Insights That Matter on Taking Advantage of Disruption
A note from Simon Freakley, CEO:?
The world keeps getting more complex. We all feel this every day. Myriad disruptions arise, feed off one another, cascade around the world at an accelerated pace, upend our operations, and knock strategies off course. The leadership challenge is unprecedented: Amid so many formidable issues—daunting long-term disruptions and difficult short-term demands—how should we focus our all-too-finite resources of capital and time??
In our?4th annual AlixPartners Disruption Index, business leaders cite this as the central dilemma, with?85%?of CEOs telling us that it has become increasingly difficult to know what to prioritize.?
Our survey also identified a segment of companies we call growth leaders—enterprises that are outpacing their competitors. If one thing sets them apart, it is bold action. More than half are changing their business models this year. Across the board, we see them performing better, yet still trying to do more, whether that’s fixing their supply chain or attracting the best talent or transforming their business with technology. Despite all the challenges, including any potential unknowns, growth leaders are optimistic about the future.?
Leaders must be prepared to meet the challenge of this disruptive age. I hope this report provides some insight into how to do just that.
Introducing the 4th annual AlixPartners Disruption Index
We are in the age of disruption. In our fourth year conducting this study, we delve deeper into the changing nature of the global economy and what business leaders must do to adapt to and take advantage of these shifts. We will also look at the unique behavior of the companies that are thriving—the one company in five that says it is leading the pack when it comes to growth in their industry. One thing is clear: Those leaders who say they are driving change in the face of disruption are behaving differently.
To find out how – what’s helping those leaders make decisions, shape strategies, and think differently – we surveyed over 3,000 executives, in 9 countries, across 10 industries. The AlixPartners Disruption Index is the result of this survey; the collective perspectives of the leaders both reacting to disruption and taking advantage of it.
Businesses are struggling to manage disruption
Executives are struggling with shorter-term crises that demand their immediate attention, while longer-term structural changes are remaking industries and creating new winners and losers. 78% of CEOs report being seriously disrupted in the last 12 months (up 10 points from the 2021 Index).
In response, companies are changing their business models.
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Expected rate of business model change:
But this is putting pressure on CEOs. 85% say they find it increasingly difficult to know how to start and 70% are worried about their own jobs.
Despite these concerns, leaders are optimistic
After three years of the pandemic, supply chain disruptions, energy shortages, with inflation at 40-year highs, and a war in Europe, perhaps business leaders are becoming more confident in their ability to manage through competing crises, while maintaining their focus on the future. Indeed, business leaders are about 12% more optimistic about their own companies than they are about the economy as a whole.
Outlook for the future of their business considering a pending recession:
The opportunities in the future to unlock greater productivity, make life better for people, protect the environment, and increase international cooperation are tremendous, if we can all rise to the challenge.
In the AlixPartners Disruption Index report we look at the full findings from our survey across geographies and sectors. Explore how business leaders are thinking about and acting on some of today’s biggest challenges, from technology transformation, to demographic decline, climate change, and more.
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