Executives, Decision-Makers, and Colleagues,
The world is changing. The global trading order is changing.
AI is changing companies. Energy costs are uncertain. Growth is slower. Interest rates remain high.
Many CEOs are still using old mental models.
The first thing leaders need to do is raise their heads above the day-to-day activity and understand what is happening outside.
Learn it. Study it. Discuss it. The world is not standing still.
When conditions change, leaders must move quickly.
For many years I have said: Cash is the oxygen of a business.
Today, I would make it more specific. Think about cash generation. Think about cash allocation. They are not the same thing.
The first responsibility of a CEO is survival.
Before growth. Before expansion. Before new ambitions.
Make sure the company has enough cash to withstand shocks.
If you can generate additional cash, that is even better.
Now the question becomes: where should that cash go?
Three areas must continue : Productivity. Customer service. New products.
Difficult times are not an excuse to stop investing in the future.
In fact, difficult times often create the best opportunities to strengthen your position.
Many people think first about earnings. I suggest thinking first about cash.
How much cash are you generating? How much cash do you need?
How are you allocating it? Can you survive? Can you continue building for the future?
Those are the questions leaders must answer. The environment may be uncertain. Your response should not be.
First, survive. Then build.
Best,
Ram Charan
