Boston Consulting Group’s ‘CEO Whisperer’ Shares Executive Outlook On The Economy, Jobs And AI

Boston Consulting Group global chair Rich Lesser is known as the “CEO Whisperer” for his comprehensive insights that have serviced clients over the last number of decades.

Lesser currently engages with chief executives, boards of directors and political leaders around the world on critical topics, including climate and sustainability, artificial intelligence, technology and digital advantage, as well as resilience and purpose.

He previously served as the head of BCG from 2013 to 2021 and helped scale the management consulting firm through a period of blazing growth. Under Lesser’s stewardship, BCG more than doubled in size to over 22,000 employees and tripled in revenue. The company expanded its global footprint from 42 to 51 countries.

Key Growth Initiatives

In a Zoom video conversation with the consulting veteran, Lesser shared what he considers are key growth initiatives for businesses. In his early days at BCG, he recognized the importance of investing in digital, technological and analytical capabilities. Lesser emphasized the need for companies to embrace a “spirit of exploration” with emerging technologies, such as AI, to drive innovation and transformation.

He focused on advancing transformational growth, embracing new technologies, developing deep expertise, fostering a collaborative culture and demonstrating adaptability and foresight in the face of industry changes.

Executive Sentiment

Today, Lesser and other business leaders are cautiously optimistic about the U.S. economy and job market, as inflation, high interest rates and the possibility of a recession continue to present challenges. C-suite executives remain concerned about potential socioeconomic and geopolitical blowback from the 2024 general elections in the U.S. and ongoing conflicts in Ukraine and the Middle East, according to a recent report by BCG on what leaders are saying about costs and growth in 2024.

With mounting uncertainty and the need to futureproof operational and digital strategies with increasing investments in tech, executives are reigning in expenses, making cost management a top priority for businesses—followed by growth and expansion.

Despite turbulence in the current market, Lesser says that there has been a positive shift from last year when “there was enormous uncertainty and moderate change. Now, a year later, we have moderate uncertainty and enormous change happening,” particularly in automation. He predicts a soft landing for the U.S. economy.

BCG’s survey of 600 C-suite executives found that 63% believe their enterprises are prepared to weather additional storms from global fallout. “These positive sentiments—along with more abundant available capital, regulatory changes and other trends—could cause mergers and acquisitions to pick up in coming months,” the report states.

Climate Change Initiatives

In the context of climate change, which is a topic that is top of mind for Lesser, he stressed the importance of collaboration and innovation in addressing the issue.

Lesser believes the transition to a low-carbon economy offers enormous economic opportunities, particularly in emerging clean technologies. Furthermore, he suggests that all organizations need to learn at a faster pace than ever before, with continuous learning being critical for every individual, especially leaders.

Additionally, Lesser said top executives and decision makers must ask themselves the following two questions: “How do I act as a business responsibly? What can I do to promote systemic change that extends beyond the boundaries of my own company?”

Your impact can be found in what you do with your supply chain partners, how you support your customers and how you work with governments.

“We’re going need a lot more focus on systemic change from a lot of different players, both in the public and private sector, if we’re to accelerate the progress to anywhere close to what we need right now,” Lesser stated. For businesses, “you’re not comparing the cost of addressing climate change to the cost of what you spend today. You’re comparing it to the cost of inaction, where the world will be tomorrow. We have to compare acting and investing to the cost of not acting, and the cost of not acting is so much higher, ” he added.

Labor And AI Expansion

To support rapid changes to business needs, executives must foster a culture that can bolster and facilitate transformation. “They can do that by engaging people, translating strategies into measurable actions, treating setbacks as opportunities to learn and providing other leaders in the organization with the support and resources they need to balance cost and growth goals,” according to BCG.

Its research shows that accessing talent is a major concern for executives in healthcare, technology, media and telecommunications.

Lesser views the U.S. job market as “structurally tight,” requiring companies to embrace technology and invest in upskilling workers. He believes generative AI has significant potential to drive productivity gains, efficiency improvements and new revenue streams for businesses.

AI could likely complement job functions in high-growth fields like healthcare, but potentially pose a threat to other industries relying on standard routines. Lesser emphasizes the importance of education and skill retraining to prepare for job insecurities brought about by AI.

The global chairman sees the need for a strategic, exploratory approach and heavy investment in workforce training and learning to realize the full benefits of this fast-emerging technology.

In a BCG report he co-authored on turning GenAI into business impact, Lesser advised organizations to responsibly deploy the technology in everyday tasks for productivity in every area—budgets, processes, roles, and culture—reshape critical functions for efficiency and invent new experiences.

Rather than taking a conservative wait-and-see approach, Lesser contends, “The AI inflection point is here. It’s time for business leaders to move fast, think bold and be willing to pivot to capture the potential of generative AI.”

BCG was recently recognized as a leader in AI services by Forrester Research, an independent research firm.