7 Tecnicas Practicas para Hablar en Publico Con Elocuencia y Seguridad Vencer Los Nervios y Dominar Tu Lenguaje Corporal Facilmente

Confidence or
complacency?
Latin America’s leaders
face the disrupted future
KPMG International
kpmg.com/ceooutlook
#CEOoutlook
Introduction
Every year, KPMG surveys CEOs around Four broad themes emerge:
the world to assess their attitudes to
technology and confidence in their
economic prospects, to find out which
issues are having the biggest impact atin American CEOs are relatively confident
L
on their agendas. Here, we look more about the outlook for their companies and
closely at CEOs in Latin America, drawing
insights from 271 interviews with CEOs countries, especially over the short term. They
are, however, slightly more concerned about the
1
in 17 countries across the region.1
What sets Latin American organizations outlook globally and the potential impact it may
apart from their global counterparts? have on Latin America.
First, there are differences in business
structure. Many Latin American
firms are family owned, with one
family often dominating a sector and
sometimes even an economy, for long They are strikingly less concerned about
periods of time.
technological disruption than the global average.
Second, in some Latin American While many acknowledge the potential for
countries, it is more common for local
technology — apps, aggregators, artificial
2
or regional players to dominate single
sectors than it is in Europe or North intelligence — to disrupt traditional business
America. The region is also home to models, most do not expect it to upend their
a growing group of ‘multilatinas’ — organizations in the short or medium term.
firms which are dominant within the
region but have not yet significantly
expanded into other continents. The
Latin American CEOs interviewed for
this survey represent a cross section They do not view cyber security as a
of leading Latin American companies. similarly significant concern as do their global
counterparts. Nevertheless, recent global attacks
may have created a new sense of urgency on
3 this matter.
They share a growing awareness of the need for

business leaders to upgrade or expand their base
of skills to deal with emerging challenges and
technology.
4
Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Peru,
1
Uruguay and Venezuela.
© 2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Contents
2 Introduction
4 Confidence at home, concern abroad
8 Most CEOs see disruption as a future problem
12 Cyber security is in the long grass
14 CEOs are hungry for new skills
18 Conclusion
19 About the research
Although Latin American CEOs are confident about the prospects for
their own companies’ growth in the medium term, when it comes
to their own countries they are more confident for prospects over
the next year versus the next 3 years. This is most likely being driven
by the geopolitical environment in the region,” says Scott Ozanus,
Chairman of KPMG in the Americas.
“In addition, although Latin American CEOs recognize the impact
that technology disruption will have on their businesses in the longer
term, they see technological disruption more commonly as an
opportunity than a threat, which is very different than CEOs in other
parts of the world.
Confidence at
home, concern
abroad
Latin American CEOs are more confident the next 12 months; 70 percent feel the
about the prospects for their own same about the next 3 years. Comparing
companies’ growth over the next 3 years these figures against the global average,
than the global average: 89 percent meanwhile, they are more confident
against an 83 percent global average. about the next 12 months (the global
average is 79 percent) but less confident
When it comes to their own countries,
about the outlook for the next 3 years
they are more confident for prospects
(the global average is 77 percent).
over the next year than over the next
3 years: 82 percent are confident about
CEOs’ net confidence in growth prospects for their own countries

(global/regional results)
82%
79%
77%
70%
% change % change
-12% -2%
Latin America Global sample
Next 12 months
Next 3 years
Source: 2017 Global CEO Outlook, KPMG International
4 Confidence or complacency?
CEOs’ net confidence in growth prospects for own country
(country-by-country results)
100% 100% 100%
96% 96%
92% 92% 93%
90%
80%
77%
74% 75% 74%
72% 71%
60% 60% 60% 60%
44%
40%
38%
36%
-3% 0% 0% -28% -37% -20% -14% -35% -10% 0% 0% -13%
Argentina Brazil Colombia Mexico Panama Uruguay

