Horváth CxO Study reveals the top priorities of business leaders

Global management consultancy Horváth has released the 6th edition of its annual CxO Priorities Study, providing insights into the most important priorities of executives in the areas of growth, profitability, operations and digital transformation. A round-up of the report’s main findings.

Priorities

Compared to last year, the ranking of priorities has shifted significantly. The new top priority is improving cost and profit structures, which has emerged to the top on the back of growing costs and margin strains. Digital transformation – including the use of AI – follows in second place, while cybersecurity ranks third.

People-driven topics and reorganization of processes and structures complete the top five, with innovation the sole newcomer in the top 10.

However, among manufacturing companies, innovation ranks notably higher at third. Ralf Sauter, partner at Horváth, says that the heightened priority is for good reason. “Excellence in core business is the strategic focus for manufacturers. This includes sharpening and enhancing product portfolios to meet customer needs while generating long-term value.”

In manufacturing, there is also significant more focus on international production and supply chain optimization – up three spots from last year. “A balanced global value chain is key to resilience, which has become even more critical in light of ongoing trade conflicts,” explains Sauter.

Macroeconomic factors

In terms of the macroeconomic outlook among executives, trade conflicts and tariffs are expected to have the most negative impact on business performance in 2025, according to the executives surveyed.

In the service sector, however, tariffs rank only fourth. Here, changing interest and inflation rates are seen as the most significant challenges – though these are also heavily influenced by global economic uncertainty and trade tensions.

Meanwhile, non-tariff trade barriers, such as regulations and supply chain disruptions, are further challenges for companies that operate in the physical goods space.

The workforce

Strategic workforce topics – including talent availability, skills development, and leadership culture – are key areas of focus for executives in 2025. While the talent shortage has eased somewhat, global footprint strategies and the rapid rise of AI are introducing new challenges.

Growth with excellence

Across all industries, revenue forecasts for 2025 are optimistic, with expectations for moderate year-on-year growth, driven by both volume growth and price increases. Overall growth is though more than in other years closely linked to more discipline around operational excellence.

Sauter: “Companies understand that navigating the path back to growth amid technological disruption and global economic realignment requires a dual focus: excellence and efficiency in core business, and a proactive approach to structural transformation.”

Striking the right balance between resilience and targeted investment is another key area of focus. “Future-readiness depends on a mix of four strategic fundamentals: first, cost optimization and efficiency; second, a high-quality, competitive product portfolio; third, a resilient global footprint; and fourth, targeted investments in future-oriented initiatives.”

Sustainability slips

Since 2021, environmental sustainability has steadily declined in strategic importance. Once ranked second, and still sixth last year, it now sits at twelfth place – its lowest position yet. “Sustainability has become operational rather than strategic. Companies are fulfilling their obligations and investing where it makes business sense,” says Sauter.

But across the board, companies are not abandoning their net-zero goals. According to the study, fewer than 20% of companies are considering or have already decided to delay their targets. The majority remain committed, and 15% even aim to reach their goals ahead of schedule.

For its CxO Priorities Study, Horváth surveyed over 1,000 board members and managing directors from large companies in 30+ countries across 15 industries.