KPMG Adaptability Index: Why the push for innovation isn’t translating into adaptability—and how leaders can realign

NEW YORK, April 15, 2026 – As 81% of executives feel increased pressure from boards to adapt to disruption, many companies are stepping up efforts to build adaptability while lacking a clear playbook to get there. The 2026 KPMG Adaptability Index (“the Index”) documents a pattern of implementation mistakes that could be putting growth opportunities at risk, while also demonstrating that adaptability has measurable business impact, with adaptability initiatives linked to a modest lift in year-over-year revenue growth.

The new KPMG Adaptability Index provides a data-driven framework to measure and strengthen adaptability—how organizations anticipate change, respond under pressure, and sustain growth. The Index prescribes focus across three pillars—cultural, ecosystem, and strategic adaptability—along with a structural readiness factor that impacts industries’ capacity to execute and sustain adaptability over time.

Executives can bolster implementation by investing evenly across the dimensions of adaptability—balancing investments in people and technology, clarifying strategic priorities, simplifying governance, and establishing clear decision rights. Leaders can further expand their ability to act by building durable partnerships with third parties, supported by clear ownership models that flex as market conditions evolve.

Currently, however, many leaders take a piecemeal approach—often emphasizing technology investments—instead of also focusing on the broader systems needed to execute consistently. In fact, executives are nearly twice as likely to be increasing investment in new technologies than to expand hiring in priority business areas or to invest in employee training. Additionally, many are underinvesting in how talent is deployed, developed, and mobilized.

Burnout, skills gaps, and limited prioritization of workforce development are constraining organizations’ ability to adapt, and less than 10% of leaders identify increased psychological safety as one of the behaviors their organization has changed most in the past year, a critical miss as organizations call on their workforce to adopt new, AI-driven ways of working. 

"Why do so many tech investments fall flat? It’s because new tools alone don't drive performance,” said Atif Zaim, Deputy Chair and Managing Principal, KPMG US. “Adaptability is a recipe. It comes from aligning how organizations work, how they develop people, and how decisions are made. The companies getting ahead are moving beyond isolated fixes to disciplined, coordinated execution.”

Growing attention to real-time data and analytics enabled by AI has yet to translate into faster, clearer decisions for many organizations. While nearly two-thirds (63%) of executives report increased use of data in decision‑making, fewer than half (43%) say decisions are happening faster or with greater clarity—indicating that operating structures, not insight availability, are constraining action. To process real-time data, companies need to focus on building systems that encourage disciplined execution, including structured decision-making processes with clear thresholds for action.

“AI and advanced analytics are showing leaders exactly where the problems are, but many are realizing their systems are designed to reward activity, not outcomes,” said Rob Fisher, Global Head of Advisory, KPMG International & Advisory, Vice Chair KPMG US. "Adaptability isn't about knowing more; it's about realigning your incentives so that people are focused on efficiency and, more importantly, driving results."

Many industries assume that a quest for innovation will result in increased adaptability. Data shows otherwise; reported acceleration of innovation and research efforts does not consistently translate into stronger adaptability outcomes across industry groups. While innovation initiatives can have significant business benefits, how they are structured matters. Adaptability is driven less by additional ideas, data, or scenarios and more by disciplined execution, integration, and coordination that scale innovation across the organization.

The Index provides actionable recommendations that companies can take now to improve their adaptability and resilience to change, including:

• Hardwire continuous learning, collaboration and communication into your organization 
  • Measure and track programs—and outcomes—to ensure implementation 
• Sharpen focus by creating clear ownership for sustained change
  • Centralized decision making, structured processes, and clear responsibilities and accountability are powerful tools for anticipating and responding to change
• Pursue partnerships and design them for durability 
  • A network of strategic partnerships, invested in and re-evaluated over time, helps mitigate risk and build resilience

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About the KPMG Adaptability Index

The KPMG Adaptability Index measures how organizations adapt across three dimensions— cultural, ecosystem, and strategic adaptability, combined with an assessment of structural readiness, spanning six broad industry groups: consumer & retail, financial services, healthcare, manufacturing & energy, private equity, and technology, media & telecommunications (TMT). Index scores are derived from a weighted formula that combines multiple data sources: a quantitative survey of 300 US-headquartered C-suite and senior leaders, representing public and private companies, conducted from December 19, 2025 to January 14, 2026; analysis of 2025 earnings call transcripts and year-over-year revenue change from 177 companies primarily headquartered in the US, using the KPMG's proprietary earnings summarizer; analysis of 2025 media coverage of public and private US-headquartered companies; and investment and capital signals that include workforce hiring trends (from LinkedIn Economic Graph) and reported research and development investment and capital expenditures from the last fiscal year.

About KPMG LLP

KPMG LLP is the US member firm of the KPMG global organization of independent member firms providing Audit, Tax and Advisory services. The KPMG global organization operates in 138 countries and territories and has more than 276,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

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