With slight changes in strategies, leaders can mitigate the top business risks and capitalize on the dynamic times in a globally connected economy
During brief periods of market volatility, businesses typically adjust price levels or package sizes. However, most B2B companies now anticipate that the current volatility and uncertainty will continue. As a result, companies must employ a broader range of pricing strategies and make strategic investments in pricing tools and processes. Business leaders hoping for a return to normalcy after a biannual global pandemic will be disappointed, as a slew of new challenges force companies to adapt once more. These are multifaceted and far-reaching challenges.
Rising interest rates and inflation are reducing companies’ spending power, forcing them to act strategically to boost growth in the coming year. Meanwhile, an unusual combination of talent shortages and layoffs puts pressure on leaders to perform a high-stakes balancing act regarding talent acquisition.
In light of the steady fall in institutional and venture capital investments, it is becoming increasingly apparent that companies will have to find their way to profitability independently.
Here’s how leaders can mitigate the top business risks and capitalize on the constantly uncertain times in a globally connected economy.
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Pricing resilience in an uncertain world
Many B2B companies have raised prices, adjusted their packaging and portfolios, improved analytics, and accelerated decision-making with tighter pricing governance in response to persistently high inflation. Companies must find other ways to manage uncertainties and balance revenues, volume, and margins as price increases face customer resistance and reach their practical limits. They will need to transition away from reactive pricing and toward resilient pricing.
Resilience refers to a company’s ability to absorb the stresses caused by disruptions, such as inflation, the COVID pandemic, and supply chain volatility, recover critical functionality, and thrive in new circumstances. Resilient pricing entails more targeted actions that can assist businesses in addressing and removing constraints, meeting internal challenges, and exploring opportunities to grow in the face of uncertainty rather than simply surviving or playing defense. It broadens a company’s options and establishes the processes and technological infrastructure that allow businesses to view uncertainty as an opportunity that requires a balance of offensive and defensive strategies.
For some businesses, implementing resilient pricing will be more of a transition than an abrupt change. While most companies have reacted to inflation with tried-and-true tactics, primarily price increases, some of the most successful businesses have begun to adopt practices that will lay the groundwork for resilient pricing.
Nonetheless, most companies lack a clear plan for dealing with future volatility. Only a few have defined plans for the holistic, structural pricing actions required to address the key challenges they face in improving their sales and pricing capabilities.
Increase Staffing Opportunities Horizontally.
Even as economic headwinds and layoffs in the tech sector make headlines, many executives continue to invest in employee engagement and retention initiatives, such as flexible work arrangements, salary increases, and other perks designed to keep employees happy.
The key to developing a recession-ready, company-committed workforce is to expand staffing opportunities horizontally. Simply put, horizontal staffing allows people to grow professionally while dividing their time among various projects and organizational priorities. This arrangement will enable employees to grow as professionals, gaining the skills and experiences required to succeed in the workplace of the future.
Horizontally expanding staffing opportunities allows companies to be more agile while allowing employees to advance their careers. Horizontal staffing is a win-win situation for businesses and their employees, and making the most of 2023 is critical.
Improve Efficiency and Results
Unnecessary and counterproductive employee expectations plague businesses of all sizes and sectors. People work longer hours while eradicating any remaining semblance of work-life balance, especially as companies embrace hybrid and remote work. Employees are reporting record levels of stress, burnout, and depression.
This stress is not good or sustainable for both people and businesses. Organizations must support their employees without sacrificing results to get the most out of 2023. A good place to start is to reorient businesses around a Results Only Work Environment (ROWE).
Many popular success metrics, such as online activity, hours logged, or messages sent, are eliminated by ROWE. Instead of conflating business and success, companies should identify their desired outcomes and assess employee impact accordingly. As a result, they create a more sustainable work environment that supports people and promotes critical outcomes, allowing businesses to thrive in 2023 and beyond.
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Promoting sales and marketing collaboration for success
Many businesses underestimate the value of fostering collaboration between their sales and marketing departments. When these two functions collaborate, they create a consistent message for customers, streamlining the purchasing process and providing a seamless experience. This synergy encourages knowledge sharing and resource optimization, increasing organizational performance. By removing silos and promoting open communication, sales and marketing teams can better understand each other’s goals, challenges, and tactics.
By working together effectively, they can develop more focused campaigns that resonate with the target audience, generate higher-quality leads, and improve customer engagement. This strategy, in turn, has a significant positive impact on the organization’s overall success. When marketing and sales teams align, they can identify and close gaps in the customer journey, ensuring that potential customers receive consistent, timely, and relevant information at each touchpoint. This all-encompassing approach boosts conversion rates and increases customer loyalty and trust in the organization.
Organizations can maximize the potential of both sales and marketing departments by prioritizing collaboration. In an ever-changing market landscape, unified strategies and customer-centric approaches will increase efficiency, strengthen customer relationships, and ensure long-term success.
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