report www.conferenceboard.org2
How the C-Suite Is Responding
to the 2018 Global Outlook
Optimism Reigns
Global businesses appear to be starting 2018 in a more optimistic mood compared to
recent years. Global growth in 2017 exceeded expectations, and The Conference Board
Economic Outlook projects the global economy to carry forward its current momentum
to generate a 3 percent growth rate in 2018, compared to the previous five-year average
of 1.8 percent (2012-2017). While the growth path for mature markets is solid in the short
term, a slowdown is likely later in the decade. Emerging markets will continue to gain
some strength in 2018, but there are significant differences across countries.1
However, it is possible our projection of 3 percent growth misses the impact of a dramatic
breakthrough in new technologies, and the global economy could potentially move
beyond 3 percent growth. That growth would come mostly from a productivity boost
supported by other qualitative growth factors such as talent and digital transformation.
Risks Remain
Despite the optimism as concerns over global recession fade, the global business
environment is far from a proverbial bed of roses. Downside risks caused by a
continuation of geopolitical and social tensions (including growing income and wealth
inequality), uncertainty around global policy issues, labor market imbalances and talent
shortages, and the disruption caused by emerging technologies associated with the
New Digital Economy are casting a shadow over the feel-good global growth party.
The uncertainty over government policies that may hinder global market access and the
rising anti-globalization and populist sentiments that seemed to plague the business
environment in 2017 remain and are, in some cases, intensifying.
Outdated Strategies Founder
These results as well as insights from our other research on digital transformation show
that the impact of the New Digital Economy is clearly being felt in the daily processes
and practices of organizations, workplace structures and business models, reporting
relationships, information sharing, customer interactions, the quest for tech-savvy talent,
and through the emergence of new competitors from every part of the globe. True
digital transformation—the ability of an organization to leverage these new technologies
and the data they produce to connect organizations, people, physical assets, and
processes to drive growth and productivity—requires a deep cultural change that
forces organizations to openly question their most basic beliefs and assumptions and to
reengineer business models and innovation processes.
1 Bart van Ark, Ataman Ozyildirim, Abdul Erumban, and Klaas de Vries, Global Economic Outlook 2018,
The Conference Board, November 2017.

www.conferenceboard.org c-suite challenge 2018 research report 3
However, many organizations, especially “digital immigrants,” continue to struggle on
their digital transformation journeys. They remain trapped in legacy systems and an
outdated mindset when it comes to everything from product development to capital
expenditure allocations to interactions with customers. Digital transformation stretches
across the value chain and touches every aspect of business operations. It requires an
enterprise-wide approach to strategy and systemic change, along with a holistic vision
that engages and energizes even those risk-averse disbelievers within the organization.
In other words, in many instances, it calls for a reinvention of the organization from the
bottom up and the top down.2
New Strategies Emerge
The questions every organization needs to address: How is our organization reinventing
itself for the digital age? How is our organization responding to the challenges of digital
transformation in such areas as resource allocation and investment decisions, addressing
skill shortages, managing key talent, creating a new culture and innovative business
models, and driving greater productivity to ensure a viable and competitive future?
The results of our C-Suite Challenge™
2018 survey show that to meet the digital
transformation challenge, our CEO respondents are focused on building leadership
teams of strategic thinkers who are adaptable, entrepreneurial, and capable of inspiring
employees. They are dedicated to the creation of innovative, customer-centric, and
inclusive workplace environments within their organizations. Meanwhile, executives
slightly down the ladder in the C-Suite are embracing the highly tactical strategy side of
organization building to support this bigger vision.
Culture Rules
Results tell us that CEOs are seeking an open, safe, and transparent culture of open
feedback and are focused on “democratizing” development; not only improving
leadership development programs, but enhancing employee skill training and
development at all levels of the organization. As in past years, leadership development,
from frontline managers to senior leaders, is a top Human Capital strategy, reflecting
the concern for effective senior leaders. This concern is particularly acute in Asia, where
many emerging leaders have not yet experienced all economic cycles in their relatively
brief careers, and in the United States, where leadership bench strength concerns are
exacerbated by the continued exodus of the most senior leaders. Both US and EU CEOs
are more concerned about succession planning than are their non-Western counterparts.
A desire for organizational cultures that are inclusive, engaged, high-performance,
customer-focused, and resilient is signaled throughout the responses to this year’s survey.
Probably no signal is stronger than the desire for a culture of innovation, which is the
number one Innovation strategy in every region (Asia is the one exception, where it is
third), every industry, every size company, and with CEOs and C-Suite executives alike.
CHROs go further, indicating that their very next strategy is to hold leaders accountable
for behaviors that foster a culture of innovation.
2 Charles Mitchell, Beyond Technology: Building a New Organizational Culture to Succeed in an Era of Digital
Transformation, The Conference Board, January 2017.

