It’s been decades since inflation was a major issue. But it’s back…with a vengeance. The most recent numbers show inflation is running at over 8%. Inflation impacts your strategic planning and it certainly has impacted our executive coaching. Whether you’re in Cincinnati, Ohio, Kentucky, or Jacksonville, Florida, dealing with inflation is on every leader’s to do list.
Inflation heats up when resources are scarce while money is plentiful. In the last few years, we’ve had a reduction is resources, caused by pandemic-related supply chain issues. That was combined with an increase in money supply, as a result of government spending to soften the impact of the pandemic. Toss in a war that impacts oil supplies and the result is inflation.
The impact can be felt in everything from gas prices to raw materials, to the cost of labor.
Leaders need to be proactive. Assign your leadership team responsibility for addressing the topic. Focus on three key areas: raising prices, managing costs, and reimagining the solution.
No one likes to raise prices, as it can be viewed negatively by your customers. But when your costs have risen, you need to. The question is how much. Analyze your costs and cost projections and look at what your competitors have done. Talk with your customer-facing partners to get a feel for what the market will bear.
Then there is the cost side of the equation. Put a team on how you can better manage your costs. In the last few years, when things were going well, it wasn’t uncommon for companies to overlook costs. Those days are over. Buyers need to find new ways to show value in every purchase and with every vendor.
The final piece of the puzzle comes from thinking outside the box. Can you save money and gain a competitive advantage by going to market differently? Explore new materials, new delivery options and new approaches.
For twenty years, Krissi Barr has been helping customers. And her sage counsel has had a positive impact on hundreds of companies and thousands of people. Whether it’s strategic planning or executive coaching or dealing with inflation, if you want to make your organization more successful, give Krissi Barr a call. Her focus is primarily on businesses in Cincinnati, Ohio, Kentucky, and the Jacksonville, Florida area.