CEOINSIGHTS

2025

PROACTIVELY

EMBRACINGCHANGE

GlobalCEOsfeelreadyfortheunexpectedinavolatileworld

2

CONTENT

FOREWORD3

EXECUTIVESUMMARY4

1.CEOSLOOKINGFORWARDCONFIDENTLY6

2.GEOPOLITICSSEENASCENTRAL

TOCEOROLE10

3.DRIVINGGROWTHTHROUGH

CONTINUEDINVESTMENT14

4.ACONSISTENTFOCUSONPERFORMANCE18

5.AISTRATEGYGAINSTRACTION22

6.ESGCRUCIALBUTMUSTALIGN

WITHBUSINESSPRIORITIES28

7.UNDERSTANDINGORGANIZATIONAL

READINESSFORCHANGE32

8.HOWSECTORSCOMPARE36

9.BESTPRACTICESFORCEOSUCCESS42

CONCLUSION—CEOSMUST

BUILDFORTHEFUTURE44

FRANCESCOMARSELLA

ManagingPartner,GrowthRome

RALFBARON

Partner,GrowthFrankfurt

PETTERKILEFORS

ManagingPartner,GrowthStockholm

MAXIMILIANSCHERR

Partner,GrowthVienna

WewouldliketoacknowledgeallthosewhocontributedtothereviewofthisReport,especially:

JakobReisinger,IgorStepanov,SallyMenassa,KarindeSousaNobre,JohanTreutiger,andArnaudJouron.

ARTHURD.LITTLE

3

FOREWORD

Changeistheonlyconstantintoday’svolatileworld—impactingeverybusinessandtheCEOswholeadthem.Previouslysafe

assumptionsaroundstrategyandoperationshavebeenreplacedbyaneedtocopewithanunprecedentedrateofgeopoliticalandtechnologicalchange.Businessasusualisnolongeranoption.

Althoughthisbringschallenges,italsodeliversopportunities—andIamheartenedtoseetheenthusiasmwithwhichtheCEOs

oftheworld’slargestcompaniesinterviewedforthisstudyareproactivelyembracingdisruptionandchange.

2025marksthethirdyearofArthurD.Little’s(ADL’s)global“CEO

Insights”study—andwespoketoalargernumberofbusinessleadersthanever,givinganunparalleledviewintotheirthoughts,expectations,andactions.GiventhatwesolelytalktoCEOsofbusinesseswith

revenuesaboveUS$1billion,ourstudydeliversinsightsintothe

companiesthatmostimpactandaffecttheglobaleconomy,society,andtheworldaroundus.

OurfindingsshowthatCEOsareproactivelyleadingfromthefront—somethingweatADLseeinconversationswithourclientsacrosstheglobe.WithtechnologicalchangelikeAIandgeopoliticsbothfirmlyontheshort-andlong-termagenda,CEOsareadaptingtheirapproachesandstrategiestoensuretheycontinuetoseizeopportunities,

deliveringapositivemessageacrosstheglobe.

However,whenanewparadigmfortheglobaleconomicorderisintheair,challengingquestionsareausefulwaytoguidedevelopmentand

change.Buildingonthisthought,Iaskedourconsultantswhoworkwithmajorcompaniesaroundtheworldtoprovidesuchquestionsandgiverecommendationswheretheybelievetheresultsofthestudydeservefurtherreflection.ThisoccursinthespiritofakeyelementofADL’s

DNA:DrivingInnovationandTransformation,withtheaimoffurtherstrengtheningcompaniesforanuncertainfuture.

IgnacioGarcíaAlves

Chairman&ChiefExecutiveOfficerArthurD.Little

4

CEOINSIGHTS:PROACTIVELYEMBRACINGCHANGE

EXECUTIVESUMMARY

UNDERSTANDINGGLOBALCEOS

&THEIRSTRATEGIES

Focusedongrowth,innovation,andembracingdisruption.That’sthekeymessagefromtoday’sglobalCEOs,whofeelmorereadythanevertomeet,andbenefitfrom,currenteconomicand

geopoliticalchallenges.

