Like the rest of the world, Asia faces an uncertain future following the US announcing trade tariffs to most of its trading partners.
As Asia faces ongoing economic volatility marked by trade wars, cyber threats, and supply chain disruptions, Chief Operating Officers (COOs) must adopt proactive strategies to ensure organisational resilience. According to Forrester's recent report, "How To Thrive Through Volatility," leaders should focus on optimising technology investments, driving change, and managing risks effectively to navigate this uncertain landscape.
1. Optimising technology investments
In a climate of unpredictability, it is crucial for organisations to optimise their technology investments rather than resorting to reactive cost-cutting measures. Forrester emphasises the importance of streamlining technology by eliminating redundant software and renegotiating contracts to enhance efficiency. This approach allows organisations to maintain momentum in their digital transformation efforts, ensuring they remain agile and prepared to leverage emerging technologies like AI.
2. Reaffirming brand value and customer focus
Understanding customer segments and adjusting brand value propositions in response to market shifts is essential. Leaders should prioritise customer engagement and feedback to refine their offerings, ensuring they meet evolving needs during turbulent times. This customer-centric approach not only strengthens brand loyalty but also positions organisations to seize new market opportunities as competitors retreat.
3. Leading change effectively
To thrive amid volatility, COOs and CIOs must excel at leading change within their organisations. This involves fostering a culture of transparency and continuous learning. By implementing bidirectional listening strategies and encouraging employee upskilling, leaders can build confidence and clarity, which are vital for navigating change successfully.
4. Proactive risk management
With over 40% of leaders citing economic uncertainty as a primary concern, proactive risk management is critical. Forrester recommends a holistic approach to managing risks, which includes:
- Enterprise Risks: Risks tied to organisational strategy that are fully controllable.
- Ecosystem Risks: Risks arising from third-party relationships that can be partially controlled.
- External Risks: Uncontrollable risks, such as tariffs and geopolitical tensions.
Creating scenario plans for each risk type enables organisations to anticipate various outcomes and develop adaptive strategies.
Frederic Giron, VP and senior research director at Forrester, highlights the importance of scenario planning: “In this volatile environment, it is imperative for business and tech leaders to engage in comprehensive scenario planning to anticipate various outcomes and develop adaptive strategies that ensure organisational resilience”.
As COOs in Asia prepare for 2025, embracing these strategies will be essential for navigating the complexities of an unpredictable market. By optimising technology investments, focusing on customer needs, leading change effectively, and managing risks proactively, organisations can position themselves for success in a rapidly evolving landscape.
