Inflation, geopolitics, supply-chain issues, labor costs, divisiveness, unsettled equity markets, and stakeholder expectations seem to “change the game” daily.
by Tim Ryan
For Harvard Business Review
Illustration: Lucy Jones
Summary.
Change is difficult — and managing through it might even be more challenging. Yet, with today’s pace of change, CEOs have no choice but to be even more aggressive with their change efforts in order to stay competitive. To successfully lead their companies through change, today’s CEOs must take four actions: 1) Prioritize what matters most; 2) Invest in building trust with your stakeholders; 3) Simplify your portfolio; and 4) Prepare for shareholder activism.
Every year I have the privilege to meet with hundreds of CEOs and leadership teams to discuss their business. In the past year, nearly every leadership team I’ve sat down with is grappling with the need to make changes and drive transformation.
Inflation, geopolitics, supply-chain issues, labor costs, divisiveness, unsettled equity markets, and stakeholder expectations seem to “change the game” daily. These factors all make for uncertain times. Leaders are looking at their initiatives and broader business plans and exploring where adjustments and even larger changes are needed. In recent months, many CEOs I’ve spoken with feel as if they are focusing more on “downside risks” than “upside opportunities.” And leaders seem a little less confident and more skeptical about where the economy is headed.
