Recently, I had a deep dive with the chairman of a global food processing company that operates over 40 sites. We spoke about how the macroeconomic headwinds and market volatility trends affects the strategy of the company.
So, what’s on top of the board’s agenda? The most challenging topics and main insights are:
- Labour shortages and high absenteeism Labour shortages are a given. It is no surprise to anyone that the war for talent is won by talent. They are in charge. Retain employees (and decrease absenteeism) by training for the skills of the future and creating a work environment in which they can develop and excel.
- Pricing vs. operational improvement Profit margins are decreasing due to a chain reaction of events like inflation, shortages and supply chain constraints. Not all operational cost increases can or will be offset by pricing. Therefore, it's necessary to focus on the short-medium term by identifying internal levers that increase efficiency and productivity.
- Automation Definitely the way to go, but often more complex and challenging than expected. It's a long-term approach to deal with labour shortages, but essential to ramp up your company's resilience and create sustained momentum.