Very good post with useful ideas and frameworks. Thank you. When there is significant environmental change organizations need to first be resilient (able to flex) and then adaptive (able to change). These are different modes and require different types of actions. Getting to cashflow breakeven is about resilience. It is a necessary first step, but it is not adaptation. Organizations also need specific skills for adaptation. Scenario planning is one of these, the ability to imagine alternative futures. The recession planning framework shared above is a good first step, but one also has to look at the scenarios that will lead to renewed growth, for your company, and for the economy. Begin with resilience but have a plan to move to adaptation.
From back in August 2021, Pricing and inflation, how to respond
1. Invest in pricing agility (in a dynamic environment you need to be able to respond quickly)
2. Prepare for different scenarios (do not assume you or anyone else knows what will happen, inflation is part of a chaotic system with many unexpected phenomena)
3. Investigate the impact on value drivers (how will your value drivers change for different customers, use this to segment customers)
4. Think though the impact on demand and costs (do not fall into a stagflation cycle)
5. Have different responses prepared (preparation is the key to rapid response, have the basic responses prepared, see The jobs of pricing scenarios for guidance on how to do this)
This is brilliant 👌.
Very good post with useful ideas and frameworks. Thank you. When there is significant environmental change organizations need to first be resilient (able to flex) and then adaptive (able to change). These are different modes and require different types of actions. Getting to cashflow breakeven is about resilience. It is a necessary first step, but it is not adaptation. Organizations also need specific skills for adaptation. Scenario planning is one of these, the ability to imagine alternative futures. The recession planning framework shared above is a good first step, but one also has to look at the scenarios that will lead to renewed growth, for your company, and for the economy. Begin with resilience but have a plan to move to adaptation.
Wow great post and really appreciate you including our "how to grow in a downturn" piece! 🙏
From back in August 2021, Pricing and inflation, how to respond
1. Invest in pricing agility (in a dynamic environment you need to be able to respond quickly)
2. Prepare for different scenarios (do not assume you or anyone else knows what will happen, inflation is part of a chaotic system with many unexpected phenomena)
3. Investigate the impact on value drivers (how will your value drivers change for different customers, use this to segment customers)
4. Think though the impact on demand and costs (do not fall into a stagflation cycle)
5. Have different responses prepared (preparation is the key to rapid response, have the basic responses prepared, see The jobs of pricing scenarios for guidance on how to do this)
https://www.ibbaka.com/ibbaka-market-blog/pricing-and-inflation-how-to-respond