ADL’s2025CEOInsightsstudypaintsaclearpictureofthemindsetandactionsoftheCEOsoftheworld’slargestcompanies.The

thirdreportinanannualseries,thestudyfocusesonCEOsrunningbusinesseswithaturnoverabove$1billion,locatedacrosstheglobe.

ThekeyfindingisthatCEOsfeelwell-positionedtotacklecurrent

short-termchallenges.Three-quartersexpectglobaleconomic

conditionstoimproveoverthenextthreetofiveyears,upfromjust22%twoyearsago.Theyfeelreadytoexploitcominggrowthopportunities,whateverdirectiontheymaycomefrom.

Thispositiveoutlookextendstocurrentgeopoliticalchange—CEOsunderstandtheneedtonavigateanuncertainworld,withthemajorityupdatingtheirstrategiesandoperationsfollowingtheUSelection,andmorethantwo-thirdsexpectingincreasedstateinterventiontohave

apositiveimpactontheirgrowth,althoughthisvariesconsiderablybysector.Essentially,theyarefocusingonagilityandtheneedfor

transformationtoreaptheopportunitiesprovidedbyafast-changingworld.

CEOsarealsodiversifyinghowtheyaimtogrow,embracingawider

rangeofinternalandexternallevers,fromcostoptimizationto

launchingdisruptiveofferings.Whatevertheirpositioninthemarket,CEOsarecontinuingtoinvestatthesameorhigherlevelstostay

competitive.TechnologyinnovationremainsthemostimportanttrendimpactingCEOsandtheirbusinesses,withdisruptivecompetitionnowoutstrippingconcernsaboutsupplychainsandrawmaterialprices.

Investmentsinimprovingperformanceareconsistentat1%-2%acrossgeographiesandindustries,withexpectedproductivitygainsof~8%peryearoverthenextthreeyears.

ARTHURD.LITTLE

5

AIisrecognizedasacorefocusarea.However,althoughthenumberofCEOswithacompany-widestrategyhasmorethandoubledfrom

lastyear(to29%),themajorityarestillearlyintheirAIjourney.Pilotprojectshavebeendeployed,ofteninhundredsofareas,butthese

stillaimtoimproveandenhanceexistingoperations,ratherthan

createdisruptivebusinessmodels.Inourview,thisleavesincumbentsopentoattackfromstart-upcompetitors.Successwillcomefromanentrepreneurialstrategyratherthanthinly-spreadpilotprojects—thisshouldbeafocusforCEOsmovingforward,relyingontheirdriveandvisiontotransform.

Drivenbycomplianceandcompetitiveadvantage,nearlyall(94%)ofCEOshaveembeddedenvironmental,social,andgovernance(ESG)

intotheirstrategies,with88%givingitthesamepriorityasother

businessneeds.ThismeansESGinitiativesmustmeetthesameROI

andbusinesscriteriaasanyotherproject,reflectingthemorecriticalviewofthetopicbygovernmentsandconsumers.However,this

opportunisticapproachmaynotworkoverthelongerterm,astheworldandrequirementsaroundESGanditsbenefitsmaychangerapidlyanddramatically.

Finally,despitetheircurrentbeliefthattheyarereadyforchange,therearesignsthatCEOsneedtosharpentheirfocusiftheyaretothriveinavolatileworld.Inmorethanhalfofcompanies,levelsofpreparednessforchangehavedroppedfromsuperiorandstrongto“goodenough,”

ashastherecognizedneedforreskilling.Althoughstructuresare

adequateforcurrentneeds,changeisconstant,ascurrentevents

show,meaningthatCEOsmustcarefullyreflectontheirorganizationalreadinesstoadapttomeetfuturechallenges.

InadditiontotheviewsofCEOs,basedonourworkglobally,werecommendsevenbestpracticesinChapter9tohelpCEOsmoveforwardatatimeofchange:

1.Navigategeopoliticalchallengeseffectively.

2.Deriskyourbusiness—andseizeemergingopportunities.

3.BalanceM&Awithorganicgrowth.

