Holding the focus when disruption becomes routine

Boards are regularly making decisions across competing time horizons as disruption becomes part of leadership. The latest Hobson Leavy and Chapter Zero New Zealand pulse survey found 62% of boards and executive teams are managing significant disruption a few times a year or at least monthly, while one in four experience it as part of day-to-day leadership. 

The findings also show that frequent disruption does not necessarily pull boards towards short-term issues. Among boards dealing with disruption at least monthly or day to day, 74% maintained a balance between short- and long-term priorities, compared with 54% of those facing disruption less often. 

Risk oversight, scenario planning and organisational resilience ranked as the most critical capability during disruption, followed by strategic judgement and decision-making. 

The challenge is deciding when an immediate issue requires a temporary response and when it changes an assumption behind strategy. Clear delegations, escalation processes and protected time for longer-term decisions can help urgent issues receive attention without repeatedly pushing out decisions on capital, adaptation or workforce capability. 

Key findings: 

• • Sixty-two per cent of boards and executive teams are managing significant disruption a few times a year or at least monthly

  • One in four organisations report disruption as part of day-to-day leadership

  • Sixty-four per cent of boards maintain a balance between short- and long-term priorities during disruption

  • Boards experiencing disruption most frequently are more likely to maintain that balance (74%)

  • Risk oversight, scenario planning and organisational resilience are the capabilities directors view as most critical during disruption (78%) 

Disruptions such as extreme weather, tariffs and insurance constraints do not move at the same speed. Severe weather can interrupt operations in minutes, a tariff can alter costs overnight, and changes in insurance availability can reshape asset and investment decisions over years.  

In the latest Hobson Leavy and Chapter Zero New Zealand pulse survey, 62% of respondents said their board or executive team was actively managing significant disruption a few times a year (42%) or at least monthly (20%). A further one in four said disruption was ongoing and part of day-to-day leadership. Only 12% said once a year or less, and 1% said never. 

When their organisations were managing disruption or rapid change, 64% of respondents said their board maintained a balance between short- and long-term priorities, whereas 33% said their attention turned to immediate and short-term issues. Three per cent said their board focused primarily on long-term strategy and positioning. 

You might expect that level of disruption to pull boards towards the immediate. The survey suggests otherwise, raising the question: when disruption is frequent, have some boards learned to organise their work so it does not take over the agenda? 

When disruption becomes routine 

When responses were grouped by frequency, nearly three-quarters (74%) of those managing disruption at least monthly or as part of day-to-day leadership said their board maintained a balance between short- and long-term priorities. 

Among those managing disruption a few times a year or less, 54% maintained that balance. They were also just over twice as likely to say their board became primarily focused on immediate and short-term issues (44%) compared with 21% among the higher-frequency group. 

For boards dealing with disruption this often, the challenge is deciding what requires board attention, what stays with management and which longer-term matters must remain on the agenda. Reporting, delegations and escalation processes can help deal with an immediate issue without allowing it to reset the board’s priorities. 

That includes knowing whether the disruption changes the strategy, or only the conditions around it. An immediate shock may require a response without requiring the board to abandon a longer-term position. A structural change may mean the assumptions behind strategy need to be revisited. 

What capabilities matter most? 

When asked which capabilities are most critical for effective board and CEO leadership during disruption, respondents identified risk oversight and strategic judgement as priorities. 

• • 78% Risk oversight, scenario planning and organisational resilience

  • 71% Strategic judgement and decision-making

  • 45% Stakeholder communication and trust

  • 42% People, culture and workforce capability

  • 32% Financial and commercial judgement

  • 19% Technology, data, cyber and AI governance 

Looking at the same capability responses according to whether boards maintained a balance or became more short-term focused, the largest differences were in people and technology capabilities.