Optimistic in an uncertain world

Last year, I described my Davos experience as being like going to Disneyland but not being allowed to try the rides. This year, attending as a delegate for the first time, gave me an Alpine rollercoaster experience – from the highs of meeting and hearing from inspirational innovators, entrepreneurs and experts in their fields, to the lows of some sobering economic debates.

The World Economic Forum has typically contained an element of future gazing – what is the 5-10 year outlook for business and society? This year, there was a much more short term feel, with a strong focus on solving the Eurozone crisis. Perhaps unsurprising, given the presence of Angela Merkel, David Cameron, and numerous finance leaders.

Davos is a great opportunity for me to spend time with the CEOs of our member firm clients, and to get a good sense of the latest thinking of political leaders, finance leaders, and regulators. It’s also a real opportunity to hear from experts in fields I wouldn’t normally hear from, for example, on the future of medicine. This broader agenda is not only personally interesting, but gives me new perspectives and challenges my thinking.

My conversations with CEOs revealed consistent themes. Firstly, concern about the uncertainties of the political and economic outlook, and the need for stronger political leadership. I’m optimistic that there will be a solution to the Eurozone crisis. Whatever the complexities, the alternative is worse. I do believe that there is a real will to find a solution, despite the potential financial and political costs.

Secondly, CEOs are confident in the ability of their own businesses to do well. But what is absolutely clear is that they want certainty before they are willing to invest. Business leaders want a road map for Europe so that they can plan ahead. Only when there is more certainty will we see cash-rich businesses start to invest, which is what we need to drive a return to growth.

Thirdly, there is a strong focus on export markets. CEOs expect growth to come, at least in part, from emerging economies such as the BRIC countries, the Middle East, and Africa. It was a shame that WEF coincided with the Chinese New Year, as it meant that that the number of delegates from China didn’t do justice to its significance in the global economy.

Finally, business leaders have a real focus on talent and keeping their employees engaged. This ties into another recurring theme of this year’s Forum – a broader recognition of the relationship between business and society. Our own Millennials research found that more than half of our younger employees believe that in the future, business, more than any other area of society, will achieve the greatest impact in solving society’s biggest challenges.

In order to attract and retain top talent, and engage with their people, businesses will need to be clearer about their societal purpose. It is up to leaders like me to empower our employees to develop fresh approaches to solving society’s problems, and to embed cultures which foster innovation.

I come away from Davos with a clear picture of the business agenda for 2012 and a sharp focus on how Deloitte member firms can help their clients on their journey.

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David Sproul is CEO of the Deloitte UK firm and a member of the Deloitte Touche Tohmatsu Limited (DTTL) Global Executive. Prior to assuming this role, he was DTTL Managing Director for Tax in Europe, Middle East, Africa and the UK and a member of the UK Firm’s Executive and Board of Partners. David has significant experience working with clients across many business sectors including consumer business, business services, private equity and real estate providing both strategic, tax and transaction services in many geographies.