Breathing Space

Breathing Space
The operating environment

1 – The interest rate shows no sign of coming down, putting pressure on sources of funding and customers’ ability to buy. This is a huge challenge for growth and survival as UK insolvencies hit their highest numbers since 2009

2 – The Bank of England says there’s a 50% chance of UK recession next year – although how we’ve not had one yet is either incredible or questionable

3 – Every other conversation is about AI. In the pub, at the coffee shop and at home. The reality of most hyped technologies is disappointing at first until they find their space. While the dangers and benefits of AI are a hot topic, companies are trying to see the actual value of it what it means for them – and there are few people who can answer that question well without technobabble.

4 – Climate temperature increases will hit the key number of 1.5C this decade, much faster than expected. The sustainability industry appears to be weathering the storm (!) better than in the credit crunch as funding for the renewables sector hit $358bn in H1. Don’t ask about the supply chains though… The term ‘ESG’ has had a brand bashing over the last year, knocking trust in initiatives that have little performance data behind them.

5 – Israel’s war with Hamas rolls on. Fewer stories on the war in Ukraine have made the press this month

And breathe…

It’s important to step back from this noise for a moment and reflect. The operating environment is tough, but now it’s important to stick to the basics of business with five questions:

• Are your people okay and are they able to perform well?
• Are your customers happy?
• Are you driving growth in the best areas – and if not, what’s your strategy?
• Are you doing the right thing?
• Are you telling the right story to address all the points above?

Have a good weekend and stay safe

Dan