Stress can often bring out the worst in people, and the same can be said of organizations.
The current state of global volatility — a declining trust in governmental and economic institutions, environmental issues including climate change, and technology challenges such as cybersecurity and adoption of advancements like AI — has caused many leaders to hit the “pause” button, especially when it comes to their workforce.
On the business side, they’re looking for efficiencies, such as enhancing supply chain resilience to mitigate risks associated with geopolitical tensions and trade uncertainties. Nearly three-quarters of U.S. CEOs intend to upgrade their supply chain relationships, up from just more than half a year.
Others are continuing their investments in innovation, particularly AI. A recent McKinsey survey found AI adoption has surged from 55% in 2023 to 78% in 2024.
And a third priority is to maintain the focus on sustainability initiatives, particularly with the advent of Corporate Sustainability Reporting Directive (CSRD) disclosures this year.
Concurrent with these strategies, however, is a rising sentiment that the worst is still to come, and the focus of that fear is on people.
When companies seek to simply survive in the face of uncertainty, it can reflect a defensive mindset rooted in fear and risk aversion. While it may feel safe in the moment, it comes with significant long-term cultural consequences that go well beyond missed opportunities or cost inefficiencies.
This kind of cost-cutting has implications that get to the core of organizational resilience, leadership, and culture.
For example:
There are two takeaways from the COVID-19 pandemic that provide a litmus test for the behaviors that distinguished organizations that survived from the ones that thrived.
First, the pandemic underscored the necessity for businesses to adapt swiftly to changing circumstances. Companies that implemented flexible strategies, such as remote work policies and rapid decision-making processes, managed disruptions more effectively.
In today’s unpredictable environment, maintaining operational agility enables companies to respond promptly to market shifts, regulatory changes, and emerging risks.
Second, we saw the benefits of prioritizing employee well-being and adaptability.
The shift to remote work highlighted the importance of employee well-being and the ability to adapt to new working models. Companies that supported their workforce through flexible arrangements and mental health resources observed sustained engagement and productivity.
A continued emphasis on employee well-being and adaptability fosters a resilient workforce capable of navigating change in business.
Companies that internalized these lessons not only recovered more swiftly, but they are also better equipped to thrive amid ongoing uncertainties.
Uncertainty is not a reason to wait—it’s a call to lead with clarity, alignment, and accountability. In times of instability, the most resilient organizations are those where culture is intentionally shaped to drive the right behaviors and results in response to strategic shifts.
How to Lead During Economic Uncertainty
Organizations that navigate uncertainty successfully:
“In a world of constant change, standing still is the most dangerous move you can make.”
The companies that rise from volatile circumstances aren’t the ones that avoid the storm — they’re the ones that build cultures that can sail through it.
By integrating these cultural strategies, organizations can effectively manage and harness uncertainty, emerging stronger, more resilience, and better prepared for the road ahead.
Contact us today to discover how your organization can drive sustainable business results amid economic uncertainty.
