Exclusive C-Suite And Middle Manager Survey

“What to watch” was the most googled question in 2024. So I asked business leaders a similar question: What trends do we need to watch during the year ahead? Keeping up with the shifting landscape is vital for strategists, as their ideas do not exist in a vacuum.

I reached out to my Warwick Business School network of both C-suite executives and middle managers to discover the challenges that top their agenda. The former matter make the big decisions, the latter need to implement them. Both will play a vital role in helping companies to respond effectively to the challenges that will define 2025. Of the 232 responses, half were from senior executives and half from middle managers and specialist staff. Three graphs summarize the most interesting insights from the survey.

How have the challenges facing business changed?

Donald Trump just won the US election, a wider war in the Middle East is not off the table, and the Ukraine continues to fight Russia. So it comes as no great surprise that political disruption is high up the list – a considerable jump compared to last year.

However, the number one challenge remains the need to adjust to technology shifts. This issue rose to the top of corporate agendas last year when the generative AI hype was in full bloom.

Companies recognize that there is a substantial shift in terms of technology but there is also a growing frustration that AI is not delivering what the initial hype promised. This is common for new technologies. The real benefits will only come with specific applications and the adjustment of business processes. It is the latter part where executives can make a real difference. Creating the space—maybe even forcing—their teams to experiment will help to create new ways of working integrating AI in an effective manner.

As far as political disruption is concerned, companies need to invest considerable time and money into lobbying. The assumption that markets are rational has always been wrong, but that has probably become more obvious recently. And taking a stand on sensitive issues will often be unavoidable. The good news: if a company comes across as authentic it usually does not hurt sales. For example, Nike is known for its progressive views and the Chick-fil-A has strong conservative roots. A far bigger problem is if you are flip-flopping.

The anticipated lower inflation will make it easier to invest in initiatives tackling these two challenges. And there is one less obvious implication. Supply chain disruption, climate change, and social justice are considered to be the least important factors in 2025. As strategy is all about finding anomalies that others don’t see, there might be overlooked opportunities in this space.

Middle managers and c-suite executives have different priorities

While the top challenge has changed since the survey was first initiated three years ago, the one constant has been that c-suite executives and middle managers have different priorities. This year middle managers see technology shift as the top trend and political disruption as number two. For executives the order is reversed.

That difference matters as decisions made at the top can fall on deaf ears if they do not resonate with the operational front end. This year the issue is less pronounced than last year when worries about inflation and technology shifts pointed in considerably different directions. The former towards cost cutting the latter towards investment.

There is also an obvious solution: involve important stakeholders—and that includes middle managers—in important decisions. That does not mean there will be a vote at the end, but it should entail a smart consultation process. In settings where juniors don’t speak up when seniors are present, this might best be done in separate engagements by a neutral outsider. In essence this is a call for open strategy.

Regional differences

The third graph puts a spotlight on regional differences. Political disruption is expected to be the main challenge in North America and Africa. In Europe, the Middle East and Australia it is technology disruption. In Asia technology and political disruption share the number one spot. There were not enough responses from South America.

An interesting picture emerges when examining how different regions prioritised the various issues they faced. Combining the data from Africa, Asia, the Middle East, and South America political disruption and rising inflation are seen as a more important trends than in the West. In Europe, North America, and Australia labor shortage, technology disruption, and climate change are seen as bigger challenges than in non-western countries.

Getting ready for 2025

The survey leaves little doubt that political disruption—which is particularly hard to manage—requires the attention of top managers. For those who possess the necessary political acumen, the tough environment offers opportunities to forge a path others cannot.