4.FocusonAIforbusinessmodeltransformationandproductivity.

5.LookbeyondimmediateESGconcerns.

6.Reassessorganizationalpreparedness.

7.Takeatransformativeapproachtoimprovingproductivity.

6

CEOINSIGHTS:PROACTIVELYEMBRACINGCHANGE

1.CEOSLOOKINGFORWARDCONFIDENTLY

CEOSOFLARGEST

COMPANIESPOSITIVEABOUTMEDIUM-TERMBUSINESSCLIMATE

Atatimeofunprecedentedchange,CEOsfeel

confidentaboutfuturebusinessprospects.97%expecttheglobaleconomicoutlooktoimproveorremainstableoverthenextthreetofiveyears(seeFigure1).Three-quarters(75%)believeitwillimprove.Thispositiveattitudeisevenhigher

amongcompanieswitha$10billion+turnover,with82%expectingimprovements,against73%ofthoseinthe$1-$10billionrange.

Regionally,NorthAmerica(+15percentage

points)andEurope(+11percentagepoints)haveseenthelargestjumpsinpositivesentimentcomparedto2024.

Thislikelyreflectsafocusontheopportunitiesthefuturebrings,eitherduetothepolicies

ofthenewUSadministrationorthegreater

investmentitmayspurinEuropeascountriespivotawayfromrelianceontradewithotherregions,suchasAsiaandtheUS.Across

industries,travelandtransportisthemost

pessimistic—however,only4%expectthe

outlooktodeteriorate,with30%believingitwillremainstable.Theenergyandhealthcareindustriesarethemostpositive,with80%

seeingtheclimateimproving.

“Wewilldiversifyourproductportfolio,investinR&D,expandintoemergingmarkets,and

maintainpartnershipstohelpusreduceriskandensuregrowth.”

CEO,France,healthcare&lifesciences

Figure1.Beliefinpositivechangeinglobaleconomy

75%

+9pp

66%

41%

36%

29%

22%22%

5%

3%

DeteriorateStableImprove

202320242025

Source:ArthurD.Little

ARTHURD.LITTLE

7

CEOsfeelreadyandwellpositionedforchange.Everyrespondentsaidtheirorganizational

structureisreadytotacklenewbusiness

prioritiesandaddressmarketvolatility,althoughmorethanhalfdescribeitas“goodenough.”

EveryCEOisinvestingthesameormoretodrivegrowth.Nonearechoosingadefensivestrategy,with39%investingtodrivegrowthabovethe

marketrateoverthenextthreeyears,while61%arecautiousbutstillaimtoachievethemarketgrowthrate(seeFigure2).

“Wehaveimprovedourcorporategovernancesystem,allowingustorespondfastertomarketchanges.Thisincludesgivinglocalmarketsmoreauthoritytomakequickdecisions,whichhelpsusadjusttorapidchange.”

CEO,Japan,automotive

Whenaskedaboutchallengesoutside

geopolitics,nearlytwo-thirds(65%)ofCEOs

expectindustryconvergencetoaccelerate

overthenextthreetofiveyears,upfrom49%in2024.Just1%seeconvergenceslowing.Thisisespeciallytrueinenergy(where76%ofCEOsforecastedacceleratingconvergence)and

healthcare(71%).

“We’reinvestinginsolutionsthatprovide

greaterresilienceandflexibility,includingintegratingblockchainsowecanenhancedataintegrity,tracking,andrealtimereporting.”

CEO,US,travel&transportation

Figure2.Growthambitionsvs.plannedchangeingrowthinvestmentrelativetolastthreeyears

39%61%

51%

95%

49%

5%

0%

0%

0%

OffensiveCautiousDefensive

(fasterthan(meetsmarket(slowerthan

marketgrowth)growthrate)marketgrowth)

IncreaseStayconstantDecrease

Note:Thereisnocolumnfordecreasebecausetheresultsare0%forallthreecategories

Source:ArthurD.Little

CEO

INSIGHTS:PROACTIVELYEMBRACINGCHANGE

8

ADAPTINGFORTHEFUTURE

GrowingCEOconfidenceisanaccelerationof

trendsseeninpreviousyears.In2023,22%saidtheyforesawtheeconomyimproving,rising

to66%in2024.Thismeansthatthenumber

forecastingabettereconomicclimateover

themedium-termgrewby53%injusttwoyears.

