Close to 48% of executives are of the view that their current business transformations aren't working. Despite businesses moving from a focus on resilience during Covid to a new perspective of 'regenerative', currently only 51% of APAC leaders reported that their companies were already operating regeneratively effectively. This is higher than the global average of 44%.
The view from the C-Suite
According to data shared by global consultancy firm Kearney's new research report Regenerate, there is still room for improvement, and more guidance is needed on this new business paradigm. A total of 800 C-suite business leaders from across the globe (including 159 in the APAC region) were surveyed for the report.
Similarly, 43% of APAC businesses reported effectively implementing a regenerative culture and 46% said they were already operating a regenerative supply chain very effectively.
Attitudes across the C-suite differ, too. More than half (55%) of APAC CEOs said that their business is very effective at operating regeneratively, with 41% saying there is still a lot of progress yet to be made.
COOs in the region are slightly less optimistic – with only 48% saying that they are currently very effective at operating regeneratively, and another 48% saying there is still progress yet to be made.
The research shows that most C-suites in APAC are adopting leadership styles that support regenerative businesses. They focus on action and empowering others to create their own positivity and change. 49% of CEOs said they are currently operating with regenerative leadership very effectively.
"The survey report makes it clear that businesses in the region want to shift from a merely resilient strategy to a fully regenerative one that is more transformative at its core, whether that requires truly digitising their obsolete global supply chains, embedding analytics into the entire operating model or upgrading the way they develop and inspire diverse and sustainable workplaces. Unexpected is the new expected, there is no normal as we navigate these necessary self-disruptions. More is needed and more is possible,” said Arjun Sethi, Partner and APAC Regional Chair at Kearney.
"Businesses must build on their strengths and identify new opportunities for growth and impact in the future. Resilience was the watchword of the past few years, now it's going to be 'regenerative,” added Sethi.
What is a 'regenerative business'?
Embedding new digital models and advanced analytics, while making supply chains and people models sustainable for business and society is now mission critical. Businesses that wish to fulfill these commitments will require a long-term approach to becoming truly 'regenerative'. This means looking beyond resilience and proactively asking where value can be added back into society and the wider world.
Instead of optimising for efficiency, the next generation of businesses will regenerate for speed, using external data plus analytical and advanced AI to see and make sense of what's happening outside their own four walls quickly and accurately.
By regenerating the entire business system, from supply chain to customer experience and organisational culture, both business and the public sector can ensure that our teams, companies, and the broader environment can reach and sustain their full potential.