5 Questions for Business Leaders to Ask in Uncertain Times

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Ask yourself: Are we set up to grow — and can we fund that growth?

These days, it feels like we are living in the business world’s version of Billy Joel’s 1989 hit, “We Didn’t Start the Fire.” Inflation, geopolitical tensions, energy shortages, labor shortages, employees’ evolving expectations, rising interest rates, increasing cyber and data risks, insatiable investor expectations — the list goes on. Just like the song says, today’s business leaders did not necessarily create this economic environment by ourselves, but it is ours to address and lead through.

So, what are today’s leading businesses doing? They are keeping it simple and are focusing on what they can control. They are working hard to grow operating revenues more than they are growing operating expensesHow? As I talk with CEOs, the commonality between companies is striking.

Profitable growth is an imperative, and it should be self-funded, as investors will likely not tolerate deteriorating margins to fund growth or a lack of growth. So, what does one do? The answer: Get fit and fund your own growth. Becoming fit and self-funding growth is entirely within a company’s own control.Many companies’ futures depend on reinventing themselves in the cloud. This means achieving true customer differentiation — at a lower cost.

Now is the time to align closely with the executive team and think broadly about how to transform digital capabilities into business growth. This means investing in digital transformation across functions, accelerating management decisions, driving change more aggressively and holding people accountable.

 

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