How To Lead Through Inflation - The Introduction by Harsshad

Let's start understanding with a casual note and end it with a formal execution excellence roadmap so that you deal with it without stress, anxiety, and overwhelm.

Am certainly was not sure what was inflation until I felt something is expensive and a kind of pinching my pocket, till then it was just economic jargon for me. Have you experienced the same, If yes then you're absolutely in the right space at right time?

The word expensive is really a funny word that doesn't have the right meaning.

If one can't afford it, they call it expensive, and those who can afford anything may say so inexpensive or so cheap.

Unless we don't define a word, we don't get the actual meaning of any situation or event or simply "the reality of something".

I got this clarity in my business when one of my store customers said, "Oh! It's so expensive",

whereas, for the same merchandise (product), some other customer said "Wow, how come it's so inexpensive, it is a cheap man (means inexpensive in rich dad's spoiled kid language i.e in our Indian style "Bade Baap Ke Bigde Aulaadh ki Basha).

To be frank I like a few of these line customers who actually understand the value of the money they're paying, and some won't which is absolutely ok.

I always believe in high value, high price because in business it is said that, "Higher The Price Tag, Faster The Brand Moves"

With that being said, that wasn't a joke apart, still, let's understand "what is inflation now as per the dictionary or in economics? "

Inflation means "a general increase in prices and fall in the purchasing value of money"

Let me simply for you:

? When a tomato's price of Rs. 10/- increases to Rs. 100/- or the Oil price of Rs. 70/- increases to Rs. 170/- one suddenly feels it's too expensive.

Experts call it "inflation" as there isn't value for money for the same purchasing product.

? Now, If an iPhone price is increased from Rs. 50,000/- to Rs. 1,00,000/-, It is never considered as expensive as they can market saying "added features" and consumers think they are getting more features and benefits.

You can call it "Innovation".

Even consumers of iPhone justify, even if the brand does or not.

Now, what added features in tomatoes or in oil one can offer for a consumer to get value or be perceived as a value for money for the purchase, unless "smartly marketed turning it into a brand" for a different set of consumers, but not for all.

I hope you got a bit of clarity on inflation, which is a bit different from the "recession" which we may be touching about the recession too in some of the series as and when the situation demands.

Let me take you to a flashback:

{{ ?? I started my entrepreneurial journey in 2010 after walking away from a high-paying corporate job with more than two decades of expertise in Fashion, Retail Design, and Visual Merchandising serving a few world-class brands.??

?Two decades above in a job was not easy though, ?? but I enjoyed every success and failure. ??

I have seen three recessions so far in my life.

What I have learned from one of my mentors Dr. Ram Charan, a world-renowned business advisor, author, consultant, and coach to the world's best C-suites, what he says is:

"To run a profitable business, one has to be a continuous learner",

and at the same time, he always says, "I am here to learn a few things from you today and I want you to walk away with key learning so that you can implement it in your business and at the same time, teach others".

So, with that objective am sharing what I have learned from him, implemented in my business, learned from the mistakes while executing in my business and in my client's businesses, and a few great learning in real life working for the top corporate.

Almost 50 years ago, as a young professor, my envisioned mentor Dr. Ram Charan was hired by General Electric to "design and teach a unique course" to their managers at their fabled Crotonville training center.

The subject was one of the most painful, difficult challenges that any business leader can face: "Operating a profitable and growing concern in a time of strong inflation".

For GE, it was an urgent mission at that time and I feel in my mission this is the most urgent period to help SMBs to lead through inflation.

So, now am on a mission to help 100,000 SMBs build a wealthy business using my 6D Signature Methodology leveraging the internet and technology.

That's what happened and that's the objective of bringing that knowledge, experience, and wisdom to you so that you can lead over the inflation strategically.

? Now inflation is back.

Inflation is crippling nearly every company in the world

? That fact that you cannot avoid or can get escape; Every day, we hear of companies raising prices, not just big consumer brands, a recent survey found 61 percent of small businesses in the U.S. had raised prices for their goods and services in January, the highest percentage since 1974.

