Based on the strategic intent they have for M&A, CP companies appear to be making moves in this direction. However, for a significant majority of respondents, it’s seen as too little and too slow. Within their own organizations, 69% of CP respondents say that their company is adapting to disruptive change, but that the actions are not yet effective enough. Overall compared to a 2016 survey, CP companies have a higher acknowledgement that they need to be bolder, more focused on growth and find more effective responses to disruptive change. Companies that have been bold enough to undertake radical transformations are seeing improvements in organic growth. Companies that started later in their transformation, or didn’t take extreme measures, are still finding their way to growth.
Interestingly, despite the evidence of the advantages of implementing big, bold business transformations, 41% say that they don’t need to make significant changes to their business operations, cost structure or their capabilities. This presents a puzzling question: are these 41% indeed well prepared? Or are they continuing to underestimate the disruption?