Whenaskedtodescribetheirperformance,

in2024,35%ofCEOsstatedtheyweretop

quartile,56%middleofthepack,and9%lagging.

Demonstratingstrongself-belief,in2025,noCEOsdescribetheircompaniesaslaggards,

with37%definingthemselvesastopquartileand63%asmiddleofthepack.Backingthis

up,in2024,14%ofcompaniesinvestedtodrivedefensive(slowerthanmarket)growth,and

8%weredecreasingtheirgrowthinvestments.Asmentionedearlier,noneofthecompaniessurveyedcurrentlyseethemselvesasdrivingdefensivegrowthordecreasinggrowth

investment.

Thebiggestobstaclestogrowtharealso

changing,frommarketvolatility(28%)and

blurrybusinessboundaries(21%)in2024todatainterpretation(30%)andtalenthiring/retention/reskilling(25%)in2025,showingthatcompaniesaresuccessfullyincorporatingadaptationto

changeintobusinessstrategyandoperations.

“Bydoingthoroughscenarioplanning,wecanforeseevariouspossiblefuturesituationssuchaseconomicdownturns,healthcrises,andchangesinglobalpolitics,allowingustogetreadyaheadoftime.”

CEO,Switzerland,manufacturing

AGILITYTODRIVESUCCESS

INAFAST-CHANGINGWORLD

CEOsunderstandthatmarketsareunstable,buttheyarepreparedandconfident,forthefutureatevengreaterlevelsthanbefore.Theyare

readyforgeopoliticalturmoilandarefuture-proofingtheirbusinessesbyincorporating

volatilityintotheirbusinessplanning.This

embraceofmarketdisruptioncanbeseenin

theyear-on-yeardropinscoresforvolatilityasachallenge—itmovedfrombeingseenasanobstacletobeingviewedasanopportunity.

AlthoughCEOsarestillsetting10-yearNorth

Starobjectives,howtheyreachthemhas

changed.Ratherthancreatingprescriptive

long-termstrategies,theyarefocusingonagile,shorter-termplanningthatismoreflexibleandenablesthemtocapitalizeonchange.

Intermsofgrowth,noonewantstoinvestlessthanthewidermarket,highlightingthelevel

ofcompetitionandhowitisraisingthebaron

investmentsforallCEOs,regardlessofregionorindustry.CEOsarediversifyinghowtheygrow,asshowninChapter3,incorporatingawiderrangeofleverstoachievetheirgoals.Overall,the

pictureshowsthatCEOsareconfidentthattheyhavethetoolstheyneedtosucceedinafast-

changingworld.

ARTHURD.LITTLE

9

CHAPTERTAKEAWAYS:

THENEEDFORNEWPLANNINGMODELSINVOLATILEMARKETS

Theshiftawayfromlong-termplanningdoes

notmeanabandoningplanningasadiscipline.

Instead,CEOsshouldadoptscenario-based

planning,outliningarangeofpotentialfuturesbasedonknownfactors—eveniftheimpact

ofeachoftheseleverscannotyetbeforecast.

Thisapproachwillprovideseveralno-regret

movesthatshouldbecarriedoutregardless

ofwhatthefuturebrings,aswellasoutlining

biggerbetsthatcanbemadetomeetchangingconditionsandseizevaluableopportunities.Withscenario-basedplanning,itisvitaltocontinuallymonitorthewidermarket,settingtriggerpointsforactionasscenariosbecomeclearer.Thiswill

delivernecessaryagilitywithoutoverfocusingondevelopmentsthatmaynotcometopass.

