So, the CBO (Congressional Budget Office) has literally just prognosticated that inflation will continue for the rest of this year. The good news, according to the CBO, is that these pressures will be attenuating slightly over 2023, when the situation will revert to normal. Moreover, our supply chain issues should evanesce by the end of this year.

Even so, that still means we must be planning to run our businesses during inflationary conditions for some 18 months or so. Which means, as the leaders (CEOs) of our businesses, we need to shift our focus and recognize the true situation of our business. That means we focus on real volume and real revenue- those are the parameters we need to monitor. Not the changes in income that are really the result of inflationary pressures.

Moreover, we must focus on those portions of our businesses that are profitable, that are growing- and avoiding those segments that only appear to be ok because of price increases and not due to volume increases.

Most of you know our philosophy- we believe in open corporations, with full communication to corporate staff. As such, it should not be surprising that we recommend ensuring that everyone knows the priorities- and the actual financial positions. Team members should be as involved as everyone in monitoring true volume turnover- so year to year comparisons make sense. This is not the time to bask in growth that is due to revenue increases that are strictly due to inflationary changes.

It also means that our focus must be on profitable sales and only from customers that pay their bills in a timely fashion. Because late payments only erode our cash positions.

It also means monitoring cost pressures- and raising prices- when it becomes clear that they are negatively affecting corporate performance.

These are times for us to evaluate our business model- to ensure that it survives the inflationary times. So that we can continue- and grow- our businesses when times return to normal conditions.

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