In this article, Jason Foster considers the ripple effect of the pandemic, the new challenges of inflation, cost of living crises and likely recession and how data leaders can prepare their organisations in a way that helps them survive and thrive.
While the pandemic and more recent events in Ukraine have had a major effect on the economy over recent years, experts have now warned that we have yet to see the full extent of its economic impact which is predicted to put many countries into a recession.
As a data leader, you are in a unique position to implement strategies that can help ease the pressure on your organisation.
Even though the UK isn’t in a recession at the moment, there are some events which signal that one is probably on the way. The Bank of England very recently has raised the interest rates to try and curb soaring prices. They also warn that the UK will fall into recession at the end of this year, 2022, and it expects the economy to continue shrinking through the end of the year and keep shrinking until the end of 2023.
In addition, the GDP of the UK had fallen 2.2% between January and March, the largest contraction within a quarter that the Office of National Statistics had seen since the records began in 1955.
There is a similar situation in countries across the world.
Even though most of the world has moved on from the pandemic there is still residual pressure as entire industries struggle to recover. Added to this are other events around the world such as the war in Ukraine, rising tensions and increased gas prices which are making it increasingly difficult to live and plan forward.
Governments around the world are well aware that there has been a shift in the economic market with world leaders scrambling to find ways to avoid a recession. This includes:
While countries and governments put strategies in place to protect their economies, ordinary organisations and their business and data leaders need to get themselves in a positive position to trade through these challenges and thrive if they can.
Data leaders should be considering the measures they can put in place to protect against these challenges, to thrive while others may struggle. Think about the B.I.R.T.H measures below to help get ahead:
Even though a recession may be imminent, there are still many things you can do as a data leader to prepare your team to thrive. Some of the most innovative and successful organisations were born out of challenging economic times and you are able to create a unique and leading data capability with the measures shown here.