Adaptability at scale
Why bold enterprise-wide responses to disruption outperform incremental change
Our inaugural Adaptability Pulse Survey, surveying 1,120 executives, reveals that, while companies are making changes in response to evolving dynamics, many are caught in a cycle of reaction rather than reinvention.
How can organizations focus on bolder strategic moves in response to disruption?
Disruption is the new baseline. Across virtually every industry, leaders are under pressure, with 81% of corporate boards raising expectations for decisive adaptability and execution.1 The inaugural KPMG Adaptability Index, and the ongoing Adaptability Pulse Surveys, are designed to surface the characteristics that make organizations adaptive amid uncertainty and highlight specific actions that drive success.
Our Adaptability Pulse Survey reveals how, when it matters most, effective leaders focus on the following three interconnected strategies to turn disruption into advantage.
1 | Bolder moves have greater impact
Featured Insight
Dive deeper into our insights on execution at scale
In a landscape of constant disruption, incremental changes are rarely enough to stay ahead. This article illuminates why bold, decisive action is safer and more effective, offering a data-driven framework for measuring your organization's ability to adapt to uncertainty.
2 | Pivot from reactive to proactive choices
When faced with disruption, many organizations are stuck in a reactive mode. This means that companies are less likely to act on their own strategic terms than to react to external pressure. Even in areas where leaders report the strongest proactive responses (such as innovation and customer experience), organizations average a net proactivity score of just +12.5 out of a possible +100 across eight critical disruption response areas, representing only 13 percent of the theoretical maximum.
Addressing this disparity can have measurable benefits. Data looking at company performance during the Covid-19 pandemic shows that returns from proactivity improved when coupled with coordinated, ambitious execution, yielded 4.4 times higher shareholder returns and three times higher revenue growth.
Only 13%
net proactivity across disruption response areas, and yet...
(Average score: +12.5 out of +100)
4.4x
higher shareholder returns can be realized with a proactive approach³
Featured Insight
Discover how to shift from reactive to proactive responses
Waiting for disruption to occur before reacting is a failing strategy. This article shows that while most organizations acknowledge disruption, they fail to act decisively, remaining stuck in a cycle of short-term fixes.
3 | Tap into partner ecosystems
Most leaders don’t lack for good ideas. The difference comes down to focusing on fewer, bigger bets and investing in the execution to make it happen.
Atif Zaim
US Deputy Chair and Managing Principal
Navigate disruption with confidence
Reach out to learn more about how KPMG can help your organization be more adaptive in the face of disruption.
New KPMG Adaptability research explores how organizations can move beyond reacting to disruption and build the capabilities needed to perform through ongoing uncertainty. At the center of the campaign is The KPMG Adaptability Index, a data-driven framework that points to balanced efforts across an organization's culture, strategy, and broader ecosystem of partnerships, alongside efforts to build structural readiness as the most effective approach to building adaptability. Complementing the Index, the KPMG quarterly Adaptability Pulse Surveys assess how organizations are responding to pressure, including the degree of proactivity behind those actions and the results they deliver.