Until recently, “deglobalization” was a term you might toss out at a dinner party to sound clever. Today, it’s a serious and undeniable shift. Deglobalization is not a passing trend — it’s a structural transformation that is fundamentally changing how companies operate and strategize.
The golden age of globalization — where borders faded and companies pursued a unified global identity — is behind us. What’s emerging now requires companies to rethink everything: strategy, governance, supply chains, and stakeholder engagement. It calls for a strategic stakeholder management plan.
From Paper Memos to Global Efficiency
To grasp the scale of change, we need to go back to the early days of globalization. In the 1980s, international communication happened via fax and phone. Meetings were local and held in the native language — or even a local dialect. International business trips were rare and reserved for top executives wearing ties.
Then came the fall of the Berlin Wall, the rise of the internet, and a digital revolution. Companies chased efficiency and scale, building centralized, streamlined global operations. One culture, one IT system, one HR policy. Offshoring became the default strategy. Governments were predictable: if you followed the rules, you could do business anywhere.
That world is now disappearing.
Deglobalization: A World of New Barriers
Today we see the reverse of globalization:
Borders are going back up — both physical and digital.
National interest trumps economic efficiency.
Governments are pressuring companies to bring production home.
What used to be considered smart business strategy is now viewed through a political lens. “National security” has become a catch-all phrase — flexible enough to mean whatever someone wants it to mean. What was legal and accepted yesterday may come under scrutiny tomorrow.
When Facts No Longer Win
In today’s geopolitical climate, one thing is clear: emotions beat facts. Even if your company invests, creates jobs, and operates transparently, your reputation can flip overnight — depending on political developments thousands of kilometers away.
Governments are increasingly willing to change the rules mid-game. And companies, if unprepared, are left scrambling to react to new realities.
What Must Companies Do?
Deglobalization requires a new mindset — one that goes beyond traditional compliance and legal risk management. It demands structural adaptation:
Successful business need more than just good relations with customers and suppliers only. They need to invest in a broad range of stakeholders before you need them.
The role of the Leadership must evolve. Executives must understand public, political, and reputational risks — and help steer the company accordingly.
One needs a unified company narrative tailored to each country and stakeholder group.
Questions Every Company Must Now Ask
In this fragmented world, leadership teams should be asking themselves the following:
How do we monitor geopolitical risk in real-time — and not just read headlines after the fact?
How do we build alliances? Not just with governments, but also with customers and peers. Acting together amplifies your message. Saying “our plant won’t be able to supply anymore” hits differently than “European car manufacturing will grind to a halt.”
How resilient is our supply chain? Do we have backup suppliers? Local production capabilities? How quickly can we pivot?
How are we perceived in every country where we operate? Your reputation must be locally relevant yet globally consistent.
How do we navigate M&A when political approval matters more than antitrust law?
How do we deal with national laws that conflict with global values or structures? (Think of the recent anti-diversity policies emerging in the U.S., which can create tensions for local HR and legal teams.)
Deglobalization as a Strategic Exercise
Companies would do well to perform this thought exercise: If we were to build our company from scratch in today’s geopolitical reality, what would it look like?
Which structures would we create? Where would we locate our operations? What would our processes be? What narrative would we tell the world?
This kind of “greenfield thinking” is not just theoretical — it’s a powerful way to identify vulnerabilities and opportunities. You don’t have to tear everything down, but you do need to reassess where you stand — and adapt accordingly. In addition, one needs to strategize using geopolitical scenario planning, which if well done will generate new insights in risks and opportunities that otherwise would not have surfaced.
Expanding Roles
Every member of company leadership must be on top of these developments, as they may impact any company activity. But functions like the General Counsel, the Chief Public Affairs (if present) and the Chief Strategy will have to take organizational steps to embed geopolitical awareness into the company genes somehow. They are a strategic leader — responsible for anticipating geopolitical, regulatory, and reputational risk.
In Conclusion: Be Prepared to Win
Deglobalization is not going away. It’s messy. It’s emotional. And its endpoint is still unknown. But companies that prepare — by building relationships, thinking in scenarios, and acting strategically — will not only survive but find new opportunities.
In a world that’s shrinking again, smart companies make bigger friends.
