Nostico | June 12th, 2024
Consumer behavior is evolving, transforming the retail sector significantly. This change is also altering the competencies needed for retail CEOs to lead their companies into the future. Flexibility and the ability to anticipate trends and adapt quickly have become essential characteristics for tomorrow's CEOs. “Business is changing so rapidly and drastically that it is critical to have people who are able to adapt,” says Paula Williamson-Reid, president of Reid & Co Executive Search LLC.
Competencies Needed for the CEO of the Future
The World Retail Congress' “The DNA of the Future Retail CEO” report highlights that retail CEOs must possess:
A deep understanding of Retail products.
An understanding of store operations. A data-driven and knowledgeable approach to digital commerce and omni-channel.
“When we recruit, we look for a leader who understands how to build a business based on technology and a strong data foundation,” confirms Kathy Ventura, managing partner of Caldwell's consumer and marketing practice. “Then, they must take that data and apply it to build an experience for customers.”
Challenges and Solutions for Today's CEOs
The list of skills needed is extensive and demanding. According to the World Retail Congress report, few of today's CEOs have all the necessary competencies. Bijou Kurien, former chairman and CEO of Reliance Retail (India), notes, “Out of ten, only four retail CEOs would meet the requirements if they had to reapply for the job.”
Fortunately, CEOs are not alone in managing their companies. Two key elements can make the difference between creating an effective data-driven business strategy and operating without a clear direction:
Having competent employees and advisors.
Using the right technology.
Choosing the Right Technology
Selecting the right technology can be tricky, given that IT is moving even faster than consumers. It is crucial to focus first on the goals you want to achieve and then analyze which technology can help you achieve them. Here are three tips for CEOs to keep up with the latest technology, financial and business trends.
1. Get a Comprehensive View of Your Company's Core Functions
To run your business effectively, you need a clear, complete and timely view. Using fragmented systems can prevent you from gaining real-time visibility, which can result in decisions based on outdated or incorrect data. A unified modular system brings together the different software solutions used to manage the retail business on a single platform. This enables comprehensive tracking of financial data, inventory, sales, customer satisfaction, and other aspects, providing the visibility needed for short- and long-term business decisions.
With consistent and reliable data, it is possible to integrate business intelligence tools. These AI-based systems can maximize the use of data, connecting various aspects of the business into a coherent overview and providing insights that lead to smarter business decisions.
2. Set Business Objectives and Be Prepared to Adapt
Retail is changing rapidly, and a leader must decide which changes to pursue and which not to pursue. Richard Branson has said that the leader must set the vision, but be prepared to change course when necessary. For example, during the Covid-19 crisis, UK supermarket Morrisons partnered with Amazon Prime to expand its reach and launched a new shopping service for vulnerable people. “Expanding this fast delivery service to more cities will help us play our full part in feeding the nation,” said David Potts, CEO of Morrisons.
3. Know the Current State and Future of Your Retail Business
Antoine de Saint-Exupéry said, “A goal without a plan is just a wish.” Strategic CEOs not only set goals, but also make plans to achieve them and monitor their progress. To sell more products online, a CEO needs to know where sales were before setting the goal, what data to monitor, and how to track to evaluate success. This is where key performance indicators (KPIs) are critical. KPIs allow CEOs to track the company's financial and operational performance, and adopting a unified trading approach can make a big difference.
In short, adapting to changes in consumer behavior and using the right technology are crucial to the success of retail CEOs in the future.
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