From our most recent CEO Value Creation Pulse Report, we see that CEOs are reassessing their performance, with organizations falling into three distinct groups: some exceeding targets, those that are on track, and a portion that are falling short. This variance highlights the challenges of today’s market, where success requires balancing growth and making adjustments.
Key themes emerging this quarter include the need for robust spend management while driving revenue growth. Finishing the year strong and setting up for a fast start to 2025 requires GTM leadership teams to align on final adjustments to goals and assess areas of opportunity.
Read the report.
Demand volatility has been a significant challenge in 2024, with sharp fluctuations across the last three quarters. Companies saw a surge in demand sentiment of 52% in Q1, but by Q2, this positivity had decreased markedly to 29%. Q3 has brought a mild recovery, with 40% reporting an increase in demand sentiment. The general sentiment surrounding demand capture remains high in Q3, with more than half of industry
This pattern showcases the unpredictable nature of current market conditions, making it essential for CEOs to remain adaptable. Seasonal shifts and consumer preference changes are key drivers, but the real takeaway is that companies need flexible demand management strategies to avoid being blindsided by rapid changes. For companies that can swiftly adapt their offerings to market conditions, there is substantial growth potential.
As market conditions continue to flatten, a growing number of companies are revising their revenue forecasts as market conditions continue to flatten. In Q3, 30% of CEO’s reported downward revisions, with nearly a quarter of these leaders expecting to fall short of their target margins. Market conditions are largely affecting this shift. With only one quarter left in the year, it is crucial to reassess and identify opportunities for growth.
Meanwhile, 25% of CEOs have revised their revenue forecast upwards, with 13% projected to exceed their performance margins, showcasing their ability to capitalize on emerging opportunities.
As CEOs gear up for year-end, the focus on managing spend is intensifying. To preserve margins without compromising performance, some companies are making calculated cuts in areas like facilities, marketing, and customer operations. For those looking to reduce costs, it is critical to prioritize cuts in nonessential areas while ensuring core operations remain unaffected.
Companies with room to invest prioritizing in future growth through product innovation and R&D. These companies are setting the stage for success in 2025 by preparing to meet emerging demands and bring a competitive edge to the next year.
CEOs who are projected to miss their targets should prioritize transparent communication with stakeholders and shift their focus toward long-term strategies. Establishing clear lines of communication during both successes and challenges is essential for building trust. Reflect and reallocate resources to strengthen the GTM strategy, targeting high potential accounts to drive new business as the year ends.
For those meeting or exceeding targets, turning inward to leverage existing customer bases can unlock new, low-cost growth opportunities.
Whether ahead or behind, CEOs must make strategic adjustments as the year closes. Companies that reallocate resources and strengthen their GTM strategies while deepening relationships with their current customer base are more likely to end the year on solid ground.
As we reflect on 2024 demand generation remains a top priority for 56% of CEO’s. For those who fell short of their targets this year, creating new demands is critical to reigniting growth. Improving customer lifetime value is also a key focus area, as fostering long-term relationships with existing customers opens new doors for revenue.
The emphasis on demand generation and customer value reflects a shift towards sustainable, long-term growth strategies. GTM teams that can build resilient demand generation engines and deepen customer relationships will be well positioned to navigate future market challenges.
Review the 2024 Q3 CEO Value Creation Pulse report.