Key Insights
An analysis of CEO and C-Suite responses to our 2018 C-Suite Challenge survey shows
organizations acknowledging the need for radical change and reinvention
Tight labor markets intensify talent concerns and have
organizations rethinking the future workforce
An agile organization is built on a foundation of effective
change leadership, employee resilience, and an open, speak-up
culture and supported by a world-class data analytics function
Creating new value amid the rise of disruptive technologies is
posing a unique set of risk and opportunities for organizations
Recession fears recede, but concerns over global trade and
income inequality rise
A vision for leaders in a digital future: they must be
adaptable, engaging and inspiring, and strategic thinkers
While building an innovative culture is a top priority, measuring
innovation is a problematic gap for many organizations
The political realities in Washington are driving a unique set of
concerns for CEOs in the US
CEOs perceive their organizations to be doing more to
nurture digital talent and leaders than do other C-Suite
executives, especially CHROs

Hot-Button Issues
Table 1 As concerns about global recession fade, issues around talent shortages and the disruption caused
by new technologies move to the fore. CEOs see a mandate to create new business models as their concern
over new competitors grows.
CEO
HOT-BUTTON ISSUES* Global US Asia Europe
Latin
America CFO CHRO
Failure to attract/retain top talent 1 1 1 2 1 1 1
Creating new business models because of
disruptive technologies
2 2 2 3 2 2 2
Volatility in cash flow 3 4 3 7 3 3 7
New competitors globally 4 7 5 1 4 4 8
Developing "Next Gen" leaders 5 3 9 6 5 5 3
Cybersecurity 6 6 11 4 7 6 9
Income inequality/disparity 7 13 4 9 6 18 5
Threats to global trade systems 8 10 10 16 12 8 15
Health care benefits for employees 9 5 15 17 14 21 10
Failure to devise an effective internal performance
measurement system for employees
10 12 8 20 11 11 11
Workforce diversity 11 14 13 14 9 14 4
Political instability/conflict in Asia-Pacific 12 22 7 19 17 20 12
Rebuilding public trust in business 13 16 16 13 10 24 22
Corporate tax reform 14 11 12 25 18 12 24
Economic uncertainty in China 15 20 6 26 25 13 20
Outdated/insufficient national infrastructure 16 15 22 11 16 23 19
Erosion of/declining trust in political and
policy institutions in the US
17 8 23 28 13 16 13
Wage inflation 18 17 14 23 20 19 17
Global recession 19 21 20 12 19 7 18
Currency volatility 20 25 19 15 15 9 14
Aging demographic and declining birthrate in
developed countries
21 18 21 10 21 15 25
Labor relations 22 27 17 22 8 17 6
Financial instability in Europe 23 23 24 5 26 10 26
US developing policy in health care and tax reform 24 9 28 27 23 22 21
Chinese international economic expansion 25 28 18 21 24 27 23
Effects of Brexit 26 24 26 8 27 26 27
Terrorism 27 19 25 18 22 25 16
US exit from Paris climate accord 28 26 27 24 27 28 28
n=506 n=105 n=157 n=71 n=85 n=112 n=96
* We define hot-button issues as short-term events, issues, and situations that CEOs and C-Suite executives believe will require a special focus in the coming
year. These include macroeconomic and sociopolitical events, uncertainties, and risks as well as internal stress points.
Source: The Conference Board, 2018

Human Capital
Importance of Building an Open, Inclusive, Transparent Workplace Culture
What CEOs’ and C-Suite executives’ selected strategies for meeting the Human Capital challenge and
responses to special questions about organizational practices are telling us:
• CEOs are seeking an open, safe, and transparent culture of feedback by encouraging more effective
communication up, down, and across the organization.
• They are focused on “democratizing” development, not only improving leadership development
programs, but enhancing employee skill training and development at all levels of the organization.
The Challenge of Developing and Engaging Talent for the Digital Era
Designing for agility and digital adaptability requires organizations to rethink how they recruit and develop
talent and to embrace new ways of working. As a result, organizations are likely to have an ever-smaller cohort
of full-time workers, supported by contingent or flexible workers on project teams. Responses to our C-Suite
Challenge survey this year support this conclusion.
The Successful Digital Leader
Table 2 Successful leaders of digital transformation need to be strategic thinkers, as well as adaptable,
inspiring, and engaging.
Based on the following leadership attributes, rank the top 5 attributes according to how critical they are for leaders driving
enterprise-wide transformation. In your judgment, successful leaders of digital transformation will be:
CEO
LEADERSHIP TRAITS Global US China Asia Europe
Latin
America CFO CHRO
A strategic thinker 1 1 2 1 4 3 2 4
Highly adaptable 2 2 10 2 5 1 3 2
Entrepreneurial (creates business
value/new business models)
3 6 3 3 1 5 4 7
Inspiring and engaging 4 3 7 7 2 2 1 1
Emotionally intelligent 5 4 1 8 3 4 5 3
A driver of collaboration 6 5 6 5 6 6 8 5
Learning agile 7 9 11 4 7 7 10 6
A driver of innovation 8 8 8 6 8 8 6 9
Comfortable with ambiguity 9 7 9 11 9 9 7 8
Inclusive 10 10 12 9 12 11 12 10
Culturally dexterous 11 11 4 10 10 12 11 11
Technically savvy 12 12 5 12 11 10 9 12
n=489 n=102 n=100 n=147 n=68 n=84 n=111 n=100