? Many in the US are thankful for a unique confluence of events including an extended period of near-zero interest rates flooding the world with cheap money and many investors supporting existing and born-digital companies which is a similar trend growing around in India too.

? Covid-driven government spending boosting consumers'.

? Demand and supply chains are strained and broken by disruptions in production and transportation.

? Talent shortages across the globe as we are almost 60 months ahead.

? The entire world finds itself in an economic situation not seen in a generation or more.

Now the question is: "Will central banks be able to get a handle on inflation before it gets out of control?"

? Will supply chains disentangle?

? Will people's costs flatten?

Dr. Ram Charan says, "It is too soon to tell, but my gut says no, at least not for a few years" and "That is why there is no more urgent need for business leaders right now than to get ahead of the inflation bogeyman".

? Corporate leaders of the past few decades have been spared the tremendous difficulties that come with trying to drive a business in an inflationary period.

Few executives likely have any memory of how to do it at all.

Now they will be on the front line. ??

? It’s one thing to talk about inflation at the macro level and another to keep your business healthy as the world as you know it comes unglued.

The key challenge is:

? To grasp the reality,

? Change your organization’s psychology, and

? Act and react quickly to the direct hits to you, your customers, ecosystem partners, and the entire value chain.

The dire effects of inflation happen quickly, and a recession — which could soon result from federal action to lead to an overheating economy, compounds its effects.

? Inflation consumes cash,

? Eats margins and

? Calm managers into a false sense of security as inflated revenues rise.

A company’s situation can erode very quickly, leading to a takeover or bankruptcy.

? Those who are fast to react and flexible in their approach can not only survive but prosper in this challenging environment as they seize opportunities afforded by less nimble and smart competitors.

? Those who react slowly or choose the wrong strategy and tactics will be weakened and may even go bankrupt.

? The ultimate goal is to emerge from a period of inflation and recession stronger.

? Preparing a company to battle this sudden rise of inflation is one of the most difficult tasks that will ever confront the CEO and management.

? Not only must the company be prepared structurally and financially, it must also change its dominant psychology.

How management thinks about inflation and the company’s responses to it will determine if the company thrives and how it gets ahead of the competition.

My envisioner Dr. Ram Charan redesigning it for the current moment when customers rule, the world is digitally interconnected and information is viral.

He is doing a strategic session on how to create a new playbook: If you're interested then you can click on this link to register: https://chiefexecutive.net/leadingthroughinflation/

Whether you are a CEO, a member of the board of directors or the CFO or CHRO, this series of articles is about what everyone must do to manage in an era of global inflation and slowing economic growth.

It lays out a brief framework for how the entire company must shift its psychology, its strategies and tactics, and its resources to minimize the effects of this corrosive economic environment while watching for the opportunities that will arise as competitors fail to meet the challenge.

Keep in mind that inflation can retreat as quickly as it pounces.

Any aggressive action the central government takes to tame it is likely to cause another sudden shift, this time to a radical slowdown in the economy.

?The mechanisms and agility you develop to adapt to high inflation will be equally useful to adjust to the next big shift. In either scenario,

make no mistake: The time to act is now.

That's the introduction part sharing with you to keep the above essentials shared in mind and immediately act proactively and just react.

I will be sharing a series of learnings through experience with real-life examples and possible case studies to give you a more clear picture.

But with that being that, I don't want you to just depend on these newsletters, take action right now before it's too late.

If you need any help in strategizing and creating a new playbook, do send me a private message and I will be very happy to help you with my 52 weeks C-Suite Phenomena where I handhold and support you to help you quadruple your business and 100X your productivity.

Check what people are saying about the C-Suite Phenomena;

Do share this with your loved ones and other colleagues so that as a community we can help as many entrepreneurs as we can, as there is nothing called competition as we are in a collaboration era.

Do share your key takeaways and how you're going to implement and what actions you'll be taking.

Stay tuned for the next series tomorrow where I explain "6 Essential Priorities Need To Be Considered By Every Company During Inflation"

Ok, Thank you, be awesome and prosper

For your wealth

Harsshad

Let's BeHive

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