I?just returned from a trip to Australia and New Zealand, as part of a global journey talking with leaders about uncertainty and volatility.?By now, they have all accepted it’s not a question of if there will be impacts but when. The underlining feeling ranges from cautionary to trepidation.?I heard about ‘organizational fatigue' - a natural reaction to this anxiety-inducing environment we’re in. On the plane rides home from Down Under, I briefly pondered?adding therapists to Profit Drivers’ offering. But clearer thinking on the ground led me to conclude our best role is to provide assurance that there is a right path forward. In this case, we have an example right in front of us. Mattel’s CFO, Anthony DiSilvestro recently shared how they’ve created a playbook, leveraging their global supply chain and preparing for potential price increases. We’ve been hearing that many companies don’t have a plan in place. If that sounds familiar, now is the time to begin taking proactive steps. Start with:? ?? Create Transparency & Expand Your KPI’s– Track the forward view of cost drivers like commodity input costs, labor, freight to a SKU level. Add demand drivers like consumer confidence or housing starts for example. ? ?? Build playbooks—Have a series of short, mid and long-term mitigation actions that you can take to ‘land the plane’ effectively. Don’t only think about this as a tariff-fighting playbook - shifts in end- customer demand or currency fluctuations could arise at the same time. ? ?? Reinvigorate market monitoring—Real-time insight into the execution of your strategies and tactics. Understand end-customer sentiments to track real shifts happening on the ground. ? You don’t need a fully mapped-out strategy today, but you do need to start. The companies that plan, like Mattel, are the ones that will come out on top.?
I would add implementing some form of scenario analysis to understand the impact of potential stress events, and your organizations ability to respond effectively.
Well said Scott!
Awesome part of the world!