November 2, 2022

The economic context is unprecedented: businesses are impacted by a runaway inflationary crisis which is affecting energy, raw materials, wage costs, and rising interest rates could result in a global recession. The last comparable situation in Europe was in the 1970s, though other regions have more recent experience of these challenges. This context is completely new for many top executives, resulting in fear and uncertainty.

Our “Inflation crisis & potential recession” whitepaper responds to managers’ concerns on how to deal with the current inflation crisis and
potential recession. The first answer to this crisis is increasing selling prices. However, depending on the sector, types of clients and products, business will have to deal with four further situations to manage these challenges.

In this paper, you will see we propose a decision tree with dedicated “tips” – this is based upon our own experience and is supported by recent interviews we have conducted with CEOs who have experienced high inflation in their regions for many years.

Facing inflation and recession issues must be managed differently than the ordinary course of business. It requires speed, consistent communication and authority. As the inflation crisis impacts daily operations and strategic roadmaps, it is necessary to set up a dedicated and focused taskforce attached to ExCom to make prompt decisions.

It is important to not only focus on immediate issues, but also act within a medium-term perspective by reshaping the operating model and value chain to fit this new economic and geopolitical environment (i.e. client offer, supply chain, footprint, product components).

Enjoy the read: Inflation crisis & potential recession