Inflation rates have surged globally. You might have noticed the numbers on your gas pump looking like they are never going to stop. Inflation had already been rising before the conflict in Eastern Europe, which only exacerbated the situation. Below are the inflation rates for some countries and areas as of March 2022:
- Euro Area 5.9 %
- India 6.07 %
- Netherlands 6.2 %
- UK 6.2 %
- Mexico 7.28 %
- Germany 7.3 %
- United States 7.9 %
- Russia 9.17 %
- Spain 9.8 %
- Brazil 10.54 %
What happened to getting back to normal once the pandemic subsided? It’s safe to say by now that there was never a “back to normal” because “normal” never truly existed. The world is a complex adaptive system, ever-changing, sometimes dramatically and suddenly. The pandemic changed the world and now geopolitical events are changing it even further.
Companies are now faced with having to succeed in an environment that has not been seen for over thirty years. Many are having to push through major price increases. Inflation makes it easier to increase prices on customers, but how far can prices go before customers are priced out and market share is lost?
So how can companies win in today’s world? What is the solution? As always, there is no silver bullet. There is, however, something that is key to success. Organizations that can truly approach this new world unencumbered by past ways of thinking will gain a significant competitive advantage. Corporate leaders who can look at the present and future with fresh eyes have an opportunity to create, discover, and execute on their path forward amid the storms of inflation, supply-chain disruptions, and whatever else comes our way next.
Organizations must pragmatically view the playing field of business with clarity. When this is available, their future can be invented independently of the circumstances. This will create the possibility to powerfully chart a path through inflation, pandemics, and the next shock to markets locally and globally.