Table 3 CEOs want to create and maintain an open, safe, and transparent culture where effective
feedback can flourish. They are focused on “democratizing” development: not only improving
leadership development programs, but enhancing employee skill training and development at
all levels of the organization.
CEO
HUMAN CAPITAL STRATEGIES 2018 Global US Asia Europe
Latin
America CHRO
Communicate effectively from all levels (up,
down, and across); communicate consistently and
transparently
1 1 4 1 1 4
Enhance effectiveness of the senior management
team
2 2 1 5 4 6
Provide employee training and development 3 4 3 3 6 11
Encourage an open, safe, and transparent speak-up
culture
4 3 7 2 5 7
Improve performance management processes and
accountability
5 10 2 14 3 8
Improve leadership development programs 6 6 5 7 2 1
Integrate engagement with all business functions to
shape business strategy and drive performance
7 11 6 6 8 3
Improve succession planning for current and future
needs
8 5 14 4 9 2
Improve corporate brand and employee value
propositions to attract or retain top talent
9 12 8 9 14 5
Increase efforts to retain top talent (i.e., those with
skills critical to the execution of current and future
strategies)
10 9 11 12 7 14
Hold senior leaders and frontline supervisors
accountable for engagement
11 7 13 10 11 12
Improve effectiveness of frontline supervisors and
managers
12 8 12 16 10 9
Develop clear career paths for all levels of employees 13 15 9 8 12 13
Focus on internally developed talent to fill key roles 14 14 10 13 13 15
Increase diversity/inclusion and cross-cultural
competencies
15 13 15 11 15 10
Allocate more resources to recruit qualified workers
in areas and industries where labor shortages are
growing
16 16 16 15 16 16
n=549 n=103 n=187 n=69 n=87 n=99

Brave New World of Work
Table 4 As part of the reinvention of the digitally transformed organization,
the workforce of the future will rely more heavily on contingent and nontraditional
labor pools as well as automation and robots.
CHRO
Strongly/
somewhat
agree
Neither agree
nor disagree
Somewhat/
strongly
disagree
I anticipate that our workforce will be predominantly
comprised of traditional, full-time employees
I anticipate that the percentage of directly hired contingent
workers and freelancers will increase
I anticipate that the percentage of workers from managed
service providers will increase
I anticipate that the percentage of outsourcing partners and/
or off-shoring partners will increase
I anticipate that the percentage of digital labor (Robotic
Process Automation (RPA), bots) will increase
I anticipate that work will increasingly be done via a
crowd-sourced community of customers and consumers
I don't anticipate any appreciable difference from the
workforce of today
n=549
41.0% 10.1% 48.8%
79.6 15.3 5.1
64.3 28.7 7.0
58.7 22.3 18.9
77.1 16.4 6.5
48.9 37.5 13.6
11.8 11.6 76.7
n=549
Table 5 While the workforce of the future will present its own unique set of
challenges, one constant will remain: the need to find and retain skilled workers.
What are your primary concerns with leveraging nontraditional employees?
Select top 3 concerns.
CEO CHRO
Finding workers with appropriate skills 1 1
Engagement and retention of nontraditional employees 3 2
Managing customer-facing interactions appropriately 2 5
Sharing of intellectual property and knowledge 5 3
Engagement and retention of traditional, full-time employees 4 6
Legal issues, labor laws, and government regulations 6 4
High cost rate of nontraditional employees 7 7
n=516 n=99

