Navigating a Sea Change

Politics

HIGHLIGHTS
The transition to a new presidential administration highlights political divisions and antipathy that are more extensive and extreme than ever before. The incoming administration has indicated upcoming policies focused on imposing tariffs on imported goods, restricting immigration, raising wages and ending international political conflicts. Pending cabinet positions and influential appointments will influence how the administration’s agenda plays out for businesses.

INSIGHTS
Leaders will need to regularly monitor internal and external political pressures for their organizations. Organizations with clearly defined values and listening practices will be better suited to assess team attitudes and navigate potential policy impact on employees, customers and partners. Coordinating regularly with Legal and Compliance, HR and Communication teams can help identify emerging issues and ensure a timely response in the event of a crisis. 

Economy

HIGHLIGHTS
Cooling inflation rates and recent interest rate cuts signal a period of stability and strength for the U.S. economy. Households are expected to feel more comfortable taking on debt and spending, while a rise in infrastructure projects will spur growth in construction, productivity and hiring. However, political, social and environmental factors like cyber vulnerabilities, extreme weather and geopolitical turmoil have the potential to disrupt global supply chain health.

INSIGHTS
Businesses should anticipate a period of cautious growth and activity, as consumers and industry alike feel more comfortable spending. A clearly defined value proposition will help businesses stand out against competition. Contingency planning for risks related to supply chain and digital solutions will help ensure leaders can successfully manage through potential crises.

Technology

HIGHLIGHTS
Digital tools and solutions, from artificial intelligence to digital twins, are now commonplace in business operations. Employees continue to express uncertainty about the impact of AI solutions on their roles. Businesses face increased risks from threats to cyber security and compromised data privacy. Digital security management and monitoring will be particularly important for both corporate and manufacturing settings.

INSIGHTS
Leaders should move from asking ‘do we use AI?’ to ‘how do we use AI?’. With data privacy and security increasingly under threat, establishing robust processes and use regulations around AI and data and communicating your approach to stakeholders will help organizations build trust inside and outside operations.