Deloitte
Overview: The COVID-19 pandemic has accelerated many of the disruptors predicted by the World Economic Forum to occur in our fourth industrial revolution, and introduced challenges that could not have been foreseen. These disruptive forces have impacted Australian organisations in very different ways. For some, it has reinforced their strategic plans, enabled an acceleration of their implementation, and driven growth. For many, it has exposed weaknesses in governance, strategy, operating models and culture.
Despite the challenges, Australia has proven again to be ‘the lucky country’.
Our golden soil, ringed by sea, abound in natures gifts, has provided a safe haven from which to observe and learn from the process of creative destruction occurring around us. The changes occurring are presenting opportunities, but in order to realise these opportunities we must gain comfort taking and managing risk in an uncertain environment.
Of particular concern is the gap between business confidence and business behaviour. Whilst business confidence is at pre-crisis heights, there are justified concerns that Australian businesses are not backing themselves. Business lending is down, mergers and acquisition deal volumes are down, and share buy backs by listed organisations are up. These behaviours collectively signal to the market that Australian organisations would rather hand capital back to their shareholders rather than use it to grow.
