The introduction of tariffs and the subsequent impact on global trade epitomises the chaos that companies around the world can suddenly be plunged into due to geopolitics. In the blink of an eye, the economic outlook switched from mildly positive to one where many now fear recession is a distinct possibility.
At Criticaleye’s recent Asia Leadership Retreat, held in partnership with
ServiceNow and
AlixPartners, the focus of the conversation was on how organisations can be resilient in the face of such extreme volatility. When attendees were asked to identify the biggest risk for their businesses at present, the number one answer was ‘recession’, followed by ‘tariffs’ and ‘trade war’.
Bernard Aw, Chief Economist for APAC at trade credit risk management specialist, Coface, told the audience: “What the US administration is really trying to do is reshape the entire global trading and economic system. The first goal is to make trade fair and balanced—by their definition. The second is to bring more manufacturing and investment back into the US. The third is to ensure domestic and national security, with tariffs being one way of doing that.
“Before April 2nd, everyone was wondering how they'd [the US] implement it [the tariffs]. We assumed it would take months of preparation to analyse which country or economy to target. So, the scale and speed of the announcement was quite a surprise. What’s even more surprising is how simple the formula is.”
During the course of Day One, the discussion moved onto how Chief Executives and Boards can build leadership teams that have the mindset to adapt at pace.
Matthew Blagg, CEO of Criticaleye, said that “this is an increasingly complex operating environment, and it puts an added emphasis on communication and alignment”.
On the flipside, he noted the danger of mixed messages and competing agendas. He explained: “On the stakeholder front, there are multiple players calling for a faster pace, and a lack of understanding can often lead to growing tensions as the pressure mounts. You can have contradictory signals coming from different sources: shareholders, debt holders, and government entities—all pushing for rapid action.”
Designed for Success
When attendees were asked to identify one bold transformation they’d like to undertake if resources were unlimited, the dominant responses were ‘AI’ and ‘digitalisation’.
Melissa Ries, Group Vice President and Group Managing Director, Asia and Korea at ServiceNow, told the audience: “We’re in the Fourth Industrial Revolution. The internet took seven years to reach 100 million users, the iPhone took three, TikTok took nine months—ChatGPT took just two. This is not hype; it’s here. And by 2026, 80 percent of enterprises are expected to use conversational Gen AI. That’s an incredibly short adoption cycle for enterprise tech.
“You won’t lose your job to AI—but you might lose it to someone using AI better than you. A good portion of roles will evolve, change, or even disappear. The way we work is changing and we all need to understand AI, use AI and be open to change in order to stay relevant.”
She added that real thought and planning needs to be given to how this technology is deployed and integrated. “AI is only as good as the platform it runs on and the platform is only as good as the data. If your workflows are messy and your data is siloed, AI won’t deliver the outcomes you expect. This isn’t just about automation—it’s about orchestrating intelligence across the entire enterprise.”
A key point to emerge during the Asia Leadership Retreat was how to create a culture that can flourish when there is so much change and transformation.
Preneet Bindra, Head of HR APAC, Alcon, a pharmaceutical and medical device company that specialises in eye care products, commented on how “culture is integral”. She said: “We would not be able to get to where we needed to unless we were able to articulate what our cultural priorities are as a company.”
These priorities are speed, simplicity, ownership and accountability. “So, there was this constant link back to the culture and the purpose and I think that helped keep us aligned during the transformation,” she said.
Graeme Smith, EMEA Leader for Risk Advisory & Partner & Managing Director at AlixPartners, reaffirmed the importance of good engagement. “Whenever you've got a transformational change going on, you need to be aware that people are likely to be fearful and concerned,” he said. “Given this, in the absence of communication and clarity, people will fill any voids with their darkest thoughts. Clear communication is therefore critical.”
He made the point that it is vitally important that the Board, shareholders and other key stakeholders are aligned around what is happening. “They need to understand what the message is and how it is being communicated,” he said.
It’s an operational landscape that requires high performing leadership teams to navigate the various shockwaves and sources of disruption. “If senior leaders get it right, then they’ll create positive energy that cascades throughout an organisation,” said Matthew.
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