The optimism gap
In this first S&B Activate Index, progress lags confidence. GCs believe their companies are building momentum and getting things done in relation to their priorities, but actual activity hasn’t yet caught up.
We asked how far they’ve progressed on the key priorities associated with M&A, geopolitical risk and digital readiness, including negotiating terms, compliance updates, and contract (re)drafting. A score of 64 indicates that the majority are well under way, but still some distance from the finish line.
There’s little difference between scores across the three areas. GCs are marginally more likely to have pushed M&A forward, but they’re not prioritising one area at the expense of another.
We also asked about confidence. Whether GCs believe their organisations are taking timely action on both growth and risk. Here, scores of 76 and 74 respectively are strong, and notably higher than the equivalent for progress.
Overall Activate Index score
Overall Activate Index score
M&A score
Geopolitics score
Digital score
M&A score
Geopolitics score
Digital score
Growth score
Risk score
Growth score
Risk score
This Index score sets the benchmark on which future editions will be measured. It’s encouraging that GCs are buoyant in their outlook and initial findings show positive action. The question is how can progress catch up.
What’s holding progress back? A dual drag of external and internal factors that makes risk harder to understand, predict, get people behind, and act on.
% Proportion of respondents who selected each barrier among their top three considerations (combined).
1.
Complexity of issues
2.
Regulatory uncertainty
3.
Lack of internal alignment
1.
Complexity of issues
2.
Regulatory uncertainty
3.
Lack of internal alignment
4.
Limited capacity
5.
Lacking necessary expertise
4.
Limited capacity
5.
Lacking necessary expertise
GCs have little agency over the market, or what budgets are set. But they can control how they meet the challenge, making progress from the inside out.
Millie Patrick
Strategic BD & Client Services Manager