Sixty percent of CEOs surveyed by PricewaterhouseCoopers expect their company's productivity will increase -- including 21 percent saying its growth will be "much greater." An additional 39 percent says "somewhat greater," with only 37 percent expecting it will stay about the same. Just two percent said productivity will be somewhat lower; one percent was uncertain.

Those expecting an improvement see an average of 14.2 percent over the next 12 months. Overall, an increase of 8.3 percent is anticipated for all surveyed companies.

Almost all CEOs expecting higher productivity (98 percent) say their workforce's performance and efficiency is definitely a contributing factor. Next in importance is IT technology improvements, cited by 78 percent. But two things that management is holding back on also receive some of the credit: not jumping the gun on hiring, cited by 73 percent; and limiting expensive or risky new business initiatives, 58 percent.

Other contributors include non-worker efficiencies such as lower cost of goods and materials (cited by 34 percent), and lower staff support (29 percent). Use of domestic outsourcing suppliers was noted by 22 percent; but relatively few cited offshoring to foreign outsourcers (nine percent), or to their own workers in subsidiaries abroad (six percent). 

"These CEOs should be credited for what will be a significant jump in productivity," said Jay Mattie, U.S. Private Company Services Assurance Services Leader. "They have developed a corporate culture that values efficiency, and have explored and implemented a number of important technology improvements. There continues to be a level of caution regarding accepting risk. They have been cautious in their spending commitments, preferring to hold back on new hiring and delaying high risk initiatives until absolutely necessary."

Businesses expecting higher productivity have increased revenue at twice the rate of all other fast growth companies over the past five years -- 447 percent, versus 206 percent, respectively. And, they expect an increase of 23.3 percent over the next 12 months, versus 17.6 percent.

Because of their faster growth, they are more likely to add to their workforce in the year ahead: 82 percent expect a net increase in hiring (versus 73 percent of all others). They also plan to add a greater number of workers -- an increase averaging 11.1 percent, versus 7.4 percent for all others.

Also, more are expecting to fund a number of increased investments over the next 12 months, including:

• 53 percent who are budgeting more for IT, (versus 40 percent of all others);
• 44 percent for new product or service introductions (versus 35 percent);
• 39 percent for sales promotion (versus 30 percent);
• 36 percent for advertising (versus 23 percent); and
• 22 percent for R&D, (versus 12 percent).

"These business leaders have a track record of faster growth, and they are wisely pacing their new hiring and investments to lag, rather than lead their sales momentum," said Mattie.

PricewaterhouseCoopers' "Trendsetter Barometer" is developed and compiled with assistance from the opinion and economic research firm of BSI Global Research, Inc.