The power of organizational adaptability
It’s no secret that disruption is the new constant.
Many organizations scramble to react, stretching resources thin and yielding little impact. In fact, between 26% and 45% of organizations' responses to disruption fail to achieve intended goals—a significant missed opportunity.
But what if winners are playing a different game entirely?
Our latest research—drawing on insights from 1,120 top executives—reveals that there is a costly “execution gap” between knowing what to do and doing it.
- Preparing for decisive action by embedding proactivity into the fabric of your organization.
- Focusing on fewer, bolder bets, implemented with total conviction.
- Building deep partner ecosystems that drive sustainable growth—not just quick fixes.
Are you ready to find out how your organization stacks up—and discover a clear, actionable plan for thriving amid disruption?
Key findings at a glance
1
The stakes: Proactive adaptability unlocked
A proactive approach to disruption yields 4.4x higher shareholder returns,1 and yet, on average, only 13% of organization's actions are fully proactive.
2
The pressure paradox
The higher the disruption pressure, the more likely organizations are to hesitate.
3
The focus factor
Enterprise-wide initiatives succeed 83% of the time; incremental, small-scale approaches, only 28%.
4
The ecosystem reality
Building a resilient partner ecosystem helps organizations withstand future shocks, yet most use partners for tactical fixes.
Proactive adaptability unlocked
Our research measured proactivity on a scale of -100 (fully reactive) to +100 (fully proactive) and found that, even in the strongest areas, the scores were remarkably low.
Organizations average a net proactivity score of just +12.5 out of a possible +100 across eight critical disruption response areas, highlighting how rare it is for companies to break free from reactive habits and pursue transformation at scale.
Instead of adopting proactive, vision-led strategies, many leaders remain stuck in a cycle of short-term fixes and firefighting, missing out on opportunities for meaningful change.
Proactivity pays
A perpetually defensive posture leaves significant financial value on the table. Conversely, organizations that build the discipline to execute proactive, strategic bets unlock accelerated revenue growth and a massive premium in shareholder returns. The data also shows that proactive moves succeed 92% of the time vs. only 62% of the time for reactive moves.
The pressure paradox: Why high stakes lead to low ambition
High stakes trigger risk-aversion, causing leaders to react with quick fixes and risk mitigation, instead of bold strategies. Industries that tend to stay proactive during chaos, like Investment Management, gain the greatest edge, while those that stay reactive, like Consumer & Retail, miss critical opportunities. The chart below illustrates that industries experience varying levels of pressure to address disruption, and their approaches—proactive or reactive—differ significantly.
Go big or go home: The focus factor
Execution scale is the strongest predictor of effectiveness across ALL disruption responses.
Enterprise-wide initiatives succeed 83% of the time. Incremental approaches, only 28%. Fewer focused actions —driven by purpose and decisive leadership—outperform fragmented efforts. It’s not about chasing multiple strategies but executing a few with precision.
Navigating execution difficulty
Execution shortfalls are widespread when disruption hits. For every disruption response, at least one-quarter of organizations report outcomes that were not achieved, or only partially achieved, with the percentage rising to 40-45% for several actions. Actions such as scenario planning, integrating new data or decision-support tools, changing performance metrics, and shifting decision-making authority closer to the front line have the highest failure rates. Conversely, introducing new tools, centralizing functions, investing in reskilling or redeploying staff, and reallocating budgets have the highest success rates. Even the latter initiatives are more likely to achieve the desired outcome when companies maintain a proactive stance. Of course, these execution challenges can vary widely based on the unique pressures different sectors face.
The power of partnerships
Most leaders (66%) across industries view ecosystems as a top strategy to address disruption pressures.
However, many favor rapid, low-commitment ecosystem moves rather than long-term strategic shifts that reposition the company for resilience or cultural change. As many of these actions are reactive—just +6 out of 100 on the proactivity score—it is clear that many partnerships are designed to reconfigure and leverage existing assets instead of fundamentally redrawing organizational boundaries. Ultimately, leaders recognize the value of ecosystems and partnerships, but disruption forces them into quick fixes and internal barriers contribute to execution deadlock. All of this highlights how critical it is for companies to break free from reactive habits and pursue transformative partner ecosystems that drive value.
