Indian business will have to face a prolonged period of uncertainty that will make crafting long-term plans a difficult exercise, says a Boston Consulting Group report.

The report, ?Thriving in a Volatile World?, done by BCG in association with CII, says this volatility isn?t a fallout from the global recession of 2008-09 but the more fundamental shift in the environment where there is a rebalancing of economic power away from the developed world towards the more populous but less developed countries.

The forces that have been sweeping through our markets over the past decade ? many of them complex and interrelated ? are giving CEOs and business managers a deep sense of unease, says the BCG report. It was released by union shipping minister GK Vasan in Chennai on Saturday.

In India, as is the case with most developing economies, while the long-term growth story remains intact, the journey is unlikely to be smooth. Volatility across all key economic parameters has shown a dramatic upswing in the recent years. Political and regulatory risks have also become material for many industries. Finally, a higher level of globalisation and increased speed of information flow has heightened exposure to global volatility. In short, the industry is today confronted with uncertainty and risk of a different order of magnitude.

According to the report, the impact of this volatility on company performance is there for everyone to see. The turbulence has had an impact on both financial and market performance of firms. On one hand, fluctuations in operating margins have increased. On the other hand, industry leaders are falling from grace as is evident from the fact that 14 of the top 30 companies ? by market capitalisation ? in 2003 no longer feature on the top 30 list of 2011. Also, leadership no longer means what it used to. The once strong correlation between profitability and industry share has now almost disappeared in some sectors. As a case in point, in the US, the probability that the market share leader is also the profitability leader declined from 34% in 1950 to just 7% in 2007. We are starting to witness similar incidences in India as well. This new normal is here is to stay. Business leaders need to see this as ?business as usual?, the report added.

However, there is no silver bullet or magic formula for winning in the new normal. It will require changes, small and large, across the organisation in how we do business. The need of the hour is to inject optimism, discipline, agility and flexibility into the DNA of the organisation. The end goal should be to create adaptive advantage as it will be the future source of competitive advantage.

As part of this the report suggested six core elements need to be explored for thriving in the new normal, which include:

Don?t take your foot off the growth pedal: Growth opportunities have not dried up. Keep eyes open for growth opportunities, irrespective of the external mood;

Risk not just a check-box: Risks have clearly been heightened and need to be understood deeply. Consider derisking the business portfolio and firewalling the company against operational risks;

Recast your planning vocabulary: Old planning and budgeting frameworks are redundant for most companies. Recast on a clean slate to preserve accountability while building in a higher level of responsiveness;

Stay three seconds ahead of the commodity trap: Margin shocks are here to stay. Cost excellence is an absolute must but will not be sufficient. Build further protection through relentless pursuit of value addition opportunities;

Lego?ise operations: Volume and product mix uncertainty is on the rise. Push the envelope further on end?to?end supply chain flexibility to build higher level of operational robustness; and

Discover your agility gene: Slowness to sense and respond will push companies to obsolescence. Create a constructive burning platform, rewrite the decision making fabric and invest in people to nurture agility, the BCG report maintained.