Economic and geopolitical volatility show no sign of abating anytime soon. Every day we read about multiple wars, an economy that is constantly predicted to go in recession, political divides that run deep, and a world that is about to be turned on its head by AI – and that’s just for starters.
2023 was rocky; it looked like an EKG. Despite the peaks and valleys, many firms like ours ended up with healthy growth. I think 2024 will follow a similar up-and-down pattern and be another test of our will and our business health.
In volatile times, as a professional services provider, I always tell my colleagues to examine the work they do and ask themselves a simple question – “Is it nice or is it necessary?”
At Prosek, necessary work is the kind that either hits a client’s bottom line in a positive way or protects a client from losing business. In our world, “necessary work” often means crisis communications and special situations, such as M&A or a CEO transition. But it’s not only that. Investor relations, marketing and PR-related fundraising, and even launching a new brand or website for a firm that can’t compete with its slicker competitors, can all be extremely necessary.
Nice work includes things that can be put off for another day because they have no urgency or possess a “why now?” factor.
The Nice or Necessary question relates to every investment a firm will make in volatile times. Is that new hire, new office space, new software package, or promotion for your top talent “nice or necessary?” The list goes on.
I have used this “nice or necessary” question not just in business but in life. When new moms come to me justifiably fearful that they won’t be able to juggle it all, I remind them that when we are forced to make choices about the nice and the necessary it’s amazing how efficient we can become. This is why all my new moms come back even more effective than when they left for maternity leave.
I would argue that volatile times and the choices they force you to make are good for a business. Tough choices create discipline and business hygiene that fat times don’t. There is even an argument to be made that businesses that are founded and thrive in difficult times are better companies. After all, they never had the opportunity to get used to the “growth with no profit” mindset that startups born in high times often have.
Q4 is the most important quarter of the year - not just to end the year strong, but to begin 2024 with a buffer against what could lie ahead. So I ask you: Are you focused on the nice or the necessary? That question might make all the difference.
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