Innovation
Innovation Driving Growth
What CEOs’ and C-Suite executives’ selected strategies for meeting the Innovation challenge and responses to
special questions about innovation within their organizations are telling us:
• C-Suite executives far and away identify revenue growth as the most valuable outcome of their
organization’s innovation efforts. There is also recognition of the importance of an innovative brand to
talent recruitment and retention. Innovation as a cost saver appears near the bottom of the outcome list.
• Less than half of CEOs globally (48.2 percent) see their organization as a technology leader in their
industries, and less than 10 percent say they are “extremely satisfied” with their organization’s ability to
innovate. This lackluster assessment underscores the sense of urgency organizations feel about improving
innovation capabilities and culture to be competitive and improve innovation outcomes.
• Measurement remains an issue. The Conference Board research shows that companies that are high
innovators not only have leaders dedicated to innovation who build collaborative cultures, but they have
developed a system of metrics to measure progress.3
However, in our C-Suite Challenge survey, just less
than half of our CEO and just 37 percent of C-Suite executive respondents agree that their organizations
actually have a process to measure innovation.
3 Victor Assad, C. Brooke Dobni, Ed Colby, and Ataman Ozyildirim, Insights from Highly Innovative Companies: Results from The Conference Board
and InnovationOne Global State of Innovation Survey 2017, The Conference Board, November 2017.
Table 6 Creating a culture of innovation, expanding organizations’ innovation ecosystems, and focusing on a
user-centric approach are key strategies to improve innovation outcomes.
CEO
INNOVATION STRATEGIES 2018 Global US Asia Europe
Latin
America CHRO
Create a culture of innovation that encourages cooperation across
functions and business units and promotes risk taking
1 1 3 1 1 1
Expand innovation ecosystem: by engaging in strategic alliances with
customers, suppliers, and/or other business partners
2 2 2 3 3 9
Adopt a user-centric design approach to innovation to develop deeper
understanding of customer need
3 4 1 5 8 4
As part of long-term vision, emphasize creativity and/or innovation as a
corporate value or principle
4 5 4 2 4 8
Develop managers and leaders to promote idea sharing in teams 5 6 6 6 2 3
Invest more in new technologies (A.I. and cognitive computing) to
enhance R&D efforts
6 8 5 4 6 6
Hold leaders accountable for behaviors that foster a culture of innovation 7 3 10 12 5 2
Develop, communicate, and reinforce specific, clear innovation goals
and potential associated with specific roles and functions to enhance
innovation outcomes
8 7 9 8 7 12
Invest more in developing innovation skills for all employees 9 9 8 9 9 5
Ensure more diversity and inclusion on innovation teams and projects 10 11 7 10 10 7
Develop a comprehensive enterprise-wide digitization strategy across
functions
11 12 11 7 12 11
Ensure that the performance appraisal system acknowledges that
failure and iteration are often necessary aspects of innovation success
12 10 12 11 11 10
Establish clear policies for data gathering (internal and external) that
adhere to privacy rules
13 13 13 13 13 13
n=544 n=104 n=187 n=69 n=87 n=99

Table 7 C-Suite executives identify topline revenue growth as the most important innovation outcome for their
organizations. They also recognize that an innovative brand can be an advantage in talent recruitment and retention.
What are 3 most valuable outcomes of innovation for your organization?
INNOVATION OUTCOMES C-Suite
Revenue growth 1
Enhanced ability to achieve the company's strategic vision 2
Increased marketplace power relative to competitors 3
A balanced portfolio of innovation projects under way 4
Profit growth 5
Increased ability to recruit/retain top talent (employer of
choice for top talent)
6
INNOVATION OUTCOMES C-Suite
Increase in market capitalization (market value) 7
Increased ROI 8
Enhanced company reputation 9
Increase in Net Promoter Score 10
Cost savings 11
Increase in number of projects in the innovation pipeline 12
Increased ability to secure necessary capital from investors 13
n=74
Table 8 C-Suite executives’ satisfaction with their organizations’ ability to innovate is underwhelming; one clear
gap—processes that can accurately measure innovation capabilities and outcomes within organizations.
CEO CFO CHRO
Overall, how satisfied are you with
your company's ability to innovate?
Extremely satisfied 7.2 9.3 8.9
Moderately satisfied 43.1 37.2 45.4
My organization is a technology
leader in its industry
Strongly/somewhat agree 48.2 39.7 43.1
Neither agree nor disagree 24.2 26.8 24.2
Somewhat/strongly disagree 27.6 33.5 32.8
My organization has a process to
measure innovation
My organization fosters a culture
of diversity and inclusion
My organization promotes a
culture of continuous learning
My organization is willing to invest
in anticipation of returns over 3-5
year strategic horizon
n=549

Operational Excellence
Building a High-Performance Culture
What CEOs’ and C-Suite executives’ selected strategies for meeting the Operational Excellence challenge and
responses to special questions about operations and culture within their organizations are telling us:
• An improving global economic outlook has reduced the focus on cost controls.
• Globally, CEOs are focused on building a culture of excellence that revolves around a framework of:
®® Improving organizational agility and flexibility
®® Seeking better alignment between strategy, objectives, and organizational capabilities
®® Investing more in new technologies to improve efficiencies and counter labor and
skill shortages
®® Raising employee engagement and resilience to improve performance
Table 9 An improving global economic outlook has reduced the focus on cost controls globally, but strategic
priorities on how to achieve operational excellence vary considerably by region.
CEO
OPERATIONAL EXCELLENCE STRATEGIES 2018 Global US Asia Europe
Latin
America CFO CHRO
Improve our organizational agility/flexibility 1 2 5 1 1 2 7
Seek better alignment between strategy, objectives, and
organizational capabilities
2 3 1 7 6 11 1
Invest more in new technologies 3 9 4 2 3 5 8
Raise employee engagement to drive productivity 4 5 6 4 4 1 2
Foster process of continual improvement (lean Six Sigma,
etc.)
5 4 7 5 5 7 6
Improve our use of big data analysis for strategic planning 6 8 3 11 11 4 4
Better align compensation and incentives with business
performance
7 11 2 14 8 8 3
Redesign business processes to strengthen digital
transformation
8 7 9 3 2 3 9
Improve goal setting for individuals to link to
organizational objectives
9 6 8 10 10 6 11
Create/maintain a culture of accountability 10 1 10 6 7 12 5
Support employee resiliency to adapt and support
change efforts
11 13 11 9 13 14 10
Assess vulnerability of current business model 12 11 12 13 14 9 12
Focus on reduction of baseline costs 13 10 15 12 9 10 13
Develop local management talent for top roles 14 14 13 8 12 13 14
Reassess the strategy with regard to the global supply
chain and its implications for operations
15 15 14 15 15 15 15
n=546 n=104 n=187 n=69 n=87 n=113 n=99

