From Culture to Capacity: 6 Corporate Affairs Predictions for 2025

1. CA will seize the opportunity to drive culture change

You might have heard the phrase “Culture eats strategy for breakfast,” attributed to the management consultant and author Peter Drucker in 2006. It seems more and more CEOs and executive boards are taking note of Drucker’s words, which are aimed to emphasise that even the world’s best strategy and plan will flounder if company culture is ineffective.

In 2025 CA leaders will increasingly be asked to transform or improve organisational culture, whether that means creating and shaping company purpose, bringing culture to life through storytelling or employing effective internal communication strategies to actively engage employees. This work will require an effective and radically rethought partnership with the HR function. For CA leaders it’s an opportunity to drive high-profile change that can lead to sustained growth. With purpose-led companies with a culture of engagement driving more growth and profit, culture will be seen as a commercial priority and leading CA professionals will position themselves as the driving force of lasting culture change.

2. Resilience will take centre stage

Resilience rose up the ranks of in-demand skills for CA leaders in our 2024 Corporate Affairs Leaders Study and it’s here to stay for 2025. This year many CA leaders will be tasked with an increasing remit but often without an accompanying increase in budget. When coupled with demands from senior leaders to drive culture change and guard company reputation amidst a volatile geopolitical landscape, building personal resilience will be key to success.

Finding meaning and purpose and role-modelling healthy behaviour when it comes to avoiding long hours and burnout will be vital to protecting well-being and motivation for busy CA leaders who can find themselves operating in a sense of “permacrisis” as they navigate environmental issues, cyber security incidents and political manoeuvring. “Part of mental wellness is walking the talk,” said a communications leader at a recent Head of Communications APAC event. “We need to help our people put things in perspective and ensure they have downtime.”

It will also be important for CA to play a major part in building companywide resilience. The pandemic underscored the importance of mental health and wellbeing, both within organisations and in broader society. Strategies to build a resilient workforce could include implementing policies and programs that support employees’ well-being, reducing stigma and enabling open conversations. “The pandemic was a real wake-up call for the world around mental wellness. We see it already in our business with our people, but also with our customers,” noted one Head of Communications. “It’s not a sign of weakness to talk about the challenges. Actually, it’s a sign of strength.”

3. Smart CA leaders will pioneer with AI

Artificial Intelligence (AI) is set to continue to play an integral role in the communications function. While many organisations have yet to fully integrate AI into their operations, the potential benefits are clear. AI can enhance efficiency, improve the speed and quality of content creation and provide valuable insights through data analysis and prediction.

Speaking on an Andrews Partnership webinar, Microsoft’s VP of Communications Strategy Steve Clayton stressed the importance of operating with urgency when it comes to getting up to speed with the rapid developments in AI capability. “In my 26 years at Microsoft, I’ve never seen a technology move so quickly from ChatGPT to where we are now,” he said. “The technology change is radical and profound.”

Steve also advised focusing on your unique value as a comms professional. “There are lots of things that AI will never be good at like representing the ethics, morals and values of a company,” he added. “It’s not good at creating beautiful, brilliant, unique storytelling.  AI will automate some of the things that we don’t love doing in our profession and allow us to spend time doing what we love, which is empathetic, impactful and emotional storytelling.”

Successfully integrating AI into communications workstreams requires dedicated focus and programmatic efforts alongside a culture that’s open and receptive to experimenting with the technology. CA leaders who champion and embrace AI in 2025 and beyond will find themselves better equipped to handle the increasing demands of the communications landscape.

4. Balancing central strategy with local execution will be key

The federated model, where local teams execute strategies set by the central office, remains a complex but necessary approach for many organisations. This model allows for tailored local execution while maintaining overall strategic coherence, efficiency and consistency. The challenge lies in finding the right balance between central oversight and local autonomy and relevance, particularly in diverse and dynamic markets like APAC. “We set strategy centrally, we set governance, we set the operating model, but you execute locally,” explained one leader. “It’s a difficult balance when you are a listed company.”

Pressure from Asian governments to support the domestic economy – or “hyperlocalisation” – will continue to be felt into 2025 and will require a strong working relationship with local government. “We must be seen as a global company,” said one regional CA leader at an Andrews Partnership roundtable, “but we need to actively contribute locally as well, so partnering with the government becomes more deliberate.”

As companies increasingly operate across multiple markets to execute a central strategy, the need for standardised Key Performance Indicators (KPIs) will also become critical. Consistent KPIs allow for better governance, clearer reporting and more effective strategy execution. This in turn helps align local operations with global objectives, ensuring that all parts of the organisation are working towards common goals. “One of the big focus areas for us next year is standardising our KPIs across the business units,” said a speaker at an APAC communications event. “We need to create more consistency in reporting up to our risk committees and the board.”

5. Geopolitical skills and experience will be in demand

Geopolitical dynamics will continue to influence the communications function. Companies must navigate the complexities of operating in different and shifting political environments, balancing local sensitivities with global strategies. This requires a nuanced understanding of geopolitical trends and the ability to adapt and respond accordingly. “Geopolitics is a real issue, and we really want to do a lot more to address it,” said one event speaker. “It’s about focusing on what’s new and navigating the complexities.”

Executives should develop communications strategies to handle sensitive political issues both internally and externally as they mitigate operational and reputational risks. Empowering and upskilling front-line CA professionals is one tactic that can help to ensure the organisation’s first line of defence is robust and decisions can be made and implemented at speed. This will require CA leaders to embrace an element of measured risk. “Empower your people to make decisions, even if those decisions aren’t right the first time,” said one Head of Corporate Affairs. “Adopting a less risk-averse mindset can build resilient, well-equipped teams who feel trusted to do the right thing.”

Developing a grading system to measure risk arising from geopolitical issues is another tactic being deployed by leading CA professionals. A consistent grading or rating system can help identify and assess various restrictions in a market, creating a standardised framework for reporting and responding in a complex context.

6. Successful CA teams will build capacity

With many CA teams handling a growing list of issues, keeping abreast of an uncertain geopolitical landscape and increasingly in the spotlight of CEOs and executive boards, capacity-building will be firmly on the agenda for CA leaders. This includes training programs, simulations and scenario-planning exercises that help teams develop swift and robust decision-making frameworks.

Multi-skilled teams that are cross-trained in multiple disciplines can operate with agility, particularly in a crisis management situation. Building a culture of empowerment and championing the smart use of technology – including applying AI and automation to existing communications processes and workflows – will also help free up valuable time.

An investment in capacity-building can provide more time for critical thinking and vital strategy development. “One of the things that’s clearly missing or not there to the degree that we need is critical thinking,” noted an event delegate. “We’re doing a lot of work with our comms functions across the region around simulations and critical thinking.” Teams will need to build extra capacity to not only remain resilient in 2025 but to execute at the required level of speed and effectiveness.

The path to success for CA in 2025

The communications function is at a pivotal moment, with significant changes on the horizon from technology to politics. Factors such as personal and professional resilience, culture change and the ability to operate in a complex geopolitical environment will separate the most successful CA leaders from others. For senior heads of communications and Corporate Affairs across the APAC region, getting ahead and staying ahead of these key trends will be key to driving impact in the year ahead.