CEOs Making More Critical Moves Amid Accelerated Pace of Change, Higher Risk; Intensified competition, higher customer expectations drive moves into new technologies, expanding markets according to new Grant Thornton survey.

CHICAGO -- Weighing strategic actions with the level of associated risk, increasing investment in technology, restructuring pricing and making a domestic acquisition are higher-risk choices chief executive officers (CEOs) are willing to make, according to the 11th edition of the Survey of U.S. Business Leaders by Grant Thornton LLP. They are less inclined, however, to pursue even higher-risk actions like international expansion.

"What this survey demonstrates is that American CEOs are faced with daunting challenges, ranging from intensified competition to a higher level of shareholder and regulatory scrutiny," said Cal Hackeman, partner in charge of the Grant Thornton Business Leaders Council. "To thrive in today's environment, these business leaders are weighing their options and taking on more risk."

Regarding growth strategies and risk, the survey found that:

--93 percent of CEOs have done or plan to increase their investments in technology within the next year - a decision 79 percent of them view as highly or moderately risky.

--78 percent plan for expansion into new domestic markets, while 44 percent plan on international expansion - decisions that some three-quarters of CEOs see as highly or moderately risky.

--71 percent intend to restructure their pricing, a move 76 percent of CEOs see as risky.

The survey also found that in the area of mergers and acquisitions, CEOs today are more inclined to create strategic alliances and joint ventures than they are to engage in mergers or acquisitions, which are seen as more risky.

The Focus of the CEO 

The Grant Thornton survey explored how CEOs focus their time in light of the competitive threats and resulting risk taking. The answer? A surprising number are more involved than ever before in the company's daily operations and relationships. CEOs are now focusing most intently on:

--Customers (60 percent), employees (21 percent) or both equally (18 percent)

--Short term issues (37 percent), long term issues (50 percent) or both equally (12 percent)

--Relationship and marketing issues (44 percent), operations issues (39 percent) or both equally (17 percent)

"The 'aw shucks' defense no longer works: CEOs must know what's happening in their companies and have the systems in place give them information efficiently. Shareholders and employees are demanding it," said Grant Thornton's Hackeman. "Business Leaders Council members observed that today's leader needs to be as much COO as CEO, with 80 percent of our survey respondents agreeing that a focus on operations is imperative - a huge number."

Vision, Leadership and Bold Decisions

The Grant Thornton Survey of U.S. Business Leaders also explores what CEOs are doing to increase the probability of success in making higher-risk choices and how well they are doing it.

CEOs received high scores for ensuring there is a clear vision for the company, with 63 percent excelling or doing very well in that category; 62 percent scored high for involving leadership in all core decisions; and 58 percent were recognized for the willingness to make bold decisions and take risks.

Where CEOs Say They Fall Short

"Despite CEOs' acknowledged desire and need to be more familiar with and accountable for the daily operations of their companies, there are some areas where they admittedly need improvement," said Hackeman. Findings include:

--Only 47 percent of CEOs say they excel or do very well at clear, consistent, frequent communication with employees on their companies' vision, goals and strategy.

--46 percent are effective at creating a culture that enables the organization to embrace change.

--46 percent do well at conducting a cost-benefit analysis, leading to the finding that only 37 percent of CEOs think they do a good job eliminating unprofitable business lines, products and markets.

--43 percent do well or excel at assessing the probability of delivering the business outcome

Other Findings

--Nearly seven in 10 of surveyed CEOs said that having a mentor is important or very important; not surprisingly, 74 percent of CEOs said that their mentors were primarily peer CEOs and executives, and two-thirds are mentors themselves.

--Beyond mentorship, however, intuition is still highly value when making difficult decisions. On a scale of one to 10, intuition receives an importance rating of 6.6; in addition, 27 percent of CEOs say they rely more now on intuition than they did just two years ago, primarily because these leaders have added to their experience and knowledge.

"What this surveys signals to us is that CEOs rely on their gut - coupled with better knowledge and a more inclusive decision-making environment - to make the tough calls that will reshape and define their businesses for years to come," said Hackeman. "But it's also true that they need to improve their operational understanding and measurement. CEOs' ability to withstand and thrive in that environment is what makes them true leaders in business."

About the 11th Annual Survey of U.S. Business Leaders

The Grant Thornton Business Leaders Council is composed of 35 forward-looking, innovative business leaders and executives from businesses nationwide.

More than 300 executives from various industries responded to the survey. The Grant Thornton Survey of U.S. Business Leaders is published by Grant Thornton LLP. It is not intended to answer specific questions or suggest suitability of action in a particular case. For more information on the survey or the Grant Thornton Business Leaders Council, contact us via e-mail at [e-mail], or contact the Grant Thornton location nearest you.

About Grant Thornton

Grant Thornton LLP is the U.S. member firm of Grant Thornton International, one of the six global accounting, tax and business advisory organizations. Through member firms in 110 countries, including 49 offices in the United States, the partners and employees of Grant Thornton member firms provide personalized attention and the highest quality service to public and private clients around the globe. Visit Grant Thornton LLP at www.GrantThornton.com.