Why CEOs must learn to read the world besides their balance sheet

From supply chain disruptions in Asia to policy changes in the West to operational instability and burgeoning technology, no event is distant for business leaders. They, in turn, are fraught with an additional challenge—geopolitical fluency. A word in the boardroom, a decision on the factory floor, or a post on social media can send ripples. The question is no longer if leaders should respond to geopolitics, but how.

CHANGING CAPABILITIES

“There are numerous geopolitical challenges that are impacting the ways chief executives view the global economy,” says Yezdi Nagporewalla, CEO, KPMG in India.

He explains that organisations that adopt fresh approaches to supply chain management, technology integration, and workforce development can not only mitigate the negative effects of geopolitical shifts but also seize new competitive advantages. “By fostering a culture of agility and responsiveness, organisations can thrive amid

Uncertainty and navigate the complexities of geopolitics with confidence,” he adds.

The KPMG 2025 India CEO Outlook reinforces that CEOs, both in India and globally, agree that leadership in the age of uncertainty calls for capabilities that balance agility with foresight.

While there is no single defining skill, 31% of CEOs in India (compared to 26% globally) identify greater agility and faster decision-making under pressure as among the most critical leadership attributes. CEOs in India also place higher importance on regulatory understanding, ranking it second versus fourth globally, finds the KPMG 2025 India CEO Outlook. Conversely, CEOs globally (24%) attach greater importance to transparency in communication than their Indian counterparts (18%), reflecting the growing need for open dialogue and trust-building across diverse and distributed teams.

Nagporewalla notes that as AI and tech transformation accelerate, leaders are becoming more agile, digitally fluent, and responsive to regulatory shifts. “Many are prioritising AI adoption, rethinking workforce strategies, and strengthening skill development, moves that position organisations not just to withstand change, but to lead through it.”

He adds that this future-focused mindset is also evident in the way Indian CEOs are approaching complexity, by embracing emerging technologies, prioritising cybersecurity, advancing ESG goals, and fostering continuous learning. “These efforts are helping organisations remain competitive and resilient.”

Building awareness

Paul Dupuis, a seasoned business leader and author with experience across Asia, believes geopolitical awareness isn’t a PowerPoint exercise, it’s a mindset. “Geopolitical intelligence doesn’t live in a slide deck,” he says. “It’s rooted in culture and conversations.”

As founder and CEO of Take-5 Global KK, a leadership and advisory consultancy operating in Japan and India and formerly CEO of Randstad Japan and Randstad India, Dupuis has watched how geopolitics can tilt markets overnight. His advice for leaders: cultivate awareness not by reading filtered memos but by engaging with the world directly. “Leaders should be open to diverse viewpoints not just consuming media or filtered summaries provided by corporate HQ or the marcomms team,” he says. “Travel, listen without agenda, debate with contrarians. In Japan, I learned the value of slow listening; in India, the art of active listening and rapid decision-making in ambiguity. Blending both, the cautious and steady with agility and timely action with conviction is a healthy leadership trait.”

Dupuis’s mantra, “make decisions based on facts, not emotion,” becomes especially vital in times of crisis, when panic spreads faster than policy.

He draws from the “Stockdale Paradox” popularised in the book, Good to Great: confront brutal facts. Geopolitical issues bring challenges which have the potential to negatively impact everything—from supply chains to profitability.

It’s hard to imagine a CEO unaware of political dynamics.  

For Neeraj Jha, who runs an eponymous brand and reputation advisory firm and who was Group President & Chief Communications Officer (CCO) at Bajaj Group, the greatest risk isn’t just geopolitical instability, it’s geopolitical ignorance. Risks are both reputational and operational. “Leaders operate within a web of stakeholders, internal, external, and governmental, whose interests and sensitivities must be understood.”

The consequences of tone-deafness are immediate. Like with tariffs, where without a clear grasp of the political and policy landscape, routine comments can backfire.

Or for that matter with supply-chain dependencies in sensitive regions: A lack of awareness could trigger unrest, damage partnerships, and the business. Leaders must therefore be acutely mindful of the geopolitical context in which they operate.

THE DISCIPLINE OF COMPOSURE

Composure, Dupuis insists, isn’t passive. “In turbulent times, composure requires disciplined effort,” he says. “As CEO of a global HR firm operating across India, Japan, and beyond, I learned leaders must anchor themselves in values before reacting to headlines.”