What are the three key barriers to intentional partner ecosystems?
The path forward
Nearly every organization recognizes what’s needed to navigate disruption successfully—strategic clarity, the ability to scale responses, a proactive stance, and strong ecosystem partnerships and cross-functional collaboration. But most struggle to turn vision into reality, leaving a measurable gap between ambitions and results.
Why does this execution gap persist? When pressure mounts, even well-prepared teams default to reactive decisions, missing opportunities to innovate and grow. Incremental pilots rarely deliver lasting results, and leaders are often slow to fully commit to scalable change. In the context of ecosystems, many are using partnerships as quick fixes instead of mechanisms for lasting change.
What separates market leaders from laggards isn’t knowing what needs to happen—it’s the relentless discipline to get it done. The most successful organizations don’t wait for the perfect plan; they move forward boldly and refine their strategies in the real world, turning ambition into impact. The question is simple: Will you lead, or will you follow?
Ready to take action? Explore the guidance below and see how your organization compares. You will come away with practical steps to elevate your response to disruption.
Five actions for Monday morning
Market leaders and laggards are distinguished by an execution gap. Proactive leaders focus on five key execution imperatives:
1
Commit to scale from Day One
Rather than relying on incremental pilots with limited impact, prioritize CEO sponsorship and enterprise-wide resources for your most critical initiatives from the outset to maximize success.
2
Choose your response mode before pressure spikes
When challenges arise, organizations naturally shift into a reactive posture. By proactively establishing a framework for action ahead of time, your teams can confidently navigate high-pressure situations, maintaining focus and momentum when it matters most.
3
Translate strategy into operational specificity
Empower your teams with a clear, measurable mandate. Instead of focusing solely on vision, ensure every major initiative comprises specific details and direction on what needs to be done, who is responsible, when it should happen, why it's important, and how to achieve it, including accessing funding and resources for strategic priorities.
4
Embed continuous sensing and feedback loops.
Move beyond static planning and implement dynamic, real-time sensing mechanisms. By leveraging advanced data analytics and establishing active feedback loops across all levels of the enterprise, leaders can detect early warning signals of market shifts and pivot from a reactive posture to one of anticipated, managed change.
5
Convene a strategic partner ecosystem.
Actively cultivate and tightly integrate with a network of strategic partners to share both risks and capabilities. By building a fluid and collaborative ecosystem, organizations can rapidly access specialized skills, accelerate innovation, and ensure operational continuity when market pressures surge, creating a collective buffer against unforeseen shocks.
How KPMG helps market leaders execute
Execution gaps aren’t abstract -- they are practical barriers that demand disciplined, systematic action.
If your organization defaults to reactive mode
KPMG helps you build proactive planning capabilities, moving beyond incremental pilots to scalable, enterprise-wide execution backed by leadership sponsorship.
If you’re seeking to establish priorities and execute at scale
KPMG helps you home in on the most impactful actions by leveraging data-driven analysis, recommending effective organizational practices, and helping you align your operating model or consider new spinout structures.
If you’re a CEO struggling to translate vision into action
We facilitate sessions that break down strategy into clear mandates—assigning responsibility, timelines, purpose, and actionable steps your teams can own and deliver.
If you’re a CFO or COO facing integration barriers
We identify organizational bottlenecks—like governance, ownership, and decision rights—and redesign processes so your teams can move fast and efficiently, with clarity and established ecosystem partnerships.
Our impact
KPMG doesn’t just highlight problems—we help you build the execution muscle your organization needs to stay proactive and resilient long after our engagement concludes.
The choice is yours: will you lead with disciplined execution, or wait until pressure forces a reactive response?
Ready to adopt new ways to achieve value amid uncertainty?
Contact KPMG to learn how we help leaders harness disruption as a driver of positive lasting change.