AchieveNEXT Mid-Year Sentiment Study 2021

AchieveNEXT Mid-Year Sentiment Study 2021

A roaring recovery for emerging and middle market enterprises is in process, backed by increasing investments in talent and technology. 2021 MID-YEAR UPDATE TO CFO-CHRO SENTIMENT STUDY July 2021

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ABOUT ACHIEVENEXT

Powered by the unique combination of Peer Networks and Talent Performance Solutions, AchieveNEXT is an inspiring learning & development ecosystem that provides business leaders, teams, and enterprises with benchmarking, insights, and solutions to achieve next-level growth.

www.AcheiveNEXT.com

ABOUT THE CFO AND CHRO ALLIANCES

AchieveNEXT’s CFO and CHRO Alliances empower finance and HR leaders to accomplish their mission-critical growth goals via peer-to-peer learning, shared best practices and access to test-driven tools and benchmarking.

CFO Alliance

CHRO Alliance

TABLE OF CONTENTS

5

INTRODUCTION

11

STRATEGY

14

PEOPLE AND CULTURE

19

TECHNOLOGY

22

RISK

25

CONCLUSION

26

ABOUT THE SURVEY

3

Buoyed by strong performance and even stronger optimism, mid- market CFOs and CHROs are focusing their efforts on building capabilities and cultures to sustain high performance for the second half of 2021 and beyond.

INTRODUCTION CFOs and CHROs reveal increasing optimism for the recovery From June 15-July 9, 2021, AchieveNEXT surveyed a cross-section of U.S.-based emerging and mid- market Chief Financial Officers and Chief Human Resources Officers about their enterprises’ current and projected financial outlook, with particular focus on business strategy, people, technology, and risk. The survey revealed the depth and breadth of an extraordinary recovery. The results of 2021 to date have more than borne out predictions at the beginning of the year. At that time 72% of respondents in the AchieveNEXT Annual Sentiment Study said they expected higher revenues and 62% higher EBITDA. At the year’s midpoint, CFOs and CHROs expect to exceed those targets slightly, but—remarkably—more than half now predict revenues will increase more than 10%. Indeed, 18% say that as of June 2021 they are already running at least 10% ahead of the plans they made at the beginning of the year, while an even higher number, 22%, say EBITDA is more than 10% ahead of plan. No wonder 80% of respondents feel bullish about their enterprise’s prospects, and only 3% bearish.

Revenue Growth in 2021

July 2021 - 50%+ are predicting additional double digit growth for the remainder of 2021.

January 2021 - 72% committed to optimistic revenue growth

2021

5

Economic confidence has soared alongside enterprise growth. Just six months ago, 52% of middle market and emerging enterprise leaders told us they thought the U.S. economy was weak or extremely weak. Today, 64% say it is strong or extremely strong. Rather than fretting over whether their customers will pay their bills—a top concern a year ago—executives worry most about where to find the talent to sustain and drive their growth. One result of this rising confidence and the accompanying demand for talent: More than ever, finance and HR leaders are on the same page, needing to work shoulder to shoulder to create the conditions under which their enterprises can thrive. Productivity and culture; diversity and compliance; financial planning and workforce optimization; flexible working arrangements and risk management: These issues are not in conflict with each other. Instead, they create greater opportunities for finance and HR to work together to pull the levers of growth.

“The pandemic was a stress test for middle market and emerging business. Growth is a stress test, too—but of a much better kind. It is an historic opportunity for the stewards of human capital and financial capital to transform their enterprises.”

Nick Araco, AchieveNEXT CEO

6 I ACHIEVENEXT SENTIMENT STUDY

Survey participant demographic >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28

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