2026 is shaping up to be another pivotal year for leaders, organizations and the clients we serve. It’s become increasingly difficult over the years to predict where we’ll end up months later, but I’m confident that the organizations that come out on top won’t be the ones with the flashiest strategist; it’ll be the ones that areproactive, authentic and deeply connected to their stakeholders—especially in critical moments.
Here are five challenges that my colleagues, clients and I are watching to see who ends up on top:
1. The Political and Geopolitical Landscape: Navigating Uncertainty
2026 brings the U.S. midterm elections. We anticipate heighted partisanship, more political and regulatory uncertainty and the fate of President’s Trump’s agenda for the final two years of his presidency hanging in the balance. If the past few cycles have taught us anything, it’s that the only constant is change. The era of “permacrisis” isn’t just a catchy phrase—it’s the new normal. Companies that invest in early relationship-building and scenario planning will be best positioned to adapt, no matter which way the winds blow.
Globally, we’re seeing a continued shift in world powers and a more complex risk landscape. 23% of global experts now rank state-based armed conflict as the #1 risk—up sharply from previous years, signaling a “geopolitical recession.” From regulatory changes to supply chain disruptions and geopolitical tensions, organizations must be ready to pivot quickly and communicate with clarity.
I expect that organizations which embrace strategic foresight and invest in building diverse, resilient partnerships will not only weather this year of uncertainty but emerge stronger and more adaptable.
2. Leadership in Flux: The CEO Tenure Challenge
One of the most striking trends of the past decade is the shrinking tenure of CEOs. The average global CEO tenure is the lowest it’s been since 2018, hovering around 6.8 years. This means more frequent leadership transitions, more shifts in strategy and, often, more uncertainty for employees and stakeholders.
Shorter tenures create a lot of business strategy shifts. This frequent change means that business strategies are changing frequently—and investors, clients and employees have a more difficult time understanding the strategic direction of travel. It’s never been more important for leaders to communicate the value and strategic direction to their most critical stakeholders—and not just during earnings day. Engaging in quiet moments is just as important. Transparent, consistent communication is the glue that holds organizations together during times of change.
This year, as we see some inevitable shifts in leadership, I’ll be watching for organizations to be transparent and consistent with investors, clients and employees, and to the incoming leadership to bring bold, clear strategies to make stakeholders confident with the road ahead.
3. Communicating Value: Clarity is Non-Negotiable
Whether a public or private company, communicating a value proposition is no longer optional—it’s essential. APCO’s research shows that value communication is central to brand strategy and stakeholder trust. The 2025 Axios Harris Poll 100 reputation rankings makes it clear: companies that stay true to their values are coming out on top. Even as some organizations feel pressured to compromise in the face of tough reputation challenges, those that lead with authentic purpose are not only earning trust—they’re delivering business results.
Investors, analysts, clients, and employees want to know not just what a company does, but why it matters. This year I’m paying close attention to how effective organizations are making their strategy clear, showing how stakeholders fit into the vision and communicating with authenticity. Trust and transparency are the new currency of reputation.
4. Crisis Preparedness: Evolving from Response to Readiness
If there’s one thing the past few years have taught us, it’s that issues are inevitable: 69% of business leaders have experienced a corporate crisis in the last five years; 95% expect to face one in the future.
But the difference between organizations that falter in times of crisis and those that weather the storm comes down to preparation. Crisis preparedness is a necessity, not a nice to have, with teams stress-testing response frameworks and developing scenario plans to be prepared for any contingency.
Crisis management isn’t just about having a plan on the shelf—it’s about integrating preparedness into culture, systems and communications.
5. The AI Imperative: Transformation at Speed
Artificial intelligence (AI) is no longer a “nice to have,” it’s a core component of business strategy: 99% of executives at Fortune 1000 and leading global brands surveyed in HBR’s AI & Data Leadership Executive Benchmark Survey stated that investments in data and AI are a top organizational priority. Simply put, those who embrace it will advance more quickly.
AI is transforming everything from internal workflow to system management, to how clients are seeking information about a company. While many organizations haven’t yet realized revenue or cost benefits, we’re at a turning point. Almost one-third of CEOs (30%) surveyed by PwC say their company has realized tangible results from AI adoption over the last 12 months through additional revenues.
But with great power comes great responsibility. The rise of deepfakes and disinformation means that information management—and the ability to separate facts from fiction—has never been more critical. The best organizations are blending human insight with AI automation, investing in governance and focusing on measurable outcomes. That’s what we’re doing at APCO, and that’s what we’re counseling our clients.
As we look ahead, I’m reminded that the most successful organizations aren’t just the ones that react quickly—they’re the ones that plan ahead, communicate with purpose and put people at the center of everything they do.This year I’m focused on continuing to learn, adapt and support my team as we navigate the challenges, and seize the opportunities of 2026.
