In an era of compounding disruption, some organizations thrive while others struggle to adapt. The need for strategic adaptability and a proactive stance is a central finding from a new body of KPMG LLP research that explores how organizations can move beyond reacting to disruption and build the capabilities needed to perform through ongoing uncertainty.
At the center 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.
Executive summary
According to the KPMG Adaptability Pulse Survey, 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. The data also shows that proactive moves succeed 92% of the time vs. only 62% of the time for reactive moves.1
But action alone isn't enough. Additional KPMG research indicates that returns from proactivity improved when coupled with coordinated, ambitious execution, yielding 4.4 times higher total shareholder returns and three times higher revenue growth.3 And, implementing changes at scale helps organizations fully or mostly achieve intended outcomes, according to 83 percent of executives surveyed.1
The proactivity gap describes the disconnect between disruption pressure and organizational action, where companies acknowledge disruption but fail to respond decisively.
By leading with a proactive stance and committing to decisive, organization-wide action, companies can better position themselves to outperform competitors and successfully navigate disruption.
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
Our research points to several root causes of inaction that are deeply embedded in organizational culture, structure, and leadership.1 First, a focus on short-term gains, coupled with risk aversion and rigid budget constraints, can stifle proactive moves. Second, a lack of clear leadership and strategic vision can hinder the success of transformations. Finally, organizations often form isolated partnerships to patch capability gaps, instead of building strategic, long-term ecosystems.
KPMG research uncovers a paradox: the higher the disruption pressure, the more likely organizations are to hesitate.1
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.1 Specifically, the two highest scoring actions—enhancing customer experience and accelerating innovation—both only achieved a net proactivity score of +24.
A proactive posture allows organizations to break free from the limitations of old playbooks, empowering them to adapt swiftly and confidently to new disruptions. 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.
Andrew Getz
Go-To-Market Enablement Leader, Deal Advisory and Strategy, KPMG US
Shifting from a reactive to a proactive posture can be achieved through deliberate, focused efforts across strategic, cultural and ecosystem pillars, informed by the KPMG Adaptability Index framework. Leaders can adopt the following strategies to foster the ability to take early, decisive action when facing disruption.
Our research points to a surprising insight: what truly moves the needle in times of disruption are not the specific actions taken, but the decisiveness and scale of their implementation.1 Organizations that approach change with intention and concentrated effort are more likely to be successful than those that scatter their resources and attention across many initiatives. Centralized and structured strategic planning and decision-making, guided by strong leadership and a clear vision, enables organizations to seize opportunities and realize their objectives, even amid volatility.2
Our research shows that proactivity is most effective when organizations invest in corresponding structural changes that enable flexibility.1 Drivers of proactivity can include an intentional culture that supports continuous change; customer-facing metrics tracked by a transformation value office that enables dynamic and rapid reallocation of resources; and dedicated teams with clear areas of accountability, which 41 percent of respondents to the KPMG Adaptability Index find to be a highly effective strategy.2
Further, organizations should extend their efforts beyond surface-level changes and embed adaptability into their everyday operations through targeted change management efforts. 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. Ultimately, proactive operating conditions are about creating an environment where agility, foresight, and decisive action are the norm—not the exception.
Our research shows that partnerships are one of the most effective, yet underused, strategies to allow for a proactive response to disruption. Many organizations make the mistake of treating partnerships as a reactive measure, scrambling to find allies only after a crisis has exposed a critical gap. This approach is inherently defensive and puts companies at a disadvantage. The most successful organizations build a network of trusted partners before they are needed, basing these relationships on a shared strategic vision that has been co-developed with operational and technical leaders. This level of foresight and alignment transforms the ecosystem from a series of transactional relationships into a powerful engine for business resilience and risk management, allowing the organization to act with speed and confidence and turn potential threats into opportunities for growth.1
Scenario planning can be a powerful tool for business leaders when approached with discipline and clarity, but it can lose effectiveness if pursued without focus. This approach is most effective when it is tied to decision rights, accountability, and execution, not probability modeling alone. Attempting to address too many hypothetical futures can dilute resources and hinder meaningful transformation. Instead, executive teams can concentrate on a few distinct scenarios that capture the most relevant uncertainties. To help ensure that scenario planning delivers value, organizations can consider moving beyond theoretical exercises, and instead defining roles, actionable steps, and clear accountability. When these principles are applied, organizations are better equipped to respond proactively, decisively, and at scale rather than merely preparing risk mitigation plans that remain unused.
True proactivity means leaders not only set a clear strategic direction but also maintain the visibility and flexibility to pivot as circumstances change. Scenario planning isn't just a one-off exercise. It's about continually revisiting, updating, and acting upon plans as the world evolves. In turbulent times, adaptability and decisive execution are what keep organizations resilient and responsive.
Jeanne Johnson
Business Transformation, Customer & Operations Leader, Principal, Advisory, KPMG LLP
In an environment defined by ceaseless disruption—intensified by the rapid advancement of AI and ongoing geopolitical instability—proactivity has become a key component of success. Organizations that take bold, early action on their own terms are more likely to outperform their peers, build confidence and deliver substantial market returns. Those who hesitate may risk missing critical opportunities to turn volatility into opportunity.
Is your strategy built to anticipate, or just to react?
The research clearly shows that building adaptability is becoming an urgent priority. As you seek to thrive in these uncertain times, ask yourself:
The need to act swiftly and decisively has never been greater. Those who hesitate may risk missing critical opportunities to turn volatility into opportunity.
We work closely with clients to deliver transformation with lasting value. Underpinned by deep industry experience and cross-functional viewpoints, we help organizations to customize bold strategies designed to accelerate change and drive growth with remarkable speed.