Bolivia Chile Ecuador Other Peru Venezuela
Central
America
Next 12 months
Next 3 years
% change
Confidence or complacency? 5
Pedro Melo, President of KPMG in reason why business leaders in certain
Brazil and South America, explains this countries are less positive about the
with reference to political prospects in next 3 years than they are about this
the region. “Business leaders expect
positive change in the short term but
year. “When you have inflation,” he
says, “it's much more difficult to deal
Business leaders expect
are less clear about implications for the with the long term.” positive change in the
longer term,” he explains. He cites, for
However, Mexican growth may be short term but are less
example, the recent peace agreement in
Colombia, the Argentinian government’s
constrained in 2017 by the prospect of clear about implications
President Trump renegotiating NAFTA.
new businesslike relationship with old
“Compared with most Latin American for the longer term.
allies, the positive promises of the new
countries, Mexico’s economy is less
Peruvian government and business-
reliant on commodities and more Pedro Melo, President of KPMG in
friendly reforms in Brazil.
reliant on manufacturing output, trade Brazil and South America.
In the longer term, however, it is unclear and investment,” says Victor Esquivel,
that the government’s stance towards Senior Partner of KPMG in Mexico.
peace in Colombia will survive the “This reflects its strong links with the
coming congressional elections, or that US and Canada.”
the Brazilian government’s pro-business
outlook will survive the election next
year. Melo also cites inflation as a
Expectations for top-line growth in the next 3 years (per annum)
Latin America
Four-fifths (81 percent)
1% 81% 16% 2%
of Latin American CEOs
expect their company
Global sample to grow up to 2 percent
annually over the next
1% 51% 41% 7%
3 years.
0 percent
0.01–1.99 percent
2–4.99 percent
5 percent or higher
The survey reveals a group of CEOs 2 percent. This is a more moderate

whose expectations for the growth of estimate than the global sample, where
their own companies is positive, but 41 percent expect growth of between
moderated. Four-fifths (81 percent) 2 and 5 percent. One percent of both the
of Latin American CEOs expect their global sample and of the Latin American
company to grow up to 2 percent CEOs are not anticipating growth in the
annually over the next 3 years, whereas next 3 years (0 percent per annum).
only 18 percent predict growth over
Most CEOs see
disruption as a
future problem
The possibility for disruption is a fact region say they see technological
of life for Latin American CEOs, as it is disruption more as an opportunity
internationally. “New competitors are than a threat, compared to the global
emerging with new business models average of 65 percent, and 78 percent
and competing against traditional of Latin American CEOs say that rather
corporations,” says Victor Esquivel. “It is than waiting to be disrupted, their
happening in the retail sector and in the organization is actively disrupting the
financial services sector, in all sorts of sector in which they operate.
sectors across the region.”
However, the attitude of many Latin
Indeed, as a market force, the outlook American CEOs to ward disruption
for disruption in Latin America seems seems to be that it is a long-term
to be largely positive. Nearly three- concern rather than something to deal
quarters (71 percent) of CEOs in the with today.
Disruption and competition

38%
29%
13%
8%
7% 7%
Disruption in our We believe that We believe that

sector will disruption from existing disruption from new
weaken/and or competitors is most competitors is most
eliminate some of the likely to cause likely to cause
traditional leaders. transformation in our transformation in our
company. company.
Latin America
Global sample

Compared with their global peers,
however, Latin American CEOs are
Nearly three-quarters (71 percent) of CEOs in the
less concerned about disruption to region say they see technological disruption more as
their sectors. An enormous 94 percent an opportunity than a threat, compared to the global
of Latin American CEOs expect their
firms to be largely the same in 3 years’ average of 65 percent.
time. Such confidence in the status
quo is striking — it is nearly 20 percent
higher than the 74 percent of CEOs
internationally who say the same.
Expectations for transformation
Latin America
94% 6%
Global sample
74% 26%
We will be largely the same firm we are today

We are likely to be transformed into a significantly different entity
According to Charles Krieck, Senior

