??5 Strategies to Navigate Business Transformation Amid Political Uncertainty and Protectionism

Unless you have been living under a rock for the past couple of months the drastic increase in political uncertainty and protectionism have you at best intrigued, at worst panicked.

If you are a business leader, you are probably closer to the latter state. Indeed, in the current volatile global landscape, businesses face increasing pressure to adapt to political uncertainty and protectionist policies. With tariffs, supply chain disruptions, federal cuts, and regulatory shifts, companies can no longer afford to take a wait-and-see approach.

However it is not all bad, the best organizations use these challenges as catalysts for transformation—rethinking their inputs, refining their strategies, and positioning themselves for sustainable growth- and you can too.

So How to Navigate Strategic Disruption? Here are 5 Strategies and Actionable Steps for Business Leaders.

1?? Diversify Supply Chains to Minimize Risk

Why This Matters:

A single-source dependency (whether a supplier, market, or logistics hub) creates concentration risk—if one node fails, your entire operation is vulnerable. Geopolitical tensions, trade restrictions, and supply chain shocks are making this more apparent than ever.

How to Implement:

?? Map Your Supply Chain Risks – Identify vulnerabilities in your current supplier network, including political risks, single-source dependencies, and tariff exposure. ?? Expand Nearshoring & Friendshoring – Shift sourcing and production closer to home or to geopolitically aligned countries (e.g. Vietnam for European businesses). ?? Dual or Triple Sourcing Strategy – Secure at least two backup suppliers for critical materials and renegotiate contracts to include flexible sourcing options. ?? Strengthen Local Partnerships – Establish relationships with domestic suppliers and logistics providers to navigate trade barriers.

? What I Have Experienced: At the start of the pandemic, nearshoring was front and center in my role as a founding board member of Invest in Canada. We worked closely with businesses, policymakers, and global investors to reposition Canada as a secure and reliable supply chain hub amid shifting geopolitical tensions.

?? Example: Apple’s Shift to India & Vietnam – Apple, once highly dependent on China, has strategically expanded iPhone production to India and Vietnam to hedge against U.S.-China trade tensions.

?? Biggest Mistake: Companies that react only when a crisis hits often face long-term disruptions. Proactive diversification is cheaper and more effective than scrambling under pressure.

2?? Invest in Political Risk Intelligence & Scenario Planning

Why This Matters:

Most companies react to political and regulatory shifts instead of anticipating and preparing for them. The best businesses build risk intelligence teams to continuously assess political changes and preempt market shifts.

How to Implement:

?? Establish a Political Risk Function – Work with an external advisor to monitor policy changes, regulatory trends, and trade developments that impact your industry. ?? Create Scenario Playbooks – Develop contingency plans for different outcomes (e.g., increased tariffs, sanctions, new regulations). Predefine the actions you will take for each scenario. ?? Engage Government & Policy Groups – Actively participate in industry coalitions, trade groups, and policy forums to stay ahead of upcoming regulations. ?? Use Data-Driven Policy Monitoring – Leverage platforms like The Economist Intelligence Unit (EIU), World Bank data, and HBR reports to track trends and predict market shifts.

? What I Have Experienced: Last week in Washington, I was plugged into high-level discussions on the shifting landscape of business and policy. Understanding the pulse of decision-makers in real time is invaluable—what’s being said behind closed doors is often a preview of what’s coming next in policy and regulation.

??Example: Tesla’s Policy-Led Market Expansion – Tesla entered China aggressively before U.S.-China relations worsened, securing early regulatory approvals for its Gigafactory and ensuring market stability.

?? Biggest Mistake: Relying solely on news headlines or gut instincts instead of structured risk monitoring and scenario planning.

3?? Reallocate Capital: You Can’t Cut Your Way to Greatness

Why This Matters:

Cost-cutting is essential, but companies that only cut costs without reinvesting in growth shrink into irrelevance. The best businesses strategically reinvest savings into innovation, new markets, and competitive differentiation.

How to Implement:

?? Apply the 20% Rule – Like Google’s famous policy of allocating 20% of time to innovation, dedicate at least 20% of cost savings to growth initiatives. ?? Prioritize R&D & Digital Transformation – Invest in automation, AI-driven decision-making, and customer experience enhancements to stay ahead. ?? Fund Expansion into “Friendlier” Markets – Use cost reductions to enter high-growth regions that align with shifting geopolitical landscapes (e.g., European firms expanding into Latin America instead of China). ?? Develop New Product Lines – Identify adjacent opportunities and use capital savings to launch competitive, differentiated offerings.

