From trade wars and cyberattacks to supply chain chaos and geopolitical instability, the economic curveballs keep coming. Forrester says waiting for calm is a losing strategy.
In its new report, How To Thrive Through Volatility, the research firm urges business and technology leaders to resist the instinct to freeze spending and ride things out. Instead, it argues, the most resilient organisations will be those that act decisively, reallocate resources wisely, and continue investing in areas that set them up for future growth.
Forrester is pushing for what it calls “fierce optimisation”, such as simplifying tech stacks, eliminating redundancies, and renegotiating contracts to drive efficiency without undermining long-term value. Leaders should also press ahead with modernisation efforts that boost agility and prepare organisations to make the most of AI and other transformative technologies.
Offensive strategy is key
While some companies are tempted to play defence, Forrester says the offensive strategy is key. That includes tightening focus on the customers who matter most and realigning brand value to meet shifting expectations in a volatile climate.
In unpredictable times, employees want clarity, in which case transparent communication, active listening, and a culture of constant learning need to be implemented.
Risk, of course, is everywhere and it’s growing. More than 40% of business and tech leaders flagged economic uncertainty as their biggest concern. Forrester advises companies to take a layered approach to risk management, separating what they can control internally, what they can influence through partners, and what’s completely outside their control, like tariffs or geopolitical events, and building scenario plans accordingly.
Sharyn Leaver, chief research officer at Forrester, said: “Five years after the pandemic, the business world, in many ways, feels even more tumultuous and unpredictable. Unlike five years ago, when the source of the disruption was a single, unknown pathogen, today’s volatility comes from a myriad of forces beyond leaders’ control. Yet there is opportunity in disruption — even in times like these. By taking charge and refocusing on tech resource and spend optimisation, change leadership, and risk management, leaders can prevail where their competitors can’t — unlocking new areas for innovation and growth.”