Partner-Elect of KPMG in Brazil and
that if their sectors are going to be
disrupted, they will be able to wait and
94 percent of Latin
South America, this could be because see how developments play out in other American CEOs expect
so many CEOs of large companies work countries, such as the US.” their firms to be largely
in the commodities, agriculture and raw
materials businesses, which are harder
“They don’t expect to have to change the same in 3 years’
anytime soon,” he explains. “The bank
to disrupt. Most new technology is
executives think they won’t be forced to time.
adopted by the dominant players in the
change until banks like Bank of America
market. “For instance,” he says, “in the
do.” He adds that big local and regional
crop industry, like beans and cereal, you
companies are often family owned and
already see drones assessing the whole
think they have a dominant position in
production line to check for signs of a
that market, so they feel relatively secure.
plague or another problem in the culture.
Robots controlling the whole cycle There is another indication that Latin
of a crop or cattle have become very American CEOs are less worried than
common here in Brazil in recent years.” others about keeping up with change:
only 30 percent say they are concerned
“This may also be partly because Latin
about whether their organization is
American CEOs tend to be aged in their
staying on top of developments in
fifties or sixties, who are less likely to
products and services, compared
see a disruptive tech sector emerging
with nearly half (45 percent) of their
around them,” explains Milton Ayón,
international peers.
President of KPMG in Panama and
Central America. “They may expect
30 percent of Latin American CEOs
say they are concerned about whether
their organization is staying on top of
developments in products and services.
Ayón explains that this attitude is Perhaps there’s a reason they feel encourage more people to exchange
understandable: these CEOs are this way. Much of the technological value and currency by phone, as
not currently experiencing a serious disruption that has taken place in they are in Africa. In the very short
threat from technological disruption. Europe and the US has come from term, however, these CEOs appear
While some Latin American countries apps and online services, which rely complacent about technological
already have the likes of Netflix and on payment by debit or credit card. In disruption.
fast food delivery apps, in other Latin America, a lower proportion of the
smaller Central American countries, population has a bank account — let
there is a sense among business alone a debit card: in 2014, 51 percent 25 percent of Latin
leaders that, “it doesn’t matter,
because my business will continue to
of adults in the region had a bank
account and just 7 percent used the
American CEOs expect
do well.” internet to pay bills or make purchases.2 major disruption in their
One distinctive feature of the Latin The concern Esquivel detects in sector in the coming
American market is the high proportion
of companies that are family owned:
Mexico is related to the sectors most
engaged with disruption. “We are
3 years as a result of
about 70 percent, according to Ayón. seeing concern in the venture capital technological innovation,
That offers stability, but can also bring
complacency. Indeed, only 25 percent
community in Mexico and in the
fintech startups, some of which are
compared to 48 percent
of Latin American CEOs say they starting to play a regional role.” of the global sample.
expect major disruption in their sector
Online services will come to pose
in the next 3 years — indeed, that’s
a greater threat to traditional
half the proportion of global CEOs who
businesses, but only when financial
expect their business models will face
inclusion increases significantly —
disruption in the next 3 years.
perhaps when cellphone providers
http://datatopics.worldbank.org/financialinclusion/region/latin-america-and-caribbean
2
Cyber security
is in the long
grass
Cyber security, the business risk of Pedro Melo notes that there are
highest concern in the 2016 global worries about cyber security in the
sample, has fallen to position five (of financial sector across the region and
16) in 2017, perhaps reflecting CEOs’ a little in other sectors in the region’s
views on the progress their businesses largest economies, but in most sectors
have made in cyber risk management. and countries there is little concern
over the issue.
Seven-in-ten CEOs in Latin America
and in the rest of the world reported Very few CEOs say they feel prepared
a high level of investment in cyber for a cyber event. Less than one in
security in the past year, though it five — just 18 percent — says that
appears to be a less pressing issue for their organization is fully prepared for
Latin American CEOs than the global a cyber event. This is less than half of
average going forward. the 42 percent internationally who say
the same.
How prepared is your company for a cyber event?

(global/regional results)
Latin America
18% 82%
Global sample
42% 56%
Fully prepared
Somewhat prepared
Note: ‘not where we need to be’ and ‘unsure’ response options not shown.
How prepared is your company for a cyber event?
(country-by-country results)
Argentina 16% 84%
Bolivia 13% 87%
Brazil 10% 88%
Chile 16% 84%
Colombia 44% 56%
Ecuador 60% 40%
Mexico 18% 82%
Other Central
36% 64%
America
Panama 10% 90%
Peru 8% 92%
Uruguay 10% 90%
Venezuela 13% 87%
Fully prepared
Somewhat prepared
Note: ‘not where we need to be’ and ‘unsure’ response options not shown.
Yet Latin American CEOs share a

similar high degree of comfort with
their global peers in mitigating cyber
security risk as part of their leadership
role (78 percent and 72 percent
respectively). They are also significantly
less concerned than the global average
about the human capital challenge in
relation to tackling cyber security — just
27 percent compared with 47 percent.
In light of the rest of the results
on cyber security, this confidence
likely reflects a perception of lower
vulnerability rather than having
invested more heavily in anticipation of
cyber threats.
CEOs are
hungry for new
skil s
Compared with their global peers, They are also relatively open to new
Latin American CEOs are a bit more influences and collaboration. Nearly
likely to have focused on professional three-quarters (71 percent) say they
development in the past year: 72 percent are more open to new influences and
have taken a course or studied for a collaborations than at any other point in
qualification to challenge themselves, their career.
compared with 68 percent of the core
sample.
CEOs' openness to change