? What I Have Experienced: I was in charge of cost-cutting and reinvestment strategies for a Blackstone & PAI Partners portfolio company, ensuring that cost efficiencies weren’t just about short-term savings but were reinvested into long-term capacity expansion, product development, and market growth.

??Example: Blackstone’s Private Equity Strategy – Unlike traditional PE firms that cut costs and add debt, Blackstone reinvests a portion of savings into business expansion, capacity scaling, and market growth—leading to long-term value creation.

?? Biggest Mistake: Companies that cut costs without reinvesting in future-proofing their business will lose market share to more innovative competitors.

4?? Strengthen Market Position Amid Protectionism

Why This Matters:

With tariffs, trade barriers, and localization requirements increasing, businesses need to rethink market expansion strategies and strengthen domestic positioning.

How to Implement:

?? Assess Market Vulnerabilities – Identify which of your revenue streams are most at risk due to new tariffs, trade barriers, or import/export restrictions. ?? Develop "Made in [Your Country]" Strategies – If tariffs target imports, explore local manufacturing or branding strategies to qualify for domestic incentives. ?? Expand into New Geopolitically Favorable Markets – Shift focus to countries with aligned trade agreements and strong demand. ?? Enhance Domestic Partnerships – Strengthen collaborations with local distributors, suppliers, and governments to secure contracts and incentives.

? What I Have Experienced: I’ve worked with clients to develop new operating models for product and market expansion, ensuring that they can pivot quickly in response to shifting global trade policies while maximizing competitive advantage.

??Example: Airbus vs. Boeing in Trade Wars – Airbus leveraged European-U.S. tensions by shifting more production to the U.S., securing contracts that would have gone to Boeing.

?? Biggest Mistake: Assuming global trade will return to pre-2025 conditions. Adapt now or lose market access.

5?? Build an Adaptive Culture: Leadership Matters More Than Ever

Why This Matters:

Companies with rigid, bureaucratic structures struggle in times of uncertainty. Winning organizations empower leaders and teams to make fast, informed decisions.

How to Implement:

?? Train Teams for Rapid Decision-Making – Equip leadership with crisis simulation training, adaptive decision frameworks, and scenario workshops. ?? Adopt Agile Organizational Models – Break down silos and enable cross-functional collaboration to speed up execution. ?? Create Incentives for Innovation – Reward risk-taking, experimentation, and proactive problem-solving to foster adaptability. ?? Enhance Internal Communication – Ensure leaders and employees understand macroeconomic and geopolitical risks and their impact on operations.

? What I Have Experienced: As VP of Innovation at CIBC, one of my core responsibilities was informing employees, executives, and C-Suite about market shifts and emerging opportunities—equipping them with the knowledge to navigate uncertainty and make bold, strategic moves.

??Example: Netflix’s Culture of Adaptability – Netflix continuously reinvents itself based on market conditions, from shifting DVDs to streaming, to global content investment, to AI-driven recommendations—all due to its adaptive decision-making culture.

?? Biggest Mistake: Leadership teams that fear change or delay decision-making will miss growth opportunities and struggle to compete.

Final Takeaway: Change in Inputs = Change in Results

?? Transformation requires a shift in inputs.

• Same processes, same people, same tools = same results.
• New strategies, new capital allocation, and new approaches = competitive advantage.

Businesses don’t have the choice to resist change—protectionism, political shifts, and economic realignments will force adaptation. The question is: Will you lead the transformation or be forced into it?

?? What’s your next strategic move?

Peggy Van de Plassche is a seasoned advisor with over 20 years of experience in financial services, healthcare, and technology. She specializes in guiding boards and C-suite executives through transformational change, leveraging technology and capital allocation to drive growth and innovation. A founding board member of Invest in Canada, Peggy also brings unique expertise in navigating complex issues and fostering public-private partnerships—key elements in shaping the Future of Business. Her skill set includes strategic leadership, capital allocation, transaction advisory, technology integration, and governance. Notable clients include BMO, CI Financial, HOOPP, OMERS, GreenShield Canada, Nicola Wealth, and Power Financial. For more information, visit peggyvandeplassche.com.