Amid rising inflation, the Institute of Directors (IoD) Nigeria has highlighted strategies organisations should adopt to remain in operation.
The institute listed streamlining business processes, keeping a focus on cash flow, repositioning for future growth through improved productivity and assessing supply chain risks, among others, as strategies needed to be adopted for organisations to remain dynamic in challenging times.
Guest speaker and chief consultant, Agokei & Co., Dr. Nosike Agokei, gave the highlight during the institute’s members’ induction. He said a great way to hedge profits against inflation was for businesses to adjust prices accordingly. According to him, to stay efficient during inflation, streamlining business processes will help save costs and make more money with less effort.
“When doing this, it is crucial to maintain your customers’ attention. So, consider using a pricing strategy that helps you earn sales. At the same time, instead of hiking the prices without a clear plan, you could try to have competitive prices that do not force your customers to leave you. Identifying flexibility with suppliers is key to dealing with inflation and restructuring existing debt. Insist on a fixed-rate loan instead of an adjustable-rate loan so your cost of borrowing will remain constant, regardless of economic conditions and also prioritise the most profitable products,” he said.
President and Chairman of Council, IoD Nigeria, Dr. Ije Jidenma, said a significant part of the challenges the country is facing today is not global but self-induced. The IoD chief mentioned problems such as crude oil theft, embedded corruption in PMS subsidy regime, displacement of farmers and areas of domicile are all self-induced.
Noting that the institute is challenged to be part of the solution, she said true leadership requires much more than competence or successful execution of short-term goals.
She urged the newly inducted members that as practitioners, they must promote ethical and responsible leadership to achieve long-term and sustainable goals that would be beneficial to all stakeholders.
While encouraging the directors to make themselves available for service in the institute, she added that the institute has groomed directors into becoming highly responsible ambassadors of corporate governance and sound ethical practices as is obtainable globally.