Issue Organizational rigidity, not external shocks, limits geopolitical response speed

Summary

McKinsey argues that what slows an organization's response to geopolitical change is often its own rigidity rather than the external shock itself. Inflexible structures and processes for decisions, governance, and resource allocation make it hard to move quickly when the environment shifts. The 2026 survey ranks this rigidity as the leading barrier, cited by 38 percent of respondents. The report adds that weak adaptability combined with heavy dependence on a single supplier, geography, or production hub raises financial, regulatory, and geopolitical risk together. Rigidity is reported as a bigger problem in large and geographically spread organizations. The report's remedy is an operating model built on adaptability, including dynamic scenario planning and flexible reallocation.