His leadership compass: “Control the controllables and face the non-controllables with agility.” He recalls navigating the pandemic and US–China trade tensions: “Strong leaders made the right calls, they sought advice and acted on facts not speculation. Those who prioritised employee safety, business continuity, and long-term trust came out stronger.”

Calm, Dupuis adds, is contagious. “A composed leader is not the one who simply waits for the storm to pass, but the one who acts with calm urgency, balancing realism with optimism. That steadiness of the leader becomes the organisation’s stabiliser.”

NEUTRALITY V/s SILENCE

On neutrality versus silence, Dupuis strikes a nuanced balance. “Younger generations want moral clarity, not corporate caution.” There are moments when leaders need to step up, show courage and take a stance rooted in values.

Dupuis cites examples of leaders who struck this balance well. “Apple showed quiet geopolitical agility when US–China tensions flared. They didn’t release statements or take sides. Instead, they restructured their supply chain diplomatically.” Toyota followed a similar approach, continuing to invest simultaneously in the US and China without becoming politically entangled.

A powerful cautionary tale comes from the NBA–China incident in 2019. One tweet from an NBA team executive expressing support for Hong Kong protests triggered a nearly six-year blackout of NBA broadcasts in China, cutting off a market of over 500 million viewers. Only now, years later, is the NBA rebuilding its China presence.

His takeaway is sharp: “In geopolitics, raising one’s voice is not a virtue. Leaders should speak through their actions, not emotions. Act with conviction and sensitivity.”

COMMUNICATION IS KEY

Communication, meanwhile, has become a minefield. The Edelman Trust Barometer 2024—an annual global report that measures public trust in institutions—found that 71% of employees expect CEOs to speak on societal issues but they don’t want activism; they want clarity. Dupuis warns against reactive statements.

His rule of thumb: “Don’t say, ‘We support X or oppose Y.’ A wiser stance is: ‘We care for our people everywhere, and our actions will reflect that.’ When values are universal, employees rally even when politics differ.”

Inside companies, Jha believes the CCO—Chief Communications Officer—should lead this domain. “CCOs can straddle corporate affairs, geopolitical intelligence, and communications strategy,” he says.

Balancing ethical expectations with realpolitik, Jha distinguishes between ethics and geopolitics. Conscientious CEOs must take decisions in the interest of all stakeholders, as far as possible. Ethical expectations and geopolitical realities, however, are two very different dimensions.

TO BE CEO-READY

If Dupuis frames geopolitical intelligence as a lived discipline, Prasad Medury, Chairman–India, Odgers, a global executive search and leadership advisory firm, situates it within the evolving science of leadership assessment.

“Geopolitical awareness and cross-cultural sensitivity,” he says, “have moved to the core of modern leadership competency frameworks.”

The hunt for global fluency has intensified. “CEO briefs explicitly seek evidence of lived experience in complex geographies, constructive engagement with governments and regulators,” Medury notes. “And this bar now applies beyond the CEO; C-suite leaders are expected to demonstrate global fluency at some level too.”

For boards and search firms, the question isn’t just whether leaders can respond, but whether they can do so with diplomacy. “We evaluate competencies like conflict resolution, learning agility, strategic clarity, influencing skills, and thinking dexterity,” says Medury. “These competencies are viewed as important in a leader’s ability to balance contrarian views, i.e., taking difficult decisions while being diplomatic on tough geopolitical issues. Assessment focuses on whether the candidate has a mindset to handle challenges and change/disruption. Finally, cognisance is taken of the leader’s moral compass on upholding principles.”

The post-Covid world, he adds, has redefined what it means to be “CEO-ready.”

“Boards expect leaders to manage uncertainty, mitigate reputational risk, and adopt sustainable, inclusive practices while still delivering quarterly results.”

Political acuity, Medury argues, has become as critical as digital fluency. “It’s the need of the hour, a blend of commercial rigour with socio-political awareness. Leaders must inspire multi-generational, diverse teams while harnessing younger, digitally native talent.”

Preparation, though, is everything. Geopolitical readiness should be treated as both communications discipline and continuity imperative. Build a purpose-led playbook in advance. Pre-clear positions on high-probability issues while engaging investors and regulators transparently is important to become ready for the top spot during turbulent times.