Alliedtoscenario-basedplanning,CEOsand

managementteamsshouldexploreworst-casefutures,usingwar-gamingexercisesorothertechniquesthatdefine:

-Whichnightmarecompetitor/nightmaregeopoliticalscenariosareplausibleunderwhichcircumstances

-Howtoreactifthesescenariosmaterialize

-Howtodetectweakandstrongsignalsforsuchscenarios

Thesediscussionswillformthebasisfora

strategythatprotectsagainstmanypotentialshocksandletsmarketandoperationalplansandactionsberevisedaccordingly.

10

CEOINSIGHTS:PROACTIVELYEMBRACINGCHANGE

2.GEOPOLITICSSEEN

ASCENTRALTOCEOROLE

CEOSFOCUSONACTION,ADAPTABILITY&

GOVERNMENT

COLLABORATION

ThenewUSadministrationisdrivingenormousongoingchange,oftenthroughunexpected

short-termactionsthatimpactthestrategyandoperationsofalllargecompanies.Consequently,themajorityofCEOs(59%)expectthey’llhave

tomakechangesmovingforward.Thisfigureincludes2%ofCEOswhoanticipatedtheneedtoadjustpre-electionandbegantoimplementtheirplansearly.Amongthosewhoanticipatechange,nearlythree-quarters(72%)of

$1billion-$10billioncompaniesexpect

significantchanges,comparedto69%ofthosewith$10billion+revenues.Largenumbersof

companiesarefocusingonadaptingR&D/

technology(55%)andtheirsupplychains(48%).

ThemostaffectedregionsareSouthAmerica,where82%expectchanges,and,unsurprisingly,theUSitself,wherethree-quarters(76%)are

lookingtoadjusthowtheyoperate.

Ofthosethatseetheneedtochange,69%

expectsignificantchange,26%areuncertainwhetherchangeswillbesignificant,and4%havebegunthechangeprocess(seeFigure

3).Thehighestimpactisonhigh-tech(88%),

automotive(86%),andenergyandutilities(83%).

“Weregularlyperformstressteststoevaluatehowwellwecanhandletoughsituations,makingsurewecancopewithmajormarketchanges,

economicslumps,orglobalconflicts.”

CEO,Ireland,financialservices

Figure3.LikelihoodofrevisitingstrategyfollowingUSelection

4%

8%

14%

13%

17%

20%

25%

27%

26%

41%

38%

27%

86%

88%

83%

80%

75%

69%

59%

54%

45%

Total

TelecomEnergy&

utilities

Travel&

transportation

Healthcare

Financialservices

High-tech&digital

AutomotiveManufacturing

(excludingautomotive)

No,weanticipatedsignificantchangesandarealreadyimplementingourplanYes,butweareyetuncertainifchangeswillbesignificantornot

Yes,andweexpectsignificantchangestoourstrategy/operations

n=161

Source:ArthurD.Little

ARTHURD.LITTLE

11

“Fluctuationsincommoditypricesdueto

geopoliticalissuesorclimateeventscanreshapeinternationaltradedynamics.Wearethereforeincreasingourcross-borderinvestmentsin

searchofgrowthopportunitieswithinemergingmarkets.”

CEO,US,telecom

Atatimeofuncertainty,stockmarketsand

companiesreactdifferentlytothreatsand/ortheimplementationoftariffsandduties.CEOsmustthereforebothnavigatepracticaldecisionsanddelivershareholdervalue,whiletakingshort-termandlong-terminvestmentsintoconsideration.

CEOswerealsoaskedaboutthemostimportanttrendsoftherecentpastandthefuture

(seeFigure4).Theypinpointedsustainability

(64%future,49%past),rapidtechadvances

(52%future,49%past),AI(42%future,29%past),anddigitaltransformation(42%future,60%

past)asthemostimportant.TheriseinAIand

sustainabilityhascomeattheexpenseofdigitaltransformationandglobalizationasfactors.

“Weareusinganagilebusinessmodelto

swiftlyrespondtomarketshifts.Bymonitoringregulations,customerneeds,andcompetitoractions,wecanadaptourstrategybasedon

immediatefeedback.”

