Business magnate and investor Rupert Murdoch once said, “The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.” Advancing interconnectedness will also play a critical role in a rapid paced future. Companies must develop global strategies to help them expand their operations abroad and remain competitive in a changing marketplace at home, to gain access to talent, technology and millions of new consumers. The steady rate of innovation will also remain a vital influence as we advance into unfamiliar territory. As I describe in my book, Outside In, Inside Out, the future requires strategies that foster innovation and creativity, flexibility and execution speed, all while keeping one step ahead of the competition.
So, what are the trends influencing all this disruption? What do leaders need to pay careful attention to? 2025 is certainly shaping to be a year of immense change, risk and uncertainty. Ignore at your peril these ten hard-hitting disruptive trends that will redefine strategy now, next and beyond.
1. LEADERSHIP: One in ten CEO appointments fail within the first two years.
The 2024 Global CEO Turnover Index reveals a striking trend: CEO turnover rates are rising sharply worldwide, with 15.1 percent of new CEOs leaving within two years—up from a 9.6 percent average since 2019. According to Russell Reynolds Associates, this increase reflects the growing frequency of short-term CEO appointments, often in response to economic challenges. Boards are rapidly replacing CEOs who struggle to strategically navigate today’s uncertain markets and technological upheavals.
As I said in Chief Executive Magazine, “Reflecting on past crises, it’s clear that history tends to repeat itself, with a new disaster every decade—and possibly even faster now.“ Managing risk and uncertainty is the 21st Century’s defining leadership challenge. Leadership is getting hard. In his article, “Leadership in the 21st Century,” Martin Roll emphasizes that today’s leaders must balance short-and long-term goals to navigate mid-to long-term challenges while addressing immediate pressures. The lesson: Leaders face steering organizations from the inside out through digital disruption, evolving workforces, flattened hierarchies and team-based practices—factors demanding more decisive, focused and agile CEOs.
2. GEOPOLITICS: Eight of the world’s 10 most populous countries held elections in 2024, involving four billion voters.
In 2024, the world witnessed a wave of elections affecting over four billion people—more than half the global population. As The Economist reported, this historic election year shook political landscapes across crucial countries and forced companies to rethink everything. With eight of the 10 most populous nations voting, these elections will bring new policies, revised regulations and, often, shifts in trade and alliances.
Each change presents outside-in opportunities and risks for businesses as political leaders review or reverse essential trade, climate and technology policies. The unpredictable impact on established agreements can disrupt everything from investment strategies to long-term planning. As governments change, the realignment of global partnerships adds uncertainty, reshaping economic relationships and diplomatic ties worldwide. The lesson: For businesses, navigating this dynamic political environment requires adaptability and a reimagined stakeholder engagement approach.
3. CLIMATE: 2024 was the hottest year on record.
2024 set a new annual temperature record, capping Earth’s hottest year since global records began in 1880, according to scientists at NASA’s Goddard Institute for Space Studies in New York. Climate change represents one of our time’s most pressing outside-in challenges, emphasizing the need for a cohesive, integrated approach to strategy. As governments worldwide implement regulations like carbon pricing and renewable energy mandates, market dynamics are shifting, pushing companies to adapt swiftly.
Sustainability is no longer an option; it’s license to operate. Companies must weave environmental, social and governance considerations into their strategic frameworks to create sustainable business models. The lesson: Embracing decarbonization and prioritizing sustainability will be vital to navigating the future and will reformulate strategies for years to come.
4. RISK: There’s a 54 percent risk of instability and potential global catastrophes.
In today’s high-stakes business landscape, risk management and adaptability are crucial. J.P. Morgan’s 2024 Market Outlook anticipates sustained volatility, with the market’s risk index climbing even higher than in 2023. As technological shifts, climate concerns and geopolitical instability reshape industries, companies need sharp, integrated strategies to differentiate and stay competitive. Strategy isn’t just about growth—it’s a survival tool in a volatile market where agility, risk management and differentiation define success.
As McKinsey & Company’s findings on trade flows and concentrated production risks show, global interconnectedness brings both opportunities and vulnerabilities. For companies, this means balancing global expansion with local stability, using strategies that anticipate and navigate potential risks. In the face of expected instability, per the World Economic Forum’s Global Risk Report 2024, companies face immediate uncertainties but are also bracing for a decade of potential upheaval. The lesson: Navigating this environment requires business leaders to cultivate innovation, making strategic foresight essential for surviving or thriving in a risky world.
5. RESILIENCE: Only 15 percent of companies in the top growth quartile sustain performance over 30 years.
According to a research report by Harvard Business Review in a group of 10,897 U.S. companies, only about 15 percent in the top growth quartile could sustain their top-quartile performance for at least 30 years. With this backdrop, resilience is a crucial strategic asset for any organization, enabling businesses to adapt to threats, reshape their environments and tackle both expected and unexpected. For resilience to succeed, strategies must be purpose-driven, analytically sound and aligned across all business functions.
Building resilience varies with business size: Larger companies can leverage scale but may lack agility. At the same time, smaller firms benefit from flexibility and should focus on their highest priorities due to capital constraints. Key obstacles to sustainable performance include complacency, short-term thinking and lack of strategic belief. The lesson: The world ahead will be fast-paced and unstable, making resilience essential for overcoming obstacles in 2025 and beyond.
