By 2025, many companies have seen their carefully crafted strategies unravel almost overnight. The ongoing trade war, fragile consumer confidence, inflationary pressures, and a weakening U.S. dollar have conspired to disrupt the once-stable foundations of strategic planning. What were once solid, long-term business plans have become as useful as outdated weather forecasts.
In such volatile times, it’s easy for organizations to fall into a state of paralysis—hesitating to act while waiting for clarity. Yet waiting for perfect information is no longer a luxury companies can afford. The world won’t pause, and businesses that remain idle risk falling behind. Instead of chasing perfection, companies must embrace progress, acting swiftly even if solutions are only 80% complete. Flexibility, not rigidity, is the currency of survival.
Fortunately, there are several decisive actions organizations can take immediately to stabilize their position, safeguard value, and build resilience. These moves transcend specific business models or industries and serve as a practical compass in turbulent waters. Let’s explore the four critical steps companies can implement to rescue and adapt their strategies in the face of disruption.
1. Prioritize Liquidity and Financial Flexibility
In times of upheaval, cash is both a shield and a sword. It defends against financial shortfalls and equips companies to seize emerging opportunities. Yet, surprisingly few organizations treat cash management as a top priority during periods of disruption. Data from the AlixPartners Disruption Index shows that only 24% of companies list cash management among their primary concerns when navigating crises.
The risks are significant: disrupted supply chains, delayed payments, fluctuating currencies, and distressed customers can quickly turn into liquidity crises. During the COVID-19 pandemic, for instance, nearly 40% of European companies would have faced serious liquidity issues without government intervention.
Two swift actions can dramatically improve a company’s cash position: enhancing forecasting and aggressively managing working capital.
Forecasting inaccuracies often lead to overproduction, excess inventory, and misplaced funds. Many organizations fail to account for the granular impact of variables like tariffs across all products and suppliers. However, forecasting can be significantly improved within weeks. One healthcare company, for example, leveraged AI-powered supply chain tools to boost forecasting accuracy from 80% to nearly 90% in just 30 days—uncovering millions in idle cash in the process.
Working capital management is equally crucial. Many companies still pay invoices early due to outdated payment processes or lack of oversight. Receivables often suffer from delayed invoicing and insufficient tracking of late payments. Even inventory levels, though harder to optimize quickly, can benefit from disciplined cash flow analysis and proactive reviews. AI tools can further enhance these efforts by identifying payment inefficiencies, flagging at-risk customers or suppliers, and accelerating financial decision-making.
2. Sharpen Commercial Execution
In the face of economic headwinds, many companies instinctively cut back. Yet, the more effective approach is often a combination of retrenchment and offense—finding tactical ways to boost revenues even as the broader market contracts.
There are almost always untapped opportunities within a sales organization: overlapping customer accounts, inefficient coverage models, underutilized upselling potential, and inconsistent sales productivity. Companies can also explore targeted price adjustments to offset rising costs, particularly for premium products where customer willingness to pay may be higher than expected.
One key area that deserves focused attention is customer retention. Acquiring new customers becomes increasingly challenging during downturns, making the preservation of existing relationships even more valuable. Consider the case of a $2 billion technology services firm that achieved a 10% improvement in renewal rates—worth $100 million—within a year. This success came from segmenting customers by lifetime value, creating tailored product bundles, and restructuring sales and service incentives. AI-powered models can help identify customers at risk of churning, enabling businesses to intervene with targeted retention efforts, such as establishing dedicated “save desks.”
Such retention improvements can be substantial and self-reinforcing, yet few companies fully leverage these opportunities. Research indicates that only 15% of companies offer premium customer support while maintaining cost efficiency—a competitive edge waiting to be seized.
3. Double Down on Your Most Profitable Customers
Not all customers contribute equally to profitability, especially during challenging times. Savvy organizations invest time identifying which customer segments, products, and channels generate the greatest returns.
This type of profitability analysis doesn’t require months of exhaustive research. Even preliminary, back-of-the-envelope calculations can provide actionable insights that help companies refocus their efforts on the most lucrative segments. These profitable core customers should receive heightened attention, as they represent the bedrock upon which long-term strategic recovery can be built.
Understanding where profits concentrate allows businesses to make smarter decisions about resource allocation, product offerings, and pricing strategies—all critical factors when navigating uncertainty.
4. Strengthen Risk Management and Cybersecurity
In an era of escalating digital threats and unpredictable global dynamics, unmanaged risk can quickly undo even the best-laid recovery plans. Unfortunately, cybercriminals and hostile actors often capitalize on periods of instability.
Executives worldwide are taking notice: nearly half now rank cybersecurity among their top concerns—a dramatic rise from the previous year. Any significant adjustments to financial systems, IT platforms, or supplier networks can introduce new vulnerabilities. Even long-trusted partners may find themselves in distress, creating ripple effects throughout supply chains.
Comprehensive cyber audits are essential. These should include both internal assessments of existing protocols and external stress tests conducted by impartial experts. In addition, third-party risk management (TPRM) must be elevated, as the number of breaches involving external suppliers has doubled in recent years. Using AI, companies can now rapidly assess supplier risk across multiple tiers, anticipate emerging threats, and prioritize mitigation efforts.
Supplier diversification, scenario planning, and contractual stress testing should also form part of a modern, robust risk management framework. Quick action in these areas can prevent isolated vulnerabilities from cascading into systemic crises.
A Dynamic Compass for Strategic Recovery
While these four initiatives won’t replace a comprehensive long-term strategy, they buy precious time, create flexibility, and provide a resilient foundation upon which to rebuild. What distinguishes the companies that successfully navigate turbulent markets isn’t the precision of their original strategy but their willingness to adapt quickly with imperfect information.
Winning companies exhibit two defining qualities: the courage to act decisively amid uncertainty and the discipline to stay focused on four guiding principles—cash, commercial effectiveness, customer profitability, and risk management. Rather than waiting for clarity, they transform volatility into competitive advantage, learning and adjusting along the way.
In today’s environment, rigid, static strategies preserved in polished PowerPoint decks are increasingly obsolete. The future belongs to organizations that embrace emergent strategy—responsive, flexible, and grounded in real-time realities. For these companies, disruption isn’t a threat; it’s a proving ground.