72% 71%
70%
68%
I have taken a course I am more open to

or studied for a new new influences and
qualification in the new collaborations
past 12 months. than ever before.
Global sample
Latin America
Charles Krieck links the demand for lot of revenue here,” he says, “so you make the jump. Krieck expresses it
new skills to the response to digital have to be prepared for the new, for with a metaphor: “I think the biggest
disruption. He points out that Latin the digital, for the disruptive, without job for the CEO now is really knowing
American CEOs see companies such forgetting that your revenue stream is how to navigate between the lights
as Uber generating significant value still highly dependent on the traditional that are going down and the ones that
while owning minimal assets and businesses.” are starting to shine. The fundamental
feel the need to assess what they question is: when is the right moment
As traditional business models are
and their companies need to do to to really turn out the light on one side
replaced by new ones, Latin American
best respond. “There are traditional and turn on the light on the other
CEOs must cultivate the skill of
businesses that are still generating a side?”
assessing when their company should
Personalizing the CEO role

52%
45%
34%
The biggest job for the
28%
CEO now is really
knowing how to navigate
between the lights which
are going down and the
ones that are starting to
As a CEO today, my Understanding my own
shine.
emotional intelligence is personality and its
just as important as my limitations has been
Charles Krieck, Senior Partner-
technical skills. crucial to success in my
Elect of KPMG in Brazil and South
position.
America.
Global sample
Latin America
Krieck argues that as technical skills include mobile, social media and other
are gradually replaced by machines, means of nontraditional advertising to
motivation and leadership will become communicate with the customer. This is
the key CEO skills. part of the CEOs’ concern.” Latin American CEOs
Pedro Melo, too, sees a gradual He singles out cinema companies and understand that it is
change in the skills that Latin American financial services industries as areas
business leaders think they need. CEOs that are changing fast. In Mexico, increasingly necessary to
in the region, he says, “spend more he explains, “about two-thirds of understand their
time understanding the impact of the the banking system is international
business on people. They talk much companies, so they're bringing customers in an ever more
more about inclusion and diversity.” He business models from outside to sophisticated way.
also argues that Latin American CEOs make sure that the customer is at the
are “much more concerned with the center, differentiating their business
impact on the environment,” which strategy, improving the relationship and Victor Esquivel, Senior Partner of
requires a different skillset. In sum, he opportunities by capturing information KPMG in Mexico.
believes that Latin America is moving in about the customer.” These skills are
this direction “at the same pace as we new, but international competition is
see globally.” pushing the continent in that direction
organically.
Victor Esquivel says that Latin
American CEOs understand that it is Just one-third (34 percent) of Latin
increasingly necessary to understand American CEOs say that understanding
their customers in an ever more their own personality and limitations has
sophisticated way. “In Mexico,” he been critical to their success, compared
says, “one of the main concerns is with 52 percent of CEOs overall. And
about customers’ unsatisfied demand.” fewer Latin American CEOs than
Developing that insight requires new global CEOs overall consider emotional
skills. “How to use data and analytics intelligence to be important: 28 percent
to better understand their needs and say their emotional intelligence is just
consumption patterns, how to use as important as their technical skills,
social media to increase brand value or compared with 45 percent of CEOs
address customer concerns.” overall.
Esquivel says it is beginning to
happen, however. Companies are
“starting to develop models that
Conclusion
Broadly, the Latin American CEOs’ perspectives of sectors — such as agriculture and
paint a picture of business leaders who are more commodities — where dominant players are
optimistic about their countries’ prospects than often naturally less susceptible to disruption
the global average and more optimistic about the and are more easily able to adopt new
next 12 months than they are about the next 3 technology into their businesses than be
years. They are slightly more confident in their threatened by it.
own companies than CEOs in the rest of the
The picture that emerges is of a region in which
world and more confident that their countries
a relatively senior cohort of CEOs remains
will flourish over the next year than the next three.
confident not only that business will revive in the
It seems that concern about technological medium term, but will also continue to be run in
disruption is a feature of the leading sectors a familiar way.
that are closest to it, such as finance, but has
yet to migrate outwards across the rest of the
economy, perhaps reflecting a predominance
It is heartening to see that the challenges facing some