What Defines Agility?
We asked CEOs and C-Suite executives to identify the top five traits, competencies, and characteristics
they believe are most critical to becoming a truly agile organization. It comes down to a cadre of effective
and engaged change leaders dealing with resilient employees who adapt to change. But building a resilient
workforce doesn’t happen overnight. Employees need to be given the tools and training to develop the
mindset to deal with change effectively.
Table 10 Effective change leadership, employee resilience, and an open, transparent,
speak-up culture supported by a world-class data analytics function are critical
components of an agile culture.
Please identify the top 5 traits/competencies/characteristics that you think are most critical to becoming
a truly agile business organization.
TRAITS, COMPETENCIES, CHARACTERISTICS OF AN
AGILE ORGANIZATION CEO CFO CHRO
Effective and engaged change leaders 1 2 1
Resilient employees/individuals that adapt to change 2 5 5
Open and transparent speak-up culture 3 6 3
Communicate effectively from all levels (up, down, and across); communicate
consistently and transparently
4 1 4
Effective use of big data analytics to inform decision making 5 7 2
Highly motivated/engaged workforce 6 4 6
Flat organizational structure to encourage less hierarchy and faster decision
making at all levels
7 9 7
Robust competitive and market intelligence to monitor external environment 8 10 8
Ability to reallocate existing resources when business needs arise 9 8 11
Listening to the customer first and foremost 10 3 9
Ability to fail fast without career derailment 11 11 15
Elimination of functional silos 12 14 10
Ability to access external network for new ideas and problem solving 13 17 18
Willingness to revise your core business assumptions about your industry 14 12 13
A diverse and inclusive corporate culture 15 16 12
Speed in testing/analyzing potential proactive responses to new market
conditions
16 13 16
Ability to add new/additional resources, increase budgets, as soon as
business needs arise
17 15 17
Flexible reward/compensation plans adjusted during the course of a year 18 18 14
Efficient use of flexible, contingent, temporary labor forces 19 19 19
n=544 n=113 n=99

Sustainability
Sustainability as a Driver of Growth and Engagement
What CEOs’ and C-Suite executives’ selected strategies for meeting the Sustainability challenge and responses to
special questions about digital transformation and sustainability are telling us:
• There is a commitment to support an authentic brand identity and commercial value proposition by
embedding sustainability goals into strategic objectives.
• To back up the inclusion of sustainability goals in strategic objections, CEOs see a need for more engage-
ment and better communication with stakeholders to balance short-term performance pressures with
longer-term sustainability goals.
• To appeal to new generations of workers and to support recruitment and retention of millennials who
value corporate mission and authentic brands, CEOs recognize the value of sustainability. Leveraging an
organization’s sustainability brand can provide a competitive edge when it comes to attracting and retaining
quality talent.
As they reinvent their organizations in the digital age, CEOs see digital technologies and digital transformation as
significant enablers of their sustainability strategies.
Table 11 CEOs are committed to supporting an authentic brand identity by embedding sustainability goals into
strategic objectives. They also see the need for more engagement with stakeholders to better balance short-
term performance pressures with long-term sustainability goals.
CEO
SUSTAINABILITY STRATEGIES 2018 Global US Asia Europe
Latin
America C-Suite*
Incorporate sustainability goals into corporate strategic objectives 1 1 1 2 3 3
Ensure sustainability is part of the corporate brand identity and the
commercial value proposition
2 2 3 1 1 1
Incorporate sustainability into company risk management strategy 3 8 2 6 4 4
Engage with stakeholders to ensure outside-in perspective in market
development decisions and to balance short-term performance
pressures with long-term sustainability goals
4 6 4 3 2 6
Emphasize sustainability values in talent recruiting and leadership
development
5 3 5 7 6 9
Embed sustainability into business strategy via concrete actions (e.g.,
investment and M&A decisions, procurement objectives, business
partner interactions, etc.)
6 4 6 5 8 2
Incorporate sustainability goals into C-Suite and employee
performance objectives
7 7 8 9 9 5
Embed sustainability into innovation/R&D process (e.g., through
specific "stage-gate" criteria and/or developing a portfolio of
sustainable products/services)
8 10 7 8 10 8
Increase the time with the board of directors discussing business
risks–and especially opportunities–driven by climate change, natural
resource constraints, and other sustainability factors
9 9 10 4 7 7
Align corporate philanthropy with business strategy 10 5 9 10 5 10
Strengthen alignment of business strategy with the United Nations
Sustainable Development Goals (UN SDGs)
11 11 11 11 11 11
n=534 n=101 n=184 n=69 n=86 n=17
* Excluding CEOs. Source: The Conference Board, 2018

