Companies Shift From Firefighting to Model Reinvention
Boston Consulting Group warns that firms must move beyond short‑term firefighting and consider operating model reinvention as geopolitical shifts, rapid AI advances and slower growth reshape how business gets done.
Survey shows CEOs stuck in short‑term firefighting
In March 2025, the consultancy surveyed more than 150 executives across almost 20 countries. The participants led companies with annual sales exceeding $5 billion. Over 60% named supply‑chain resilience as a top‑three immediate priority, while 40% focused on cost‑cutting.
Only about 35% said building AI and technology capabilities ranked among their pressing near‑term needs. The same poll found roughly 50% of respondents listed reconfiguring production footprints as a near‑term focus, indicating a push to reshape manufacturing locations.
The data point to a rational response: executives are dealing with today’s disruptions. Yet the report argues that treating these challenges as isolated “noise” risks ignoring longer‑term structural changes.
Strategic shift calls for new governance and talent focus
BCG notes that fragmented manufacturing networks will likely demand fresh governance models. Maintaining scale economies while decentralising may require more modular organisational structures and cost reductions at the centre. The result was, oddly enough, a bit of a scramble for many senior teams.
Looking ahead, the firm expects firms to concentrate on product and service innovation, cost optimisation and broader AI deployment. Regional differences are stark: in the United States, 67% of leaders listed AI as a top‑three strategic focus, compared with 57% in China and 40% in both Europe and the Asia‑Pacific.
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Rather than chasing isolated technology use cases, the C‑suite should ask core questions about which markets to play in, how to allocate resources across geographies, and how to secure talent for leadership and human‑machine interaction.
In practice, this means evaluating supply‑chain resilience not just as a risk buffer but as a lever for market proximity and cost efficiency. Companies that can align their operating structures with these considerations may capture a competitive edge as trade blocs evolve and the Global South gains influence.
One practical implication is that firms will need to balance the speed of AI adoption with the breadth of its impact. Deploying advanced tools in isolated functions can yield quick wins, but without a holistic view the overall business model may remain fragmented.
Adapting to new realities also involves talent strategy. Access to skilled workers who can handle both leadership roles and collaborative human‑machine workflows will become a differentiator, especially as firms decentralise operations.
Overall, the consultancy’s findings suggest that while immediate concerns dominate boardrooms, a parallel effort to redesign operating structures is essential. Companies that ignore the longer‑term signals risk falling behind as global trade patterns shift and technology reshapes value creation.
