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NEW YORK–(BUSINESS WIRE) – Despite the general impact of COVID-19, global business leaders cited numerous disruptions in their business that are believed to be more impactful than the pandemic. This came from a report released today by AlixPartners, the global consulting firm. The AlixPartners Disruption Index 2021 surveyed global CEOs and executives to examine attitudes towards the forces reshaping business. Business leaders say new and evolving competition, technology-driven processes and regulations are more disruptive to their businesses than COVID-19.

The report shows that executives are planning new waves of disruption in a post-pandemic world. From internal workplace guidelines to comprehensive business strategies, leaders prepare for permanent changes in their focus on employee health, leadership training, and investment areas.

“The data shows that, despite its acute effects, executives generally view COVID-19 as less effective than longer-term business challenges such as automation or environmental issues. Given the tremendous impact of the pandemic we are witnessing around the world, this underscores how strong and dynamic the forces of disruption are in today’s business climate. Disruption is clearly the new economic driver, ”said Simon Freakley, CEO of AlixPartners.

Finding clarity in chaos: leadership in the event of disruptions

85% of global executives state that disruptions are the most important strategic challenge facing businesses and society, but only 37% have great confidence in their ability to overcome them. In fact, 51% of C-suite executives are concerned about losing their jobs due to the disruption in their industry. Despite this challenging context, almost 4 out of 10 executives saw their organization in a better place than a year ago.

“2020 was a high-pressure, high-stakes year for companies, but the best performing executives have been vigilant of disruption and by being aware of it and actively engaging with it have driven their businesses forward,” said Freakley. “Successful managers find opportunities in chaos and complexity. They think about the effects of disruption to encourage a proactive response that not only mitigates but harnesses today’s many disruptive forces. ”

When successful leaders are the ones who see disruptions as an opportunity for their business, nurturing this approach across their organization becomes a critical leadership role. 52% of global leaders believe that a talent gap leaves their organization vulnerable to disruption, which climbs to 59% in the C-suite. Rather than investing in new technology, cited by 53% of executives as the top strategy for withstanding disruption, many feel more urgent to close the talent gap when faced with disruption.

Freakley adds, “Recruiting top talent has long been a concern of leadership. A severely disrupted business environment brings a new focus to this topic as tackling the challenge of the disruption requires not only a change in skills but also a change in mindset. In the face of persistent disruption, the most successful companies will rely on world-class digital tools and techniques coupled with agility of thinking, quickness of action, and a relentless focus on execution. ”

Further results of the survey are:

• Executives who consistently think about the effects of disruptions – on their company, their employees or their personal job security – see their companies as better off today than they were a year ago. 39% of executives surveyed around the world say their organization is doing better now than it was a year ago. Almost 40% of executives who are better off see disruption as an opportunity, while almost the same percentage of executives who say they are worse off see it as a threat.

• 65% of global leaders say they are severely affected by two or more disruptive forces. In order to react to disruptions, companies take an average of three to four measures. The answer most often given is to invest in new technology – 53% of global executives do.

• Executives in China (50%) and the United States (48%) in all markets are confident that their companies can withstand disruptive forces (compared to 37% globally, 37% are very confident). Italy (31%) and Japan (24%) are the markets with the fewest executives who say they are very confident of withstanding disruption. Almost one in three (31%) executives in the UK and Japan see disruption as a threat to their organization rather than an opportunity (up from 23% globally).

• 37% of executives worldwide in all industries are very confident that they can withstand disruption. Despite this turbulent year, Aerospace & Defense executives are most confident that their companies can withstand disruptive forces (45% very confident), while Automotive executives are the least confident (29% very confident).

Click here to read AlixPartners’ full 2021 Disruption Index.

About the report

The AlixPartners Disruption Index 2021 is the global consultancy’s survey of executives’ attitudes towards the forces reshaping business. 3,149 executives in the USA, Canada, Great Britain, France, Germany, Italy, Switzerland, China and Japan took part in the survey between November 16, 2020 and January 4, 2021. Executives include Aerospace & Defense, Automotive, Consumer Goods, Financial Services, Media & Entertainment, Retail, Technology, Telecommunications and Cable. All respondents were between 25 and 65 years of age, in a managerial position or above, and in a company with sales above $ 50 million. Please visit disruption.alixpartners.com for more information.

About AlixPartners

AlixPartners is a results-driven global consulting firm specializing in helping companies successfully address their most complex and critical challenges. Our clients include corporations, corporate boards, law firms, investment banks, private equity firms, and others. AlixPartners was founded in 1981 and is headquartered in New York. The company has offices in more than 20 cities around the world. More information is available at www.alixpartners.com.