The power of resilience and reinvention in a shifting landscape
Resilience and reinvention are essential for companies facing disruption. Far beyond corporate clichés, these terms describe attitudes that can define the present and the future of your company
This year, PwC launched its 28th annual Global CEO Survey, based on responses from almost 5,000 chief executives from every corner of the world. Among the many points presented, one raises a yellow flag: four in ten CEOs (42%) say their company will remain viable for less than ten years if it continues on its current path. I bet that number could be even higher if we consider those leaders who are in denial about their realities.
And this is not about alarmism, but about focus in a disruptive, shifting landscape. For context, in 2022, only 49 companies from the original Fortune 500 list of largest companies had remained there since its creation in 1955 – that is, less than 10%. Over the years, many left this select group and others simply ceased to exist. That’s why these two concepts that are currently in vogue deserve a lot of attention: resilience and reinvention.
The latter, in fact, is also addressed by PwC, which points out how the sector boundaries are blurring. According to the survey, almost 40% of CEOs say their companies started to compete in new sectors in the last five years. However, over the same period, only 7% of revenue, on average, has come from distinct new businesses. This shows how long-term diagnosis is only the first step and that initial actions may not generate immediate results.
Resilience, a solid foundation for change
Before addressing the issue of reinvention, however, I want to talk about resilience, which I consider a positive attitude of adaptation in the face of contingencies, and which serves as a foundation for any enterprise to make the necessary changes in its course. According to McKinsey & Company:
“In business, resilience means dealing with adversity and shocks and continuously adapting for growth. Truly resilient organizations don’t just bounce back better; they actually thrive in hostile environments.”
About these hostile environments, another McKinsey report, Resilience Pulse Check, based on insights from a survey of more than 250 private sector leaders across industries and regions, shows how businesses are trying to deal with it, and I highlight here 10 major threats that those leaders see:
Trends expected to be a major or severe disruption for organizations
- 52% – Technology, e.g., cybersecurity, generative AI
- 51% – Regulatory changes, e.g., policy shifts, compliance
- 44% – Changing market dynamics and customer preferences
- 43% – Macroeconomic factors, e.g., trade policies, inflation
- 42% – People and workforce, e.g., talent shortages
- 40% – Supply chain disruptions and resource availability
- 37% – Geopolitics, e.g., international conflicts
- 27% – Climate change and rising importance of ESG
- 27% – Misinformation and disinformation
- 19% – Societal and political polarization
Source: McKinsey & Company / IMF, 2025
Reinvention, the future shaped to our will
These findings resonate with the excellent article How to Strategize in an Out-of-Control World, from MIT Sloan Management Review, which cites an analysis of nearly 7,000 organizations over a 20-year time frame showing that variance in company profitability can increasingly be attributed to factors that lie beyond the company and its industry. Contextual factors – geopolitics, technology, climate, etc. – now account for 43% of the variation in the net profit margins of corporations.
It’s an astounding number. But there’s no need for pessimism, just recall how your companies acted during the pandemic. Virtually all firms accelerated their digitalization processes, many optimized supply chains, improved production processes, attracted and retained talent, and even created new businesses, successfully innovating (by the way, I discussed the role of innovation in my first newsletter’s article, in late 2024, The Quest for Innovation and the Natural Order of Things).
That’s no small feat. However, business reinvention is not a linear process, and it may not bring quick results, as PwC showed. But it needs to be on the CEOs’ radar, because it’s better to anticipate this process than to be forced by circumstances. Here are some points I believe should be considered:
Business model and context – Keep an eye on trends, demographic changes, new needs – many niches can become mainstream. Also pay attention to the (geo)political environment, new values, etc. Anticipate;
Weak links – Based on disruptions in recent years, imagine what your company’s weak points are for the future and how to minimize them (supply chain, talent retention, ESG liabilities, climate change, technology);
Core values and uniqueness – No matter the product or service, if consumers believe in your values, they will give you a chance. Also be clear about your differentiators and competitive advantages;
Strategy and change fatigues – Avoid constant changes without planning, don’t shoot in all directions; communicate properly with your teams and maintain your objectives and mission. Reinvent yourself with focus.
The good news is that as long as there are needs, there will be business opportunities. As consumers, we will continue to seek products and services; as people, we will continue to value trust-based relationships and shared values. As Dennis Gabor, the Nobel Prize physicist, said, “the future cannot be predicted, but futures can be invented.” Let’s endure and reinvent our companies’ futures.
Leading Questions About Resilience and Reinvention
Why are resilience and reinvention critical for today’s companies?
Resilience helps firms adapt to shocks and adversity, while reinvention ensures they stay relevant amid shifting markets and disruptions.
What are the top threats organizations face in the current landscape?
Major threats include technology changes, regulatory shifts, evolving customer preferences, macroeconomic factors, talent shortages, and supply chain disruptions.
How do contextual factors affect company profitability?
External factors like geopolitics, technology, and climate now account for 43% of the variation in corporate net profit margins, making adaptability crucial.
Is business reinvention a quick process?
No, reinvention is not linear and rarely delivers immediate results. It requires ongoing effort and should be anticipated, not just a reaction to crises.
What’s a positive outlook for companies amid uncertainty?
As long as there are needs, there will be business opportunities. Trust-based relationships and shared values remain vital for enduring and inventing the future.
