This article was first published in MIT Sloan Management Review and is available via subscription.
Political uncertainty is having a paralyzing effect. Companies are deferring investments and delaying decisions. Are these wise choices?
BCG’s Adam Job, Nikolaus Lang, Ulrich Pidun, and Martin Reeves maintain that taking a wait-and-see approach can be advantageous. It can help businesses steer clear of hard-to-reverse commitments in a shifting environment and avoid decisions or announcements that may lead to political or public backlash. But make no mistake: an effective wait-and-see approach is strategic and proactive. Companies should assess pending commitments and disengage to minimize risk, continuously track developments to seize opportunities and prepare for shocks, and be ready to quickly reengage when the time is right.