Play offense, play defense - but play smart
Let’s face it - 2024 hasn’t exactly been a walk in the park for markets or businesses. Between inflation, interest rate hikes, supply chain hiccups, and geopolitical surprises, it’s no wonder executives and investors alike are asking: “What’s next, and how do we prepare?” Here’s the thing: turbulence is here, but it’s not all bad. In fact, for the agile and strategic, it’s a chance to reset, rethink, and even leap ahead. With SuperReturn CFO/COO Middle East approaching, Khalid Chami, Group Chief Financial Officer, Ali and Sons, talks through the steps you need to make to turn this challenge into a catalyst.
So, what’s really going on?
We’ve entered a phase where volatility isn’t just part of the game—it “is” the game. Global growth is slowing, central banks are tightening, and capital markets are becoming more selective. But rather than panic, smart businesses are digging deep and adapting.
Some are playing defense—tightening costs, protecting liquidity. Others are going on offense—investing in new tech, entering new markets, or restructuring old business models to build resilience.
This is a moment that rewards bold clarity.
Playing defense (but smartly)
Let’s start with the basics. When the winds pick up, you want your financial house in order.
- Cost control: We’re not talking slashing teams or freezing hiring. Today, it’s about “strategic” cost optimization—automation, smarter procurement, and simplifying bloated portfolios.
- Liquidity first: With higher rates, capital efficiency is back in style. Working capital, cash flow forecasting, and access to diverse funding options (think private credit or asset-backed finance) are critical.
- Scenario planning: Static budgets are out. Rolling forecasts and dynamic stress-testing are the new normal.
Going on offense
Ironically, this storm is also a launchpad for those willing to rethink.
- Business model refresh: Many companies are moving from fixed to flexible models. Think subscription pricing, platform plays, or geographic diversification.
- Digital investments: Now’s the time to double down on tech that boosts agility—AI, supply chain visibility tools, and customer analytics.
- New revenue streams: Some are finding opportunities in adjacencies—like logistics firms entering trade finance or manufacturers offering tech-enabled services.
It’s a leadership moment
More than financial performance, this market is testing leadership.
Boards and executives are stepping up governance. Risk committees are back in style. The best firms have “war rooms” looking at everything from macro risks to cyber threats. And internal communication? Absolutely vital. Leaders who are transparent and steady under pressure are winning the trust game.
What about investors?
Good question. Despite the choppy waters, many investors are staying active—but with sharper focus.
- Distressed and special situations: There's real opportunity in mispriced risk. Expect savvy investors to swoop in where others fear to tread.
- Green and infrastructure plays: Clean energy, digital infrastructure, and logistics hubs are still attracting big capital.
- Emerging markets: Surprisingly, many are showing resilience. Young populations, digitization, and fiscal reforms are making countries in the GCC, Africa, and Southeast Asia more attractive than you’d think.
5 moves to make now
Whether you’re a CFO, founder, or fund manager, here are five things worth doing now:
- Diversify your funding: Don’t rely on a single source. Explore new instruments and lenders.
- Forecast flexibly: Use leading indicators and update frequently. Think months, not quarters.
- Invest in agility tech: Whether supply chain platforms or finance automation, agility is king.
- Keep your top talent: Upskill, engage, and align them with your mission. People drive performance.
- Use ESG as a lens: Beyond compliance, ESG helps assess long-term risk and opportunity.
Final word
Yes, these are uncertain times. But turbulence doesn’t just reveal weaknesses—it reveals potential. The companies that will thrive aren’t the ones that wait for calm. They’re the ones that create clarity, act with courage, and turn disruption into direction.
So, are you ready to turn the challenge into a catalyst? Because the future doesn’t wait—and neither should your strategy.