Executive’s Views on Economic Challenges

Executive’s Views on Economic Challenges

We recently undertook a research on the executive’s views on economic challenges. The aim of this particular research was to assess the executives’ views on economic challenges in Zimbabwe. 189 Executive responded to this survey. The participants from over 18 economic sectors.

This report is part of a series of research we do on a regular basis to assist business leaders and employees make better decisions that uplift the performance of their organisations.

Most of the participants 96 percent said political uncertainty is the major external policy related challenge their business is facing today.

The four major external policy related challenge facing organisations in Zimbabwe listed by order today are: Political uncertainty (96 percent), Government policy inconsistency (95 percent), Unfavorable regulatory environment (90 percent) and Government spending (61 percent).

94 percent of the participants said foreign currency shortages is the major external market-related challenge facing their organisations today.

The four major external market related challenge facing organisations in Zimbabwe listed by order are; foreign currency shortages (94 percent), low liquidity (93 percent), inflation (70 percent) and high interest rates (68 percent).

A large proportion of the participants (44 percent) said the major internal challenges their organisations are facing today is a poorly designed organisational structure and poor remuneration.

The four major internal challenges that organisations are facing in Zimbabwe are; poorly designed organisational structure (44 percent), poor remuneration (44 percent), lack of innovation (43 percent) and a dysfunctional culture not supportive of business goals (40 percent).

Most of the participants (43 percent) are pessimistic about economic prosperity in 2017, 16 percent are very pessimistic, 34 percent are optimistic and 7 percent are very optimistic.

A large percent of the participants (50 percent) believe that the best option for the country with regards to currency issues is to demonetise the bond and return to multi-currency without the bond. 38 percent said adopt the rand, 10 percent said demonetise the bond and promote plastic money and 3 percent said bring back the Zimbabwean dollar.

The internal challenges raised by the participating Executives are particularly interesting. These factors: organisational structure, remuneration system design, innovation and culture have the advantage that they are within the control of the respective organisation. Unfortunately, these factors, whilst controllable, are paid less attention to, regardless of the fact that research continues to demonstrate the positive impact that they have on the business. We believe that whilst continuously monitoring and lobbying for an improvement in the external policy and market-related issues, business should work on addressing and leveraging the internal factors as a source of competitive advantage and business continuity.

It is unfortunate the respondents are pessimistic about economic prosperity in 2017. Going into 2018, policy makers must continue to engage business and labour with a view of improving the operating environment and general ease of doing business.

To receive the full research report, contact me on the details below.

Memory Nguwi is an Occupational Psychologist, Data Scientist, Speaker, & Managing Consultant – Industrial Psychology Consultants (Pvt) Ltd a management and human resources consulting firm. https://www.linkedin.com/in/memorynguwi/ Phone 481946-48/481950/2900276/2900966 or email: mnguwi@ipcconsultants.com or visit our website at www.ipcconsultants.com

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