5 Key Trends To Shape Your Business Strategy For 2025

5 Key Trends To Shape Your Business Strategy For 2025

The start of the new year is a prime time for assessing a company’s progress and checking in with strategic goals. Businesses face urgent and complex issues – from meeting sustainability targets to adapting to the rapid advances of artificial intelligence (AI) – all while navigating changing organizational structures and an unpredictable global economy.

The following five trends, grounded in research from IESE Business School professors, could prove instrumental for companies seeking advice for the year ahead. By proactively addressing things like sustainability, AI implementation and financial strategy, firm leaders can ensure their companies are resilient, engage in innovation and succeed in a rapidly changing world.

1. Incorporate sustainability thoughtfully

What sustainability targets has your business committed to? How close are you to achieving them? IESE professors Pascual Berrone and Joan Enric Ricart suggest moving from concepts to action by focusing on prioritization, context-specific solutions, collaboration and innovation.

Common strategies include linking executive pay to ESG (environmental, social and governance) goals, adopting carbon taxation and supporting low-emission zones. While each approach has its benefits, it’s also important to consider its trade-offs carefully.

Although ESG-linked compensation sends a strong signal about your company’s commitment to the environment and society, research by IESE professors Gaizka Ormazabal and Igor Kadach shows it may not yield immediate financial rewards. Instead, business leaders should treat it as an investment for long-term solutions.

When it comes to emission taxes, IESE professor Martin Jacob suggests that it can strain finances and potentially discourage green technology investments if companies simply absorb the cost or shift it onto their customers.

And according to IESE professor Ricard Gil, low-emission zones are effective in reducing pollution but could impact businesses operating in the commercial areas where the traffic restrictions are implemented.

In the end, sustainability demands a balanced approach: one that accounts for both short-term risks and long-term benefits.

2. Enhance AI skills to maximize its potential

The impact of AI on jobs is less about displacement and more about transformation. IESE professors Enrique Ide and Eduard Talamas argue that, as roles evolve and demand new competencies, skilled professionals are best positioned to thrive alongside AI.

To stay ahead, it’s important to focus on building AI-relevant skills, such as data analysis, creative problem-solving and ethical decision-making around privacy and biases. Professors José Azar, Mireia Giné and Sampsa Samila found an increase in managerial job postings for companies that implement AI systems into their workflows. These in-demand managers combine technical knowledge with leadership skills, making them an essential part of the transition to a more AI-human hybrid workforce. Strategic judgment will remain a uniquely human skill, crucial for leveraging AI-generated solutions effectively.

3. Adopt hybrid organizational models

Is your company structured as a traditional hierarchical organization or is it veering more towards a “flat” dynamic without bosses? Just as remote and in-office work have converged into hybrid models, organizational structures are following suit. While some firms are removing middle managers and pushing employees into more autonomous roles, others are bringing them back. Research by IESE professors Mireia Las Heras and Anneloes Raes reveal that hybrid approaches often deliver the best of both worlds.

To determine the right model for your business, professor Sebastian Reiche’s award-winning framework emphasizes balancing autonomy with interdependence – two critical elements shaping today’s companies.

4. Adapt financial strategies to geopolitical shifts

Increasing geopolitical tensions will continue to affect supply chains, trade and cost control efforts in 2025. At the same time, inflation and debt remain significant risks for many countries across the world.

Drawing lessons from the 2008 global financial crisis, IESE professor Christian Eufinger warns against “zombie credits” that keep unviable businesses afloat – saying they can have disinflationary effects. That’s because a surplus of companies can bring the overall price of goods down. His research findings can be applied China’s current strategy of subsidizing distressed companies, which is driving cheaper exports into global markets and could pose challenges for local suppliers.

Business leaders must also prepare for the unpredictability of the incoming Trump Administration. IESE professor David Teeters predicts potential changes to the U.S. dollar’s role – whether it loses its hegemony as a reserve asset or a new era of dominance is ushered in. Regardless, companies will need to keep an eye out for any moves from the U.S. Treasury.

5. Foster partnerships with stakeholders

At a time when protectionism and isolationism are growing, businesses have an opportunity to lead through collaboration and community-building. Strong partnerships with diverse stakeholders – including local communities – are critical for fostering innovation, creating healthy competition and addressing societal challenges like inequality.

This approach is particularly relevant when combating climate change, where global cooperation is key. IESE professor Sebastian Hafenbrädl offers a hopeful perspective in his research: even children from diverse cultures can set aside their self-interest for the sake of the common collective good. If they can do it, so can we.


Excerpted, in part, from the IESE Business School Insight article 5 key trends for your 2025 business agenda.

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