Global CEOs see crisis as opportunity amid chaotic global market
CEOs of the world’s largest companies feel more ready than ever to benefit from current economic, technological, and geopolitical challenges. A new study suggests leaders are ready to embrace disruption for growth – but they may be complacent when it comes to how robust their organisations are in the meantime.
2025 has already seen huge changes to the global trade regime which had become the norm of the past three decades. With the imposition of huge tariffs on imports, the US government has sent shockwaves through the international supply chain, and dramatically devalued the dollar.
Amid the chaos, however, many firms are standing by their old maxim: every crisis is an opportunity. Capitalism’s defenders have always championed its dynamism – each collapse motivating a new generation of innovators to transform and grow the market – and according to a new study from Arthur D. Little, many corporations still cast themselves in this role with regards to the current state of affairs.
ADL’s latest ‘CEO Insights’ study suggests that corporate leaders are proactively embracing the opportunities created by unprecedented, ongoing change, whatever their sector or location. The historic consulting firm polled 309 CEOs from companies worldwide, with turnover of more than $1 billion – 23% of whom had an annual revenues of more than $10 billion – and found that at the time of writing, CEOs are (at least presenting as) feeling confident about future business prospects.
A robust 97% said the medium-term global economic outlook was likely to improve or remain stable over the next three to five years. This included 75% believing things would improve, up from just 22% two years ago. With a positive outlook for the future, the CEOs added that they would now be investing to drive growth.
Across Europe, Asia, the Middle East/India, Africa, and North and South America, CEOs aim to invest between 1% and 2% of their revenues in performance initiatives to achieve around 8% annual productivity improvements over the next three years. The CEOs who are most positive about future global economic growth are spending most, but have the highest expectations, looking for performance gains of above 9%.
Europe’s five largest economies were most guarded about their prospects. While they were set to invest the largest amount in a productivity gain, of 1.87%, they also suggested they expected the smallest productivity boost in return, of 7.9%. In contrast, North America sees companies investing the joint lowest amount of 1.67%, while expecting a larger 8.23% boost. How reflective of the economy’s prospects this is are up for discussion though – and with most nations forecasting far slower growth, there may be an element of not wanting to upset an American government which has made it clear it will make life hard for those who voice doubts about its economic project.
At the same time, though, ADL’s study suggests that some CEOs may not just be pragmatically going along with the ride – and that perhaps their critical faculties may be lacking when it comes to their own operations. All CEOs surveyed felt that their current organisation was at least adequate to cope with a volatile world. However, 51% described their organisation as simply being “good enough,” a term that doesn’t exactly inspire confidence, while only 4% stretched to suggesting they had market leading potential. They also believe their people have the right capabilities, with 90% describing the need for reskilling as moderate or limited.
Warning against this complacency, ADL’s researchers summarised, “CEOs should recognise that even if their organisational structures are currently “good enough,” they may not be sufficiently robust for the future. Now is the time to conduct measured, in-depth critical assessments of their structures and skills, and act on the results to adapt and transform their organisations.”
