2026 KPMG Adaptability Index
In 2026, leaders must resolve this question: Why hasn’t the explosion of real‑time data translated into faster, clearer decision‑making? Data from KPMG’s recent Adaptability Index reveals that decision speed is constrained by operating structures, incentives, and governance—not by a lack of insight.
Why do data‑rich organizations still struggle to make faster decisions?
Many leaders assume that better data naturally leads to better—and quicker—decisions. Yet the 2026 KPMG Adaptability Index shows an imbalance between information availability and action. Nearly two‑thirds of executives report increased use of data and analytics in decision‑making, but fewer than half say decisions are happening faster or with greater clarity.
This disconnect matters because the cost of delay is rising. Seventy percent of executives say failure to adapt quickly leads to lost revenue or margin pressure, and 81 percent say boards are raising expectations for how decisively organizations respond to disruption. As volatility compounds across markets, data without speed becomes a liability rather than an advantage.
Why It’s Harder Than It Looks
Increased data availability can expose weaknesses that organizations are not structured to address. Leaders receive more information, but decision rights remain unclear, approval layers multiply, and teams hesitate while waiting for perfect signals.
The Adaptability Index highlights that many organizations lack disciplined decision‑making processes and clear thresholds for action. Less than one‑third of leaders strongly agree their organizations are designed to move quickly as business needs change, and even fewer report having a clear playbook for when to pivot, pause, or exit. Without these guardrails, real‑time insight increases debate rather than momentum.
The Evidence
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KPMG’s Answer
KPMG’s view is that faster decisions are driven by structural clarity, not more dashboards.
Data enables adaptability only when leaders pair insight with clear ownership, simplified governance, and disciplined prioritization.
The Adaptability Index shows that organizations with stronger strategic adaptability rely on centralized decision authority, explicit decision rights, and predefined thresholds that allow leaders to act without waiting for the full picture. These structures reduce friction, limit escalation, and give teams confidence to move quickly within clear boundaries.
When incentives reward activity over outcomes, data slows decisions by encouraging analysis instead of action. Organizations that redesign incentives and operating models around results—rather than inputs—are better positioned to convert real‑time insight into timely execution. Without these changes, leaders become better informed but no more responsive, widening the gap between intent and impact.
Clarify who decides and when. Define decision rights and escalation thresholds so teams know when to act, even with incomplete information.
Simplify governance around priority decisions. Reduce approval layers and align incentives to outcomes so data accelerates action instead of debate.
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