Table 12 Digital technologies and digital transformation are having a significant positive impact on
sustainability strategies.
CEO CFO Other C-Suite C-Suite
Digital transformation is a significant enabler of our sustainability strategy
Strongly/somewhat agree 66.3% 66.4% 70.0%
We actively seek opportunities from digitization to improve our sustainability performance and discover more sustainable
business models
n=538 n=112 n=359
Digital transformation helps our organization reduce its environmental footprint and/or reliance on raw materials for products
Strongly/somewhat agree 76.8%
Neither agree nor disagree 8.2
Somewhat/strongly disagree 15.0
n=18

Customer Relationships/
Corporate Brand and Reputation
Transforming to Compete in the Experience Economy
What CEOs’ and C-Suite executives’ selected strategies for meeting the Customer Relationships/ Corporate Brand
and Reputation challenge and responses to special questions about the quest for customer-centricity are telling us:
• In an era that requires both high tech and high touch, CEOs place great value on personal engagement with
customers and clients.
• CEOs have a high degree of confidence in their customer experience teams: More than 80 percent of CEOs
globally agree with the statement: “I have the leadership team in place necessary to deliver a consistent,
competitive experience to our customers.”
While creating a customer-centric culture by hearing and understanding the voice of the customer is seen as critical,
there may be a gap in practicing what they preach. Only 36 percent of CEOs globally agree that “My organization
has a digital transformation team that spends significant time directly with our customers.”
Table 13 In an era that requires both high tech and high touch, CEOs place great value both on the basic quality of
products and services delivered and on personal engagement with customers and clients.
CEO
CUSTOMER RELATIONSHIPS/ CORPORATE BRAND AND
REPUTATION STRATEGIES 2018 Global US Asia Europe
Latin
America C-Suite*
Enhance quality of products/services 1 3 1 2 5 5
Engage personally with key customers/clients 2 1 4 3 6 4
Develop a more outward-looking, customer-centric culture 3 2 3 5 2 1
Create more product/service customization through
digital technologies
4 4 7 1 1 2
Communicate corporate values to customers and key stakeholders 5 9 6 5 9 3
Employ big data analytics to better understand shifts in customer
patterns
6 8 2 9 7 7
Use competitive intelligence to better understand customer/
client needs
7 5 10 4 4 6
Increase speed of products and services to market 8 7 9 7 8 10
Use social media and mobile applications to enhance brand image 9 6 11 8 3 8
Improve alignment and accountability of corporate business
practices/management behavior with corporate values
10 10 5 10 10 9
Provide incentives for frontline employees to improve
customer engagement
11 11 8 11 12 12
Ensure compliance with corporate brand identity and
values among strategic business partners and suppliers
12 12 12 12 11 11
n=534 n=103 n=187 n=69 n=87 n=213
* Excluding CEOs.

www.conferenceboard.org16 c-suite challenge 2018
Table 14 CEOs express confidence that their customer experience teams are delivering
on the brand promise. Most C-Suite executives believe they have the digital tools
to deliver the right customer experience, though more than a quarter find they are
underresourced technology-wise.
CEO
I have the leadership team
in place necessary to deliver
a consistent, competitive
experience to our customers
I have identified and hold
accountable a named owner(s) of
the Customer Experience for my
organization
I have identified metrics of
success for my Customer
Experience organization
My organization has a digital
transformation team that spends
significant time directly with our
customers
n=548
C-SUITE
I have the digital strategy and/
or tools in place necessary to
deliver the customer experience
we want
The technology required to
deliver our desired customer
experience is effectively
prioritized and funded
I am empowered to make and
implement decisions that affect
Customer Experience for my
organization
n=69

