Many critical business challenges prompted business leaders to seek out business mentoring and coaching in 2023. This article will look at some of the most critical business challenges of 2023 and detail some important business issues to consider for your 2024 strategy.
The Critical Business Challenges of 2023
The predominant critical business challenges in Australia for 2023 included:
Adapting to toughening economic conditions
- Inflation
- Interest rate rises
- Knock on effects of the ‘cost of living’ crunch
- Energy and fuel price rises
- Reduced consumer confidence and reduced demand.
Workforce related challenges
- Skill shortages and wages pressure
- Attracting and retaining talent challenges
- Staff productivity and the good and bad results of remote working and flexible working hours
- Staff and leadership burnout and mental health issues
- Addressing harassment concerns and developing policies for compliance.
- Flow on affects from the wars, including supply chain disruption and embargos e.g., Russian Oil and Lithium
- Managing the ongoing impacts of the global pandemic and relaxation of restrictions
- Navigating regulatory changes and Environmental, Social and Governance (ESG) developments.
Environmental pressures
Embracing and adopting sustainable practices in response to growing environmental concerns e.g., Net Zero targets. One driver is clearly customer demand, as research continues to show that consumers increasingly prefer companies with a solid commitment to reducing their environmental footprint
Cyber security pressures continue to increase
How to handle breeches of data, adopting a ‘when it occurs’ rather than ‘if it occurs’ policy
These are only some of the more collective challenges that affect most businesses. There are many other concerns affecting larger or more specialised businesses, such as:
- Diversity and inclusion
- Industrial relations
- Modern slavery
- Specific climate change factors
- Wage theft.
A qualified and experienced business coach or mentor can be individually matched with business leaders to provide confidential support. Tapping into the experience of a business mentoring or coaching professional for guidance is a valuable resource that can assist you with your own specific business challenges or opportunities.
The Critical Business Challenges for Strategy in 2024
In formulating strategies for 2024, here are some challenges businesses should focus on:
Prioritise your customer experience to build loyalty, reduce risk and gain stronger sales
Your customers’ score at every touchpoint with your company, goods or services demonstrates the whole of your customers’ experience with you. In 2024, the imperative is to ensure that every single interaction and experience makes the customer smile.
This customer service means providing personalised marketing and delivery of what they demand at the right time, on-time, frictionless and with efficient and fair problem resolution. These principles need to be fully integrated into all business strategies.
Get direct customer feedback on all aspects of their experience with the business, preferably using an independent agency to collect the information.
- Invest in digital transformation for enhanced efficiency and a superior customer experience.
- Re-engage all employees (including all senior leadership) to lift momentum and support the business progress on all fronts
- Remain agile to respond to market changes, which needs good market and customer information that is forward looking.
Artificial Intelligence (AI)
The Boston Consulting Group asserts that “to be an industry leader in five years, you need a clear and compelling generative AI strategy today.” AI and machine learning have been making waves for more than a decade and are thoroughly integrated into many of the products and services we buy from major companies.
- Integrate sustainability practices into operations and measure their impact
- Proactively approach workforce performance review and development
- Address skill gaps
Skill shortages need changes in hiring practices to emphasise selecting candidates with specific experiences and skills for a role, as well as training and development.
Enhance collaboration and innovation by fostering strategic partnerships and improving communication internally and externally
Stay ahead of the evolving business landscape through analysis and development of new lines of business to meet profitable future customer demands
Business mentors and coaches can provide you with the support you need when identifying business challenges, helping you to formulate an effective business strategy for 2024 and beyond.
