Since the new US administration was formed in January, it has certainly been a rollercoaster ride. If anything, the pace of change and upheaval only seems to be increasing rather than settling down. In particular, the continually shifting and unfolding drama around tariffs poses enormous questions and challenges for many businesses, as well as far-reaching ramifications for global trade. We are likely to feel the implications for years to come.
It isn’t only about trade. The administration’s approach to the diversity and inclusion agenda and many other issues seem to threaten to undermine some of the basic principles upon which progressive economies have been founded.
However, it isn’t necessarily all negative for the UK; some relative gains could emerge. We may reach a trade deal with the US, although that remains very uncertain (like everything else). Equally, the UK has a proud history as a service nation. We are the second largest exporter of services (including legal, accountancy and professional services) in the world. There is an opportunity here to dial up our focus on services, with the possibility of attracting even more business as some countries potentially turn away from the US.
Stay true to your purpose
My key message here, though, is that it’s precisely in times of turbulence and uncertainty that holding true to your values and purpose is most important. Understandably, the markets and businesses themselves hate uncertainty and this can cause some erratic and unexpected behaviour. The sense of chaos and freefall can become almost like a contagion and spark decisions that are out of character and very short-term.
When confronted with a plunging share price or imminent cost increases, understandably businesses look for immediate measures to mitigate against the effects. But if these are at the expense of values that an organisation has embraced as core to their mission, such actions could do much more harm than good over the longer term.
Service agenda’s enduring ROI
Specifically, I would strongly urge businesses not to cut back on their investment in the service agenda as a way of reducing costs. Some businesses may contemplate reducing spend on internal customer service teams and processes; others may look at switching to different suppliers who are cheaper but offer lower service and fulfilment standards; some may look at both. But as our research has repeatedly shown, investment in service brings a strong ROI of its own – through customers that spend more with the business, return more frequently, recommend it to others, and help bring more new customers to the brand.
Quite simply, my message is to stay true to yourself. Don’t ‘sell out’ or give up on your values because of shifts in the market that are impossible to read and could end up anywhere. I am not arguing, of course, that businesses shouldn’t be agile. That’s a deeply necessary attribute in these times. But it should be a tactical agility in response to developments, not one that tears up the underlying strategy and values on which the business is founded.
Embrace agility but follow your true north
An analogy I’d use is that businesses should stay focused on their true north. Don’t lose sight of it; keep working towards it – even if you may need to adjust your course, moving east or west a bit, to get there.
Without doubt, these are worrying and challenging times. But they are also times in which we should be showing our steel and determination, our commitment to what we believe in and the purpose that motivates our businesses. On a personal level for business leaders, it’s also about being able to look yourself in the mirror each night. Are you doing the right thing? Are you being agile and protecting the business – but not at the expense of the values you hold dear? If you can answer yes to those questions, you are surely on the right track.
Businesses that continue to embrace service and purpose, that put their customers’ needs at the heart of their model, and that continue to support and invest in their staff, will prevail over market fluctuations and noise in the long term.
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