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It’s back again, the season of the year when we try to predict what next year will look like. In today’s rapidly evolving business landscape, most managers are deeply engaged in the intense phase of business planning. This year in Europe is particularly stressful, as numerous uncertainties and amplifying trends are prompting many to cut investments in 2024 instead of recognizing and seizing the opportunities that might arise (“Just survive ’til ’25”). I deeply disagree with this behavior, especially as I am quite sure it will rather maximize the challenges and obstacles that we are already facing. What we are currently experiencing is not just a crisis, but an omnicrisis—a phase where multiple crises occur simultaneously and reinforce each other.
We have previously discussed the many crises, whether it be the climate crisis, skill shortages, social inequality, or threats from cybercrime and digital disruption. In the past, we referred to such situations as multi- or layered crises. However, the current situation is a genuine omnicrisis. This term describes a situation where multiple crises not only add up but their impacts mutually intensify. For example, the generational conflict exacerbates the workforce shortage, and a lack of future-proof skills can lead to greater social inequalities.
One can view an omnicrisis as either bad or good. I tend to see it positively. Why? Omnicrises often indicate, if not usher in, an epochal change. Such changes offer enormous opportunities for those who recognize and seize them early. For managers and executives currently focusing on 2025, it is crucial to thoroughly analyze these developments and develop corresponding strategies. They need to be integrated into any business plan for the next year.
It is likely that the omnicrisis will intensify in 2025. Two critical factors will further fuel the fire: the advancing use of Artificial Intelligence (AI) and the political situation of 2024. Examples? Here you go:
According to the International Monetary Fund (IMF), AI holds tremendous potential for productivity gains but also risks such as mass unemployment and social inequality. Companies and countries need to invest in education and continuous training measures (awareness, acceptance, abilities) to tackle the challenges and seize the opportunities AI presents. Without these adjustments, massive disruptions in the labor market are expected.
The US presidential election will have far-reaching effects on Europe. A quite certain victory for the Republicans and Donald Trump, will not only lead to reduced US involvement in NATO and less support for Ukraine but will also reignite the economic war with China, increasing national protectionism and putting markets at risk. This would force Europe to take on more responsibility on various levels.
Managers need to act proactively and prepare for the upcoming challenges. Here are some steps you can take now:
1. Actively Shape the Future: Don’t wait but actively shape the future of your area of responsibility within your company. This means continuing strategic investments despite uncertainties and transforming your core business.
2. Seize Transformation Trends as Opportunities: The six major transformation trends—Human Digitality, Conscious Economy, Co-Society, Mindshift Revolution, Glocalisation, and Eco Transition—offer numerous opportunities that should be utilized. These trends are not just challenges but also opportunities for innovation and growth.
The challenges posed by the omnicrisis are significant. However, they also offer tremendous opportunities for those willing to act proactively and utilize the transformation trends. You should now intensely engage with the upcoming changes to successfully navigate 2025. View the omnicrisis not as a threat but as an opportunity for innovation and growth. Start preparing now to optimally position your company for the future.