www.conferenceboard.org 17c-suite challenge 2018
Regulation and Risk
Improving the Regulatory Environment to Deal with Multifaceted
Effects of Disruption
What CEOs’ and C-Suite executives’ selected strategies for meeting the Regulation and Risk challenge
and responses to special questions about corporate culture are telling us:
• The current volatile and uncertain global regulatory environment is creating a renewed focus on
strengthening internal compliance processes.
• In a reflection of the optimism of an improving global economic forecast for 2018 and receding
concern over global recession, defensive strategies such as management of cash flows, currency
volatility, and raising capital reserves have diminished in importance as risk mitigation strategies
compared to 2017.
• To deal with the disruptive effects of digital technologies, companies see improved agility as a
critical aspect of risk mitigation.
How a company structures its cybersecurity strategy and infrastructure can have a significant impact
on whether and how much the company can take advantage of the opportunities in the New Digital
Economy while managing the associated legal, financial, and reputational risks.
Table 15 The current volatile and uncertain global regulatory environment is creating a renewed focus
on strengthening internal compliance processes. Creating an agile organization remains an important
component of risk mitigation strategies.
CEO
REGULATION AND RISK STRATEGIES 2018 Global US Asia Europe
Latin
America CFO
Strengthen internal regulatory compliance processes 1 3 1 2 1 1
Improve our organizational agility/flexibility 2 2 3 3 2 2
Explicitly integrate long-term risk recognition into strategic planning 3 4 2 1 4 5
Incorporate cyber risks into existing risk management and
governance processes
4 1 6 6 6 3
Update contingency plans and procedures for crises
(e.g., geographical, political, relocation of employees)
5 5 5 4 3 4
Improve employee monitoring and training to lower internal risk for
IP loss
6 7 4 9 9 7
Focus on competitive opportunities created by regulation 7 6 9 5 8 10
Enforce compliance with government regulations on bribery and
corruption in all our locations
8 9 8 8 5 6
Reduce volatility in cash flows 9 8 10 7 10 9
Manage currency risk 10 11 7 10 7 8
Raise capital reserves 11 10 11 11 11 11
n=543 n=104 n=187 n=69 n=87 n=113

About the Authors
Charles Mitchell, executive director, knowledge
content and quality at The Conference Board,
is responsible for the development of member-
generated content and ensuring the objectivity,
independence, accuracy, and business relevance of
the organization’s research.
Rebecca L. Ray, PhD serves as the executive vice
president, knowledge organization, for The Conference
Board. In this role, she has oversight of the research
planning and dissemination process for all three
practice areas (corporate leadership, economy and
business environment, and human capital) and is
responsible for the research agenda. She is the
director of The Engagement Institute™
, a research
community of practice she created with Deloitte
Consulting and Mercer Sirota.
Bart van Ark, PhD is executive vice president,
chief economist, and chief strategy officer of The
Conference Board. He leads a team of almost two
dozen economists in New York, Brussels, and Beijing
who produce a range of widely watched economic
indicators and growth forecasts and in-depth
global economic research. A Dutch national, he is
the first non-US chief economist in the history of
The Conference Board.
About the 2018 Survey
Since 1999, The Conference Board CEO Challenge®
survey has asked CEOs, presidents, and chairmen
across the globe to identify the key strategies
they intend to use to meet their critical business
challenges. This year, to provide a more holistic view
of the global business environment, we introduce
C-Suite Challenge™
. For this report, we focused
on 21 key functions and expanded our respondent
pool to include C-Suite executives, including chief
financial officers, chief human resources officers,
chief information officers, and chief marketing
officers. Respondents were asked about six core
issues: Human Capital, Customer Relationships/
Corporate Brand and Reputation, Operational
Excellence, Innovation, Regulation and Risk, and
Sustainability. With the exception of CEOs, not all
functions were asked to respond to each one of the
six core challenges.
In addition, we presented our 561 CEO respondents
and 475 C-Suite respondents representing more than
50 countries globally with a list of 28 “hot-button
issues” that include macroeconomic concerns,
geopolitical uncertainty, internal fiscal and human
capital issues, and social and environmental pressures.
Their responses highlight the unique pressure
points they see within their own organization as
well as their regional economic microclimates. Also
included in this year’s survey are special questions on
leadership attributes for the digital age, the critical
traits of an agile organization, and the state of digital
transformation within their organizations.
The survey was carried out between early September
and early November 2017. For each of the six core
business issues we presented, respondents were asked
to choose five strategies from among approximately
15 to reveal their approaches to meeting these core
challenges. For each key business issue, the strat-
egies were ranked according to the percentage of
respondents who chose that strategy. To provide a
representative view from respondents from around
the world, we weighted the responses in aggregates
(such as global and major regions) by the square root
of the respondent’s country share in global output
(GDP) divided by the respondent’s share in the total
number of responses from his/her country. Write-ins
were also permitted as they informed us about
possible deviations.
While CEO and C-Suite priorities certainly vary on a
company-to-company basis, we believe this report
can serve as a discussion starter and idea prompter
within organizations to ensure that the enterprise
understands the challenges it faces, the strategic
goals it needs to set to meet those challenges, and the
strategies and tactics required to be competitive in
a global marketplace.

