Pandemics, War, and Inflation: Leading Your GBS Through Uncertainty

From geopolitical conflict to economic instability, it’s apparent that in the world of business, uncertainty can strike from any direction. 

The recent Future of Finance & CFO Exchange panel discussion, Keep Calm and Carry On: How We Lead Through Periods of Disaster and the Lessons Learned, shed light on how GBS leaders can successfully navigate these turbulent times. 

Moderated by John Hall, Former Head of Finance at Bunzl, the panel included Svitlana Dryhush, CFO at METRO Cash & Carry Ukraine, Mohamed ElMeadawy, VP of Finance & Controlling- Emerging Markets at Groupe SEB, and Fabio Pesenti, CFO for Emerging Markets at Zimmer Biomet.

The overarching theme of the session was clear: leadership in times of crisis requires resilience, flexibility, and the ability to adapt. Whether it’s managing the challenges of war, inflation, or supply chain disruptions, GBS leaders need to be able to remain calm, think strategically, and focus on both short-term survival and long-term stability.

Resilience and Agility

Svitlana shared her organization’s incredible journey, which survived the Russian invasion of Ukraine by retaining 95% of its team over three years. She emphasized that the company's crisis strategy was rooted in a collective effort, where the input of every team member was welcomed and valued. 

“Once the war hit, the strategy did not change,” Svitlana noted, emphasizing that customer needs had not shifted, and the strategy to maintain stability until 2030 remained a guiding light. “If you focus on what it takes today to live tomorrow,” she explained, “you will never be fully prepared, but you can survive.”

“If you focus on what it takes to live tomorrow, you will never be fully prepared, but you can survive.”

The panelists agreed that during times of extreme uncertainty, adaptability is key. Mohamed further discussed the importance of agility in leadership, particularly in response to the sudden shift to remote work during the COVID-19 pandemic. He highlighted the importance of transparent communication, listening to team members' ideas, and remaining open to new solutions. 

"Agility in the way we think, and act is key to staying resilient."

Managing Inflation and Currency Fluctuations

The challenges posed by inflation and currency fluctuations were a key concern for Fabio, who pointed out the impact of rising costs on the healthcare sector. In such environments, organizations must prioritize essential functions to ensure their business survives. “In the context of inflation, patients come first,” he explained, stressing the need to balance cost management with the well-being of customers.

“You need to make the wider team understand the pain points, including managing employee salaries and prices.”

For Mohamed, the volatility brought on by hyperinflation and currency fluctuations also required a strategy of prioritization. In times of crisis, stakeholders understand that solutions might not be immediate, but that does not diminish the importance of finding effective ways forward. Strategic partnerships, such as negotiating flexible payment terms with customers or asking for early payments, proved to be key tactics in maintaining stability during uncertain times.

Strategic Partnerships and Crisis Management

Svitlana’s approach to crisis management involved a shift to daily planning during the early days of the war. “We based everything on daily sales to determine how much we needed to cover bills, salaries, and suppliers,” she recalled. This daily target system allowed the company to adapt quickly, gradually shifting to weekly, biweekly, and monthly targets. The key takeaway from her experience: knowing your baseline and protecting it is crucial.

“Strategic partnerships are critical,” she added. By maintaining strong relationships with suppliers and stakeholders, METRO was able to protect its financial position and pay off its debts by August.

“It’s all about protecting your minimum deliverables and ensuring that you’re focused on the survival of the business, even when external circumstances are beyond your control.”

Fabio agreed with this sentiment, adding that in times of uncertainty, focusing on controllable factors and predicting the predictable is crucial for success. “A growth mindset is essential, even in the most challenging of times,” he noted.

Empathy, Emotional Intelligence, and Feedback

The conversation also touched on leadership styles in times of crisis. Both empathy and emotional intelligence were discussed as essential qualities for leaders. Svitlana’s leadership was defined by her willingness to show vulnerability and share in the struggles of her team. “I showed them I am human,” she said. “We are in this together.” Her decision to stay in Ukraine, alongside her management team, to lead by example was pivotal in maintaining team morale.

Fabio, on the other hand, stressed that balancing empathy with action was critical. “I care about the safety of my team, but we also need to focus on solving the crisis at hand. Empathy is important, but we must also act swiftly,” he said.

Mohamed emphasized the role of emotional intelligence, particularly in times of crisis, as leaders need to define clear priorities and redirect teams to focus on what matters most. Active listening, he noted, is crucial in ensuring that employees feel heard while also guiding them back to the business’s key priorities.

Problem Solving and Innovation

When METRO’s supply chain was severely disrupted after the removal of their central warehouse, Svitlana’s team took matters into their own hands, coming up with a new way to redirect documents and maintain operations. “Within a week, we were able to redirect documents straight to the storefront,” she said. This was a prime example of how, in times of crisis, both top-down and bottom-up solutions can come together to solve problems in innovative ways.

Fabio reflected on the importance of fostering a culture where failure is seen as an opportunity to learn. “If you blame someone for failure, you stop them from discovering new ideas,” he explained. “Creating an environment where learning from failure is encouraged can lead to breakthroughs.”

Conclusion: Leading with Resilience and Innovation

The panel discussion at the Future of Finance & CFO Exchange highlighted the importance of resilience, agility, and strong leadership in times of uncertainty. Whether navigating the challenges of war, inflation, or supply chain disruptions, GBS leaders must maintain calm, prioritize what matters most, and stay connected with their teams. By fostering a growth mindset, encouraging open communication, and adapting quickly to changing circumstances, businesses can weather the storm and emerge stronger. The lessons learned from these leaders serve as a valuable guide for navigating future crises and preparing for the unexpected.

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