2020's It's The Decade Of Unexpected And Complete Social and Political Havoc

This week in The Business Brief. The 2020's have so far been the decade where the term Managing Through Change would be an understatement.

Nothing has been left untouched in this world since January 1, 2020, It has been 802 days since the beginning of this new decade. We don't know how this decade will end, but if anything it has been socially and mentally challenging for all of us. Challenging for businesses, consumers, workers and families. However keeping a positive frame of mind is one way to deal with change. And understanding the difference when something can impact your life and when it's just another shock and shift for the world to deal with together and adapt. Obviously, society needs a break from all of this because for most it is unsettling.

Before we go on I am giving away a few free books, my way of saying thank you for subscribing to this newsletter.

Society and Business

From Shocks to Shifts

Over the last two years we’ve gone from Pandemic to Human Protests to Political Conflicts. Each event has brought Shocks and Shifts with them.?How do we prepare for the growth that comes afterward? We can be assured that there will be growth cycles.? The critical challenge to businesses today is how to keep engaging consumers across the digital universe? The divide continues to expand, and business reach is more costly. There is a high sense of urgency which demands that leaders seize opportunities with every step they take. And all the information their eyes and ears can absorb. Data has never been more valuable. Often it isn't enough! The future still looks obscure today, keeping in mind that the uncertainty of political and economic events are preoccupying consumers and business leaders. What we have learned over time, is that procrastination gives way to abrupt competitors who can take share seemingly overnight. Therefore, a leader's everyday actions must begin with the development of new products and services that create a profitable return. The challenge is to fight the virtual hand-to-hand combat war online and within social media. And be able to continuously deliver growth all the time.

History has shown us that consumer facing businesses that can innovate and adapt are able to build resilience.??To achieve that, it must take place throughout an organization, with every day and everyone?thinking, breathing and speaking the same language of growth. In addition retailers must re-evaluate and reconstruct the future, physically and virtually with every customer interaction to remain relevant.

What's bothering consumers?

The Pandemic continues and restrictions are being lifted. Should we be excited or worried? How will consumers react to this? It will be mixed and it will take time to deal with. However, it does seem that governments are washing their hands of healthcare responsibilities and leaving it to the public to decide how to look after themselves. On one hand we have vaccines and protocols. Will we all keep up with them or stumble in the wrong direction? Who will tell us its time for our next booster shot? Did anyone tell the virus to take a break? Read more this article suggests retailers hang on to practices embraced during the pandemic.

The war in Ukraine and the fear of war has too many concerned over escalation and the sanctions, while necessary, are now going to hit closer to home with higher food and commodity prices. A cease fire to end to this war is a must, it is destabilizing the world. Read more on how consumers are being impacted by the war in Ukraine.

If an Economic slow down happens because of everything going on in the world, what are the risks to the economy and your job? How harsh will inflation be? Interest rate hikes? How will this change consumer behaviors with retailing and other discretionary shopping? Read more this article suggests interest rates may not solve inflation.

The divisiveness of politics. The Federal Conservative Party of Canada is heading into a leadership election and for a third time in three years to try and elect a leader that might lead the party to power. However the conservatives are being dubbed as the Angry Party. Who are they angry at? Last week they attacked a former conservative who has also thrown in their hat for the leadership race. There is an ideology shift happening within the conservative party and no one is clear where it's heading. The party's rhetoric sounds more alt-right than it does Canadian. But what is their party agenda? Read this editorial summary in The Globe and Mail.

Retail and Competing

Seven principles to compete with uncertainty and the unknowns

1. Consumers will not dismiss geopolitical issues. Many consumers having dealt with the pandemic, watching protests globally and at home, and now the invasion of a country that was trying to build democracy. Yes consumers are in shock, their emotions frayed and their behaviors are shifting. Conduct a lot of research, you are going to need it.

2. Never underestimate household economics. Money at home matters! We are currently running a poll, the results of which will be released in next weeks issue. The question, "Where will most consumers make changes to offset inflation?" All I will say is that unless something dramatically changes about inflation and the war in Ukraine consumers are changing plans.

3. We are technology driven world, and disruptive innovation brings more volatility. On top of everything else. Businesses need speed to keep up with change and head faster in the right direction, businesses that do this well will grow exponentially.

4. Misunderstanding the methods needed to compete in these environments. Customers don’t magically walk in on their own, they need a brand with a purpose and product. Sales don’t happen on their own, they need a price that has value delivered by people, and profits need all of the above!

5. This Equation (Culture + Talent) x (Strategy + Execution)= Defendable Brand, it separates winners from under performers in any industry.

