The environment today harkens back to COVID, when consumers and businesses were dealing with a tremendous amount of uncertainty. Today it is not a pandemic, but rather ever-changing tariffs, declining consumer sentiment, inflationary pressures mounting, and economic growth forecasts being revised downwards. Leaders in today’s world are tasked with acting amid tremendous amounts of risk and uncertainty, which can make decision-making and strategic planning increasingly difficult. In times of unpredictability, studies show that leaders either make short-term based decisions, leaving billions of dollars of untapped potential, or they look to past experiences to inform the present. But effective judgement is hard to come by when our present circumstances don’t resemble anything we’ve experienced in the past. Staying focused on core values and communication both internally and externally while also using the future to inform the present will help move businesses forward. Below, we highlight a few fundamentals to inform decision-making in times of uncertainty.

A Focus on the Fundamentals

With a commitment to volume growth, companies have a renewed focus on innovation – not just in product but in experiences that drive consumer engagement and loyalty. Look for opportunities in chaos, as constraints can often drive innovation. Reframe issues as possibilities and encourage nimbleness and creativity within your team. Empower leaders with flexible solutions. Being able to pivot will be paramount, as change is a certainty right now, and communication and trust in your teams are key.

Do not lose the focus you may have generated on key initiatives such as Revenue Growth Management (RGM). Balancing the right mix of pricing complexity vs. simplification, companies are deploying a more integrated RGM strategy, avoiding siloed solutions and driving cross-functional collaboration.  Along with RGM initiatives, leaning into core competencies such as Category Management is key during these times. Making sure the right products are on shelf to meet consumer needs will build loyalty as consumers rely on trusted brands during difficult times.

Global supply chains are being rattled with uncertainty, so companies are focusing on efficiency, agility, and operational excellence as part of their supply chain transformations.  New tariffs have resulted in sudden cost increases for manufacturers and consumers, which makes forecasting challenging. Similar to COVID, manufacturers need to shift their sourcing strategies. By diversifying their supplier base, manufacturers are better able to mitigate risk.  Agriculture and Technology have been hit especially hard, and this has highlighted the need to adjust single source supply from tariff-affected countries wherever possible.

A Focus on the Future

In times of uncertainty, it’s critical for leaders to have a future-based strategy to foster organizational growth and transformation.

Clarkston has developed a scenario planning methodology that assists organizations, using strategic foresight as a key factor to future achievements. By not solely relying on past experiences, Clarkston holistically integrates forward thinking and strategic excellence for sustainable growth.

With today’s unprecedented change, it is critical for leaders to pivot to a future-based strategy with a laser focus on core values and connection with consumers to help drive growth. Reach out to us today to chat more.