CEO,China,healthcare&lifesciences

Governmentsareplayinganincreasinglyactive

roleinthebusinessenvironment,intervening

throughacombinationofsubsidiesforspecific

industries/technologiesandchangingregulationsaffectingareassuchasthegreentransition,

deliveringlocaljobs,andbuildingleadership

positionsinemergingareaslikeAI,quantum

computing,andsustainability.Asillustratedin

Figure5,nearlysevenoutof10CEOsseesuch

stateinterventionasausefulshort-orlong-termsupportforgrowth,although26%viewitasa

destabilizingfactor.Itisimportanttonotethatattitudesvaryconsiderablybetweensectors—88%ofautomotiveCEOsseeitasapositive,whileabouthalfofthoseinhigh-tech(53%)seeitas

neutralornegative.

“Ourcompanytakesadvantageofgovernmentincentivesandsupportinitiativesfocusedon

technologicalinnovationandgreenenergy.

Thisapproachhelpsusmitigatevolatility

bysecuringextrafundingortaxbreaks,

particularlyinmarketswherethere,ssignificantgovernmentinvestmentintechnology.”

CEO,Austria,high-tech&digital

Figure4.Mostimportanttrends,pastvs.future

+13pp

29%

AI&automation

42%

49%

+15pp

64%

Sustainability&environmentalresponsibility

-8pp

28%20%

Globalization

60%

-18pp

42%

Digitaltransformation&agilemethodologies

49%

+3pp

52%

Rapidtechnologicaladvancements&adoption

13%13%

E-commerce&personalization

34%28%

Workforcetransformation&supplychainresilience

25%22%

Fintech&blockchainrevolution

Past3yearsNext3years

Openquestion—answersclusteredbyAI;someresponsesfitmorethan1category;notallrespondentsnamed3trendsSource:ArthurD.Little

CEO

INSIGHTS:PROACTIVELYEMBRACINGCHANGE

12

29%

28%

38%

40%

40%

35%

44%

53%

20%

34%

30%

46%

40%

42%

15%

10%

35%

43%

8%

2%

11%

34%

33%

24%

2%

18%

18%

17%

6%

6%

AutomotiveManufacturing

(excludingautomotive)

TotalTelecomEnergy&

utilities

Travel&

transportation

High-tech&digital

HealthcareFinancial

services

Figure5.Attitudesaboutrenewedstateintervention

37%

32%

5%

26%

Usefulsupporttolong-termgrowthUsefulsupporttoshort-termgrowthNeutraleffectsDestabilizingfactorskewingcompetition

Source:ArthurD.Little

INCREASING

POLARIZATIONAROUNDSTATEINTERVENTION

Inthe2024study,CEOswerenotaskedto

speculateabouttheoutcomeandimplicationsoftheUSelection,buttheywereaskedaboutbothstateinterventionandtrendsimpactingtheirmarkets.

Whenitcomestostateintervention,the2025pictureismuchmorepolarizedcomparedto

2024.Althoughsimilarnumbersseeitaspositive(65%2024;69%2025),thenumberthatviewed

itasdestabilizingnearlytripled,risingfrom9%in2024to26%in2025.Thisshiftwasdrivenbyasignificantdropinthoseconsideringstate

interventionasneutral,droppingfrom27%in2024to5%in2025.

Lookingattrends,2024hadamuchmorebalancedrangeofdrivers,with29%of

CEOsseeingAIandsustainabilityasan

importantfuturetrendand27%believingthatglobalization/geopoliticalchallengeswerea

keytrendforthenextthreeyears.Asdetailedabove,CEOsarefocusedonasmallernumberoftrendsin2025,withmorethan40%choosingsustainability(64%),AI,rapidtechadvances,

ordigitaltransformationaskeyfuturedrivers.

PUTTINGGEOPOLITICSATTHECENTEROFSTRATEGY

Today’sCEOsseegeopoliticsasamarketmoverandafactortheyneedtoincorporateintotheirstrategies.ThislikelybeganduringtheCOVID-19pandemic,whenCEOshadtoactquicklyto

mitigatetheimpactofitsdisruptionandeffectongeopolitics.ThefactthatCEOsaroundtheglobeareattunedtotheneedforactionaroundmajorevents,suchasthenewUSpresidentialadministration,demonstratestheimportanceofgeopoliticsinavolatileworld.Itreinforcestheneedforagilityandscenarioplanningto

war-gamepossiblefutures.

