Inflation is at a 40-year high, which means many business leaders have little to no relevant experience to draw on. They may be tempted to reach for the conventional cost management playbook, but they could also take a cue from leading private equity investors and play offense as well as defense, by exploring whether thoughtful pricing moves can help them set and get the prices their products and services deserve. Pricing to value versus pricing against cost can be a powerful driver of profitability, but it requires an intimate understanding of your customers and a commitment to data-driven pricing rigor.

That’s not to say that cost management doesn’t remain a key strategic response. Approached properly, it can boost top-line revenue, reduce dependence on difficult labor markets, improve employee retention, and achieve superior total shareholder return relative to companies that cut costs more reflexively. Our six-step guide can help you take the cost management actions that not only counter the effects of inflation but generate lasting value.

We have additional resources that can help you manage through inflation, including a collection of relevant insights and research, and a live briefing that will explore near- and longer-term strategies for thriving amid uncertainty and volatility.