6 resilience strategies businesses should adopt to survive a disruptive world
Businesses need to adapt to a changing world. Image: Annie Spratt on Unsplash
- Rapid digital advancements and climate threats give many company leaders cause to be concerned for the future of their businesses.
- Surviving and thriving in the next decade requires a fundamental shift for all businesses.
- To help business leaders respond effectively to this challenge, here are six strategies that can anchor transformation and provide a roadmap to long-term viability.
In today’s fast-evolving world, the question is no longer if disruption will impact your business, but when.
According to a survey released in January 2024 by PwC, 45% of CEOs worldwide expressed concerns that their companies might not survive the next decade without significant reinvention, particularly in the face of climate disruption and advancements in AI. This concern is global and for any industry and company size, reflecting the pressures of adapting to rapid digital advancements and unprecedented climate threats.
“The ability to embrace change and take advantage of it will determine the winners and losers of the 21st century,” stated René Rohrbeck, Professor of Foresight, Innovation and Transformation Chair Director of EDHEC Business School. In his 2023 Global Future FITness Study and earlier research, Rohrbeck found that companies with high 'Future FITness' outperform their rivals with +33% in profitability, +200% higher market capitalization growth, and 44% to make it to the group of best outperformers in their industry cluster.
Therefore, although the realities driving the CEOs’ anxieties are complex, the message is simple: surviving and thriving in the next decade requires a fundamental shift. This environment requires proactive leadership that views transformation as a continuous journey, rather than a one-time project.
Two key challenges
Companies must adapt to many challenges, specifically to a dual challenge of climate risk and technological disruption.
1. Environmental pressures
Climate change has moved beyond corporate social responsibility and into operational strategy. Consumers, regulators and stakeholders increasingly demand that businesses adopt sustainable practices as a standard expectation. In a September 2024 study, Bain & Company reports that 60% of consumers have heightened their concerns about climate change over the past two years. In addition, over a third of B2B customers are willing to switch suppliers if sustainability needs aren’t met and nearly 60% say they’ll be willing to do so three years from now. Businesses are thus being called upon to demonstrate responsible practices as an ethical imperative and as a competitive necessity.
2. Digital disruption
Meanwhile, technology’s accelerating pace presents a two-sided challenge. Digital transformation, especially in areas like artificial intelligence, is both an enabler of growth and a potential threat to companies that lag in adoption. Successfully integrating digital tools can enhance agility, efficiency and customer experience; neglecting these advances, however, risks making a company obsolete in increasingly tech-savvy markets.
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6 strategies to rethink and future-proof business
To help business leaders respond effectively to this transformative, imperative challenge, here are six strategies that can anchor transformation and provide a roadmap to long-term viability.
1. Reinvent from within
Reinvention is not just about tweaking a business model; it’s about rethinking the foundational principles and processes that drive a company’s day-to-day operations. This requires a shift in mindset, fostering a culture that embraces adaptability and adopting a growth-oriented approach to change. By embedding resilience into the core of operations, leaders can prepare their organizations to respond nimbly to new challenges, whether they arise from technological shifts, regulatory changes or emerging market demands.
2. Leverage megatrends for resilience
Today’s business landscape is defined by interdependent megatrends. Climate shifts, technological advancements, regulatory changes and evolving consumer behaviours are highly interconnected. Regulatory mandates on sustainability, for example, can drive demand for eco-friendly products, while technological innovations in green energy or AI may redefine industry standards. To navigate these complex dynamics, you can use tools, such as the World Economic Forum’s Strategic Intelligence platform, that offer invaluable insights into how these trends intersect and influence one another. Leaders who understand and plan for these interdependencies will be better equipped to make informed decisions and anticipate shifts before they happen.
3. Grow with green practices
PwC estimates that 55% of global GDP relies on nature and ecosystem services. Addressing environmental risks means more than achieving carbon neutrality. To build resilience, companies should consider water conservation, biodiversity preservation and sustainable resource use. Nature-based solutions - like using natural processes to restore ecosystems or designing products with minimal environmental impact - offer ways to reduce risk, while supporting sustainable growth. Such practices safeguard natural resources and can drive value and build trust with consumers increasingly invested in ecological integrity.
4. Embrace AI with a clear and transparent approach
Use AI as a means and not as an end goal. For companies, AI offers opportunities to streamline operations, enhance customer engagement and foster innovation. It’s crucial, however, to ensure that AI initiatives align with ethical standards and do not undermine employee trust. Transparent communication about how AI is used, its role in decision-making, and its potential implications for the workforce can help AI become an empowering tool, rather than a source of disruption. By setting clear guidelines and aligning AI with the organization’s core values, companies can build trust and use AI to enhance and not erode their business.
5. Foster innovation through collaboration
Navigating today’s complex landscape requires collaboration. Building a network of like-minded businesses, industry groups and innovators can provide fresh perspectives, foster knowledge-sharing and facilitate innovation. For example, collaborating with sustainable suppliers can reinforce a company’s commitment to eco-friendly practices, while partnerships with tech firms may accelerate digital transformation initiatives. Such networks enable businesses to share insights and resources, helping one another adapt to changes more effectively. In an era of constant disruption, no company can afford to navigate change in isolation. Working together allows businesses to learn from one another’s successes and failures, building resilience as a collective.
6. Find and align with your purpose
Last but not least, a clear, authentic purpose defines what a business stands for and serves as a compass during times of change. Companies that can articulate and stay true to their purpose are better equipped to navigate disruption, attract loyal customers and engage motivated employees. Purpose-driven businesses find it easier to align their sustainability goals, technology adoption and long-term strategies with what genuinely matters to their stakeholders.
Charting a course toward resilience and growth
A company’s viability and sustainable growth require a commitment from CEOs to innovation and responsibility. Business leaders who prioritize ethical, forward-looking transformation can position their companies to thrive in a more interconnected, environmentally conscious and tech-driven economy. The question is not simply 'Will my business survive?' but 'How will my business evolve to meet the demands of the future?'
The companies that succeed over the next decade will be those that view disruption as an opportunity to transform. By embedding sustainability, digital adaptability and collaborative innovation into their operations, organizations can navigate the uncertainties of today’s market and become integral players in a resilient, sustainable global economy.
As leaders look ahead, the imperative is clear: Adapt not just to survive but to flourish. With intentional strategies and a commitment to responsible transformation, businesses can secure a place in the future, one where they create lasting value for shareholders, employees and the communities they serve.
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David Elliott
December 19, 2024