The readiness gap
The findings in this study reveal a gap between leaders’ confidence in their ability to handle disruption and whether their plans account for it. It also shows that CEOs, CFOs, and CIOs don’t always agree on which risks matter most.
Insight 01
Nearly every company faced disruption last year.
We defined disruption as something outside a company’s control that interferes with running the business. Leaders cited systems that couldn’t scale, tariffs, supplier issues, new competitors, and critical roles they couldn’t fill as primary disruptions. Nearly every company faced at least one of these disruptions in the past 12 months. Most faced more than one. And only 5% of companies weren't negatively impacted.
The impact
When 95% of executives report disruption, a business plan that doesn’t account for it puts execution and critical business objectives at risk.
were disrupted by something outside their control in the past 12 months
were disrupted more than once
Nearly everyone was disrupted, most more than once.
Insight 02
Leaders say every part of their business is ready.
Across ten areas of the business, including operations, finance, technology, and cybersecurity, most executives said they were “prepared.” The scores varied little from one area to the next.
The impact
If every area looks equally ready, executives risk spreading investment evenly instead of strengthening functions, systems, and decisions that will decide whether the company can keep moving through disruption.
call each area prepared
points separate the highest-rated function from the lowest
Across ten areas, leaders report similar levels of readiness.
Insight 03
Confidence outpaces planning at every company size.
Across revenue segments, leaders are more confident they can handle disruption than their planning would suggest. The contrast is sharpest among companies with $2 billion or more in revenue: 61% are very confident they could handle a major disruption today, yet more than half say their planning rarely or never accounts for unexpected events. These companies review known risks more often than any other group, but show the clearest gap in turning that awareness into a plan the business can act on when disruptions happen.
The impact
When an unexpected disruption hits, executives need teams to make decisions quickly, protect delivery, and keep commitments to customers. Confidence in readiness doesn’t tell them whether that will happen.
of leaders at $2B+ companies are very confident they could handle a major disruption
of the same companies rarely or never plan for the unexpected
As company size increases, confidence grows while planning for the unexpected declines. For organizations looking to continue scaling and innovating, that confidence needs to translate into a plan that can keep the business moving through disruption.
Insight 04
Everyone is acting. Few are acting together.
Across industries and segments, we asked companies a key question: What steps did you take over the last year to prepare for disruptions? Leaders named eight core actions including updated continuity plans, increased cash reserves, improved scenario planning, and strengthened cybersecurity. But even the most common preparation step was taken by fewer than four in ten companies.
The impact
A plan is only as valuable as the perspectives involved in building it. Establish a clear, shared direction to achieve resilience through the unexpected.
actions companies took to prepare this year, each named by about a third
were starting, finishing, or rewriting a strategic plan at the time of the study
Eight actions to prepare, each taken by about a third. Almost none came together as a larger plan.
Insight 05
The biggest opportunity isn’t technology. It’s people.
Across 21 different areas including AI, data privacy, regulatory compliance, and economic uncertainty, leaders named specialized talent as their companies’ top priority. Employee engagement, retention, and workforce reskilling also ranked in the top six issues for businesses. As technology initiatives continue to scale, leaders need teams that can evolve with their platforms.
The impact
While AI led every agenda this year, the issue leaders named most was people.
of leaders ranked the talent shortage and skills gap in the top 3 of 21 issues
of $2B+ companies cited upskilling employees this year as a major focus
The talent shortage tops 21 issues.
The truth
The gap between confidence and preparation.
Leaders responded to two key questions in this study: How confident are you that your company can handle a major disruption? How often does your planning account for the unexpected? And while 92% of leaders are confident in their companies’ ability to navigate the unexpected, only 47% are actively taking steps to prepare for it. That gap expands the risk that CEOs, CFOs, and CIOs are already seeing differently. But by planning for the unexpected, companies can keep modernization efforts, finance transformation, and hiring initiatives moving forward as the landscape changes.
The impact
are confident their company could handle a major unexpected disruption today.
say their planning accounts for the unexpected often or always.
points between the two responses.
1
Where you sit changes what you see.
When you ask the CEO, CFO, and CIO of a company the same questions, you don’t just get one view of the business. You get three: the CEO sees each function as ready. The CFO sees roughly twice the risk the CEO sees. And the CIO sees functions as individually ready, but the company as unprepared as a whole. Each view reflects a unique visibility into the business’ performance, but the true risk arises when these perspectives aren’t brought together.
2
Each seat provides valuable perspective. The gap comes from a lack of alignment.
Separating the three views creates fragmentation for any plans you begin to build. But by bringing together the three perspectives, you address the readiness gap. The companies best able to navigate disruption are the ones whose leaders are highlighting the blind spots across functions, connecting the pieces across teams, and planning for the entire business.