New report finds that CEOs are looking for 'practical ways to lift performance across the whole organisation'
Productivity pressure has emerged as the top challenge facing business leaders in 2026, according to a new survey from The CEO Institute.
Drawing from conversations among over 1,000 chief executive officers in Australia and New Zealand, the report found that productivity pressure is forcing leadership to rethink how work gets done.
"The consistent issue is that CEOs are looking for practical ways to lift performance across the whole organisation - with AI as one lever in a much larger productivity puzzle," the report said.
Across syndicate groups, members discussed AI alongside broader challenges including workflow design, operational systems, cost reduction, talent management, burnout, financial controls, and scalable processes.
"CEOs are no longer treating productivity as a technology problem to be solved with a new tool," said Richard Wynn, CEO of The CEO Institute.
"They're asking much harder questions about how work is designed, how decisions get made, and how much capacity their people actually have left. Productivity has become a whole-of-organisation issue and leaders know that if they get it wrong, the cost isn't just performance, it's burnout."
Economic uncertainty, geopolitical risks
Meanwhile, economic uncertainty emerged as the second-highest concern of business leaders in ANZ, according to the findings.
CEO discussions involved slow market conditions, fiscal pressure, budget impacts, and uncertainty linked to elections and geopolitical risks.
"Members noted that growth is harder to secure in a slower market, with greater dependence on winning new projects, new clients, and additional business," the report read.
"This suggests CEOs are still operating cautiously, with external conditions influencing investment, growth, and resourcing decisions."
Related to this challenge is complexity stemming from geopolitical, political, and regulatory risks, according to the report.
"Several syndicates specifically references geopolitical risks and the Australian economy, while NZ discussions included geopolitical impact, uncertainty, and the potential impact of a change of government," the report read.
These broader external risks make it challenging for leaders to plan for their business, as relying on stable assumptions becomes harder.
Further challenges for leadership
Leadership is also strongly concerned about longer-term relevance, as conversations observed in the report focused on the "future shape and value of the business."
This includes preparing to exit, re-energising family businesses, and reinventing business models.
"One syndicate raised a strategic point of needing to rethink the business and clarify the value it provides," the report read.
"This suggests CEOs are considering not only immediate performance, but longer-term relevance, succession, exit readiness, and enterprise value."
Rounding up the top five issues that employers anticipate this year is financial governance and controls, as the report indicated that conversations it recorded among leadership focused on the importance of strong budgeting, reliable controls, clear oversight, and sound financial management practices.
"Financial discipline remains a key focus for CEOs as they navigate growth, uncertainty, and increasing operational complexity," the report read.
"As businesses grow or face changing conditions, CEOs are looking to ensure they have the right systems, governance and visibility in place to make confident decisions."
