INSIGHT | INTERVIEW: RAM CHARAN
Described by Fortune magazine as “the most influential consultant alive,” Dr. Ram Charan is a celebrated thought leader and author, with over 40 years’ experience working with leading companies across the globe. We had the privilege of interviewing him to find out what businesses can do to stay ahead in these inflationary times.
Charan learned business basics while working in his family’s shoe shop in a small town in northern India. He earned an engineering degree in his home country, then did MBA and doctorate degrees from Harvard Business School, where he graduated with high distinction and was a Baker Scholar. He served on the faculties of Harvard Business School and Northwestern University before including Toyota, Bank of America, Novartis, Fast Retailing (Uniqlo), and many more, Charan knows what it takes to run a business well, even in the most adverse of situations. Here he talks about the current period of high inflation and explains what businesses can do to thrive, even in the toughest pursuing consulting full-time. Having worked with companies of circumstances. Adversity is an opportunity to build the future.
What are the biggest challenges that inflation presents to businesses today? First, I would say that psychology is the most important challenge because once people begin to believe that inflation is here for a period of time, they begin to take action to protect their cash flow. Therefore, the psychology of management teams and the psychology of consumers and regulators are central to prolonging inflation. It is the hardest to tame. In the US, there’s now a lot of distrust of the Federal Reserve – the main regulator – because they got the inflation timing wrong. They missed the bend in the road and failed to implement a cohesive action plan. That mistrust has only grown now that the stock market is down 20%, and there is no sign of inflation abatement.
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