6. TALENT: Only 36 percent of organizations have a comprehensive talent management strategy.
Experience shows that a successful strategy hinges on the capabilities of the people executing it. Talent and capability development is essential to bridging skill gaps, enabling organizations to adapt and thrive. Disney’s launch of Disney+ in 2019 is a prime example: to meet new streaming demands, Disney developed its team’s skills and infrastructure, achieving $8.4 billion in 2023 revenue—a 13 percent rise from the previous year. This alignment of business strategy and talent proved critical.
The challenge is many companies overlook an inside-out talent strategy. Mike Zani, CEO of The Predictive Index, notes that only 36 percent of companies have a talent strategy, and just 12 percent align it with their strategic goals. Companies that do align their strategies see impressive results: they outperform competitors by 16 percent, retain 30 percent more top performers, and achieve 34 percent higher employee performance, according to Zani’s State of Talent Optimization report. The lesson: Surveying six hundred executives, this report confirms that a people-centred approach drives productivity and improves strategic outcomes, with companies achieving a 90 percent success rate when talent is aligned to strategy.
7. DATA: A staggering 175 zeta bytes of data will be created in 2025.
According to IDC, by 2025, global data creation is projected to hit a massive 175 zettabytes. The big data market could top $135 billion, according to Research & Markets, making data the engine of 21st-century economic growth. Organizations everywhere are racing to revamp their data strategies to harness this information explosion, translate it into insights and fuel smarter business decisions.
It comes down to leaders focusing on data as a business asset—balancing control with enablement and clearly communicating its value to the C-Suite. Effective data use requires a decentralized governance model, embedding data in every business function as an organization-wide resource. The lesson: Fostering a data-driven strategy and culture that empowers every team to leverage data intelligently is vital to strategic impact.
8. DIGITAL: Digital investment expect to reach $2.5 trillion in 2024, and $3.9 trillion by 2027.
The value of investments in digital transformation in 2024 was estimated by statista at an incredible $2.5 trillion. These oversized numbers require a thoughtful strategy to ensure digital spending is allocated to the right places to drive business value. Digitalization continues to disrupt traditional business models, so companies must integrate the digital strategy with the broader outside-in, inside-out corporate strategy to remain successful.
Furthermore, digital is also about leveraging emerging technologies such as artificial intelligence (AI), quantum computing, blockchain and the Internet of Things—to improve operations and customer experiences. Interestingly, AI has clearly been the dominant investment theme of 2024 and is the next significant technology wave. According to IDC, spending on AI will be more than $631 billion by 2028. The lesson: Building on a foundation of data, businesses must embrace digital, including AI, as part of their business strategy to stay on top of technological opportunities.
9. OVERLOAD: 64 percent of executives report facing too many conflicting priorities.
A report in Harvard Business Review claims that most executives struggle to maintain focus, with 64 percent citing too many conflicting priorities and 56 percent facing challenges in resource allocation to support their strategies. Michael Porter famously captured this struggle, noting that “the essence of strategy is choosing what not to do”—a principle that’s simple in theory but difficult in practice. Leaders often find it hard to let go of non-aligned initiatives, resulting in an overload that trickles down through their organizations.
This lack of focus can lead to inefficiency, as seen with Yahoo, Inc., whose unchecked diversification in the early 2000s eventually led to a lack of direction and its acquisition by Verizon. Prioritizing effectively requires disciplined decision-making and a willingness to prune low-value projects, freeing up energy and resources for impactful work. The lesson: While it’s easy to get distracted or say everything is important, it is essential to prioritize your efforts on what truly matters.
10. EXECUTION: 90 percent of strategies fail in execution.
According to strategy guru Robert Kaplan’s book, The Balanced Scorecard: Translating Strategy into Action, 90 percent of organizations fail to execute their strategies successfully. In today’s fast-paced business environment, a well-crafted strategy means little without flawless execution. Many companies excel at strategic planning but stumble in the follow-through, lacking the structures and processes to turn vision into reality.
My experience has taught me that execution falters due to weak alignment, limited resources, poor communication and ineffective performance measures. Strategic initiatives, from launching new products to expanding markets, require structured coordination and commitment across teams to be successful. This approach boosts agility in today’s changing marketplace and fosters accountability by clarifying roles and goals. The lesson: Without robust execution, even the best strategies fail to deliver results. Execute, execute and execute some more.
Navigating tomorrow: Using strategy to drive sustainable success.
As the world accelerates through unprecedented change, the need for flexible and forward-thinking strategies has never been more critical. Rupert Murdoch’s words ring true: It’s no longer about being big; it’s about being fast. To thrive in this dynamic environment, companies must develop strategies to tap into new markets and talent, embrace the relentless pace of innovation and do it quickly. Organizations that prioritize agility, creativity and data-driven insights will be the ones that win.
In 2025, strategic resilience will be essential, with leaders facing challenges from geopolitical instability to climate change. Most strategies falter during execution, underscoring the need for a robust alignment between leadership and operational teams. Companies that cultivate a culture centred on talent and capability while embedding sustainability into their foundation will weather disruptions and seize opportunities in this ever-changing world. The future belongs to those who can balance innovation and resilience with an unobstructed vision—now is the time for organizations to reimagine their strategies and propel themselves forward.
