Time to make a decision?

Macro crises often result in periods of adjustment, reflection and caution reigning the boardroom.

In the current circumstances, one could argue that this is sensible given the previous uncertainty around government policy and the effect of economic conditions on consumer behaviour. Few want to risk their reputation taking big bets when the margin of error between prosperity and calamity is so thin.

But there is a cost that comes from inertia, and it’s growing by the day. With the Budget out of the way and inflation tailing off, now is the time to get off the fence and pick a lane.

What that looks like depends on which group your business falls into:

The Prudent

These companies ‘right sized’ early in the slowdown to conserve cash and profitability. They are thus now in a relatively healthy position but face a dilemma: are they going to be simply EBITDA managers, while their bolder peers steal a march on them. Or will they re-strategise for the future and invest in people, while they have the advantage?

The Aligners

These are businesses - many in tech - that capitalised on the pandemic-era surge in D2C, ecommerce and SaaS. Many have been pruning lately, but they now need to review and redesign their structures more comprehensively, not just because cost savings are critical but because their operating models in some cases no longer make sense as tech adoption curves return to pre-Covid trends and multichannel becomes the dominant force. There may be consolidation to come.

The Undecided

This group are unsure of their strategy, operating model and likely future. Some were Covid winners, some weren’t, but either way this is no time for wavering: they need to pinpoint their direction quickly. I see this particularly in fashion where safe choices have led to bored customers. Time to gather the insight you need, and make a call on the strategy, structure and people that will get you to where you want to be.

The Growers

These businesses have tried to capitalise on others slowing down, by opportunistically accumulating mid-level talent. Their risk is that, without care, they fall victim to Parkinson’s Law, where every assistant gets an assistant and the organisation gets bloated. They need to architect their structure strategically to support sustainable growth.

Are you at a crossroads??Email me at [email protected].