6. Before you pump people up to achieve your business goals. First give them the tools and resources to do their job! That means technology to engage with customers and expedite their in store experience.

7. Convenience matters! Higher prices in general will push consumers toward looking for the best prices and speed of service. E-commerce will likely continue to have a healthy growth cycle.

Retailers say “Nyet” (No) to Russia.

This week brands and businesses began their march out of Russia in protest. Having lived in China I know that in authoritarian countries like Russia freedom is an illusion. Rather than being able to speak up against issues, the main street media and social networks are controlled or shutdown. However what does this say about brands? Does their shutting down operations deliver the message to the public that the world doesn't agree with their government? Does it make these brands more human or have they become too political? And is it the wrong message? An interesting article. Read more here.

It's not easy to shutdown retail operations in Russia. Aldo shoes shares their insights. Read more

Canadian Tire plans to continue spending in digital operations. Read more Once again I bring your attention to technology leading the retail war for dominance.

Economics

Canadian unemployment is below pre-pandemic levels. But are job prospects really good?

What many don't know or forget is that once someone is off Unemployment Benefits they have either found a job or quit the work force. In turn economists stop counting people as unemployed. Therefore, dropping off the radar doesn't mean the employment market is better. This article In addition, the 337K new jobs may not be jobs that pay higher wages nor lead to long-term careers. But what if there are not many choices? The problem is finding the job you want and where your skills are needed.

Work from home forever?

It might be difficult for some to understand but the office may no longer be necessary. And there are a lot of workers who feel that way. Read this NY Times article This may morph into a larger gig-economy.

From gasoline, fast food to groceries and everything else is going up

Restaurants: claim that cost of food is up 10%. Chipotle Restaurants however they are not alone and it will be a challenge especially as Russia plans their own sanctions for the west.

Groceries: food prices are always going up. However this time around we can also say that the situation in Ukraine is creating a problem. Read more

Gas prices: Needless to say are high. Hopes on an OPEC saving the day may take time. Read more

Politics

Can an enemy nation shut down our internet?

The short answer is no! At least not permanently. What is the number one complaint from the public when the power goes out? Their internet is not working. We are now so connected that our lives at least for the majority of us not having access to social networks, email, streaming videos, playing games and just browsing on the internet would likely launch mass protests in the streets globally. So socially and technically the internet is now a critical infrastructure like the electricity grid. Could an enemy country try a major cyber attack? Well let's put it this way if they did it would be equivalent to an act of war. Read more here generally though we are pretty safe accept for temporary power outages.

A factory of lies to mislead society

China's narrative (read this) on the war in Ukraine sides with Russia and potentially supports the use of chemical warfare. However, China needs to find an exit ramp when it comes to the Ukraine because they need the west to keep their economy working.

Drive your career bus, destination, destiny and results are yours

Personal Log: A work life is as important as your health. It needs to be managed it needs the right nutrients and a balanced diet. There are always obstacles and you need to learn to navigate through them. I can't tell you how often I was told that I had to wait my turn, that I wasn't ready or didn't belong. My solution? I simply marched on my own path. I often asked, "if I am not part of the future of the organization, why am I here?" I didn't just want a job, I wanted to lead. I wasn't interested in gossip, nor cared about trying to play the political games. I left that to others because I saw what happened when they got caught in the quagmire of their own doing. If you want a great career that doesn't stall, keeping moving, learning, take the roles others fear, and never say you are happy where you are. Because unless you own the business that decision is not in your control. Human resource specialists may be unhappy with this last statement. But they too move to other organizations quite frequently. Keep climbing the ladder where you are until you see the glass ceiling, then take that carpet bag of skills you've developed and learned along the way, repackage them and start fresh somewhere else. It might all sound quite Machiavellian. However I will tell you that the most successful people drive their own career bus, they don't count on the organization to do that for them. Finally, I've learned never to be naive enough to believe that I know everything and don't need to learn more. Successful executives don't believe in luck they create their own luck by choosing the right bus to ride on or drive.

Thank you for reading The Business Brief. I hope you find the content meaningful and useful. The content and insights that I share with you are based on experience and what we need to consider as both risks and opportunities. And we know that there are enough of both. The task at hand is to recognize the difference. Of course no two organizations or people have the same goals and objectives so how and what they act on differs. Only a true operator would recognize that. And don't believe for a moment that one person or organization can change your business future around. If it sounds too good to be true. It isn't true.

If your retail chain needs a temporary leader or to help super charge it in the right direction I am here to help.

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