CEOsarefocusedonboththeimpactof

governmentactionsatapolicylevelandstate

interventioninmarkets,whetherthrough

subsidiesinspecificareasorgreaterregulation,suchasaroundsustainabilityinEurope.The

changeinhowCEOsviewstateintervention

islikelyrelatedtotheshiftfromtheoryto

practice.Sincelastyear,alargenumberof

subsidyprogramsrolledoutmorefullyand

thescopeanddetailofregulationsincreased,

drivinghomerealbusinessimpactsand

acceleratingoperationalchange.Attitudes

tostateinterventionvaryconsiderablyby

industryandtheirpresentrequirements.For

example,thehighlyregulatedautomotive

sectorwelcomesgreaterstateinterventionas

ittransitionstogreenerelectricvehicles,whilehigh-tech,whichhastraditionallyseenlighter

regulation,ismuchlesspositiveaboutincreasedgovernmentfocusontheindustry.

ARTHURD.LITTLE

13

CHAPTERTAKEAWAYS:

EFFECTIVELYMANAGINGINA

CHANGINGGEOPOLITICALWORLD

CEOsunderstandthatthedriversandstructureoftheglobaleconomyhavefundamentally

changed.Thus,continuingtodobusinessas

usualisnotanoption.Theyareconfidentthattheycanseizeopportunitiesinaneraoffast-moving,unpredictablegeopoliticsthatinvolvesmoreactivepoliciesfrommajorgovernments,especiallytheUS.

Tobestpositionthemselvestoadapttofast-pacedgeopoliticalchange,CEOsshouldfocusonfivekeyareas:

1.Makeboldmoves.Withbusinessasusual

notanoption,CEOsshouldn’tbeafraidto

innovatearoundstrategyandoperations,

movingbeyondincrementalchangetomakebigbetsonnewmarkets,technologies,or

businessmodels.AIshouldbeamajorareaoffocus,withCEOslookingbeyondincrementalimprovementstohowitcantransformbothstrategyandoperations.

2.Focusonthepositivesofincreased

stateintervention.Governmentsare

interveningmoreintheireconomies,

whethertosupportexistingbusinessesortoencouragedevelopmentinareassuchasAIandsustainability.Eitherdirectlyorthroughindustrybodies,CEOsshouldbeclearonhowstateinterventioncanhelpdrivegrowthandshouldworkwithgovernmenttoestablish

programsthatbenefittheircompaniesandthewidereconomy.

3.Rebalancesupplychains.ThedisruptiontoglobalcommerceduetoCOVID-19ledmany

CEOstobeginrebalancingtheirsupplychains.

Geopoliticaltensionshaveacceleratedthis

trend,andCEOsshouldtakeaportfolio

approachtosourcingandmanufacturingto

protectthemselvesagainstfurthershocksanddisruptions.Forexample,Europeancountriesshouldlookatopportunitiesfornear-shoringoperationsinAfricawhilebuildingupnationalcapabilities.

4.Bereadyforgrowth.CEOsshouldclosely

examinetheircurrentskills,capabilities,andorganizationalstructuresandimprovethemtoensureagilityandflexibility.TheyshouldassessskillsinareassuchasAIandplanto

fillgapsthroughreskilling,partnerships,or

acquisitions.CEOsmustalsoevaluatecurrentprocessesandexaminewhethertheydelivertherightbalanceofcentralizedandlocal

decision-makingtotargetopportunitiesastheyarise,whilemanagingrisk.

5.Don’tneglectthebusinessbenefitsof

sustainability.Sustainabilityprogramsshouldbeseenasasourceofbusinessadvantage,

ratherthanacompliancecost.LookatareaswhereESGcanreducecosts,openuprevenuestreams,orbuildnewbusinessmodelsand

partnerwithawiderecosyst