Have we entered the ‘age of realignment’, and if so, what does it mean for businesses and how they communicate?

Just over a week on from so called ‘Liberation Day’ in the USA, the tectonic plates of global power and influence are shifting in profound and unprecedented ways.  Since Wednesday 2 April, political and business leaders around the world have sought to understand what the latest, and surely most significant of President Trump’s Executive Orders, mean for the current global framework.

It is clear that what was once stable and predictable has given way to a world characterised by sudden policy decisions and political leaders seeking to drive domestic transformation.  Traditional alliances are being questioned, economic models are evolving and technological advancements are reshaping societies faster than ever.  This is more than simply trade and defence — this is about trust.

In this context, we have entered a new ‘age of realignment’ marked by the reconfiguration of international relationships, the reassessment of global strategies and the recalibration of national priorities.  If so, what does this mean for business, their leaders and the way they communicate?

Boards are now having to react to increasingly rapid structural shifts in society, economics, politics and technology. Fundamental structural changes pose both an existential risk to some and offer a transformational opportunity to others. Over recent weeks we’ve witnessed protests outside Tesla showrooms, Apple (and many others) considering reshoring production and fundamental alterations to the ways businesses have to view the world. 

Even before the Trump Tariff announcement, existing alliances and trade blocs have been tested and reshaped over recent years, not least when the UK exited the EU in January 2020.  Since Brexit, we’ve seen a gradual move towards ‘deglobalisation’, which was accelerated by the COVID-19 pandemic as it highlighted cross-border dependency and fragile supply chains.

The full-scale invasion of Ukraine by Russia in February 2022 and the resulting price hikes and inflation shone a light on energy interconnectivity.  Again, this has led to governments and corporates themselves reviewing their strategic resilience to ever-more common black swan events.  Companies are developing and testing more comprehensive response and resilience plans.

Political stability was once taken for granted for companies based or operating in the ‘West’.  Again, political and cultural fragmentation and greater polarisation means that brands are now having to navigate greater divides.  For this they are turning to more comprehensive stakeholder data and insight.

Regulatory uncertainty, started by Brexit and more recently brought into sharp relief by the Trump Tariffs, means that many companies are scrambling to keep up.  As we’ve seen, businesses are seeking to ride the fine line of being politically literate without becoming politicised; by navigating changing cultural nuance while anticipating and preparing for regulatory changes.  A clear understanding of, and ear to, government is essential.

On the other side, governments are looking at how to regulate emerging technologies.  Technological disruption is only going to accelerate. As Sam Altman of OpenAI has said, “Generative AI is still in its early stages, and we have only scratched the surface of what it can do”.  AI, automation and digital ecosystems are realigning entire industries from finance and healthcare to media and education.  Incumbents must compete with agile tech-native startups and those with legacy technology are having to make significant investments to compete.  Embracing innovation and digital transformation is no longer optional — it’s fundamental to a company’s success and even survival.  Communication sits at the heart of this. 

Despite all the changes over recent days and weeks, customers, especially younger generations such as Gen Z, are aligning their buying habits with personal values like sustainability, social justice and transparency.  Whilst three letter acronyms like ESG and DEI are now downgraded by some in the US Administration as offensive or counter-productive, the reality is that it is hard to question whether we want companies to operate responsibly.  Consumer expectations are aligned around ‘responsible business’. Wise companies are taking note and are not being blown off course by political rhetoric.

Many people want more than goods and services; they also want meaningful experiences and to align with brands and businesses that are anchored around purpose-driven narratives.  This is also impacting how Gen Z and Millennials expect the workplace to function.  As a result, companies are waking up to the value of impactful and sustained employee engagement, rather than half-hearted gestures. Attracting and retaining top talent at a time of increasing staff costs and competition from emerging industries will pose a significant challenge to companies over the coming months and years.

Many business leaders also recognise that ESG, DEI and non-balance sheet corporate strategy isn’t just about appealing to cultural values held by some stakeholder groups, it’s also about assessing and mitigating risk and embracing opportunity in this ‘age of realignment’. Climate change is driving shifts in supply chains, consumer demand, finance and physical risk from climate events and freak weather. That also drives a need to create new partnerships, adopt new technology and have a credible plan and engagement strategy that recognises that corporates have to lead in adapting to change.

Business now has to talk differently in a polarised world. The idea that the same message works in Milwaukee or Manchester no longer applies. There is a risk that business seeks to manage the disruption by saying nothing. But that is no longer a sensible strategy where you cede the debate to your critics who are armed with the megaphone of social media and generative AI. If you don’t communicate there is a risk of misinterpretation and misunderstanding, to say the least.

In summary, the ‘age of realignment’ is driving a tectonic shift in how companies communicate with the traditional norms now becoming obsolete. Businesses that cling to legacy thinking will find themselves outpaced. Those that lean into complexity, adapt with agility and help shape the narrative around realignment will lead into the next era.