3 Leadership strategies for thriving and surviving in 2023

Malcolm Devine, Managing Director of Alumni’s Global Consumer & Industry Practice, discusses the economic outlook for 2023 with Yael Selfin, Chief Economist at KPMG in the UK and a Fellow at the National Institute of Economic and Social Research. Yael’s research looks at the impact major shocks, as well as new technologies, could have on the economy and on individual businesses. Her work at the National Institute of Economic and Social Research looks at ways to lift growth across UK regions.

Despite being the first full year post-Covid 2022 was more of a year of crisis than a year of recovery. The invasion of Ukraine, the resultant energy crisis, and tightening of controls by central banks are set to continue well into 2023 if not beyond. What does this mean for business leaders whose companies are already having to flex under the structural pressures of their employees working and travelling differently? How do leaders best navigate through a background of rising costs, squeezed margins and unstable supply chains?

This brief interview delivers some golden insight into what leadership could be doing now to prepare for the predicted changes within the economic climate. The key take aways are summarised below.

Understand your customer and be accurate when forecasting future revenues

Several economies are already in, or about to enter, a recession caused mostly, if not completely, by the energy crisis in Europe and to some extent Asia. Discretionary goods will see the most downward pressure as consumers change their spending habits and trade down, and the housing market is cold if not frozen. Leaders should not make assumptions on the consumer behaviours of the last two years, particularly in B2C businesses. Consumer habits and tastes are changing and will be noticeably impacted by rising costs.

Take the opportunity to invest

Most current recessions are likely to be shallow. Economists predict that inflation will ease, particularly from 2024, as the spike in energy prices gets out of the year-on-year comparisons. Successful leaders should take this as an opportunity to invest, get things done that are usually more expensive and harder to achieve in a hotter economy. Leaders will potentially have access to more staff, more skills and their suppliers will give them more attention; they should take advantage of this. Implementing change is also much easier when business is quieter as opposed to running hot.

Take time to consolidate and expand

Now is the perfect time for consolidation across the business. Leaders should be looking to build in more operational efficiencies, eliminating competition, and getting access to new markets. They could also benefit from fortifying the supply chain by expanding horizontally, bringing their products and services to new customers in new geographies and industries

About Alumni

However tough the economic times, Alumni is well positioned to help businesses manage and capitalise through a crisis. Whether it is helping to find the right leadership candidates, developing an individual’s leadership skills or improving the dynamics between leaders and their teams - Alumni has more than 30 years’ experience of helping to build great leadership in business through all kinds of weather.