NAVIGATINGTHE VORTEXLeading Strategies For The C-SuiteHector NelsonDr. Michael WagnerVlad GilBastian LuxLivia Dinu © Oliver WymanEXECUTIVESUMMARY © Oliver WymanBusinesses worldwide find themselves in an era ofintense geopolitical turmoil, economic volatility,and financial pressures.Now more than ever, they arelooking for transformative moments to drive financialhealth and improve performance. Yet transformationsuccess remains elusive, with few achieving theirdesired outcomes. Companies grapple with a myriad ofchallenges, from unpredictable tariffs and escalatingglobal tensions to the sweeping influence of artificialintelligence (AI) on the productivity landscape.The 2025 edition of our global PerformanceTransformation report, drawing insights from500 C-suite executives across 13 industries and22 countries, lays bare the daunting natureof transformations. We explore differences in55%Profitability emerged as the predominant priority among executives surveyed.CEOs focused on strategic vision and long-term growth, while other C-suite executivesemphasized operational efficiency. The focus reflects a shift toward financial healththrough cost management, operational efficiency, and strategic investments forhigher margins.of executives are prioritizingprofitability improvements69%Facing fierce competition and economic strains, organizations are set to slashcosts over the next year.They are prioritizing strategic efficiency improvements overindiscriminate cost-cutting, focusing on creating flexibility through technologysolutions and process automation, while largely avoiding drastic workforcereductions. However, the complexity of existing processes, ongoing marketuncertainties, and the need to maintain quality standards loom large. Many firmsgrapple with sustaining lean cost structures, underscoring an urgent need for robuststrategic planning.of organizations aretargeting cost reductions61%Extremely fast-paced tech advances, such as the recent introduction of AI videogeneration, deep research, and agentic AI, have started to push executives pastthe early stages of the technology’s capabilities.Leaders are moving beyond pilotsmainly aimed at enhancing operational efficiency and customer personalization, focusingon critical challenges and investments that drive breakthrough impact. Those that placedbold bets and invested accordingly to successfully complete full AI deployment are startingto see real results, outpacing competitors with greater than 40% capacity gains. Firmsthat hesitated and continued to experiment are struggling to see full return on investment,with 25% or less expected capacity gains.of organizations are movingfrom experimentation withAI to mainstream adoption,completing pilots andimplementing full solutions68%Geopolitical tensions have reached a critical point, demanding immediate attentionand action.The biggest risks? Regulatory shifts, supply chain instability, economicsanctions, trade policy changes, and tariffs. Addressing these challenges is no longerjust a defense strategy but integral for managing operational costs and supportingsustained profitability. Industries most exposed (industrial products, utilities,consumer goods, and transportation) are already taking action through initiativesto diversify supply chains, localize production and sourcing, strengthen riskmanagement and compliance, refine crisis response, and bolster cybersecurity.of executives expectdisruption due togeopolitical tensionPROFITABILITY IS KING perspectives between CEOs and other C-suiteexecutives, as well as the shifts in dynamics based oncompany size, to illuminate internal alignment issuesand provide tailored guidance.This report not only breaks down the dynamics at playbut also arms leaders with bold, actionable strategiesto drive sustainable change. We urge executives toalign their teams, foster collaboration, and adaptswiftly to emerging technologies to achieve enduringsuccess. Leaders must master the art of turningobstacles into strategic opportunities and consistentlymeasure progress to stay ahead in this competitivelandscape. These insights and more from our reportwill allow you to transform your organization withconfidence andagility. 3 © Oliver Wyman30%Transformations are multifaceted, and are increasingly challenged by a volatileand complex global landscape.Moving forward, success hinges on not just survivingdisruptions but also harnessing advanced technologies like AI as part of broader effortsto "future-proof" operations, a priority highlighted in our 2024 report. Barriers to successhave evolved; organizations that were once hesitant are now embracing technology shiftsand prioritizing clear communication. Lessons learned from 2024’s challenges arebeing applied, as many leaders embrace adaptive models and prioritize organizationalculture to enhance transformation success. Successful companies emphasize tangibleimpacts, rapid adaptability, and a bold, inclusive culture while focusing on key metrics.In co