Carey Oven is National Managing Partner at the Center for Board Effectiveness and Chief Talent Officer, Ira Kalish is Chief Global Economist, and Daniel Bachman is a Senior Manager at Deloitte & Touche LLP. This post is based on a Deloitte memorandum by Ms. Oven, Mr. Kalish, Mr. Bachman, and Jamie McCall.
Why it matters
From an economic perspective, the past few years have resembled a roller coaster. As the pandemic
spread and global commerce grinded to a halt, there were predictions that mass lockdowns would create a severe global recession (or worse). Such concerns had merit, and for a brief time the nation’s economy plummeted into recession. But as businesses adapted to the pandemic’s “new normal,” and especially as the slow reopening process began, some industries benefited from a recovery that was just as swift as the descent.
The recovery from the pandemic has been uneven at best, and it brought its own challenges—chief among them inflation. Board-level strategy around such issues often requires weighing a proverbial constellation of economic data. While cost cutting is often the “standard playbook” response in this area, there is value in weighing all the options available to promote economic resiliency. Periods of volatility are also an opportunity for boards to reaffirm their stewardship commitments. Such actions can pay dividends in social capital—a return on investment that, while not measured in dollars, can be just as valuable.