Survey Demographics
CEOs
REGIONS Count Percent
Asia 189 33.7%
Europe 72 12.8
Latin America 87 15.5
United States 108 19.3
Rest of the World 105 18.7
TOTAL 561 100.0%
REVENUES Count Percent
Less than $100 million 372 68.4%
$100 million to under $1 billion 87 16.0
$1 billion to under $5 billion 45 8.3
$5 billion and above 40 7.4
TOTAL 544 100.0%
INDUSTRY Count Percent
Manufacturing 134 24.5%
Finance 79 14.4
Service 335 61.1
TOTAL 548 100.0%
All C-Suite Executives
REGIONS Count Percent
Asia 304 29.2%
Europe 155 14.9
Latin America 216 20.7
United States 220 21.1
Rest of the World 147 14.1
TOTAL 1042 100%
REVENUES Count Percent
Less than $100 million 499 49.2%
$100 million to under $1 billion 210 20.7
$1 billion to under $5 billion 129 12.7
$5 billion and above 176 17.4
TOTAL 1014 100.0%
INDUSTRY Count Percent
Manufacturing 298 29.1%
Finance 152 14.8
Service 574 56.1
TOTAL 1024 100.0%
JOB TITLE Count Percent
Chief Executive Officer 561 54.2%
Chief Financial Officer 114 11.0
Chief Human Resources Officer 100 9.7
Chief Operating/Operations Officer 61 5.9
Other C-Suite Executives* 200 19.3
TOTAL 1036 100.0%
Regional Partners
GLOBAL
Association of Executive Search and
Leadership Consultants (AESC)
ASIA-PACIFIC
Australia
Australian Human Resources Institute (AHRI)
China
Fortune China
Hong Kong
Hong Kong Management Association (HKMA)
Malaysia
Asian Institute of Finance (AIF)
Singapore
Nanyang Technical University (NTU)
Thailand
Thailand Management Association (TMA)
EUROPE AND MIDDLE EAST
Germany
Cologne Institute for Economic Research (IW Köln)
Greece
Hellenic Management Association (EEDE)
LATIN AMERICA
Mercer
NORTH AMERICA
Canada
The Conference Board of Canada

Publications Team
Creative Director Peter Drubin
Production Pam Seenaraine, Kathleen Mercandetti
Editor Sara Churchville
Project Manager Michelle Kan
Related Resources from The Conference Board
ADDITIONAL RESEARCH
Webcasts
The Conference Board Economics Watch®
Monthly
reports and webcasts for the United States, Euro Area,
and emerging economies
Human Capital Watch™
Monthly webcasts that help senior
executives address challenges and stay informed about
current issues across the entire spectrum of human capital
The Conference Board Governance Watch™
A bimonthly
program from The Conference Board that helps senior legal
and compliance professionals keep abreast of developments
in corporate governance
From the Chief Economist: StraightTalk™
StraightTalk™
: Global Economic Outlook 2018: Global
Economy: Half Empty or Half Full?
www.conference-board.org/straighttalk
Research publications
Just What Is the Corporate Director’s Job? Perspectives on
the Board Member’s Job Description
September 2017
China’s Global Impact: The Business Exposures and
Economic Implications of a Globalizing China
August 2017
Turning Silver into Gold: Tapping into the Mature Workforce
to Close Europe’s Widening Talent Gaps
July 2017
A Roadmap to Sustainable Supply Chain Standards:
Decoding Progress, Challenges, and Best Practices
June 2017
Driving Digital Transformation: Why Culture
and Structure Matter
June 2017
Socially Minded: Convincing the C-suite of
Social Media’s Benefits
May 2017
Business Transformation and the Circular Economy: A Candid
Look at Risks and Rewards
May 2017
Signposts of Innovation: Toward Better Innovation Metrics
for Business—A Primer
May 2017
The Impact of Demographic Trends on Consumer Spending
February 2017
DNA of Engagement: How Organizations Can Foster
Employee Ownership of Engagement
February 2017
Is Your C-suite Pipeline Ready? Developing Leaders
for High-Impact Roles
October 2016
Digital Transformation: What Is It and What Does It
Mean for Human Capital?
July 2016
The Seven Pillars of Sustainability Leadership
June 2016
Navigating the New Digital Economy: Driving Digital Growth
and Productivity from Installation to Deployment
May 2016
Help Wanted: What Looming Labor Shortages
Mean for Your Business
April 2016
Inclusion + Innovation: Leveraging Diversity of Thought to
Generate Business Growth
January 2016
© 2018 The Conference Board, Inc. All rights reserved. ® The Conference Board and the torch logo are registered trademarks of The Conference Board, Inc.
ISBN 978-0-8237-1326-4
THE CONFERENCE BOARD creates and disseminates knowledge about
management and the marketplace to help businesses strengthen their
performance and better serve society.
Working as a global, independent membership organization in the public interest,
we conduct research, convene conferences, make forecasts, assess trends, publish
information and analysis, and bring executives together to learn from one another.
The Conference Board is a not-for-profit organization and holds 501(c)(3) tax-
exempt status in the USA

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