Amid the NAVI (nonlinear, accelerated, volatile and interconnected) environment that businesses are in today, uncertainty has become the norm. According to the latest edition of the EY-Parthenon CEO Outlook survey, 57% of global CEOs believe current geopolitical and economic uncertainty will last well beyond this year, with 24% expecting it to last over three years. 

A separate EY-Parthenon study found that companies that proactively undertook transformative actions saw outperformance by 13 percentage points based on total shareholder returns (TSR), compared to those that were reactive. Hence, the NAVI environment is an opportune time for business leaders to proactively rewire their corporate strategy and transform their organisation for growth and to maximise value.

Indeed, for forward-looking CEOs, the focus is not just on weathering disruption but on rewriting the rules of growth and transformation with a long-term lens. This rising confidence reflects a growing acclimatisation to uncertainty. 

Continuous transformation is the new mandate 

Three strategic imperatives define their approach. Transformation today is about more than cutting costs or streamlining operations. It involves reshaping business models, entering new markets and leveraging emerging technologies to create a competitive advantage. Resource reallocation and bold investment decisions are enabling organisations to capture growth ahead of the curve and future-proof their operations. 

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The survey mentioned above found that about half of global CEOs plan to increase their investments to accelerate portfolio transformation in the next 12 months. Another sizable proportion intended to maintain current levels — underscoring that transformation is no longer a short-term project, but an ongoing commitment embedded across functions and enterprise-wide. This sustained commitment reflects the recognition that adapting to shifting market dynamics and customer expectations is essential for long-term value creation. 

Whether accelerating or maintaining their transformation efforts, leading CEOs understand that reimagining the enterprise and executing with precision are central to funding and realising their strategic ambitions.

Strategic shift to localisation and regionalisation

The traditional model of globalisation is being redefined. Trade tensions, tariff regimes and geopolitical disruptions have prompted CEOs to recalibrate their global strategies. Rather than waiting for equilibrium to return, leading executives are proactively localising and regionalising key aspects of production and sourcing — not as a retreat, but as a pragmatic response to evolving market realities.

See also: From momentum to transformation: Building a relevant stock market

The imperative drives this shift to build supply chains that are faster, more resilient and better placed to serve customers more efficiently. Localisation and regionalisation are increasingly viewed as a long-term strategic shift, reflecting the need to adapt to changing market dynamics and customer expectations and to respond more swiftly to local demands.

Beyond operational efficiency, localising operations can also help strengthen relationships with governments, regulators and communities to support domestic economies and job creation. By investing locally, companies can build goodwill and enhance their reputation as contributors to local development.

Still, localisation and regionalisation are not one-size-fits-all solutions. Some organisations may find full localisation impractical or economically unviable. In such cases, a hybrid approach that balances global scale with regional agility may offer a pragmatic path forward. Regardless, leadership teams must ensure their strategic decisions reflect both a global perspective and local relevance.

Alliances and joint ventures gain traction

Deal-making has gained quiet momentum this year, signalling a sharpened focus on long-term transformation through targeted transactions. In the abovementioned survey, 57% of CEO respondents globally shared their intent to pursue M&A in the upcoming year. Improved financial confidence, easing borrowing costs and strong availability of private capital are fuelling CEO sentiment in inorganic growth as a lever for building innovation, expanding capabilities and future-proofing the enterprise.

In this volatile environment, a clear preference for more agile, lower-risk strategies, particularly joint ventures and strategic alliances, emerges. These models offer a more flexible path to growth, enabling organisations to access new markets, technologies and talent without the complexity and regulatory scrutiny often associated with full acquisitions.

Indeed, 73% of CEO respondents globally are turning to joint ventures and strategic alliances, which are alternative avenues for companies to share risk, pool expertise and keep their cultures intact. This results in greater agility and minimal disruption to employees and customers. With speed and adaptability becoming paramount to businesses, strategic collaborations are becoming a cornerstone of transformation agendas.

Having worked with C-suite helping them navigate the challenges in today’s disruptive age and achieve maximum value for their stakeholders, we recognise that for corporate leaders, thriving in the current environment demands more than incremental change: it calls for bold transformation agendas that can reshape business models and unlock new growth. CEOs who lead with resilience and vision, steering their organisations to embrace the disruption and uncertainty with agility, will stay ahead of the curve.  

Sriram Changali is EY-Parthenon Asean and Singapore Industrials Leader. The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organisation or its member firms