Perspectives from Rebecca Homkes
Downturns are a great time to grow
When a system shock occurs, our instinct is to view this - and the uncertainty it creates - as negative. And as organizational leaders, negative is often equated to a possible downturn. The SRT playbook asks you to reframe how you view shocks and uncertainty: rather than inherently bad, instead see this environment as one with possible upsides. Opportunities are always available to those who are prepared, stabilized, and willing to undergo resets.
But what happens when a shock does produce a market downturn, or recession? They are often accompanied by a self-reinforcing cycle of fear, which leads to panic and premature freezing of spending and investing, which translates into the slowing of capital flows and the beginning of lay-offs, which leads to more panic. These effects can ripple through public and private markets into consumer sentiment, and the doom spiral begins. But macro downturns are not necessarily micro downturns.
If you are prepared - embrace these times, as downturns can be a great time to grow!
What can leaders learn from this election? Three brief takeaways from the 2024 USA election
After months (ok years…..) of election discussion, we have an outcome in the US election. While much has been written about the emotive election and its outcome (which I cover elsewhere), I wanted to move slightly away from the policy and character debates and focus on three takeaways for organizational leaders.
Does Macro matter? Linking macro trends to strategy
We’re a few days away from a pivotal election in the USA, geopolitical tensions remain fraught, strikes at companies such as Boeing and ports pose questions as to future supply shocks, and a persisting economic overhang means demand pressure remain a concern. But the bigger question, and a frequent one I get from leadership teams, is does macro even matter? When developing a strategy, how much, if at all, do macro trends matter?