Dive Brief:
- Companies today are facing disruptions on multiple fronts, from rising geopolitical tensions to ongoing supply chain turmoil, creating tension in the C-suite. Almost three-fourths of CEOs reported feeling under pressure to accelerate innovation and adjust their business strategy while 67% of CIOs, CTOs and chief AI officers are feeling pressure to improve customer experience, according to KPMG’s Adaptability Pulse Survey released Wednesday.
- Many enterprises experiencing operational disruption tend to react rather than proactively enact a strategic plan, according to the report. KPMG surveyed 1,120 executives, many of whom indicated that their companies are stuck in a cycle of short-term fixes and putting out fires when faced with external pressures. Proactive strategies, on the other hand, are almost 1.5 times more likely to deliver better outcomes, the report said.
- “A proactive posture allows organizations to break free from the limitations of old playbooks, empowering them to adapt swiftly and confidently to new disruptions,” Andrew Getz, go-to-market enablement leader for deal advisory and strategy at KPMG, said in an accompanying survey report.
Dive Insight:
CIOs navigating mounting business disruptions can help establish a proactive approach that enables early, decisive actions, which KPMG argued is a critical component of success in conjunction with scale of implementation.
Along with customer experience, almost two-thirds of technology leaders feel pressure to accelerate innovation while 63% said they felt pressure to reduce operating expenses.
Technology leaders’ category rankings aligned with other members of the C-suite. Customer experience was ranked as the No. 1 pressure-inducing area collectively, with 70% of CEOs, 75% of CFOs and 68% of COOs pointing to this category. CX was followed by accelerating innovation, with 72% of CEOs, 68% of CFOs and 68% of COOs selecting the option.
The global professional services provider suggested four tips on how executives can build a proactive strategy. The first is to pursue centralized and structured strategic planning that keeps businesses on a path to achieving objectives amid disruption, the report said.
Second, C-suite executives must invest in structural changes that support continuous change and embed adaptability into everyday operations.
“This means building mechanisms for continuous monitoring of market signals, emerging risks, and technological shifts, so teams are empowered to spot disruption early and act swiftly,” the report said. “Ultimately, proactive operating conditions are about creating an environment where agility, foresight, and decisive action are the norm — not the exception.”
Third, building a network of trusted partners before they’re needed helps companies transition to a more proactive posture. Lastly, companies should engage in scenario planning. Instead of theoretical situations, scenario planning should focus on defining roles and establishing clear accountability, according to KPMG.
Companies should focus on adopting a proactive approach at scale. Implementing a proactive approach enterprise-wide is nearly three times more likely to lead to successful outcomes than changes made on a smaller scale, the report found.
“Rather than hesitating out of apprehension about making the wrong move, leaders who embrace proactivity build resilience by anticipating change and making bold, informed decisions before external pressures dictate their actions,” Getz said.
