Just a decade ago, professionals and companies operated in a more stable and predictable environment. Leaders were more able to rely on tried and true leadership and business practices in return for steady growth and stable results. As we have seen more recently, times have changed—fast. Now, everything from technology to consumer values are constantly shifting beneath our feet.
There is no single cause for the shift in dynamics, nor any indication of the changing forces slowing down. Below, I’ll break down the key forces causing this volatility as part of a new series - that will also address how companies and professionals can not only regain traction, but get ahead of competition.
Rapid Technology Changes: Breakthroughs in the cost, accessibility, and capabilities of innovative technology (such as the internet, SaaS, automation, and AI) have sped up innovative competition at an exponential pace. Agile teams and startups can now challenge even the biggest corporations almost overnight, with the buzzy goal of ‘consumer disruption’ now prominent across almost all industries.
Globalization and Pressure on Costs: Traditional businesses face worldwide rivals as global markets open up competition from outsourced labor and supply chains at lower costs, undercutting entire business models. Gone are the days of ‘mom and pop shops’ and ‘location, location, location,’ when DTC (direct-to-consumer) and reseller companies like Amazon can 2-day ship almost anywhere around the globe with lower overhead costs.
Unstable Economic Conditions: Interest rates can swing wildly, and they have done exactly that over the last five years alone - from historic lows to trend reversals and 20-year high’s. In times of low rates, advantageous investors pump money into quick-growth ideas, often leading to reckless strategies that crash when rates rise back up. Meanwhile, mega-corporations can create market distortions that smaller players struggle to keep up with as consumer and PE capital dry up.
Decentralized Information, Media, and Public Influence: The old idea that legacy media and traditional publishers set the agenda no longer holds true. Search engines, social media, podcasts, and independent news outlets have given a voice to anyone with an internet connection or smartphone. Specialized professionals hold decreasing gatekeeping power while celebrities, influencers, and outspoken CEOs can sway markets or spark PR crisis overnight.
Shifting Consumer and Workforce Values: Younger generations, gaining prominence in consumer markets and workforces alike, want meaning, fairness, and responsibility from the brands they buy and the employers they choose. Long hours for low pay or ignoring environmental harm just won’t fly anymore. Employees and customers alike expect more transparency, diversity, and ethical behavior.
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