Latin American economies — political, economic,
national or regional — have not dampened confidence in
the future of these companies or countries,” says Rob
Brouwer, Regional Head of Markets for KPMG in the
Americas.
“The optimism they have for the future of Latin America
is similarly reflected by US and Canadian CEOs. For
Canadians, Latin America is the top region for
investment over the next 3 years, and for US CEOs, it is
in the top three.
About the research Argentina 31
11%
The research for KPMG’s CEO
Bolivia 15
Outlook 2017 was conducted 6%
between February and April 50
Brazil 18%
2017. This report refers to two
groupings of respondents from Chile 25 9%
that survey:
Colombia 16
6%
1. ‘Latin American CEOs’ refers
to a grouping of 271 CEOs Costa Rica 4
1.5%
from the following countries:
Dominican Republic 2
2. The comparison group, which 0.7%
in various places throughout Ecuador 10 4%
this report is referred to as
either the ‘global average’, the El Salvador 3 1.1%
‘global sample’ or the ‘rest of
Guatemala 2 0.7%
the world’.
Honduras 1 0.4%
This grouping comprised
of 1,261 CEOs from the Mexico 50 18%
following countries: Australia,
China, France, Germany, India, Nicaragua 2
0.7%
Italy, Japan, Spain, the UK and
Panama 10 4%
the US.
Peru 25
9%
Uruguay 10
4%
Venezuela 15 6%
% of Latin American CEO sample

# of CEOs in the Latin American CEO sample
In both cases, the CEOs represented organizations from across a wide range of sectors. The sectoral distribution of Latin
American CEOs is as follows:
15% 15% 15%
9%
8% 8%
7%
6% 6% 6%
5%
Banking Energy Insurance Life sciences Technology

Automotive Consumer Infrastructure Investment Manufacturing Telecommunications
& retail management
% of Latin American CEO sample

Contacts
For further information about this report and how KPMG can help
your business, please contact us:
Pedro Melo Victor Esquivel

President Senior Partner
KPMG in Brazil and South America KPMG in Mexico
T: +55 11 3940 3135 T: +52 55 5246 8300
E: PMelo@kpmg.com.br E: asesoria@kpmg.com.mx
Charles Krieck Milton Ayón

Senior Partner-Elect President
KPMG in Brazil and South America KPMG in Panama and Central America
T: +55 11 3940 3102 T: +507 208 0700
E: ckrieck@kpmg.com.br E: mayon@kpmg.com
kpmg.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we
endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will
continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the
particular situation.
© 2017 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with
KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other
member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Designed by Evalueserve.
Publication name: Confidence or complacency? Latin America’s leaders face the disrupted future.
Publication date: June 2017

7 Tecnicas Practicas para Hablar en Publico Con Elocuencia y Seguridad Vencer Los Nervios y Dominar Tu Lenguaje Corporal Facilmente

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

7 Tecnicas Practicas para Hablar en Publico Con Elocuencia y Seguridad Vencer Los Nervios y Dominar Tu Lenguaje Corporal Facilmente

Uploaded by

Copyright:

Available Formats

Confidence or

They share a growing awareness of the need for

Uruguay and Venezuela.

4 Confidence at home, concern abroad

8 Most CEOs see disruption as a future problem

12 Cyber security is in the long grass

14 CEOs are hungry for new skills

19 About the research

CEOs’ net confidence in growth prospects for their own countries

Source: 2017 Global CEO Outlook, KPMG International

60% 60% 60% 60%

-3% 0% 0% -28% -37% -20% -14% -35% -10% 0% 0% -13%

Argentina Brazil Colombia Mexico Panama Uruguay

Source: 2017 Global CEO Outlook, KPMG International

Expectations for top-line growth in the next 3 years (per annum)

Source: 2017 Global CEO Outlook, KPMG International

The survey reveals a group of CEOs 2 percent. This is a more moderate

Disruption and competition

Disruption in our We believe that We believe that

Source: 2017 Global CEO Outlook, KPMG International

Expectations for transformation

We will be largely the same firm we are today

Source: 2017 Global CEO Outlook, KPMG International

According to Charles Krieck, Senior

How prepared is your company for a cyber event?

Argentina 16% 84%

Bolivia 13% 87%

Brazil 10% 88%

Chile 16% 84%

Colombia 44% 56%

Ecuador 60% 40%

Mexico 18% 82%

Panama 10% 90%

Uruguay 10% 90%

Venezuela 13% 87%

Yet Latin American CEOs share a

CEOs' openness to change

I have taken a course I am more open to

Source: 2017 Global CEO Outlook, KPMG International

Personalizing the CEO role

Source: 2017 Global CEO Outlook, KPMG International

It is heartening to see that the challenges facing some

% of Latin American CEO sample

15% 15% 15%

Banking Energy Insurance Life sciences Technology

% of Latin American CEO sample

Pedro Melo Victor Esquivel

Charles Krieck Milton Ayón

You might also like